Epigral Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Epigral Ltd filed with BSE on 30 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Epigral reported Q1 FY27 revenue growth of 15% to Rs 709 crore and EBITDA margin of 25%, aided by higher sales volumes and improved realizations despite disruptions from the West Asia conflict affecting shipping and raw material costs. The Board approved capex for two new projects, a 125,000 tonnes per annum Epoxy Resin and Formulations facility and a multipurpose plant for chlorotoluene and epichlorohydrin derivatives, both targeted to have pilot facilities operational by Q2 FY27. Management discussed capacity utilization across segments, ECU and ECH realizations, and the rationale for backward integration and export strategy for the new capacities.
Numbers mentioned
Revenue: INR709 crores (Q1 FY27)
p. 4
“Year-on-year revenue increased by 15% to INR709 crores compared to INR615 crores in Q1 '26 on an account in sales volume and also because of the increase in realization.”
Rakesh Agrawal, page 4 of the filed PDF · View the filing
EBITDA: INR179 crores (Q1 FY27)
p. 4
“EBITDA in absolute terms increased by 10% to INR179 crores compared to INR163 crores in Q1 '26.”
Rakesh Agrawal, page 4 of the filed PDF · View the filing
EBITDA margin: 25% (Q1 FY27)
p. 4
“EBITDA margin stood at 25% versus 27% in Q1 '26.”
Rakesh Agrawal, page 4 of the filed PDF · View the filing
PAT: INR99 crores (Q1 FY27)
p. 4
“PAT grew by 25% to INR99 crores versus comparable adjusted PAT of INR79 crores in Q1 '26.”
Rakesh Agrawal, page 4 of the filed PDF · View the filing
ROCE: 16% (as on 30 June FY27)
p. 4
“ROCE stood at 16% as on 30 June versus 24% as on 30 June '25 due to drop in earnings for trailing 12 months and also because of sizable capital work in progress.”
Rakesh Agrawal, page 4 of the filed PDF · View the filing
ROCE excluding capital work in progress: 18% (Q1 FY27)
p. 4
“If you remove capital work in progress then ROCE stand at 18% for Q1 '27.”
Rakesh Agrawal, page 4 of the filed PDF · View the filing
Net debt-to-EBITDA: 0.8x (as on 30 June FY27)
p. 5
“Net debt-to-EBITDA stood at 0.8x as on 30 June versus 0.6x as on 30 June '25 on account of lower earnings for trailing 12 months and also debt increase.”
Rakesh Agrawal, page 5 of the filed PDF · View the filing
Capex: INR62 crores (Q1 FY27)
p. 5
“We have spent INR62 crores on capex in Q1 '27.”
Rakesh Agrawal, page 5 of the filed PDF · View the filing
Net debt: INR474 crores (as on 30 June FY27)
p. 5
“Our net debt stood at INR474 crores versus INR439 crores as on 30 June '25.”
Rakesh Agrawal, page 5 of the filed PDF · View the filing
ECU realization: 35,000-36,000 (Q1 FY27)
p. 7
“So Q1 FY27, the ECU was around 35,000, 36,000.”
Milind Kotecha, page 7 of the filed PDF · View the filing
ECU realization: 30,000 (Q4 FY26)
p. 7
“Fourth quarter, it was around 30,000.”
Milind Kotecha, page 7 of the filed PDF · View the filing
Caustic soda capacity utilization: 75% (Q1 FY27)
p. 8
“So caustic soda, it would have been around 75%.”
Milind Kotecha, page 8 of the filed PDF · View the filing
CPVC capacity utilization: 50%-55% (Q1 FY27)
p. 8
“CPVC was around 50%, 55%.”
Milind Kotecha, page 8 of the filed PDF · View the filing
Chloromethanes capacity utilization: 100% (Q1 FY27)
p. 8
“Chloromethanes was around 100%.”
Milind Kotecha, page 8 of the filed PDF · View the filing
Peroxide capacity utilization: 85%-90% (Q1 FY27)
p. 8
“Around 85% to 90%.”
Milind Kotecha, page 8 of the filed PDF · View the filing
Current ECH realization: INR180 to INR185
p. 11
“Current ECH realization is almost close to around INR180 to INR185.”
Milind Kotecha, page 11 of the filed PDF · View the filing
Current CPVC price: INR110 to INR115
p. 15
“So again, now the -- again, how much the price will go up because the impact might come because of the issue in the West Asia where its crude is impacting.”
