Indo Borax & Chemicals Limited — Q4 FY26 earnings call

Call held 2 Jun 2026

Management summary

Indo Borax & Chemicals Ltd. delivered strong financial results for Q4 and FY26, driven by new leadership, capacity optimization, and improved product realizations. The company reported significant revenue and profit growth, maintaining healthy margins despite raw material price pressures. Management outlined plans for CAPEX, new product introductions like Boron Oxide, and increased sales of high-margin products like DOT, while also working on a formal dividend policy.

Highlights

  • Operating revenue for FY26 grew 22.9% to Rs. 215.45 crores, demonstrating strong top-line performance.

  • Net profit for FY26 increased 18% to Rs. 50.27 crores, indicating healthy bottom-line growth.

  • Q4 FY26 operating revenue increased 25.70% to Rs. 63.01 crores, with Q4 PAT up 41.9% to Rs. 14.53 crores, showcasing robust quarterly results.

  • EBITDA and PAT margins for FY26 stood at 21.8% and 20.5% respectively, reflecting improved operational efficiency and better product realizations.

  • The company declared a significant special and final dividend amounting to Rs. 40 per equity share, rewarding shareholders.

Concerns

  • Challenging geopolitical conditions led to higher raw material prices and pressure on margins for FY26, though management expressed confidence in maintaining margins going forward.

  • An analyst raised a concern regarding 100% pledged promoter shares, which management redirected to investor relations for a specific answer, stating the company itself has zero debt.

Key financials

2 periods

Q4 FY26

  • Operating Revenue
    ₹63.01 Cr
    YoY +25.7%
  • EBITDA
    ₹12.82 Cr
    YoY +25.7%
  • EBITDA Margin
    20.4%
  • PAT
    ₹14.53 Cr
    YoY +41.9%
  • PAT Margin
    21.5%
  • EPS
    ₹4.53

FY26

  • Operating Revenue
    ₹215.45 Cr
    YoY +22.9%
  • EBITDA
    ₹44.16 Cr
  • EBITDA Margin
    21.8%
  • PAT
    ₹50.27 Cr
    YoY +18.2%
  • EPS
    ₹15.67

What they filed

Q1 FY27: revenue up 29.6%, net profit up 60.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue38 38 50 54 58 +53%41 +8%63 +26%70 +30%
EBITDA9 10 10 12 10 +11%9 −10%13 +30%20 +67%
Net profit9 9 10 10 16 +78%9 +0%15 +50%16 +60%
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.

Capital allocation

high confidence
  • Capex Capex disclosed
    • Expand capacity and broaden product portfolio
    • Boron Oxide project
    We also continue to push ahead with our CAPEX plans for the coming year to expand capacity and broaden our product portfolio further. The details of these will be shared post the board approval. These are still in discussion.
  • Debt Debt disclosed
    We have zero debt in Indo Borax.
  • Dividend ₹30/share (special)
    These assets were sold, resulting in an additional one-time reward as a special dividend of Rs. 30 per equity share, amounting to over 3,000% for shareholders. This was over and above 1000% dividend, which was the final dividend for this year.
  • Liquidity Cash ₹70 Cr Other financial assets (FDs) of Rs. 70 crores, with an additional Rs. 130 crores invested in mutual funds for liquidity to support CAPEX expansions.
    Sir, in balance sheet FY26, the company has reported other financial assets, current as well as non-current of around Rs.70 crores. So, could you provide more details like what are the areas we have invested this amount? ... I think these are the FDs which were getting from previous promoters... If you see the balance sheet, our investment increased by Rs.130 crores. Whatever maturity come from the FD, we are investing in the mutual funds, because we want to remain in more liquid capacity given our CAPEX expansions, new opportunity.

Guidance & targets

Revenue

  • Revenue Growth Revenue · Coming year · Medium confidence 20-35%
    I am saying we are moving between 20% to 35% of revenue growth, it can be to Rs.40 crores to Rs.50 crores to Rs.60 crores or something like that.

    — Suresh Kalra

  • Revenue Target Revenue · Coming year · Medium confidence Rs. 250-plus crore
    If we do more debottlenecking and sell more DOT, as I said, we expect to reach Rs. 250-plus crore of revenue in the coming year.

