Bodal Chemicals Limited — Q4 FY25 earnings call

Call held 29 May 2025

Management summary

Bodal Chemicals delivered strong Q4 and FY25 results, driven by improved volumes and realizations across segments. The implementation of anti-dumping duty on TCCA is a significant positive, expected to boost the business. While the Turkey subsidiary continues to face hyperinflationary challenges, the company is optimistic about growth in FY26, targeting ₹1,900 crores+ revenue and 11-12% EBITDA margins, supported by increased utilization in benzene derivatives and Chlor-Alkali expansion.

Highlights

  • Consolidated Q4 FY25 revenue grew 14% YoY to ₹453 crores.

  • Consolidated Q4 FY25 EBITDA grew 62% YoY to ₹50 crores.

  • Consolidated FY25 PAT grew 186% YoY to ₹18.5 crores.

  • Anti-dumping duty implemented for TCCA from China for five years, expected to turn around the business.

  • Chlor-Alkali business reported 25% YoY revenue growth in FY25 and 34% YoY growth in Q4 FY25.

Concerns

  • Turkey subsidiary (Sener Boya) reported a ₹2.34 crore loss in Q4 FY25 due to hyperinflation.

  • Benzene derivatives unit faces stiff competition and slower demand, with margins still under pressure.

  • Basic chemicals revenue degrew 9% QoQ in Q4 FY25 due to a plant shutdown in February.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹453 Cr
    YoY +14%
  • Consolidated EBITDA
    ₹50 Cr
    YoY +62%
  • Consolidated EBITDA Margin
    10.9%
  • Consolidated PAT
    ₹14.5 Cr

FY25

  • Consolidated Revenue
    ₹1,757 Cr
    YoY +24%
  • Consolidated PAT
    ₹18.5 Cr
    YoY +186%

What they filed

Q1 FY27: revenue up 56.9%, net profit up 190.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue423 435 446 445 472 +12%481 +11%577 +29%698 +57%
EBITDA32 46 50 50 23 −28%25 −46%70 +40%69 +38%
Net profit1 7 11 10 4 +300%2 −71%31 +182%29 +190%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
Dye Intermediate (FY25) ₹667 Cr 33.6%
Dyestuffs (FY25) ₹498 Cr 25.1%
Chlor-Alkali (FY25) ₹335 Cr 16.9%
Dye Intermediate (Q4 FY25) ₹160 Cr 8.1%
Dyestuffs (Q4 FY25) ₹125 Cr 6.3%
Basic Chemicals (FY25) ₹92 Cr 4.6%
Chlor-Alkali (Q4 FY25) ₹91 Cr 4.6%
Basic Chemicals (Q4 FY25) ₹19 Cr 1.0%

Capital allocation

high confidence
  • Capex Capex disclosed
    • Small expansion/debottlenecking in Chlor-Alkali ₹10 Cr
    We are working on that right now, but the current numbers, we are targeting 10% to 15% capacity addition, and the investment is less than Rs. 10 crores.
  • Debt Debt disclosed Cost 9.3%
    • Repayment Scheduled repayment during current year ₹120 Cr
    • Repayment Additional repayment from land sale during current year ₹20 Cr
    What is the blended interest on the present debt? It's about 9.25%.

Guidance & targets

Revenue

  • FY26 Top-line Revenue · FY26 · High confidence ₹1,900 crores plus
    So for FY'26, we are targeting Rs. 1,900 crores plus top-line in a normal pricing scenario.

    — Ankit Patel

  • Peak Top-line with current capacity Revenue · Current capacity · High confidence ₹1,950-2,000 crores
    Present capacity and present pricing, can do top-line of about Rs. 1,950 crores to Rs. 2,000 crores.

    — Mayur Padhya

  • TCCA Top-line Contribution Revenue · FY26 · High confidence ₹70 crores
    So about 70 crores of top-line should come from there and with a better margin.

    — Mayur Padhya

  • FY27 Additional Top-line Revenue · FY27 · High confidence ₹120-150 crores
    So put together of these three divisions, I think we can add another about Rs. 120 crores to Rs. 150 crores of additional top-line in FY'27.

