1. Opening Hook
In a world screaming “go green,” Mitsu Chem continues to prove that plastic still pays — as long as it’s molded smartly. The company’s call had all the ingredients of a mid-cap classic: lofty ₹1,000 crore dreams, margin envy, and polymer price woes. Yet, the calmness with which Manish Dedhia handled investor grilling could put meditation gurus to shame. From Maharashtra’s power bills to hospital furniture beds — Mitsu is everywhere, even in sustainability awards. The real question? Can they stretch margins as easily as they stretch polymers. Stick around; it gets interesting. ♻️
2. At a Glance
- Revenue up 13.6%:Growth without fireworks — more marathon than sprint.
- EBITDA up 24.1%:Margins at 6.4% — CFO swears it’s “steady progress,” not a rounding error.
- Net Profit up 65.7%:Small base, big headline. Investors clapped anyway.
- EBITDA Margin 6.37%:Power tariffs in Maharashtra doing more damage than crude prices.
- Capacity Utilization 70%:Machines idle, but management hyperactive.
- Exports to 17 countries:Plastic diplomacy is alive and well. 🌎
3. Management’s Key Commentary
“Despite a challenging polymer environment, we delivered consistent growth.”(Translation: Raw material costs punched us in the face, but we smiled for the camera.)
“Healthcare furniture under our Furnastra brand continues to grow.”(Yes, hospital beds — the only furniture business where customers never leave the room. 🏥)
“Margins have come down due to polymer pressure and location disadvantage.”(Blame the pin code — electricity in Maharashtra apparently costs dreams.)
“We aim for ₹1,000 crore revenue by FY28.”(From ₹350 crore to ₹1,000 crore — apparently optimism is cheaper than HDPE.)
“We export to 17 countries now.”(If only each country bought one hospital bed, we’d hit targets faster.)
“We are debt-based but focusing on internal accruals.”(So… cash flow is a work in progress. 😅)
“Value-added products contribute 15%, target 20% this year.”(Translation: Still mostly commodity, but the PowerPoint looks fancier.)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Growth | Margin/Notes |
|---|---|---|---|
| Revenue | ₹92.56 cr | +13.6% | Volume up 9%, pricing stable |
| EBITDA | ₹5.88 cr | +24.1% | Margin 6.37%, up 53 bps |
| Net Profit | ₹1.88 cr | +65.7% | Margin 2.04%, EPS ₹1.39 |
| H1 Revenue | ₹177.96 cr | +9.95% | Growth despite polymer headwinds |
| H1 EBITDA | ₹10.89 cr | +14% | 6.13% margin |
| H1 PAT | ₹3.20 cr | +43.6% | EPS ₹2.35 |
| Capacity Utilization | ~70% | Room for 30% more shouting from machines |
Quick Decode:Volume up, margins down, optimism up again — classic midcap juggling act. The “extra machines” will crank up production, hopefully before the power bill lands.
5. Analyst Questions
Q:Why are your margins half of peers like Time Technoplast?A:“They use cheap power; we use Maharashtra.” (A poetic excuse.)
Q:₹1,000 crore target — organic or acquisition?A:“We’ll announce soon.” (Read: No clue yet, but sounds bold.)
Q:Any anti-dumping impact?A:“No official knowledge.” (Or unofficial denial?)
Q:What’s your raw material mix?A:“90% HDPE.” (Essentially 90% petrochemicals, 10% prayers.)
Q:How do you protect margins?A:“Monthly price resets.” (Polymer roulette, basically.)
Q:Any customer concentration risk?A:“No one’s more than 5% — we spread the pain evenly.”
6. Guidance & Outlook
Management sees FY26 as a “foundation
