Epigral Limited has submitted the transcript of its Q2 FY27 earnings conference call, highlighting a 28% revenue growth driven by volume and improved realizations. The company also discussed its strategic capacity expansions in CPVC and Epichlorohydrin, along with its positive outlook for the second half of the fiscal year. Financials showed EBITDA growth of 3% year-on-year.
Epigral Limited Discloses Q2 FY27 Performance and Outlook
Epigral Limited has officially filed the transcript of its conference call discussing the company’s financial results for the second quarter of FY27 (Q2 FY27). The report details the company’s performance amidst a challenging chemical industry environment, emphasizing revenue growth and strategic initiatives for future expansion.
Key Financial Highlights
During Q2 FY27, Epigral reported a significant revenue growth of 28% compared to the same period in the previous year, reaching INR752 crore. This increase was attributed to a 6% rise in sales revenue and improved realizations across most products. The company’s EBITDA saw a 3% increase, amounting to INR136 crore, though the EBITDA margin was impacted by high raw material prices. Profit After Tax (PAT) grew by 26% to INR64 crore.
For the first half of FY27 (H1 FY27), revenue grew by 21% to INR1,461 crore, with an EBITDA margin of 22%. The company maintained a positive outlook for the second half of FY27, citing India’s growing demand for chemicals.
Strategic Growth and Capacity Expansion
Epigral is actively pursuing capacity expansions for CPVC and Epichlorohydrin, with both plants in the final stages and trial runs underway. These are expected to be commissioned within the next quarter. The company is also moving forward with approved projects for epoxy resin and multi-purpose plants, with pilot plants now ready for customer approval.
The company highlighted its commitment to strengthening its integrated manufacturing platform and expanding into high-value chemical products. The derivatives and specialty business contributed 57% of total revenue in Q2 FY27, a segment expected to grow further.
Operational and Market Insights
Management discussed the volatile market conditions, including the impact of rising feedstock prices and global freight rates. Despite these challenges, Epigral’s strategies focus on value addition and enhancing its product portfolio. The company expects its chlorotoluene business to generate approximately INR100 crore in revenue this year, with potential to reach INR300-350 crore at optimum utilization levels.
Discussions also covered pricing dynamics for products like caustic soda and chlorine, as well as capacity utilization for ECH (75-80%), hydrogen peroxide (95%), and caustic soda (75%) in Q2 FY27. The company is also investing in renewable energy, aiming to source 30-35% of its total demand from solar and wind hybrid projects within 2-3 years to reduce energy costs.
Future Outlook
Epigral anticipates continued growth, supported by its ongoing capex plans and the increasing demand for chemicals in India. The company aims to leverage its integrated manufacturing capabilities and expanding product range to deliver consistent growth and long-term stakeholder value.
Source: BSE
