Epigral Limited, one of India’s leading integrated chemical manufacturers, delivered a solid set of results for the fourth quarter and full year ended March 31, 2025. With a strong operational and financial performance backed by strategic investments, the company continues to enhance its leadership in the chemical and specialty derivatives segment.

Quarterly Performance Snapshot – Q4FY25

In the final quarter of FY2025, Epigral reported a 13% year-on-year (YoY) increase in Profit After Tax (PAT) to ₹87 crore compared to ₹77 crore in Q4FY24. This was supported by a 20% YoY increase in revenue, which stood at ₹631 crore for Q4FY25, up from ₹526 crore in the corresponding quarter of the previous year.

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter grew by 12% YoY to ₹173 crore, with EBITDA margins remaining robust at 28%. Revenue growth was largely attributed to higher sales volume of Derivative and Specialty products, which also contributed 52% to Q4FY25 revenue, up from 48% in Q4FY24.

Key operational details for Q4FY25:

• Realization improved for Caustic Soda and Epichlorohydrin

• Hydrogen Peroxide realization dropped, while others remained stable

• Captive consumption of chlorine increased to 76%, improving integration and cost-efficiency

Strong Annual Performance – FY2025

Epigral closed FY2025 on a strong note, registering its highest-ever annual revenue of ₹2,565 crore, a significant growth of 33% over FY2024’s ₹1,933 crore. The company’s profitability soared with PAT jumping by 82% to ₹357 crore (vs ₹196 crore in FY2024), while EBITDA surged by 48% to ₹711 crore, up from ₹481 crore.

The EBITDA margin for the year stood at 28%, compared to 25% in FY2024, reflecting improved product mix and contributions from new capacities that became operational during the year.

Derivative and Specialty Business continued to drive growth:

• Volume growth from Derivatives & Specialty products: ~24%

• Revenue contribution from this segment: 54% in FY25 vs 45% in FY24

• Overall sales volume grew by 11% YoY

• Capacity utilization improved to 81% from 78% in FY2024

Improved Financial Health and Credit Metrics

Backed by solid financial performance, Epigral has significantly strengthened its balance sheet. As of March 31, 2025:

• Return on Capital Employed (ROCE) rose to 25% from 18% a year ago

• Net Debt to EBITDA ratio improved to 0.7x from 2.0x, showing better leverage and higher earnings efficiency

• Crisil upgraded Epigral’s credit rating to AA from AA-, reflecting strong financial discipline and growth outlook

Dividend and Shareholder Returns

Epigral continues to reward shareholders. For FY2025:

• Total dividend announced: ₹6.0 per share (60% of ₹10 face value)

• Includes a final proposed dividend of ₹3.5 per share

This move reflects the company’s confidence in sustained profitability and a commitment to shareholder value creation.

Strategic Expansion and Capital Investments

Recognizing robust market demand and import substitution opportunities, Epigral has laid out ambitious capacity expansion plans:

• Doubling of CPVC Resin Capacity:

  • Additional 75,000 TPA to reach a total of 1,50,000 TPA

• Doubling of Epichlorohydrin (ECH) Capacity:

  • Additional 50,000 TPA to achieve 1,00,000 TPA

These expansions are expected to commission in the first half of FY2027, with commercial contributions beginning the same year.

Capex details and projects commissioned in FY2025:

• ₹195 crore spent on capex

• Commissioned new CPVC Resin capacity of 45,000 TPA (total now 75,000 TPA)

• Launched CPVC Compound facility

• Set up Chlorotoluenes Value Chain facility

Successful Fundraising to Fuel Growth

To support its growth vision and capital expenditure, Epigral raised ₹333 crore through Qualified Institutional Placement (QIP) during FY2025. These funds have been strategically utilized for expansion plans, working capital, and strengthening operations.

Management Commentary and Vision Ahead

Mr. Maulik Patel, Chairman and Managing Director, commented:

"We ended FY2025 with the highest ever revenue of ₹2,565 crore, driven by volume growth in high-value derivative products. With upcoming capacity additions in CPVC and ECH, our integrated chemical complex will become even stronger. We remain focused on import substitution, diversification, and prudent capital allocation to reward stakeholders and drive sustainable growth."

Industry Outlook and Company Strategy

The chemical sector continues to witness structural tailwinds from global supply-chain realignment and increased domestic demand for high-performance specialty and derivative chemicals. Epigral is well-positioned to capitalize on this with:

• Integrated manufacturing facilities

• Strong focus on import substitution

• Robust R&D capabilities

• Expansion in high-margin specialty segments

The doubling of capacities in CPVC and Epichlorohydrin—two critical import-substitute chemicals—aligns with India’s growing demand and government initiatives supporting domestic manufacturing.

Conclusion

With a strong Q4 and full-year performance, a significant jump in profitability, debt reduction, higher return ratios, and clear long-term growth plans, Epigral Limited stands out as a resilient and growth-focused chemical company in India’s evolving industrial landscape.

The company’s strategic expansions, dividend payouts, and credit upgrade reflect management’s focus on shareholder value creation, and its ability to adapt to market dynamics with operational excellence and foresight.

Epigral’s next leg of growth, especially in the specialty and derivatives segment, looks promising as it moves toward FY2027 with enhanced capacities, better margins, and stronger market positioning.

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