1. At a Glance – The Blue-Chip That Literally Makes Blue
₹433 per share.
₹1,263 Cr market cap.
Q3 FY26 Sales: ₹196 Cr.
Q3 FY26 PAT: ₹27 Cr.
Operating Margin: 18%.
P/E: 15.7.
Price to Book: 1.19.
Debt to Equity: 0.08.
Dividend Yield: 1.39%.
3-Month Return: -0.85%.
Meet Ultramarine & Pigments Ltd, a company that sounds like it manufactures Instagram filters but actually makes pigments, surfactants, and even runs an IT/BPO business. Because why stick to one thing when you can color the world and outsource its call center?
Q3 FY26 numbers are not flashy, but they are stable. Revenue at ₹196 Cr, PAT at ₹27 Cr, and EPS at ₹9.28. Margins improved to 18% OPM. Not bad for a company that most investors only remember when their detergent packet mentions “ultra blue.”
But here’s the real twist — promoter holding gradually slipped to 40.45%, yet they keep increasing stake in Thirumalai Chemicals Limited.
Are they building an empire quietly?
Or just reorganizing chairs on a chemical Titanic?
Let’s investigate.
2. Introduction – The Most Underestimated Chemical Stock?
In India, chemical companies are either hyped to the moon or ignored like your gym membership after January.
Ultramarine & Pigments sits in the ignored category.
It doesn’t scream “China+1 story.”
It doesn’t host grand concalls with dramatic guidance.
It just quietly manufactures pigments, surfactants, and specialty chemicals.
FY23 revenue mix:
- Surfactants: 59%
- Pigments: 32%
- IT & BPO: 9%
Yes, IT & BPO. Because apparently even chemical companies need a Plan B.
Exports contribute 28% of sales. That’s respectable global exposure without betting the house on forex drama.
The interesting part?
They’ve been investing in new pigment plants, specialty chemical plants, and even wind turbines. Meanwhile, margins hover in the mid-teens.
So the big question:
Is this a boring dividend-paying chemical uncle stock?
Or a turnaround candidate quietly improving margins?
3. Business Model – WTF Do They Even Do?
Let’s simplify this.
1️ Pigments Division (32%)
They manufacture inorganic pigments. Think paints, plastics, coatings — anything that needs color. Blue, especially.
They commissioned:
- 1500 MT greenfield pigment project (70% utilization achieved)
- 2250 MT new pigment plant (₹80 Cr capex)
- Complex inorganic pigment plant (₹37 Cr project)
Premium pigments = better margins.
Translation: More colorful profits.
2️ Surfactants Division (59%)
This is the breadwinner.
They supply surfactants to FMCG companies in South India. Surfactants are basically the cleaning muscle in detergents.
They also sell detergent under “OOB” brand.
So yes — they make chemicals for your detergent AND sell detergent. Vertical integration vibes.
3️ IT & BPO Division (9%)
Why not?
Because diversification.
They also operate 6 wind turbines (4.3 MW capacity). Generated 61.84 lakh units in FY23. Mostly used captively.
Saving electricity bills = invisible margin booster.
Now tell me — how many chemical companies also generate wind power?
4. Financials Overview – Numbers Don’t Lie (Usually)
Q1 EPS: 6.91
Q2 EPS: 6.63
Q3 EPS: 9.28
Average = (6.91 + 6.63 + 9.28) / 3 = 7.61
Annualised
