Vishnu Chemicals Limited — Q3 FY26 earnings call

Call held 6 Feb 2026

Management summary

Vishnu Chemicals delivered resilient performance in Q3 FY26 despite a soft global macroeconomic environment, driven by cost discipline and diversified market presence. Key strategic milestones included the acquisition of a Mining Complex in South Africa for backward integration and progress in new product commercialization like Strontium Carbonate. The company reported healthy QoQ growth in revenues, margins, and profits, with a positive outlook for future quarters driven by new capacities and market opportunities.

Highlights

  • Operating revenues of ₹411.3 crores in Q3 FY26, up 2.5% QoQ.

  • Gross margins improved to 44.8% in Q3 FY26, an expansion of 170 bps QoQ.

  • EBITDA for Q3 FY26 was ₹61.7 crores, up 6% QoQ.

  • PAT for Q3 FY26 stood at ₹33.7 crores, reflecting a 2.6% QoQ growth.

  • 9M FY26 operating revenues grew 10% YoY to ₹1,159 crores, with PAT up 12.7% YoY to ₹98.8 crores.

  • Successfully completed acquisition of Mining Complex in South Africa, securing crucial raw materials.

  • Strong order book and improved realizations for Barium Carbonate due to anti-dumping duties on Chinese products in Europe.

Concerns

  • Soft macroeconomic environment globally and cautious customer sentiment continued to influence demand patterns.

  • Subdued demand in global markets and elevated chrome ore prices impacted EBITDA margins in the chromium segment.

Key financials

2 periods

Headline

  • Operating Revenues (QoQ)
    ₹411.3 Cr
    QoQ +2.5%
  • Gross Margins (QoQ)
    44.8%
  • EBITDA (QoQ)
    ₹61.7 Cr
    QoQ +6%
  • EBITDA Margin (QoQ)
    15%
  • PAT (QoQ)
    ₹33.7 Cr
    QoQ +2.6%

9M YoY

  • Operating Revenues
    ₹1,159 Cr
    YoY +10%
  • Gross Profit
    ₹515.2 Cr
    YoY +9.2%
  • EBITDA
    ₹175.6 Cr
    YoY +6.9%
  • PAT
    ₹98.8 Cr
    YoY +12.7%

What they filed

Q1 FY27: revenue up 24.8%, net profit up 25.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue344 371 393 347 401 +17%411 +11%450 +15%433 +25%
EBITDA45 64 64 56 58 +29%62 −3%77 +20%65 +16%
Net profit23 34 39 32 33 +43%34 +0%43 +10%40 +25%
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 ₹180 Cr combination of internal accruals and debt
    • DMSO project
    • Investment into mine in South Africa
    • Chrome oxide green, chrome metal expansion
    Regarding CAPEX, this year, I mean, we still have a quarter to go. We are going to do about 180 to 190 crores of CAPEX. This includes DMSO and our investment into mine in South Africa. And next year, we are planning to invest close to 300 crores into CAPEX. This includes chrome oxide green, chrome metal expansion, as well as dimethyl sulfoxide. Because certain CAPEX have been done for dimethyl sulfoxide during this year already. It's a combination of internal accruals and debt.
  • M&A Mining Complex in South Africa Acquisition · Completed

    key backward integration initiative aimed at securing long-term supply of crucial raw materials

    will contribute to improved margins, stability at consolidated levels post-stabilization

    We successfully completed the acquisition of Mining Complex in South Africa. This is the third acquisition undertaken by the company in the last 3 years, following Ramadas Mineral and Jayansree Pharma. Integration process is progressing as planned and we expect the commencement of operation in phased manner from Quarter 1 FY27. This acquisition represents a key backward integration initiative aimed at securing long-term supply of crucial raw materials. While it is early to quantify the financial benefits, we believe it will contribute to improved margins, stability at consolidated levels post-stabilization.
  • M&A Jayansree Pharma Private Limited Acquisition · Integrated

    part of Strontium Carbonate plant setup

    part of the 110 crores capitalized for Strontium Carbonate plant

    The project has already been capitalized in our books. We have spent close to about 110 crores approximately which was which is the total of both the acquisition of the erstwhile Jayansree Pharma Private Limited and the additional CAPEX that we did to bring the product on stream.