Milind Kotecha, page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Epoxy Resin and Formulations capacity — 125,000 tons per annum
stated firmly by Maulik Patel
p. 4
“We are entering into the Epoxy Resin & Formulations with a capacity of 125,000 tons per annum and setting up a multipurpose plant.”
Maulik Patel, page 4 of the filed PDF · View the filing
Pilot facility commissioning — Q2 FY27
stated firmly by Maulik Patel
p. 4
“we are also establishing a pilot facility for both epoxy resin and formulations and MPP, multipurpose facility, which is expected to be operational by quarter 2 FY27.”
Maulik Patel, page 4 of the filed PDF · View the filing
Chlorotoluenes and MPP derivatives revenue target — INR500 crores · next 3 years
stated as an aspiration by Maulik Patel
p. 7
“our target is to reach all the derivatives, specialty product portfolio, which we are producing in multipurpose plant, along with the chlorotoluene derivatives, we wanted to close to around INR500 crores revenue we would like to target.”
Maulik Patel, page 7 of the filed PDF · View the filing
Ramp-up of chlorotoluenes/MPP revenue target — FY29 or FY30
stated conditionally by Milind Kotecha
p. 7
“Yes, it could be in FY29 because in FY28, we are targeting to complete the MPP. So the ramp-up will happen gradually. So maybe FY29 or FY '30.”
Milind Kotecha, page 7 of the filed PDF · View the filing
Peak revenue from epoxy and MPP projects — INR1,300 crores to INR1,500 crores
stated as an aspiration by Milind Kotecha
p. 9
“Combining both the projects, the peak can be in the range of INR1,000 crores to INR1,500 crores -- INR1,300 crores to INR1,500 crores.”
Milind Kotecha, page 9 of the filed PDF · View the filing
Company revenue growth — 15% to 20% CAGR · next 5 years
stated as an aspiration by Milind Kotecha
p. 12
“we can grow in the range of 15% to 20% CAGR. So 1 year can be here and there because of XYZ reasons.”
Milind Kotecha, page 12 of the filed PDF · View the filing
ROCE target — around 20%
stated as an aspiration by Milind Kotecha
p. 13
“going forward, we would always target to have an ROCE around 20%.”
Milind Kotecha, page 13 of the filed PDF · View the filing
Capex — INR400 crores · FY28
stated firmly by Milind Kotecha
p. 14
“FY28, again, the capex would be in the range of INR400 crores.”
Milind Kotecha, page 14 of the filed PDF · View the filing
Tax rate — around 25%
stated firmly by Maulik Patel
p. 15
“Yes, that's right.”
Maulik Patel, page 15 of the filed PDF · View the filing
Capex funding mix — 60% debt, 40% internal
stated firmly by Milind Kotecha
p. 15
“So around 60% -- 40% will be from the internal around 60% would be from the debt.”
Milind Kotecha, page 15 of the filed PDF · View the filing
Chlorotoluenes and MPP combined top line — INR700 crores to INR800 crores
stated as an aspiration by Milind Kotecha
p. 17
“that all put together, we should land end up in the range of INR700 croresto INR800 crores kind of top line.”
Milind Kotecha, page 17 of the filed PDF · View the filing
Chlorotoluenes and MPP margin — 22%-23%
stated as an aspiration by Milind Kotecha
p. 17
“So the estimated margin would be in the range of 22%, 23% kind of thing.”
Milind Kotecha, page 17 of the filed PDF · View the filing
Ramp-up time for chlorotoluenes/MPP plant — 1.5 to 2 years
stated conditionally by Milind Kotecha
p. 17
“And again, once we commission the plant, it will take time to ramp up, maybe 1.5 or 2 years' time to reach the optimum level utilization levels.”
Milind Kotecha, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the capacity includes LER, value-added products and formulations, with 50% of ECH consumed in-house and 50% sold in the market.
Answered by Maulik Patel
Asked by Nirav Jimudia: Is the epoxy capacity announcement predominantly for LER or does it include value-added products?
p. 5
“No, LER will be a little bit lower side, but it is a mix of all products, including LER, this capacity is planned. Our plan is very clear. 50% of the epichlorohydrin we would like to consume in-house and 50% we will sell continuously in the market.”
Maulik Patel, page 5 of the filed PDF · View the filing
Management estimated the current epoxy demand at 2.5-3 lakh tons growing at double-digit rates, driven by windmill, automotive and construction end uses.
