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    Black Rose Inds. Limited

    BLACKROSE
    Chemicals·22 May 2026
    Management Summary

    Black Rose Industries reported a strong Q4 FY26 with significant revenue and EBITDA growth, driven by operational efficiencies and market share gains. Despite a full-year revenue decline due to chemical price drops and geopolitical challenges, the company maintained profitability and a debt-free balance sheet. Management is focused on new product commercialization, customer expansion, and expects an upward trend in Q1 FY27 revenue due to higher pricing.

    Highlights

    7

    • Q4 revenue grew by 38% YoY, demonstrating a strong performance.

    • Q4 EBITDA grew by about 90% YoY, indicating significant operational leverage.

    • Overall FY26 EBITDA margin improved to 11% from 9.7% in the previous year.

    • The company maintained a debt-free status in its operations.

    • A dividend of 125% was declared for the last financial year.

    • Manufacturing segment recorded significant volume growth in acrylamide liquid and NMA.

    • PAM solid project advanced to piloting, with commercialization expected in FY27.

    Concerns

    4

    • Overall FY26 revenue declined due to a sustained drop in chemical pricing from the beginning of the year till March 2026.

    • Unpredictable tariff policies by the Trump administration led to weaker offtake from the US oil and gas sector, impacting overall exports.

    • Near-term demand in Q1 FY27 is likely to remain subdued due to global uncertainties.

    • Competition from China continues to impact the acrylamide solid business.

    Key financials

    Metrics

    5

    Periods

    4

    Headline

    1
    • Dividend Declared
      125%

    Q4

    2
    • Revenue Growth
      38%
    • EBITDA Growth
      90%

    FY25

    1
    • EBITDA Margin
      9.7%

    FY26

    1
    • EBITDA Margin
      11%

    Segment breakdown

    Manufacturing (FY25)
    35% Revenue Share
    Distribution (FY25)
    65% Revenue Share
    Legacy Businesses (FY26)
    100% Revenue Share
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Debt

    Gross ₹0 crores · Net ₹0 crores · 0.0x EBITDA

    Guidance & targets

    10
    CategoryTargetPriority
    New Product Commercialization
    PAM solid project
    commercialization
    		Medium
    New Project Decision
    Specialty amines project
    take a decision
    		Medium
    Distribution Business
    New product additions and customer base expansion
    expanding
    		Medium
    Revenue
    Revenue growth
    upwards
    		Medium
    Revenue
    Overall top line
    increase
    		Medium
    Merchant Exports
    Performance
    healthy performance
    		Medium
    Acrylamide Sales
    Overall sales
    well
    		Medium
    Acrylamide Solid Profitability
    Profitability
    supported
    		Medium
    NMA Volumes
    Volumes
    stable
    		High
    NMA Growth
    New customer addition
    drive growth
    		Medium

    What to watch in Q1 FY27

    5

    PAM solid project commercialization

    FY27
    CurrentAdvanced to piloting stage
    TargetCommercialization

    Why it matters

    Successful commercialization of the PAM solid project is expected to add to the company's manufacturing basket and offerings.

    The PAM solid project has advanced to the piloting, and we are progressing the project as planned. And we hope to start commercialization activities during this year going forward⏳.

    Risks & concerns

    5
    RiskSeverity

    Geopolitical disruptions in the Middle East

    The crisis in the Middle East impacted the company, though it managed to override it as a reliable supplier. — Management acknowledged

    medium

    Unpredictable US tariff policies

    Tariff policies by the Trump administration led to weaker offtake from the US oil and gas sector, impacting overall exports. — Management acknowledged

    high

    Global uncertainties and subdued demand

    Near-term demand in Q1 FY27 is likely to remain subdued due to global uncertainties. — Management acknowledged

    medium

    Competition from China

    The acrylamide solid business faces competition from China, though volumes remained stable. — Management acknowledged

    medium

    Raw material price volatility

    Acrylonitrile prices, a key raw material, shot up drastically in March with the onset of the Middle East war after a period of decline. — Management acknowledged

    medium

    Q&A highlights

    6

    “The margins and EBITDA are always a result of the market scenario. It is very difficult to predict the exact margins or EBITDA over a long-term period. Having said that, the company has been focusing on increasing its sales volume as well as profitability, and several initiatives have been taken in this regard.”

    Addresses investor concern about whether the strong Q4 performance is sustainable or a one-off, with management emphasizing market dynamics and ongoing initiatives.

    asked by Madhur Rathi

    2 min read5 chapters

    Detailed Narrative

    01

    Q4 and FY26 Financial Performance Overview

    Black Rose Industries reported a strong Q4 FY26, with revenue growing by 38% and EBITDA by 90% year-on-year. For the full fiscal year 2026, the overall EBITDA margin improved significantly from 9.7% in the previous year to 11%. Despite these gains, the company's overall revenue for FY26 experienced a minor dip on a standalone basis and declined overall due to a sustained drop in chemical pricing throughout the year. The company maintained its debt-free status and recommended a dividend of 125% for the financial year.

    02

    Operational Resilience and Market Strategy

    The company's stock and sale model proved highly effective, enabling uninterrupted supply to customers despite geopolitical disruption🌐s in the Middle East, which positively impacted Q4 performance. Black Rose successfully expanded its customer base and market outreach, servicing new geographies and increasing market share. Operational efficiencies and a favorable product mix contributed to improved profitability, offsetting the impact of declining chemical prices and external challenges🌐 like unpredictable US tariff policies.

    03

    Manufacturing Segment Growth and Product Portfolio

    The manufacturing division demonstrated significant volume growth in both acrylamide liquid and NMA during FY26. The acrylamide liquid plant's capacity stands at 32,000 MTPA, with 20,000 MTPA allocated for merchant sales. The company strategically exited the ceramic binder business to focus on higher-value applications and strengthen its upstream acrylamide offerings. The acrylamide solid business maintained stable volumes despite ongoing competition from China.

    04

    Outlook and Future Projects

    Management anticipates an upward trend in revenue for Q1 FY27, driven by higher pricing and a strong order pipeline in merchant exports. The PAM solid project has advanced to the piloting stage, with commercialization expected within FY27. Additionally, a decision on the Specialty amines project, undertaken with Koei Chemicals Company, is expected during the current year. The company aims to increase its overall top line in FY27 through new product additions and customer base expansion across both distribution and manufacturing segments.

    05

    Raw Material and Market Dynamics

    Raw material prices, particularly for acrylonitrile, experienced a gradual decline until February 2026 but saw a drastic increase in March due to the Middle East war. Despite this volatility, Black Rose maintained good realization through proactive sales efforts and raw material procurement. Management believes chemical prices have normalized and are expected to remain stable, which should support healthy margins and overall profitability going forward⏳.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.