Guidance & targets

Sales Commencement

  • Strontium Carbonate Sales Sales Commencement · Q1 FY27 · High confidence Regular sales
    So, we are expecting regular sales starting from Quarter 1 FY27 for Strontium Carbonate.

    — Siddartha Cherukuri

Market Share

  • North America Revenue Share Market Share · over the year or two · Medium confidence 14% to 15%
    And we are confident that our share in North America over the year or two will go up to 14% to 15% in overall revenue of Vishnu Chemicals.

    — Siddartha Cherukuri

Commercialization

  • DMSO Commercialization Commercialization · end of FY27 · High confidence Commercialized
    These projects are expected to be commercialized by the end of FY27 and represent forward integration opportunities that should enhance our product portfolio and profitability over the medium to long-term.

    — Siddartha Cherukuri

Revenue Commencement

  • Chrome Metal Revenue Revenue Commencement · FY28 · High confidence Revenues
    I would expect it to be in FY28, because it's linked to our chrome oxide expansion project. So, we will be going to work on it parallelly as we move forward. So, I would say FY28 is when we would expect to see revenues coming from chrome metal.

    — Siddartha Cherukuri

Capacity Expansion

  • PBS Capacity Expansion Capacity Expansion · FY27 · Medium confidence Adding capacity
    We continue to work with a few other customers and going to increase the market share in FY27 for PBS as well. Again, there is a bit of capacity constraint as well from our end. Currently we are operating at 70%-80%. So, we are also contemplating on adding capacity during FY27. We are still looking at it. We have not taken a decision on whether we are going to do it in FY27 or FY28. I am talking about PBS capacity expansion.

    — Siddartha Cherukuri

  • SDC Capacity Expansion Capacity Expansion · Q3 FY27 · High confidence 92,000 tonnes

    Previously 82,000 tonnes → 92,000 tonnes

    Well, I mean, we have already updated during the last call that we are planning to expand SDC from 82,000 tonnes to 92,000 tonnes. Put together both our facilities in Vishakhapatnam and Bhilai. And this will be completed during Quarter 3 FY27.

    — Siddartha Cherukuri

Operations Commencement

  • Chrome Ore Mine Operations Operations Commencement · Q1 FY27 · High confidence Start operations
    it's very early for us to share those numbers with the markets when the operations begin which we are expecting it to start sometime around Q1 of FY27. That's just one quarter away.

    — Hanumant Bhansali

Asset Turn

  • Strontium Carbonate Asset Turn Asset Turn · at 80% operating level · High confidence 1.5 to 1.8
    We are expecting, I think, at an 80% operating level, we are expecting an asset turn of close to 1.5 to 1.8.

    — Siddartha Cherukuri

Profitability

  • Strontium Carbonate Gross Margin Profitability · in the Strontium business · High confidence 50% to 52%
    Gross margins will be at 50% to 52% is what we are expecting.

    — Siddartha Cherukuri

  • EBITDA Margins Profitability · FY28 · High confidence 20%
    We are positive that the EBITDA margins will continue to get to the 20% level by FY28 which we have been targeting.

    — Siddartha Cherukuri

Capacity

  • DMSO Capacity Capacity · phased manner · High confidence 10,000 tons
    For DMSO, we are going to come up with a capacity of 10,000 tons, but it will be in a phased manner. The first phase will be operating at 5,000, and thereafter to 10,000.

    — Siddartha Cherukuri

  • Chrome Oxide Capacity Capacity · in Vishakhapatnam · High confidence 20,000 tons
    And chrome oxide, we are going to come up with a capacity of 20,000 tons in Vishakhapatnam.

    — Siddartha Cherukuri

  • Chrome Metal Capacity Capacity · High confidence 6,000 tons
    And chrome metal capacity would be 6,000 tons.

