Results filed 3 November 2026 · Market cap ₹1,997 crore · PE 13.9
GrowthGuidance introducedTranscript read
Revenue
+79.7%
on a year ago
EBITDA
+365.8%
on a year ago
Profit to shareholders
+1259.6%
on a year ago
EBITDA margin
12.4%
+2.7 pts on last quarter
Bodal Chemicals delivered record consolidated Q2 FY27 revenue of INR 884 crores and net profit of INR 81.4 crores, driven by surging dye intermediate realizations amid environmental restrictions in China. However, operating cash conversion was weak due to working capital blockage, with receivables rising to INR 602 crores. Management guided for over INR 3,000 crores in revenue and ~12–15% EBITDA margins for FY27, backed by the operational turnaround of its Saykha benzene plant.
Source: Bodal Chemicals Limited’s filing to NSE, 3 November 2026. Operating profit is revenue less every expense except interest, so it leaves out other income and exceptional items. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss.
What stood out
Sharp surge in profitability driven by Dye Intermediates realization expansion caused by structural supply curbs in ChinaSourceConsolidated Q2 FY27 PAT rose 1,259% YoY to INR 81.4 crores; H acid prices rose from ~INR 600/kg in Q1 to ~INR 900/kg in Q2 and INR 1,600–1,650/kg currently (Transcript page 4, 18, 19).
Operating cash flow lagged surge in reported earnings due to significant working capital blockage in receivables and inventorySourceTrade receivables expanded from INR 438.6 crores in March 2026 to INR 601.9 crores in September 2026, and inventory grew from INR 323.6 crores to INR 392.1 crores (Presentation page 12; Transcript page 6).
Q2 net profit was supported by one-off other income gains and a depressed tax rateSourceOther income included INR 6 crores profit from land sale at Punjab unit and INR 8.5 crores Gujarat government subsidy, while effective tax rate was suppressed due to prior-year tax refunds (Transcript page 11).
Guidance
Metric
Guidance
Period
Consolidated RevenueSourceTranscript page 10: 'It seems INR3,000 plus crores is very much achievable for the current year.'
INR 3,000+ crores
FY27
EBITDA MarginSourceTranscript page 10, 18: 'at around 12% margin, that's a fair sense, sir? Yes, that is what we are targeting... we can still do about 14% to 15% of EBITDA margins.'
12% to 15%
FY27 - FY28
Effective Tax RateSourceTranscript page 11: 'Tax base, you should consider flat 25%.'
Flat 25%
FY28 onwards
Tailwinds
Sharp surge in prices and margins of key dye intermediates (H acid and Vinyl Sulphone)SourceH acid prices escalated up to INR 1,800/kg before settling at INR 1,600–1,650/kg, while Vinyl Sulphone rose to INR 440–450/kg (Transcript pages 6, 19, 20).
Exports of dye intermediates, dyestuff, and benzene derivatives into China due to Chinese environmental shutdownsSourceTranscript pages 4, 13: 'Stricter enforcement of environmental laws has restricted the production... exports of dyestuff and benzene downstream products to China have begun, possibly for the first time.'
Benzene downstream plant turnaround in Q3 FY27SourceSaykha plant reached 85%+ capacity utilization in October with an annualized revenue run rate exceeding INR 300 crores (Transcript pages 11–13).
Headwinds
Working capital bloat resulting in weak operating cash flow generationSourceConsolidated trade receivables increased by 37% to INR 601.98 crores and inventory rose 21% to INR 392.05 crores from March 2026 (Presentation page 12; Transcript pages 6, 7).
TCCA business remains near EBITDA breakeven despite imposition of anti-dumping dutiesSourceTranscript pages 9, 22, 23: 'because of some more material coming from other countries... even at this 150-160 levels, there are not too much margins at the moment... At EBITDA level there is hardly any contribution.'
