Chembond Chemicals Limited

Chembond Chemicals delivered a strong performance in Q4 FY26, with consolidated revenue reaching Rs. 101.4 crores, marking the highest quarterly revenue in the last nine quarters. The full financial year 2026 consolidated revenue stood at Rs. 326.15 crores, representing a 12% increase over the previous financial year. The second half of FY26 was particularly robust, with consolidated revenue at Rs. 188 crores, up 35% over H1, driven by broad-based growth across all segments.

For FY26, EBITDA was Rs. 51 crores, a 7% increase over the prior year, with an EBITDA margin of 14% of sales. PBT for FY26 was Rs. 45 crores (up 7% YoY), and PAT was Rs. 34 crores, representing a 10% PAT margin. While input cost volatility, particularly in metals, led to an approximate 3% impact on margins in the immediate month, management is confident in passing on these costs over a couple of quarters through higher-value contracts.

Water Technologies remains the largest segment, contributing 87% of total revenue, and grew 36% in H2 over H1, with volume increasing 50%. Construction Chemicals saw H2 revenue of Rs. 13 crores (up 20% over H1) and volume of 2590 metric tons (up 30% over H1), maintaining a PBT margin of about 20%. The Distribution business also performed well, with H2 revenue of Rs. 12.5 crores (up 40% over H1) and volume nearly doubling to 1049 metric tons.

The company's focus on innovation is yielding results, with three new applications developed in the last year successfully completing proof-of-concept trials. These applications have been approved by major customers and are now in the full commercialization pipeline. Management expects these new solutions to contribute significantly to growth in the current financial year, representing a key future growth driver.

Chembond Chemicals is actively pursuing geographical expansion and strategic partnerships as part of its long-term aspiration to reach Rs. 1000 crores in revenue. The company has successfully diversified its customer base, with no single customer contributing more than 5-6% of total revenue. Past international ventures are being refined, including the acquisition of a Malaysian JV and the discontinuation of a Nigerian business due to payment challenges.

The CAPEX for FY26 was approximately Rs. 20-21 crores. This expenditure was primarily attributed to the full-year impact of the demerger, including assets coming onto the company's books, and the renovation of the office building. This indicates that the CAPEX was largely for organizational restructuring and infrastructure rather than new capacity additions.