J.G.Chemicals Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript J.G.Chemicals Ltd filed with BSE on 21 May 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
JG Chemicals reported its highest ever annual revenue, EBITDA and PAT for FY26, with revenue of Rs 972.9 crore, EBITDA of Rs 97.9 crore and PAT of Rs 68.6 crore, while Q4 FY26 revenue grew 27.6% year-on-year to Rs 286.2 crore. Management attributed the quarter's margin pressure to a spike in energy prices and higher raw material costs in March following supply disruptions linked to a geopolitical conflict, which it said were passed on to customers effective April 1, 2026. The company also discussed progress on its Dahej (Gujarat) greenfield project, brownfield debottlenecking at Naidupeta, and early-stage work on a recycled rubber product for tire customers.
Numbers mentioned
Revenue: INR972.9 crores (FY26)
p. 6
“For FY26, the revenue stood at INR972.9 crores, EBITDA stood at INR97.9 crores, and the PAT stood at INR68.6 crores.”
Anuj Jhunjhunwala, page 6 of the filed PDF · View the filing
EBITDA: INR97.9 crores (FY26)
p. 6
“For FY26, the revenue stood at INR972.9 crores, EBITDA stood at INR97.9 crores, and the PAT stood at INR68.6 crores.”
Anuj Jhunjhunwala, page 6 of the filed PDF · View the filing
Revenue: INR286.2 crores (Q4 FY26)
p. 6
“with revenue for Q4 at INR286.2 crores, up 27.6% year-on-year, EBITDA at INR26.8 crores, and PAT at INR18.9 crores.”
Anuj Jhunjhunwala, page 6 of the filed PDF · View the filing
Zinc oxide capacity utilization: about 77% (current)
p. 9
“So, amongst the two segments, for zinc oxide, as Anuj just mentioned, the capacity utilization currently is about 77%.”
Anirudh Jhunjhunwala, page 9 of the filed PDF · View the filing
Zinc sulphate capacity utilization: approximately 60% (current)
p. 9
“The zinc sulphate business, which has gradually been growing, is today running at approximately 60% of the installed capacity.”
Anirudh Jhunjhunwala, page 9 of the filed PDF · View the filing
Export contribution to sales: between 10% and 15%
p. 9
“As we've mentioned, yes, so the export to sales is roughly between 10% and 15%.”
Anirudh Jhunjhunwala, page 9 of the filed PDF · View the filing
EBITDA margin: 10.26% (Q4 FY26)
p. 18
“However, the margins in Q4 were in the 10.26% range, EBITDA margin as a percentage of revenue from operation, it did not increase much because of the significant increase in costs in the month of March.”
Anuj Jhunjhunwala, page 18 of the filed PDF · View the filing
Installed capacity: close to 70,000 metric tons per annum
p. 3
“Our manufacturing is anchored at our facilities in West Bengal and Andhra Pradesh, which together command an installed capacity of close to 70,000 metric tons per annum.”
Anirudh Jhunjhunwala, page 3 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.
Zinc oxide capacity utilization — 86% to 87%
stated as an aspiration by Anirudh Jhunjhunwala
p. 9
“We can easily take this up to 86% to 87%, so we still have about 10% of the spare capacity.”
Anirudh Jhunjhunwala, page 9 of the filed PDF · View the filing
Naidupeta debottlenecking completion — December 2026
stated firmly by Anirudh Jhunjhunwala
p. 9
“we expect that by December 2026, we'll have completely debottlenecked this facility.”
Anirudh Jhunjhunwala, page 9 of the filed PDF · View the filing
Blended EBITDA margin — 13% to 14% range
stated as an aspiration by Anuj Jhunjhunwala
p. 10
“as we've mentioned before, higher value-added products would help increase the blended margins to the 13% to 14% range.”
Anuj Jhunjhunwala, page 10 of the filed PDF · View the filing
Gujarat plant utilization — 35% to 40% range · H2 FY27
stated conditionally by Anuj Jhunjhunwala
p. 13
“I think we should get to about 35% to 40% range for that period.”
Anuj Jhunjhunwala, page 13 of the filed PDF · View the filing
Gujarat plant utilization — 65% to 70% utilization · FY28
stated conditionally by Anuj Jhunjhunwala
p. 13
“And for the full year which is the next financial year which is FY28, we should get to about 65% to 70% utilization for that plant.”
