1. At a Glance – Yeh Chemical Hai, Perfume Nahi
Meghmani Organics is that stock which once promised colour (literally pigments) and crops (agrochemicals), but lately has been giving investors more grey hair than green returns. Market cap sits at ₹1,529 Cr, share price around ₹60, down ~26% in 3 months and ~35% in 6 months — clearly not a momentum trader’s shaadi season.
FY25 sales stand at ₹2,253 Cr, but PAT is a thin ₹40.5 Cr, and Q3 FY26 just reported ₹484.9 Cr revenue (-13% YoY) with ₹22.3 Cr net profit (-26%). ROCE is stuck at 3.39%, ROE is negative, and debt remains chunky at ₹841 Cr.
And yet — valuation guys are peeking because the stock trades at ~1x book value, EV/EBITDA near 7.9x, and the government has slapped anti-dumping duty on Chinese Titanium Dioxide. Is this the calm before a chemical comeback or just another “value investor ka test match”? Let’s dissect.
2. Introduction – Once a Blue-Chip (Pigment), Now Feeling a Bit Pale
Founded in 1986 and incorporated in 1995, Meghmani Organics built its reputation in phthalocyanine blue and green pigments and bulk agrochemicals. At its peak confidence level, it ranked among the top 3 global phthalocyanine pigment players and top 10 pesticide producers in India.
Then reality happened.
Cyclicality, Chinese dumping, margin compression, plant fire incidents, debt-funded expansions, and a demand slowdown — all came together like a badly mixed chemical batch. FY24 was ugly. FY25 showed recovery. FY26? Still volatile.
The company now stands at a crossroads:
pigment recovery + agro revival + TiO₂ protection + nano urea dreams versus low returns, high leverage, and fragile margins. So… detective hat on. 🕵️♂️
3. Business Model – WTF Do They Even Do?
Think of Meghmani as a three-vertical chemical thali:
- Agrochemicals: Insecticides, herbicides, intermediates, formulations — sold mostly outside India.
- Pigments: Blue, green, azo, high-performance pigments + now titanium dioxide.
- Crop Nutrition: Nano urea, biostimulants, micronutrients — the “future PowerPoint slide” business.
They manufacture across 6 plants in Gujarat — Ankleshwar, Panoli, Dahej, Vatva, Sanand — basically if you drive in Gujarat industrial belts, Meghmani ka board mil hi jaayega.
4. Financials Overview – Q3 FY26 Reality Check
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 508.74 | 568.51 | 577.26 | -10.5% | -11.9% |
| EBITDA | 37.73 | 40.82 | 52.09 | -7.6% | -27.6% |
| PAT | -3.53 | -4.39 | 11.55 | 19.6% | -130% |
| EPS (₹) | -0.14 | -0.17 | 0.45 | — | — |
Witty Take:
Revenue slipped, margins cooled, profits disappeared again — this quarter basically said: “Main abhi stable nahi hoon.”
👉 Question: If agro EBITDA improved in FY25, why is quarterly volatility still
