Meghmani Organics Limited

Meghmani Organics reported a standalone revenue of INR 558 crores in Q2 FY26, marking a 5% year-on-year increase. Standalone EBITDA saw a significant jump of 71% YoY to INR 70 crores, leading to a PAT of INR 43 crores compared to INR 9 crores in the prior year. On a consolidated basis, revenue stood at INR 577 crores (up 6% YoY) and EBITDA at INR 52 crores (up 70% YoY), with PAT reaching INR 12 crores against a loss of INR 9 crores in Q2 FY25.

The Crop Protection segment's revenue grew 11% YoY to INR 443 crores, with EBITDA increasing 73% YoY to INR 75 crores, achieving a 17% margin. This was attributed to a strategic shift from low-value, high-volume products to high-value, low-volume products, which, while leading to a slight decline in production volumes (10,136 MT at 72% capacity utilization), significantly improved profitability. Management expects double-digit growth for this segment over the next 4-5 years, driven by new product introductions and registrations.

The Titanium Dioxide segment continues to face significant pressure, primarily due to non-improving price realization despite anti-dumping duties and a drastic increase in raw material prices. Chinese dumping in global markets, including India, and an extended rain season impacting consumption further exacerbated the situation. The segment's production was 3,759 MT with 45% capacity utilization, contributing INR 115 crores in revenue and INR 4 crores in EBITDA, resulting in a low 3.5% margin. Management hopes for a reduction in losses in Q3 FY26.

The anti-dumping duty on Titanium Dioxide, initially imposed, faced opposition from the Indian Paint Association in the Kolkata High Court. While the court's decision favored the association, the ADD has not been completely removed. The Directorate General of Trade Remedies (DGTR) is currently reworking the lapses in the approval process, and the duty continues to be collected by Customs until a final judgment, expected within the next 2-3 months.

Meghmani Organics achieved three global management system certifications: ISO 20400 (sustainable procurement), ISO IEC 27001 (information security), and ISO 37001 (anti-bribery). The company also announced its commitment to sustainable reporting, with its maiden sustainability report slated for publication next month, reflecting its focus on environmental, social, and governance principles.

As of September 30, 2025, standalone total debt stood at INR 597 crores (INR 454 crores short-term, INR 143 crores long-term), and consolidated total debt was INR 836 crores (INR 479 crores short-term, INR 357 crores long-term). The company repaid approximately INR 90 crores of debt by this date. Trade receivables increased from 97 days to 126 days due to the credit-oriented nature of the crop protection business, but net working capital days remained stable through inventory reduction (18 days) and increased payable days (10 days).

The company expressed strong bullishness on the Crop Nutrition segment, anticipating significant growth over the next two years. Through extensive field activities, product trials, and securing registrations in several markets, Meghmani aims to introduce more products this financial year. Management targets achieving three-digit revenue (in crores) for this segment by FY26-27, driven by increasing order books and improved profitability.