1. Opening Hook
Meghmani Organics walked into Q2 FY26 with one hand waving sustainability certificates and the other trying to stop Titanium Dioxide from setting cash on fire. Agrochemicals did the heavy lifting, formulations behaved like adults, and margins finally showed up to work.
Meanwhile, TiO₂ continued its never-ending “next two quarters will improve” saga, crushed between Chinese dumping and raw material inflation. Management sounded confident, honest, and visibly tired of answering TiO₂ questions—always a good sign of transparency, if not profitability.
If you like stories where profits surge despite macro chaos, but one segment refuses to cooperate, keep reading. The good, the bad, and the chemically ugly are all here.
2. At a Glance
- Revenue ₹558 cr (Standalone): Growth showed up, quietly but firmly.
- EBITDA ₹70 cr: Up 71% YoY—formulation magic at work.
- PAT ₹43 cr: From ₹9 cr last year—now that woke people up.
- Crop Protection EBITDA margin ~17%: Finally behaving like a specialty business.
- Pigment EBITDA margin ~3.5%: Barely alive, but technically breathing.
- TiO₂ still loss-making: Anti-dumping duty said hello, pricing said goodbye.
3. Management’s Key Commentary
“We witnessed headwinds from US tariffs.”
(Translation: Exports suffered, but we survived.)
“Formulation contribution is increasing quarter-on-quarter.”
(Higher value, lower headache.) 😏
“Crop Protection EBITDA grew 73% YoY.”
(Margins finally remembered their job.)
“TiO₂ realization has
not improved despite ADD.”
(Policy support ≠ market support.) 😬
“Raw material prices have gone up drastically.”
(Because of course they did.)
“We hope TiO₂ improves in the next two quarters.”
(The most repeated sentence of this call.)
“Crop Nutrition can be a three-digit revenue business next year.”
(Small base, big ambition.) 🚀
4. Numbers Decoded
| Metric | Q2 FY26 |
|---|---|
| Revenue (Standalone) | ₹558 cr |
| EBITDA (Standalone) | ₹70 cr |
| PAT (Standalone) | ₹43 cr |
| Crop Protection Revenue | ₹443 cr |
| Crop Protection EBITDA | ₹75 cr |
| Crop Protection Margin | ~17% |
| Pigment Revenue | ₹115 cr |
| Pigment EBITDA | ₹4 cr |
| Total Debt (Standalone) | ₹597 cr |
| Debt Repaid in H1 | ~₹90 cr |
Decoded: Agrochemicals printing money, pigments surviving, TiO₂ testing patience.
5. Analyst Questions
- Why volumes down but EBITDA up in agrochem?
Management shifted from low-value, high-volume to high-margin products. - Why TiO₂ still losing money despite ADD?
Chinese dumping + raw material inflation = margin destruction. - Any TiO₂ shutdown/divestment plan?
Management avoided deadlines but promised “right call” if losses persist. - Receivables stretched?