    — Suresh Kalra

Margin

  • EBITDA Percentage Margins Margin · Future · High confidence Maintain or get better
    As far as the quality of earnings are concerned, we are definitely looking forward to maintaining our EBITDA percentage margins or get better.

    — Suresh Kalra

Volume

  • DOT Sales Volume Volume · Coming year · High confidence 1,500 tons

    From 980 tons today

    We started with about 600 tons, and then it became 980 tons last year, and in the coming year, we are planning to do about 1,500 tons of that product.

    — Suresh Kalra

Product Development

  • Boron Oxide First Lot Commercialization Product Development · Three to four quarters from now · High confidence First lot
    We are expecting that we will be able to kind of getting our first lot in three to four quarters from now.

    — Suresh Kalra

  • Boron Oxide Peak Revenue Multiple Product Development · Medium confidence 2.5x to 3x of Boric Acid price
    Usually, again, as a thumb rule, I can say because things keep on changing, Boron Oxide is almost 2.5x to 3x of the price of Boric Acid in general now.

    — Suresh Kalra

Capacity

  • Boric Acid Capacity Increase Capacity · Medium confidence 1,000 tons to 1,500 tons
    So, we are trying to increase 1,000 tons to 1,500 tons of Boric Acid, definitely coming through our operational efficiencies, and better planned and balanced planned management rate.

    — Suresh Kalra

CAPEX

  • Boron Oxide CAPEX Completion CAPEX · Within this financial year and a few months of the next financial year · High confidence Complete
    Within this financial year, we look forward to not only initiate, to some extent, complete what we want to do as a CAPEX in Boron Oxide, but definitely within this financial year and a few months of the next financial year, it should be complete.

    — Suresh Kalra

What to watch in Q1 FY27

CAPEX Plan Details

Next quarter
Current Still in discussion, details post board approval
Target Specific CAPEX plans and timelines for capacity expansion and product portfolio broadening

Why it matters

Crucial for understanding future growth drivers and capital allocation strategy.

We also continue to push ahead with our CAPEX plans for the coming year to expand capacity and broaden our product portfolio further. The details of these will be shared post the board approval. These are still in discussion.

Risks & concerns

  • Raw material price volatility

    medium

    Geopolitical situations led to higher raw material costs, but management believes their sector is less volatile and they have strategies (contracts) to maintain margins.

    Management acknowledged

  • Market share saturation for Boric Acid

    medium

    With almost 50% market share in Boric Acid, growth opportunities will come from Boric Acid I.P. Grade, DOT, and forward integration of new products.

    Analyst acknowledged

  • Promoter share pledging

    low

    Analyst concern about 100% pledged promoter shares; management stated company has zero debt and redirected to investor relations for specific details.

    Analyst deflected

Q&A highlights

3 direct, 2 evasive
Sales contribution of key products Direct
Boric Acid Technical is something around 15,000 tons, about Boric Acid I.P., about 900 tons, so that comprises about 15,000-plus tons for this year. DOT was 980 tons, and then Boron Oxide and other traded products, everything put together was about 400 tons.

Provides a clear breakdown of product-wise sales volumes, indicating Boric Acid Technical as the largest contributor.

Asked by Rahil Desani

Peak value turnover from current capacity Partial
without any addition of CAPEX, I am taking as it is situation, we would be easily doing 25% to 30% more in the coming one and a half years or so, depending on as I said, the pricing of the product, it can touch further up 10%, so, it can be anywhere between 20% to 35%, depending on the raw material inflation.

Gives an estimate of potential revenue growth from existing capacity, highlighting the impact of pricing and raw material inflation.

Asked by Rahil Desani

EBITDA per ton for Boric Acid Direct
Yes, EBITDA per Kg would be about Rs.28-29 and I would say percentage-wise, it should be 20%-21%.

Quantifies the profitability of the company's main product, providing a key operational metric.

Asked by Rahil Desani

New-age applications for products Evasive
We are currently in the exploratory stage, and I think I will be more confident in answering this question in maybe next or next-to-next quarter.

Indicates potential future growth areas but management is not yet ready to disclose specific plans, suggesting these are early-stage initiatives.

