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1. At a Glance
J.G. Chemicals makes zinc oxide, a white powder it sells in about ninety slightly different grades. Revenue for the three months to June 2026 was ₹315.65 crore, up 44.8% on the year. Operating profit came in at ₹33.52 crore, against ₹19.80 crore in the same quarter last year. Net profit attributable to owners rose 59.0%, to ₹25.08 crore. Earnings per share, which is profit divided by the number of shares, was ₹6.40 against ₹4.02.
Management called it the “best-ever quarterly performance”. By the company’s own reckoning, revenue, operating profit and net profit each stood at quarterly highs.
Elsewhere in the quarter’s paperwork, the 94%-owned subsidiary BDJ Oxides bought 16.74 acres in Andhra Pradesh on 18 August 2026. The land cost ₹18.41 crore. The Dahej greenfield plant in Gujarat will cost ₹100 crore and add more than 40,000 tonnes a year. It is funded entirely from internal accruals, meaning money the business generated itself, and is at the equipment-installation stage. Phase 1 commissioning is targeted for the three months to December 2026, which the CFO guided as “sometime in November”. A debottlenecking at Naidupeta, which lifts output by widening the slowest step, is scheduled for the same quarter and adds roughly 5,000 tonnes.
The company holds about a 30% share of the Indian zinc oxide market. Its own filings place it among the top five producers globally. It sells to 9 of the world’s top 10 tyre manufacturers. Working capital days, the gap between paying suppliers and being paid, stood at 156 for the year to March 2026. Borrowings on the March 2026 balance sheet were ₹6.45 crore. Finance costs for the June quarter came to ₹0.10 crore, which would not cover a mid-sized wedding. Market capitalisation is ₹2,437 crore.
2. Introduction
Screener dates the company to 2001, and CRISIL, a credit-rating agency, dates it to 1975. Either way, it has been making zinc oxide for a while. The investor presentation starts the story in 1975, at a small Kolkata plant making about 600 tonnes a year. The installed base today is close to 70,000 tonnes a year of zinc chemicals, across three plants. That works out at a rate of growth most people would describe as patient.
Two of those plants sit in West Bengal. Jangalpur makes 14,400 tonnes of zinc oxide and 5,040 tonnes of recycled zinc ingots a year. Belur makes 1,800 tonnes. The third, at Naidupeta in Andhra Pradesh, is run by the subsidiary BDJ Oxides and is the big one. It makes 43,704 tonnes of zinc oxide and 2,016 tonnes of ingots a year. Zinc sulphate and allied chemicals add another 10,080 tonnes. Company filings call Naidupeta the only IATF-approved zinc oxide facility in the world, with WHO GMP certification alongside. When a plant carries more certificates than a competitive swimmer, the certificates are rather the point of it.
The customer base has gone from roughly 10 names to more than 200 domestic ones. More than 50 global customers across over 10 countries buy as well, and repeat customers run above 90%. The client list takes in MRF, Apollo Tyres, CEAT and JK Tyres. Bata, UPL, Continental and Goodyear are on it too. So are Zuari Agro and Relaxo.
The company listed on 13 March 2024, raising ₹221 crore, of which ₹165 crore was fresh issue. That money was earmarked for investment in BDJ Oxides, working capital and the traditional general corporate purposes, which is the accounting equivalent of a kitchen drawer. Massachusetts Institute of Technology came in as an anchor investor, committing before the issue opened. As of June 2026 it still held 2.62%.
Since listing, the corporate calendar has been dominated by one letter of the alphabet: D, for Dahej. Land was bought in May 2025, 11.43 acres for ₹24.05 crore. The Board approved the capital spending in August 2025. Civil works had advanced and equipment installation was underway as of the August 2026 presentation. The Board meeting that approved the ₹100 crore project also approved the cost auditor’s fee of ₹25,000 a year, both disclosed with identical gravity. Phase 1 at Dahej is targeted for commissioning in the three months to December 2026.
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3. Business Model: WTF Do They Even Do?
The company buys zinc that somebody else has already finished using, and turns it back into zinc. More precisely, J.G. Chemicals is India’s largest zinc recycler, buying zinc dross, ash and scrap. Its own presentation notes that this feedstock “comes in different size, shapes and quality”, a sentence doing enormous quiet labour. The material goes through the French process and comes out as zinc oxide.
About 73% of the zinc used is secondary rather than primary metal. The company says that cuts energy consumption by 82% and the carbon footprint by 70%. The presentation also claims 80% less air pollution and 76% less water pollution than virgin ore. Water use per unit produced is 40% lower on the same comparison.
Zinc oxide’s largest home is rubber, where it works in vulcanisation, the heat treatment that toughens rubber. It improves elasticity, resilience and weather resistance. The business is therefore, functionally, an input to tyres. Rubber and tyre accounted for 85.0% of revenue in the year to March 2026. The same figure was 89.7% in the year to March 2024. On the year to March 2025 split, pharma and chemicals was 8.2%, with agri at 3.7% and others 3.1%.
The same compound also turns up in ointments, wound-healing products, alkaline batteries and ceramics. It raises energy density in batteries, and in ceramics it lowers melting temperature and improves colour glazes. Zinc
