Hindprakash Industries Ltd H1 FY26 – When Chemistry Turns into Comedy: Explosive Revenues, Microscopic Profits, and a Lab Full of Drama!
1. At a Glance
Welcome to the fascinating world of Hindprakash Industries Ltd (HPIL) — a ₹151 crore market cap chemical player that’s mixing everything from dyes to adhesives, yet somehow ends up producing more suspense than profits. The company’s Q2FY26 (H1 FY26) results read like a chemical equation gone rogue: revenue of ₹61.49 crore (₹6,148.62 lakh), but PAT of just ₹0.24 crore (₹23.7 lakh).
That’s a net profit margin of 0.38%, the kind of number that would make even the Income Tax Department yawn — which, coincidentally, did visit them last year (yes, there was a search by IT in Nov 2023). Stock price is ₹131, trading at an eyebrow-raising P/E of 158, despite EPS being just ₹0.84.
ROCE of 5.23%, ROE of 2%, and a debt-to-equity ratio of 0.73 show this company runs like a heavily caffeinated chemist—lots of activity, minimal output. Still, promoters hold 74.85%, showing they believe in their potion. Whether it’s optimism or stubbornness is for you to decide.
The last 3 months’ return? -1%. The last year? -19.4%. But hey, they’ve got a new adhesive line and 6000+ colours — so maybe the future’s brighter… or at least more vibrant!
2. Introduction
When a company’s products include dyes, pigments, adhesives, and chemicals, you expect vibrancy, right? Well, Hindprakash Industries delivers colour in buckets but profits in droplets. Founded in 2008 and proudly part of the Hindprakash Group, this Ahmedabad-based firm has created a spectrum of chemicals that probably make your favourite T-shirt bright — and your portfolio pale.
In the past few years, HPIL has danced between expansion and stagnation like a Bollywood extra unsure of the choreography. Revenue touched ₹121 crore in FY25, a 42% jump, but PAT sank 48%. A profit growth rate of -28% over 3 years isn’t exactly the colour of success.
And yet, HPIL made some bold moves: acquiring Hindparagon Polyresins Pvt Ltd in 2023, a 19% stake in Orio Shanghai Colours Pvt Ltd, and even migrating from SME to the main board of both NSE and BSE in 2022. It’s like moving into a bigger house but still renting your furniture.
Today, HPIL stands as a symbol of small-cap India — ambition, activity, and a balance sheet that’s doing push-ups.
3. Business Model – WTF Do They Even Do?
In plain English: Hindprakash Industries manufactures and trades in colours, chemicals, and compounds used by textile, paint, plastic, and construction industries. Think of them as the silent backstage worker who makes sure your jeans are blue, your walls are yellow, and your detergent smells “fresh lemon breeze.”
They make Dyestuffs, Dye Intermediates, Auxiliaries, Adhesives, Resins, and Pigments — basically everything your chemistry lab warned you not to mix. The company also trades solvents, chemicals, and synthetic food colours.
A few highlights from their lab of chaos:
Dyes like Acid, Direct, Reactive — because fashion must pop.
Intermediates like Cyanuric Chloride and Aniline Oil — the core stuff for dye houses.
Adhesives & Resins for paints and industrial coatings.
Auxiliaries for textile finishing.
Manufacturing happens in Vatva, Gujarat, with an in-house setup that handles everything — from raw material sourcing to drying, blending, packaging, and dispatch. They even have two warehouses and use third-party logistics.
So what’s missing? Maybe a catalyst for profit.
4. Financials Overview
Let’s dissect the Q2FY26 (Sep 2025) numbers — the half-year lock is now ON (H1 FY26).
Metric
Latest Qtr (Sep 25)
YoY Qtr (Sep 24)
Prev Qtr (Jun 25)
YoY %
QoQ %
Revenue
₹31.33 Cr
₹20.29 Cr
₹30.15 Cr
+54.4%
+3.9%
EBITDA
₹0.44 Cr
₹0.38 Cr
₹0.52 Cr
+15.8%
-15.4%
PAT
₹0.14 Cr
₹0.66 Cr
₹0.10 Cr
-78.8%
+40.0%
EPS (₹)
0.12
0.58
0.09
-79.3%
+33.3%
Commentary: Revenue grew impressively, but profits shrank faster than a cotton shirt in hot water. Despite 54% YoY sales growth, profit dropped nearly 79%. Operating margin stands at a fragile 1.4%, which is almost spiritual in thinness.
Annualised EPS = ₹0.12 × 4 = ₹0.48. At ₹131 CMP, that’s a P/E of ~273x on annualised EPS.
Either the market expects a miracle, or someone’s been inhaling too many solvent fumes.
5. Valuation Discussion – Fair Value Range (Educational Only)
Let’s get nerdy.
Method 1: P/E Valuation Industry PE ≈ 18.4 Company EPS (annualised) = ₹0.48 → Fair Value = ₹0.48 × 18.4 = ₹8.8 per share
Method 2: EV/EBITDA EV = ₹189 Cr EBITDA FY25 = ₹2 Cr EV/EBITDA = 94.5x (Actual) Even a generous 20x multiple gives EV = 20 × 2 = ₹40 Cr → per share ≈ ₹28