Asked by CA Garvit Goyal

Zenrock Chemicals' past experience and operational strategy Direct
Zenrock Chemicals is more of a holding company, whereas the day-to-day operations are led by industry experts, Mr. Kalra, our Chief Commercial Officer, as well as our Operations Head at the factory, as well as our experienced CFO.

Clarifies the new promoter's role and management structure, addressing concerns about their background in steel and trading versus chemicals.

Asked by CA Garvit Goyal

Dividend policy going forward Partial
We are in the process of making a stated dividend policy, which is not declared yet, but we are in the process so that we can give better information to the shareholders. But it will be there.

Signals management's intent to formalize shareholder return strategy, providing future clarity on payouts.

Asked by Vaibhav Badjatya

Promoter share pledging and company debt Evasive
Mr. Puran ji, can you send this question to rohit@fortunapr.com? They are our investor relations, and they will give you an exact answer to this question.

Highlights an analyst concern about promoter financial health and potential impact on the company, which management chose not to address directly on the call.

Asked by Puran Manglilal Tak

Underutilization of DOT capacity Partial
I would not be able to say anything which was not our responsibility. I am sure every businesspeople have their own set of decision-making, and it might be right for what they did. What I can only say at this moment is for the future, it is a story of transformation for us.

Addresses a historical operational inefficiency, with management committing to focus on DOT as a growth area going forward without commenting on past reasons.

Asked by Rahil Desani

2 min read 6 chapters

Detailed narrative

Robust Financial Performance in Q4 and FY26

Indo Borax & Chemicals Ltd. reported a strong financial close to FY26, with operating revenue growing 22.9% to Rs. 215.45 crores for the full year. Net profit for FY26 increased 18% to Rs. 50.27 crores. The fourth quarter alone saw a 25.70% rise in operating revenue to Rs. 63.01 crores and a 41.9% increase in PAT to Rs. 14.53 crores. The company maintained healthy EBITDA and PAT margins of 21.8% and 20.5% respectively for FY26, reflecting improved operational efficiencies.

Strategic Transformation and New Leadership

FY26 marked a significant transformation for Indo Borax with Zenrock Chemicals emerging as the new promoter and a new leadership team taking charge. This team, including MD & CEO Mr. Suresh Kalra, is focused on fiscal discipline, operational excellence, and value creation. The company monetized non-core assets, which contributed to a special dividend of Rs. 30 per equity share, in addition to the 1000% final dividend, totaling Rs. 40 per share for the year.

Product Portfolio and Market Leadership

The company holds a leading position in the Indian Boric Acid market with almost 50% market share. Its core products include Boric Acid Technical (~15,000 tons sales), Boric Acid I.P. (~900 tons), and Disodium Octaborate Tetrahydrate (DOT) (~980 tons sales). Indo Borax is the sole manufacturer of IP-grade Boric acid in India. The manufacturing facility in Pithampur has a capacity of 26,000 tons per annum, comprising 20,000 tons of Boric Acid and 6,000 tons of DOT.

Growth Strategy and Capacity Expansion

Management aims for 20-35% revenue growth in the coming year, targeting over Rs. 250 crores, driven by increased realizations, operational efficiencies, and new products. While Boric Acid capacity is nearly fully utilized, the company plans to increase DOT sales from 980 tons to 1,500 tons in the coming year, leveraging its 6,000-ton capacity. They are also actively exploring Boron Oxide, with the first lot expected in 3-4 quarters, and plan to introduce more product lines through CAPEX and R&D.

Raw Material Sourcing and Margin Stability

The company sources Ulexite Ore from Turkey, South America, and North America and is actively diversifying its supply chain to mitigate geopolitical risks. Management noted that raw material price volatility in their sector is less severe compared to other chemical sectors. They are confident in maintaining current EBITDA margins of 20-21% due to long-term contracts and the ability to pass on price increases to customers within the value chain.

Capital Allocation and Liquidity Management

Indo Borax & Chemicals Ltd. maintains a zero-debt position. The company holds approximately Rs. 70 crores in other financial assets (FDs) and has increased its investments by Rs. 130 crores into mutual funds. This liquidity strategy aims to support upcoming CAPEX expansions and new opportunities. CAPEX plans for capacity expansion and product portfolio broadening are currently under discussion, with details expected post board approval.

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