Epigral Limited — PPTs, 05-05-2025: Investor Presentation

1. Financial Highlights:

Revenue for Q4FY25 reached ₹631 Cr, up 20% YoY, led by Derivatives & Specialty Chemicals comprising 52% of sales. EBITDA rose 12% to ₹173 Cr with a 28% margin. PAT increased 13% to ₹87 Cr at a 14% margin. For FY2025, revenue hit ₹2,565 Cr, a 33% YoY jump driven by an 11% volume increase, with Derivatives & Specialty chemicals at 54% revenue share. EBITDA surged 48% to ₹711 Cr, margins steady at 28%, and PAT jumped 82% to ₹357 Cr, margin steady at 14%. ROCE improved to 25%, and net debt/EBITDA fell to 0.7x, signaling strong financial health.

2. Strategic Initiatives & Growth Drivers:

Epigral committed ₹195 Cr capex in FY2025 and greenlit a ₹780 Cr expansion to double CPVC Resin capacity to 1.5 lakh TPA and Epichlorohydrin capacity to 1 lakh TPA by H1FY27. New capacities including CPVC Resin (45,000 TPA), CPVC Compound, and Chlorotoluenes have been commissioned, supporting a shift to higher-margin specialty chemicals amid robust 12-15% domestic demand growth.

3. Business Developments:

The company raised ₹333 Cr through QIP to fund growth initiatives. Additional production facilities for Chlorotoluenes and specialty chemical intermediates were brought online, enhancing product portfolio breadth for pharma and agro sectors. Captive chlorine utilization improved to 76% in Q4, boosting integrated complex efficiencies.

4. Market Position & Competitive Advantage:

Epigral leads India’s Derivatives & Specialty chemicals (CPVC, Epichlorohydrin) and ranks among top Chlor-Alkali producers. Its fully integrated, automated Dahej complex and strong backward-forward integration deliver cost and operational benefits. Technical expertise, 15+ industry exposure, and Pan-India distribution cement differentiated leadership.

5. Investor Implications:

Robust volume growth, margin expansion, and healthy cash flows from specialty chemicals signal positive growth potential. Stronger balance sheet metrics and upgraded credit rating reduce financial risk. Large capex plans tap into high-demand segments, positioning for long-term value creation. Execution risks on capacity ramps warrant monitoring, but the outlook remains constructive amid import substitution and diversified markets.