    — Ankit Patel

  • Chlor-Alkali Additional Revenue Revenue · Annual basis · High confidence ₹60-70 crores
    So there also we can add another 10%. So we can add about another 60 crores-70 crores from the current numbers on annual basis in Chlor-Alkali.

    — Ankit Patel

  • TCCA Top-line (FY27) Revenue · FY27 · High confidence ₹20-30 crores
    So going ahead, there are also about Rs. 20 crores-Rs. 30 crores of top end can be added for the FY27.

    — Ankit Patel

EBITDA Margin

  • FY26 EBITDA Margin EBITDA Margin · FY26 · High confidence 11-12%
    And so that's about 10% growth. Also, I think the numbers that we achieved in FY'25, the Q4, about 10.5%-11% EBITDA margin, I think that should definitely be, we should be able to maintain that. In fact, we can improve them with a better performance coming from a benzene derivatives business. So I think the target is about 1,900 plus top-line and about 11% to 12% EBITDA levels in the normal scenario.

    — Ankit Patel

Utilization

  • Benzene Derivatives Utilization Utilization · Coming couple of months · High confidence 50-60% immediately, 80% optimum
    So we are targeting immediately about 50% to 60% in this coming couple of months. And going ahead, we want to go up to 80%, which is the optimum level.

    — Ankit Patel

  • Benzene Derivatives Utilization (Full Year) Utilization · Whole year · High confidence 60-70%
    So there we will definitely see, I think for the whole year we should see at least 60% to 70% utilization.

    — Ankit Patel

  • Benzene Derivatives Utilization (FY27) Utilization · FY27 · High confidence 80%
    So there also, if we can take it up to 80% in FY27, so that again is about 50 crores-60 crores.

    — Ankit Patel

Volume Growth

  • Dyestuff Volume Improvement Volume Growth · FY26 · High confidence 10-15%
    Yes, dyestuff does have about 10% to 15% improvement potential from the FY'25 number. So the dyestuff can be seen about 10% improvement in FY'26.

    — Ankit Patel

  • Dye Intermediate Volume Volume Growth · FY27 · High confidence Flat
    So they will remain flat for FY 27 also.

    — Ankit Patel

Production

  • TCCA-90 Production Production · FY26 · High confidence 4,000 metric tons
    25-26 we are expecting about 4,000 metric tons at least production for the current year and thereafter it may increase say 10%-15% in next year.

    — Mayur Padhya

Subsidy

  • Punjab Government Subsidy (Cash Flow) Subsidy · FY26 · High confidence ₹40 crores
    As far as cash flow is concerned, we are expecting about Rs. 40 crore at least should be there, should come to Company as a cash flow considering present situation.

    — Mayur Padhya

  • Punjab Government Subsidy (Annual) Subsidy · Next 7 years · High confidence ₹20 crores
    So next seven years, we are expecting about Rs. 20 crore of subsidy every year from Punjab government and another about Rs. 4 crore from Gujarat government for our Saykha benzene project.

    — Mayur Padhya

  • Gujarat Government Subsidy (Annual) Subsidy · Next 7 years · High confidence ₹4 crores

    — Mayur Padhya

Growth

  • Chlor-Alkali Growth Growth · FY26 · Medium confidence 5-10%
    For caustic soda, the utilization is almost to the maximum level. There is a slight possibility about 5% to 10% growth coming from that area also.

    — Ankit Patel

Debt

  • Debt Reduction Debt · Current year · High confidence ₹120-150 crores
    So 120 crores to 150 crores data will be reduced during current year.

    — Mayur Padhya

CAPEX

  • FY27 CAPEX CAPEX · FY27 · Low confidence More CAPEX
    And by that time, we are looking at some more CAPEX which can happen in the year of FY'27.

    — Ankit Patel

What to watch in Q1 FY26

Benzene Derivatives Utilization

Coming couple of months
Current 25-30% (Q4 FY25), ~45% (current)
Target 50-60%

Why it matters

Increased utilization is key to improving profitability and reducing overheads for the new benzene derivatives plant.