Raw material price inflation impacting Basic Chemicals (sulphur) and anilineSourceTranscript pages 15, 16: Aniline prices rose to ~INR 250 and sulphur spiked up to INR 100-110 before easing to INR 90, suppressing sulfuric acid business margins.
New businesses and products
new business · Stabilizing after technical delays; utilization crossed 85% in October from ~50% in H1 FY27
Expected to reach INR 350–400 crore annual revenue run rate and contribute to net profit starting Q3 FY27, turning around from previous EBITDA losses of ~INR 30 crores per year
Risks
Technical glitches and volatility in raw material prices
Timeline
Reaching close to 100% capacity utilization by end of Q3 FY27
Investment
Already deployed; suffered past operational drag
SourceTranscript pages 3, 4, 11, 12: 'utilization has reached around 85%... We expect the plant to begin contributing to net profit from the current quarter.'
capacity expansion · Under execution after abandoning Chinese equipment imports due to regulatory restrictions
TCCA (Trichloroisocyanuric Acid) Capacity Doubling via Domestic Equipment
Expected benefit
Doubling monthly volume from ~300 MT/month to lower overhead costs and achieve 5% to 8% EBITDA margins from current breakeven levels
Risks
Circumvention of anti-dumping duties via third-country imports and pricing pressure from Chinese product
Timeline
Next few months
Investment
Not specified
SourceTranscript pages 9, 10, 22, 23: 'we are going to skip the Chinese equipment part, and we have already identified to procure the same in India. In the next few months, we are planning to expand the capacity.'
Things to check
Profit grew far faster than operating profit: other income, tax or one-offs did some of the work
Revenue up over 60%: check for an acquisition or a weak year-ago quarter
Year-ago margin under 5%: growth from a low base
Significant gap between net profit growth and operating cash flow due to sharp increase in working capitalSourceConsolidated receivables climbed by INR 163.4 crores to INR 601.98 crores between March and September 2026, leading to muted cash generation despite record profits (Presentation page 12; Transcript page 6).
PBT bolstered by non-operational one-offs and subsidies totaling INR 14.5 crores in Q2SourceOther income included INR 6 crores gain on Punjab land sale and INR 8.5 crores Gujarat government subsidy; another INR 50 crores subsidy and INR 15 crores land sales are slated for future quarters (Transcript pages 10, 11).
How the call went
Management provided detailed operational context on the Chinese dye market dynamic and the Saykha benzene ramp-up, but showed gaps regarding quarter-specific realization data and working capital realization timelines.
Specific or vague
Average. Management gave helpful operational figures on realized product pricing (H acid, Vinyl Sulphone) and segment run rates, but could not provide specific Q2 realization numbers without checking and lacked per-kg margin calculations.
Candour
Moderate. Management candidly conceded the lack of margin contribution from TCCA and historical losses at the benzene plant, but deflected concerns regarding the cash conversion gap.
The hard questions
Tough questions on why cash flow from operations trailed net profit, comparison of lower EBITDA margins versus peer Kiri Industries, and the durability of the Chinese supply shock were asked.
What analysts pressed on
Significant buildup of working capital (trade receivables and inventories) dragging cash flow conversion.
Durability of elevated H acid pricing beyond January/post-Chinese festive season.
CFO avoided providing specific timelines for receivable realization, asserting simply that receivables naturally pile up with turnover growth (Transcript page 6).
Management was unable to state the average Q2 selling prices or per-kg spreads for H acid and vinyl sulphone during the call (Transcript pages 14, 21).
Numbers against the story
Management emphasized record financial performance and structural tailwinds from China's environmental curbs. However, reported financial statements reveal that gross margins remained flat at ~40% due to surging input costs (sulphur, aniline), while cash flow generation lagged net profit significantly due to a steep increase in trade receivables and inventory. Furthermore, Q2 net profitability was materially inflated by INR 14.5 crores of non-operating items and prior-period tax adjustments.
Figures: the company’s results filing with NSE, linked under the table.
Notes written by gemini-3.8-flash from the documents above on 14 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.