    — Siddartha Cherukuri

Sales Mix

  • Domestic to Export Sales Mix Sales Mix · High confidence 50:50 levels
    So, today, 51% is export and 49% is domestic. So, we will be in range bound those levels like 50-50 levels.

    — Siddartha Cherukuri

What to watch in Q4 FY26

Strontium Carbonate Sales Commencement

Q1 FY27
Current Customer approvals in progress
Target Regular sales starting

Why it matters

Verifies the commercialization success and revenue contribution from a key new product.

So, we are expecting regular sales starting from Quarter 1 FY27 for Strontium Carbonate.

Risks & concerns

  • Soft macroeconomic environment and cautious customer sentiment

    medium

    Continued to influence demand patterns in Q3 FY26 globally.

    Management acknowledged

  • Tariff-related uncertainties

    medium

    Previously created roadblocks for North America exports, but now improving.

    Management acknowledged

  • Subdued demand and elevated chrome ore prices impacting chromium EBITDA margins

    medium

    Impacted margins over the last two years, but being addressed through strategic initiatives.

    Management acknowledged

Q&A highlights

8 direct
Strontium Carbonate top-line addition and timeline Direct
We are expecting to receive customer approvals before end of Quarter 4 this FY26. While we see good traction, especially coming from the magnet side of the application, especially the ferrite magnet being a good substitute for neodymium magnets. And we are going to see some volumes coming mainly from the magnet application. So, we are expecting regular sales starting from Quarter 1 FY27 for Strontium Carbonate.

Clarifies the timeline for revenue generation from the new Strontium Carbonate plant, a key growth driver.

Asked by Raghav

PBS competition landscape and China dumping Direct
So, today in terms of the demand and our market share, we have already got to 60% market share in India. We continue to work with a few other customers and going to increase the market share in FY27 for PBS as well. Again, there is a bit of capacity constraint as well from our end. Currently we are operating at 70%-80%. So, we are also contemplating on adding capacity during FY27.

Provides insight into the company's strong market position in PBS despite competition and potential future capacity expansion plans.

Asked by Raghav

Impact of US tariffs on exports and future market share Direct
So, we remain positive, especially with the US market opening up and having a few approvals during this phase. So, definitely volumes are going to increase. And also, it's a more value assertive market in terms of better margins. And we do have an edge in terms of the overall tariffs compared to our other peers in Turkey and South Africa. And definitely that's going to put us in a better position in the quarters to come.

Highlights the positive impact of easing US tariffs on export volumes and margins, with a specific market share target.

Asked by Nirali Gopani

CAPEX details for DMSO and other chromium derivatives Direct
Regarding CAPEX, this year, I mean, we still have a quarter to go. We are going to do about 180 to 190 crores of CAPEX. This includes DMSO and our investment into mine in South Africa. And next year, we are planning to invest close to 300 crores into CAPEX. This includes chrome oxide green, chrome metal expansion, as well as dimethyl sulfoxide.

Provides specific CAPEX figures and their allocation across key growth projects for current and next fiscal years.

Asked by Nirali Gopani

Impact of anti-dumping duty on Chinese Barium Carbonate in Europe Direct
So, let me just correct it. It is mainly for Barium Carbonate. Europe has levied 84% anti-dumping duty on Chinese products. Chinese Barium Carbonate coming into EU. So, this is quite positive and it's been applied. It's been 2 months since it has been effective. We see a lot more demand coming from Europe. A good order pipeline as well as improved realizations.

Reveals a significant market opportunity and improved realizations for Barium Carbonate due to trade protection measures.

Asked by Sagar Jethwani

Margin benefits from the chrome mine acquisition Direct
The chrome ore mine acquisition comes with a string of benefits that are very long-term in nature. Though on the financial side we are quite confident that it is going to improve our overall margins in the medium to long term at a consolidated level but it's very early for us to share those numbers with the markets when the operations begin which we are expecting it to start sometime around Q1 of FY27.

Confirms the strategic importance of the acquisition for long-term margin improvement, with a timeline for operational commencement.