It's 2,700 metric tons, sir. 27% metric that is on average is about 30% utilization. But in the month of April and now in the current month, we have crossed that taken up to about 45%. So we are targeting immediately about 50% to 60% in this coming couple of months.

Risks & concerns

  • Hyperinflation in Turkey Subsidiary

    medium

    Sener Boya, the wholly-owned subsidiary in Turkey, experienced a ₹2.34 crore loss in Q4 FY25 due to hyperinflation, requiring special accounting treatment.

    Management acknowledged

  • Stiff Competition and Slower Demand for Benzene Derivatives

    medium

    The Saykha Benzene derivative project faces stiff competition and slower demand, keeping margins under pressure, with utilization at 25-30% in Q4 FY25.

    Management acknowledged

  • Demand Cyclicality in Paracetamol Industry

    medium

    The largest consumption for benzene derivatives comes from the paracetamol industry, which is currently operating at only 50% utilization, impacting overall demand for benzene derivatives.

    Management acknowledged

Q&A highlights

8 direct
Benzene Derivatives Utilization and Profitability Direct
We feel that the utilization of around 65%-70% I think that can bring us to some positive EBITDA numbers and I think improvement in the pricing of around 8%-10% that is definitely a level I think we can reach breakeven or more positive contribution in EBITDA.

Clarifies the utilization level needed for benzene derivatives to become EBITDA positive and the expected pricing improvement.

Asked by Aditya Khetan

Turkey Subsidiary Hyperinflation and Potential Closure Direct
if we close down the subsidiary, we can definitely directly export this material to there directly. And third thing, as far as closing down of the subsidiary, we have not reviewed that situation, but it's a very small staff of about eight, nine person, and there is no asset as such in the company's name... So it's very easy to close down the activity.

Addresses the financial impact of the Turkey subsidiary and the ease with which it could be closed or operations shifted to direct exports, mitigating future hyperinflation risks.

Asked by Shantanu Basu

TCCA-90 Production and Sales Strategy Post Anti-Dumping Duty Direct
25-26 we are expecting about 4,000 metric tons at least production for the current year and thereafter it may increase say 10%-15% in next year... We are directly selling to consumer. We have not prepared any dealer distributor network at present, but we are working on that.

Provides specific production targets for TCCA post anti-dumping duty and outlines the direct-to-consumer sales strategy, with future plans for a dealer network.

Asked by Sandesh Raghav

Overall FY26 Revenue and EBITDA Margin Guidance Direct
So for FY'26, we are targeting Rs. 1,900 crores plus top-line in a normal pricing scenario. And so that's about 10% growth. Also, I think the numbers that we achieved in FY'25, the Q4, about 10.5%-11% EBITDA margin, I think that should definitely be, we should be able to maintain that. In fact, we can improve them with a better performance coming from a benzene derivatives business. So I think the target is about 1,900 plus top-line and about 11% to 12% EBITDA levels in the normal scenario.

Consolidates the company's financial outlook for the next fiscal year, providing clear revenue and margin targets.

Asked by Aditya Khetan

Debt Reduction Program Direct
There is a scheduled repayment of about not about, it's Rs. 120 crore and addition to that we are planning to pay by land sale etc. So another Rs. 20 crore can be paid further. So 120 crores to 150 crores data will be reduced during current year.

Details the specific amount and sources for debt reduction planned for the current year, indicating capital allocation priorities.

Asked by Ankur Agarwal

Chlor-Alkali Expansion Plans Direct
We are looking at there are a couple of possibilities. One is a small expansion which can happen within the same plant. This is not a large CAPEX so that we can plan anytime. We are looking at that... So there also we can add another 10%. So we can add about another 60 crores-70 crores from the current numbers on annual basis in Chlor-Alkali.

Reveals plans for a small, low-capex expansion in Chlor-Alkali, detailing potential revenue additions and highlighting it as a strong business area.

Asked by SK Damani

Impact of Basic Chemical Plant Shutdown on Dye Intermediates Direct
That is the usual scenario. This shutdown comes every year for us because of the mandatory requirement for boiler inspection... So the basic chemicals that we produce from the plant that was shut down that are widely available from the Indian markets only. So whenever we need some extra product, we just buy from the market. So we don't let that disturb our dye intermediate numbers.

