01 — At a Glance
Sticky Things, Sticky Margins, and a Very Sticky Demerger Drama
- 52-Week High / Low₹3,032 / ₹1,020
- Q3 FY26 Revenue₹451 Cr
- Q3 FY26 PAT₹21.5 Cr
- TTM EPS₹82.2
- Annualised EPS (Q3 Avg × 4)₹94.5
- Book Value / Share₹274
- Price to Book6.05x
- Operating Margin10.7%
- Debt / Equity0.10x
- Return (52-weeks)-45.3%
Flash Summary: JACPL posted Q3 revenue of ₹451 crore (+13.4% YoY), but profit barely budged year-on-year due to input cost pressures. What’s truly bonkers: 9M FY26 profit is ₹107.9 crore, up 50% YoY. Margins are 31.5% ROE, 33.2% ROCE. The agri demerger triggered panic selling. The market dropped this stock from ₹2,242 (Feb 2026) to ₹1,658 (Mar 2026). Ask yourself: when was the last time you saw a 31% ROE company trade down 26% in five weeks while fundamentals got *better*?
02 — Introduction
Jivanjor, Charmwood, Ultra Italia, and the Agri Nobody Wants to Talk About
You’ve glued something to something else in India. A poster to a wall. A label to a bottle. A veneer to plywood. That adhesive had a decent chance of being made by Jubilant Agri and Consumer Products Limited. They’re not household names like Pidilite (Fevicryl, M-Seal), but they’ve captured serious category share in specialty adhesives, wood finishes, and polymers. Nobody talks about them at dinner parties. But venture capitalists, industrialists, and automotive engineers know exactly who they are.
JACPL is part of the Jubilant Bhartia group — a diversified conglomerate that does pharmaceuticals, chemicals, food services, and life sciences. The company demerged from Jubilant Industries in FY24 and listed on NSE/BSE. Since listing, it’s been doing the most classically Indian corporate theatre: announcing a demerger that prompted panic selling, then posting data so good that the panic looks retrospectively hilarious.
Two business poles: Performance Polymers & Chemicals (62% of revenue — the moneymaker), and Agri Products (38% of revenue — the drain). They run eight manufacturing plants, export to 30 countries, and hold market leadership in categories most people have never heard of. Position: No. 1 in India for SPVA (food polymers), Vinyl Pyridine Latex (automotive tyres), SSP fertilizer in UP. Global No. 2 for SPVA. The demerger separates the high-margin polymers business from the low-margin agri business. The market heard “demerger” and sold first, asked questions never. Then 9M FY26 showed profit was up 50%. Oops.
Concall Insight (Feb 2026): During the earnings concall, management disclosed that they’re deploying ₹50 crore capex over 12 months to expand polymer capacity by 30,000 MTPA. Current utilization is at ~79%. Demand for SPVA and VP Latex is “healthy,” with strong domestic and export traction. The demerger will unlock the agri business’s standalone valuation. Translation: the growth story is on cylinders, and the market panicked at a corporate shuffle.
03 — Business Model: WTF Do They Even Do?
Glue, Latex, Fertilizer. And a Whole Lot of Untapped Margin Upside.
Let’s split this into two pictures, because they’re fundamentally different beasts.
Performance Polymers & Chemicals (62% of revenue, the crown jewel)
JACPL makes Solid Polyvinyl Acetate (SPVA), which is a food polymer used in chewing gum base. They’re No. 1 in India, globally No. 2 after China. They also make Vinyl Pyridine Latex (VP Latex), used in automobile tyres, conveyor belts, and industrial coatings. India’s No. 1, globally No. 1 outside China. Then there’s the consumer adhesives: wood adhesives (Jivanjor, Ultra Italia), wood finishes (Charmwood), instant adhesives, and specialty construction adhesives.
Why does this matter? These aren’t commodities. SPVA and VP Latex are specialty polymers with high switching costs. A tyre manufacturer doesn’t wake up and switch suppliers on a whim. A chewing gum company doesn’t source SPVA from somebody new without qualification trials. Customers are sticky. Margins are 15-18% on polymers vs. 8-10% on fertilizer. This is why the demerger makes strategic sense.
Agri Products (38% of revenue, the spinner)
They make Single Super Phosphate (SSP) — a phosphate fertilizer they’re No. 1 for in Uttar Pradesh. They also make crop nutrients (micronutrients, biostimulants, plant growth regulators) under the Ramban brand. Government subsidises fertilizers, so volumes are large but margins are crushed. A ₹400/ton subsidy doesn’t leave room for heroic profitability. This is why JACPL wants to demerge it — focus the parent company on high-margin polymers.
SPVA Market ShareNo. 1 IndiaNo. 2 Global
VP Latex MarketNo. 1 Global(excl. China)
SSP LeaderUP StateFertilizer play
8 Factories₹50 CrCapex in Q
Concall Note: Management said demand for polymers is “strong and steady.” SPVA volumes are growing double digits. VP Latex has “traction in replacement tyre and cord fabric markets.” The demerger enables agri to pursue a “bulk fertilizer + agri nutrients” strategy independently. Translation: polymers keep growing at double digits. Agri becomes somebody else’s problem. Smart move.
04 — Financials Overview
Q3 FY26: The Numbers Don’t Lie (But The Market Panic Did)
Result type: Quarterly Results | Q3 FY26 EPS: ₹14.26 | Average Q1–Q3 EPS: (₹29.21+₹27.41+₹14.26)/3 = ₹23.63 | Annualised EPS: ₹94.52
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 451 | 398 | 513 | +13.4% | -12.1% |
| EBITDA | 39.3 | 34.2 | 63.9 | +14.9% | -38.5% |
| EBITDA Margin % | 8.7% | 8.6% | 12.5% | +11 bps | -375 bps |
| PAT | 21.5 | 21.3 | 42.3 | +1.0% | -49.1% |
| EPS (₹) | 14.26 | 13.89 | 27.41 | +2.7% | -48.0% |
Q3 Story: Revenue is up 13.4% YoY, EBITDA up 14.9%, but PAT is basically flat. Why? Input cost inflation hit the polymers business in Q3. VAM (vinyl acetate monomer — the raw material for adhesives) spiked. Management said on the concall: “Input costs have moderated since January 2026, so we expect Q4 margins to normalise.” Agri business surged 34% revenue, 89% profit YoY (strong crop season). The flat PAT masks a composition shift: chemicals squeezed, agri booming.
9M FY26 (the actual story):
- Revenue₹1,405.9 Cr (+21% YoY)
- EBITDA₹166.5 Cr (+41% YoY)
- PAT₹107.9 Cr (+50% YoY)
- EPS (9M)₹70.41 (+50% YoY)
💬 So PAT grew 50% in 9M, but the stock fell 26% in one week. Do you think the demerger was genuinely bad news, or did the market just misread the filing and panic?
05 — Valuation: Fair Value Range
₹1,658 is Cheap. But How Cheap? Let’s Do The Math Three Ways.
