1. At a Glance
₹652 crore market cap. Stock down ~23% in 6 months. Trading below book value at 0.85x P/B. EV/EBITDA sitting lazily at 4.36x, like it’s waiting for a rerating invitation that never arrives. Q3 FY26 revenue came in at ₹158 crore, down 6.8% YoY, but PAT still grew 1.9% YoY to ₹10.8 crore—classic Transpek behaviour: sales sleep, margins hustle.
ROCE is 10%, ROE 7.75%—not embarrassing, not exciting. Debt is almost gone at ₹40.8 crore, interest coverage is a comfy 9.2x, dividend yield is 1.7%, and promoters are chilling at 57.5% with zero pledge.
So why is the stock sulking? Because when 62% of revenue comes from North America, and your largest customer is DuPont, US tariffs don’t knock politely—they kick the door in. Welcome to Q3 FY26, where valuation says “cheap”, business says “solid”, and geopolitics says “beta le lo”.
Curious already? Good. Let’s dig.
2. Introduction – Old Chemical, New Problems
Transpek Industry Ltd is that rare Indian chemical company that doesn’t shout on Twitter, doesn’t announce moonshot capex every quarter, and doesn’t pretend it’s a “platform play”. Incorporated in 1965, part of the Excel Group, Transpek has survived multiple chemical cycles, environmental regimes, and investor fashions.
This is not a sexy specialty chemical story with 30% CAGR PowerPoint slides. This is a chlorine-handling, acid-chloride-making, process-heavy business that quietly ships dangerous molecules across oceans in ISO tanks while everyone else argues about valuation multiples.
But FY25–FY26 hasn’t been kind. Sales growth over 5 years? ~3% CAGR. Profit growth over 5 years? Negative. Stock returns over 5 years? Also negative. And yet, TTM profit is up 66%, balance sheet is cleaner than ever, and valuation has collapsed to levels where even pessimists start squinting twice.
Is this a classic cyclical trough? Or a structurally capped business dressed up as “cheap”? That’s the
real question.
What do you think—value trap or value nap?
3. Business Model – WTF Do They Even Do?
Transpek does chlorinated chemistry. Not Instagram chemistry. The kind that smells bad, corrodes equipment, and requires serious safety protocols.
Core strengths:
- Handling chlorine and sulphur
- In-house processes for Thionyl Chloride, acid chlorides, alkyl chlorides
- Complex reactions like chlorination, Friedel–Crafts, sulfonation, amidation
In simple terms: Transpek makes reactive intermediates that pharma, agrochemical, polymer, dye, and specialty chemical companies can’t live without but don’t want to manufacture themselves.
Their 66,000 MTPA plant in Ekalbara, Vadodara sits on 100 acres, with contract manufacturing, job work, and customized batches. Add 600+ ISO tanks, in-house tank cleaning, and global logistics capability—and you’ve got a niche moat that’s hard to replicate casually.
Revenue mix (H1 FY26):
- Polymers: 62.5%
- Specialty chemicals: 12.1%
- Pharma: 8.7%
- Others: 16.7%
Geography:
- International: 83.3%
- North America alone: 61.9%
That last line is both the superpower and the curse.
If chlorine chemistry were a gym, Transpek would be the guy who can deadlift 300 kg—but refuses to run.
4. Financials Overview
Q3 FY26 Performance Table (₹ crore)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 158.5 | 170.0 | 160.0 | -6.8% | -0.9% |
| EBITDA | 25.3 | 24.0 | 27.0 | +5.4% | -6.3% |
| PAT | 10.85 | 10.65 | 12.95 | +1.9% | -16.2% |
| EPS (₹) | 19.42 | 19.07 | 22.63 | +1.8% | -14.2% |
Annualised EPS (Q3 rule):
Average of Q1, Q2,