Clarifies that annual plant shutdowns for basic chemicals do not impact dye intermediate volumes due to readily available market purchases, ensuring stable production.

Asked by Aditya Khetan

FY27/28 CAPEX Plans and Future Growth Drivers Direct
So for FY'27, I mentioned about the improvement from the Chlor-Alkali, which can come about 10%... So there also we can add another 10%. So we can add about another 60 crores-70 crores from the current numbers on annual basis in Chlor-Alkali... So going ahead, there are also about Rs. 20 crores-Rs. 30 crores of top end can be added for the FY27... And by that time, we are looking at some more CAPEX which can happen in the year of FY'27.

Outlines specific revenue growth drivers for FY27 from Chlor-Alkali and TCCA, and hints at larger CAPEX plans for FY27 to fuel further growth beyond.

Asked by Aditya Khetan

3 min read 6 chapters

Detailed narrative

Q4 & FY25 Financial Performance Overview

Bodal Chemicals reported a robust Q4 FY25, with consolidated revenue reaching ₹453 crores, marking a 14% year-on-year growth. Consolidated EBITDA surged by 62% year-on-year to ₹50 crores, achieving a margin of 10.9%. For the full fiscal year FY25, total consolidated revenue stood at ₹1,757 crores, a 24% increase from FY24, and consolidated PAT saw a significant jump of 186% to ₹18.5 crores. This growth was primarily driven by improved volumes and better realizations across various business segments.

Segmental Performance and Outlook

The dye intermediate business recorded ₹667 crores in revenue for FY25, growing 36% YoY, with Q4 revenue at ₹160 crores. Dyestuffs revenue for FY25 was ₹498 crores (6% YoY growth), and ₹125 crores for Q4 (6.5% YoY growth), with management expecting 10-15% improvement in FY26. Basic chemicals revenue for FY25 was ₹92 crores (11% YoY growth), though Q4 saw a 9% QoQ degrowth to ₹19 crores due to a plant shutdown. The Chlor-Alkali business demonstrated strong performance with ₹335 crores revenue in FY25 (25% YoY growth) and ₹91 crores in Q4 (34% YoY growth), with a projected 5-10% growth for FY26.

TCCA Business Turnaround Post Anti-Dumping Duty

A significant positive development is the implementation of anti-dumping duty on TCCA imports from China for five years, effective March 7, 2025. This is expected to turn around the TCCA business, which previously faced challenges from imported goods. For FY26, the company anticipates producing at least 4,000 metric tons of TCCA-90, contributing approximately ₹70 crores to the top-line with improved margins. TCCA prices have already increased from around $1/kg to ₹160+/kg post-duty.

Benzene Derivatives and Future Growth

The Saykha benzene derivatives project, while contributing to the top-line in Q4 FY25, still faces margin pressure due to stiff competition and slower demand, particularly from the paracetamol industry operating at 50% utilization. The unit's utilization was 25-30% in Q4 FY25, currently around 45%, with a target to reach 50-60% in the coming months and an optimum 80% utilization for the full year. Management believes 65-70% utilization, coupled with 8-10% pricing improvement, will make the segment EBITDA positive.

Capital Allocation and Debt Management

The company plans to reduce its debt by ₹120-150 crores during the current year through scheduled repayments and proceeds from land sales. The blended interest rate on existing debt is approximately 9.25%. For FY26, the focus remains on increasing utilization and improving margins across existing divisions, with no major CAPEX planned. However, a small expansion in Chlor-Alkali, costing less than ₹10 crores, is being considered to add ₹60-70 crores in annual revenue.

Subsidiary Operations and Future Outlook

The Turkish subsidiary, Sener Boya, reported a ₹2.34 crore loss in Q4 FY25 due to hyperinflation, though currency devaluation has stabilized. Management indicated that closing the subsidiary would be easy due to its asset-light nature and small staff, with direct exports being a viable alternative. For FY26, Bodal Chemicals targets a top-line of ₹1,900 crores plus and an EBITDA margin of 11-12%, driven by improved performance in TCCA, benzene derivatives, and Chlor-Alkali.

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