Bhageria Industries Limited

Bhageria Industries reported a robust first half of FY26, with total income reaching ₹369.99 crores, marking a 48% year-on-year growth. EBITDA also increased by 48% to ₹48.94 crores, and net profit saw an impressive 83% growth, totaling ₹22.36 crores. The net margin for H1 FY26 improved to 6%, reflecting effective cost management and higher realizations, despite some segment-specific margin pressures.

The company announced the commencement of commercial production for a new Plasticizer product line by the end of December 2025. This initiative, backed by a relatively low CAPEX of approximately ₹10 crores, is projected to generate a significant annual revenue of ₹240 crores. This move marks Bhageria's entry into the polymer energy space, targeting applications in PVC cables, flooring, and footwear, aligning with its strategy to diversify into higher-margin specialty segments.

Bhageria is expanding its H-ACID capacity at its Tarapur facility, increasing it from 400 metric tons per month to 500 metric tons per month. This expansion, requiring an investment of approximately ₹5 crores, is scheduled for completion within the next three months and is expected to be online by January end. Once fully operational, this incremental capacity is anticipated to add ₹50-75 crores in additional annual revenue, building on the plant's current 95% utilization rate.

In the pharmaceutical sector, Bhageria is manufacturing Dexamethasone base and Dexamethasone Sodium Phosphate, aiming to cater to regulatory markets where gross margins are expected to be in the 30-60% range. The company plans to file US DMF for Methylcobalamin in November and Japan DMF in December. While the pharma business typically has a 4-5 year gestation period, management expects this segment to break even within the next two years.

The company's 32-megawatt solar project, with a CAPEX of ₹152 crores, is set to contribute significantly to its renewable energy portfolio. This project is expected to generate an annual revenue of ₹22 crores, based on a Power Purchase Agreement (PPA) rate of ₹3.08 per unit. The project boasts an attractive equity Internal Rate of Return (IRR) of approximately 16% and an EBITDA margin of 75-80%, underscoring its focus on sustainable and cost-effective operations.

The dye intermediate segment experienced margin compression in Q2 FY26, with margins shrinking from a historical 15-16% to 10%. This decline was primarily attributed to higher raw material prices and the impact of global market conditions, particularly in the US and European countries. However, management expressed confidence in a 2-3% margin improvement going forward^⏳, driven by a focus on the export segment which is currently performing well, and the cessation of dumping by Chinese competitors.

For the full financial year 2026, Bhageria Industries provided guidance for its chemical segment, projecting revenue to be in the range of ₹725 to ₹775 crores. This outlook reflects the company's confidence in maintaining its growth trajectory through continued product innovation, capacity expansion, and diversification efforts, despite the competitive environment and raw material price fluctuations.