Epigral’s Q3 FY26 results reveal marginal revenue growth of 2% sequentially, while volumes remained largely flat. Derivatives and specialty businesses contributed 52% to revenue. EBITDA margins contracted to 17% due to lower realizations and rising raw material costs, however, 9-month FY26 margins remained strong at 22%. The company anticipates improved performance in coming quarters, driven by recovering demand and completed plant maintenance.
Q3 FY26 Financial Performance
Epigral reported a slight revenue increase of 2% sequentially in Q3 FY26, with revenue reaching INR 603 crores. Volume growth remained largely flat compared to the previous quarter. The company’s plant utilization rate stood at 78%. The derivative and specialty business segments contributed 52% of the total revenue, up from 50% in the prior quarter.
Profitability and Margins
EBITDA for Q3 FY26 decreased by 22% to INR 103 crores. This decline was attributed to lower product realizations, increased raw material costs, and higher inventory costs. The Profit After Tax (PAT) was reported at INR 39 crores, compared to INR 51 crores in the previous quarter, which includes a one-time expense related to changes in Labor Code.
9-Month FY26 Performance
For the first nine months of FY26, Epigral’s plant utilization rate was 76%, resulting in a 7% decrease in revenue to INR 1,807 crores. EBITDA stood at INR 398 crores, with margins at 22% compared to 28% in the corresponding period of the previous year.
Strategic Developments and Outlook
The company commissioned its chlorotoluene value chain plant in March 2025, which is expected to significantly contribute to profits from FY27 onwards. Capex projects to double capacity at CPVC, epichlorohydrin, and wind solar hybrid power plants are progressing as scheduled, aiming for commissioning within announced timelines. Epigral aims for 70% revenue contribution from derivatives and specialty businesses.
Future Expectations
Epigral anticipates improved performance in the upcoming quarters due to recovering demand and completed plant maintenance. The company expects positive momentum to persist, with a focus on scalable, profitable growth and strengthening integration across its operations.
Source: BSE
