1. At a Glance
Ultramarine & Pigments is what happens when a 1960s pigment factory gets a BPO side hustle. Q1 FY26 profit? ₹20 Cr. Revenue? ₹184 Cr. P/E? 22. Dividends? Regular like clockwork. Promoter holding? Slipping. It’s not flashy — but it cleans up… literally.
2. Introduction with Hook
If chemical stocks were types of soap, Ultramarine would be Lifebuoy — reliable, antibacterial, but not sexy.
Started off coloring the world (pigments), then decided to add bubbles (surfactants), and finally threw in IT services for good measure. The result? A diversified midcap that smells of detergent and cash flows.
In Q1 FY26, it scrubbed up ₹184 Cr in revenue (+13% YoY) and ₹20 Cr in PAT (+18% YoY), showing the company may be boring — but not lazy.
3. Business Model (WTF Do They Even Do?)
They sell:
- Pigments – Makes things blue. And sometimes green.
- Surfactants – For soaps, detergents, and shampoo.
- IT & BPO – Because why not?
Segment Revenue Breakdown (FY23):
- Surfactants: 59%
- Pigments: 32%
- IT Services: 9%
Basically, it’s the uncle who runs a paint shop by day and does data entry for an MNC at night.
4. Financials Overview
Q1 FY26:
| Metric | Q1 FY26 | YoY Growth |
|---|---|---|
| Revenue | ₹184 Cr | +13% |
| EBITDA | ₹32 Cr | +39% |
| PAT | ₹20 Cr | +18% |
| OPM | 17% | Flat |
Last 12 months:
- Revenue: ₹719 Cr
- PAT: ₹79 Cr
- OPM: 17%
- EPS (TTM): ₹26.95
Margins steady like a South Indian filter coffee routine.
5. Valuation
P/E Based Approach:
- TTM PAT: ₹79 Cr
- Shares: ~2.95 Cr
- EPS: ₹26.95
- CMP: ₹594
- P/E: ~22
Fair P/E Range: 18x–25x
Fair Value Range: ₹485 – ₹675
EV/EBITDA Method:
- EBITDA (TTM): ₹123 Cr
- EV/EBITDA fair range: 8x–10x
- Implied EV: ₹984–₹1,230 Cr
- Net Debt: Negligible
- Fair Equity Value: ₹1,000 – ₹1,250 Cr → Implied Share Price: ₹340 – ₹425
Conclusion: Market’s pricing in a strong detergent cycle or an unexpected AI BPO boost. Either way, valuations are soapy.
6. What’s Cooking – News, Triggers, Drama
- Q1 PAT Up 18% – without drama. Clean as their surfactants.
- Diversified Segment Mix – Surfactants still dominate but pigments gaining.
- Boringly Consistent – Which, in a chemical business, is a good thing.
- No Insider Drama – Just the promoter steadily ghosting the cap table.
No frauds, no explosions, no random crypto pivots. Disappointing for Twitter, great for balance sheets.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity | ₹6 Cr |
| Reserves | ₹967 Cr |
| Borrowings | ₹94 Cr |
| Investments | ₹513 Cr |
| Total Assets | ₹1,173 Cr |
Healthy reserves. More investments than a retired banker. D/E low. No risk of leverage giving the company an ulcer.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹62 Cr | ₹-55 Cr | ₹-2 Cr | ₹5 Cr |
| FY24 | ₹78 Cr | ₹-51 Cr | ₹-18 Cr | ₹10 Cr |
| FY25 | ₹90 Cr | ₹-42 Cr | ₹-33 Cr | ₹15 Cr |
Cash flow from ops: Solid.
Investing: Moderate.
Financing: They return more than they raise.
Net cash up — because someone’s managing money better than most startups.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 10.4% |
| ROE | 7.99% |
| D/E | 0.09x |
| PAT Margin | 11% |
| OPM | 17% |
Returns aren’t spicy, but they’re healthy. ROE’s not breaking any records — but it won’t break your heart either.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹561 Cr | ₹95 Cr | ₹58 Cr |
| FY24 | ₹695 Cr | ₹119 Cr | ₹75 Cr |
| FY25 | ₹719 Cr | ₹123 Cr | ₹79 Cr |
Stable top-line growth. PAT growing at a Tupperware party pace — slow, but dependable.
11. Peer Comparison
| Company | Rev (TTM) | PAT (TTM) | P/E | ROE |
|---|---|---|---|---|
| Ultramarine | ₹719 Cr | ₹79 Cr | 22.1 | 7.99% |
| Sudarshan Chem | ₹2,760 Cr | ₹142 Cr | 68.0 | 11.3% |
| Kiri Industries | ₹740 Cr | ₹265 Cr | 12.0 | 8.7% |
| Heubach Colorant | ₹825 Cr | ₹58 Cr | 23.7 | 11.6% |
Ultramarine: The sober uncle in a room full of drunk cousins.
12. Miscellaneous – Shareholding, Promoters
| Category | Sep ’22 | Jun ’25 |
|---|---|---|
| Promoters | 42.96% | 40.50% |
| FIIs | 0.71% | 1.12% |
| DIIs | 0.31% | 1.26% |
| Public | 56.02% | 57.12% |
Promoters have slowly tiptoed out — from 43% to 40.5%. FII & DII interest ticking up. Public still holding over 57%. Also, nearly 0 debt stress — even the CFO sleeps well.
13. EduInvesting Verdict™
Ultramarine is a midcap you marry, not date.
Steady, cash-generating, dividend-paying — but don’t expect any spicy rallies unless they accidentally invent glow-in-the-dark detergent.
Final Word:
A mild chemical romance. May not dazzle your portfolio, but won’t stain it either.
Metadata:
Written by EduInvesting Team | July 23, 2025
Tags: Ultramarine, Chemicals, Surfactants, Pigments, Q1FY26, EduInvesting Premium