Answered by Milind Kotecha
Asked by Nirav Jimudia: What is the epoxy market size and growth outlook?
p. 5
“considering current situation, the demand for epoxy to our estimate is around somewhere around 2.5 lakh to 3 lakh tons and which we expect to grow in a double-digit percentage from here on.”
Milind Kotecha, page 5 of the filed PDF · View the filing
Management said epoxy is a high-turnover, lower-margin business but the ROCE remains attractive due to lower capital intensity relative to turnover.
Answered by Maulik Patel
Asked by Rohit Sinha: Will overall margins remain in the 22-24% range as epoxy resin capacity is added?
p. 9
“So definitely, EBITDA margin in terms of percentage, definitely, it is coming lower. But in terms of the absolute value, I think it is a substantial value for the company.”
Maulik Patel, page 9 of the filed PDF · View the filing
Management gave current chlorine and ECU realization figures and later addressed caustic supply-demand dynamics separately.
Answered by Milind Kotecha
Asked by Abhinav Mandowara: What are current chlorine and ECU realizations, and is caustic import likely given global disruptions?
p. 9
“Chlorine realizations have been in the range of around INR4,000 -- negative INR4,000. And the ECU for the quarter 1 was around INR35,000.”
Milind Kotecha, page 9 of the filed PDF · View the filing
Management said they aspire to grow at around 20% but on a 3-4 year view expect 15-20% CAGR for both top line and bottom line.
Answered by Milind Kotecha
Asked by Harshit Singhania: What is the peak revenue potential after the new capex, and will growth outpace the 10-13% addressable market growth?
p. 12
“See, we always aspire to grow at the range of 20%. That's the internal target or even higher than that.”
Milind Kotecha, page 12 of the filed PDF · View the filing
Management said they target ROCE of around 20% for the new project rather than giving a specific margin guidance.
Answered by Milind Kotecha
Asked by Sakshi Trivedi: What margin is expected from the new INR600 crore capex given epoxy's lower margin profile?
p. 13
“Rather than giving guidance on margin, I can tell you that ROCE, we are targeting in the range of 20%.”
Milind Kotecha, page 13 of the filed PDF · View the filing
Management acknowledged temporary overcapacity during expansion phases but expects long-term absorption given India's infrastructure growth.
Answered by Maulik Patel
Asked by Pujan Shah: How is the CPVC business affected by PVC price volatility and new industry capacity from competitors like Grasim?
p. 16
“But you are right that for some point of time, there is overlapping and the overcapacity will be there. But in the long-term, we are very positive in terms of the growth of the infrastructure, which is happening in India.”
Maulik Patel, page 16 of the filed PDF · View the filing
Management detailed the capex spent so far and projected revenue ranges once the multipurpose plant ramps up.
Answered by Milind Kotecha
Asked by Rohit Nagraj: What is the total capex and expected ROCE for the chlorotoluenes and MPP forward integration project?
p. 17
“So in terms of capex that in chlorotoluenes, we have done a capex around INR250 crores.”
Milind Kotecha, page 17 of the filed PDF · View the filing
Risks flagged
West Asia conflict impacting raw material and finished goods costs and shipping
p. 3
“The ongoing West Asia conflict directly impacted the cost structure for both raw materials and finished goods.”
Maulik Patel, page 3 of the filed PDF · View the filing
Shipping disruptions causing transit delays and logistical constraints
p. 3
“Furthermore, severe disruption to shipping lines led to the transit delays and the logistical constraints.”
Maulik Patel, page 3 of the filed PDF · View the filing
Lower CPVC growth due to PVC price volatility affecting customer inventory behaviour
p. 10
“So there is an effect in terms of inventory purchasing from all the customers of pipes. So, they are controlling their CPVC or the PVC inventory in a controlled way, and that's why the consumption has also affected and the plant is also running a little lesser capacity.”
Maulik Patel, page 10 of the filed PDF · View the filing
Short-term caustic soda oversupply challenges from capacity additions
p. 11
“So definitely, for the short-term, we face a issue, but not in the long-term.”
Maulik Patel, page 11 of the filed PDF · View the filing
Fluctuating methanol and gas prices affecting hydrogen peroxide and chloromethane margins
p. 16
“But yes, major variation in terms of the gas price and the methanol price, it is happening right now because of the war situation, methanol price is very fluctuating.”
Maulik Patel, page 16 of the filed PDF · View the filing
Temporary industry overcapacity in CPVC from new entrants
p. 16
“But you are right that for some point of time, there is overlapping and the overcapacity will be there.”
Maulik Patel, page 16 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.