Asked by Raghav

Competitive scenario and customer approval cycle for Strontium Carbonate Direct
Sure. There is, the major update is that we are the first manufacturers of strontium carbonate in India and India's demand is close to about 4000 tons per annum. It's a complete import-substitute product and it is exported from majorly from Mexico and Belgium and into India... It takes close to 3 to 6 months to get customer approval.

Highlights the company's first-mover advantage in India for an import-substitute product and clarifies the customer approval timeline.

Asked by Kush Joshi

Reasons for chromium segment EBITDA margins and FY28 target Direct
Subdued demand in the global markets and the elevated chrome ore price over 2 years have been impacting our EBITDA margins. But we are addressing that not just through chrome ore acquisition which definitely will improve EBITDA margins from FY27. Also, the better economies of scale in terms of chrome oxide addition and chrome metal coming up and DMSO also supporting Vishnu Chemicals overall revenue numbers. We are positive that the EBITDA margins will continue to get to the 20% level by FY28 which we have been targeting.

Explains the historical margin pressure in the chromium segment and outlines the multi-pronged strategy to achieve 20% EBITDA margins by FY28.

Asked by Mahek

2 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Vishnu Chemicals reported consolidated operating revenues of ₹411.3 crores in Q3 FY26, marking a 2.5% sequential growth from Q2 FY26. Gross margins expanded by 170 basis points QoQ to 44.8%, leading to an absolute gross profit of ₹184 crores, up 6.5% QoQ. EBITDA for the quarter stood at ₹61.7 crores, a 6% QoQ increase, with EBITDA margin improving to 15%. Profit after tax grew 2.6% sequentially to ₹33.7 crores. For the nine-month period, operating revenues were ₹1,159 crores, a 10% YoY growth, and PAT increased 12.7% YoY to ₹98.8 crores.

Strategic Acquisitions and Backward Integration

The company successfully completed the acquisition of a Mining Complex in South Africa, marking its third acquisition in three years. This strategic move aims to secure long-term supply of crucial raw materials, representing a key backward integration initiative. The integration process is on track, with operations at the mining complex expected to commence in a phased manner from Q1 FY27, which is anticipated to contribute to improved margins and consolidated stability.

New Product Development and Capacity Expansion

Vishnu Strontium Private Limited has commercialized Strontium Carbonate, a new specialty chemical, with regular sales projected to begin from Q1 FY27 following customer approvals. The company is also focused on introducing new specialty chemicals, including plans for Dimethyl Sulfoxide (DMSO) and related derivatives, with commercialization expected by the end of FY27. Planned capacities include 10,000 tons for DMSO (phased), 20,000 tons for chrome oxide in Vishakhapatnam, and 6,000 tons for chrome metal.

Market Dynamics and Export Strategy

Despite a soft global macroeconomic environment and cautious customer sentiment, Vishnu Chemicals maintained resilient performance. The company expects increased volumes in North America due to easing US tariffs on chrome chemicals, targeting an increase in market share to 14-15% of overall revenue. Furthermore, the imposition of an 84% anti-dumping duty on Chinese Barium Carbonate in Europe has led to a significant increase in demand and improved realizations for Vishnu Chemicals in the European market, with strong order book visibility for Q1 FY27.

Capital Expenditure Plans

For FY26, the company plans a CAPEX of ₹180-190 crores, which includes investments in the DMSO project and the South Africa mine. An additional CAPEX of approximately ₹300 crores is planned for FY27, covering chrome oxide green, chrome metal expansion, and further DMSO development. The Strontium Carbonate plant, including the Jayansree Pharma acquisition and additional CAPEX, has already capitalized about ₹110 crores. These investments are funded through a combination of internal accruals and debt.

Margin Outlook and Profitability Targets

While subdued global demand and elevated chrome ore prices have impacted EBITDA margins in the chromium segment (currently around 15%), management is optimistic about future improvements. The company targets to achieve 20% EBITDA margins by FY28, driven by the chrome ore acquisition, economies of scale from new capacities, and an improved product mix. The domestic to export sales mix is expected to remain balanced at approximately 50:50.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Chemicals earnings calls