Anuj Jhunjhunwala, page 13 of the filed PDF · View the filing
Dahej facility revenue potential — INR900 crores of sales · FY29
stated conditionally by Anirudh Jhunjhunwala
p. 13
“Yes, more or less what you've said is correct.”
Anirudh Jhunjhunwala, page 13 of the filed PDF · View the filing
Combined zinc chemical capacity — exceed 115,000 metric tons per annum · by 2029
stated firmly by Anirudh Jhunjhunwala
p. 3
“once both phases at the Dahej plant are on stream by 2029, our combined zinc chemical capacity will exceed 115,000 metric tons per annum”
Anirudh Jhunjhunwala, page 3 of the filed PDF · View the filing
Non-rubber revenue contribution — long term
stated as an aspiration by Anirudh Jhunjhunwala
p. 6
“Over the long term, we remain committed to growing the contribution of non-rubber application both to drive margin expansion and also to diversify our overall portfolio.”
Anirudh Jhunjhunwala, page 6 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.
Debottlenecking is a gradual process expected to complete by December 2026.
Answered by Anirudh Jhunjhunwala
Asked by Tanuj: What is the execution status of the debottlenecking plant in Naidupeta?
p. 9
“We are actively working on that, and gradually small steps for debottlenecking are being taken which is freeing up certain capacity additions.”
Anirudh Jhunjhunwala, page 9 of the filed PDF · View the filing
Current margins are 10-11%, and higher value-added products at Gujarat could lift blended margins to 13-14%.
Answered by Anuj Jhunjhunwala
Asked by Niraj: Will Dahej zinc chemicals have higher margins than the current 8-10% EBITDA range?
p. 10
“So, you see our current EBITDA margins are usually in the 10% to 11% range, and as we've mentioned before, higher value-added products would help increase the blended margins to the 13% to 14% range.”
Anuj Jhunjhunwala, page 10 of the filed PDF · View the filing
Volume growth was double-digit for the year and mid-teens for the quarter, but the company does not disclose absolute volume numbers.
Answered by Anuj Jhunjhunwala
Asked by Ashmita: Can you give volume growth for the quarter and full year?
p. 10
“So, we are confident of achieving double-digit volume growth, this is what we had outlined earlier as well. And even in this fiscal, our volume growth have been in the double-digit range, and even for the current quarter, we've been in the mid-teens.”
Anuj Jhunjhunwala, page 10 of the filed PDF · View the filing
Cost increases from energy and raw materials were fully passed on to customers, so underlying EBITDA margins should remain around 10-11%.
Answered by Anirudh Jhunjhunwala
Asked by Dhiral Shah: How much price rise was seen in raw materials and correspondingly in end product pricing?
p. 11
“So, we are even at the end of the year, if you take a year figure, we are still in the region of 10 plus EBITDA levels. So, going forward, this could be even better.”
Anirudh Jhunjhunwala, page 11 of the filed PDF · View the filing
Rising sulphate prices caused farmers to defer purchases, but demand is now showing green shoots as pricing stabilizes.
Answered by Anuj Jhunjhunwala
Asked by Dhiral Shah: Why was zinc sulphate performance flat in FY26 versus FY25?
p. 12
“So, we are seeing slight demand, green shoots coming off in the last couple of months, and we expect that with the new pricing range which is being set now, this will become the new standard normal and demand would come back to its old older days.”
Anuj Jhunjhunwala, page 12 of the filed PDF · View the filing
The rise between Q3 and Q4 was only about 2%, and March cost pressures from energy and spot raw material purchases offset any gains.
Answered by Anirudh Jhunjhunwala
Asked by Aditya: Why haven't inventory gains flowed through in Q3 and Q4 despite rising zinc prices?
p. 14
“So, if you were to take the zinc prices in the December quarter and zinc prices in the March quarter, I mean, there has not been much increase, honestly speaking, there is hardly an increase of about 2%.”
Anirudh Jhunjhunwala, page 14 of the filed PDF · View the filing
Management estimated the cost impact at roughly 150 basis points.
Answered by Anuj Jhunjhunwala
Asked by Deep Gandhi: What would margins have been without the March cost increase?
p. 18
“If I were to broadly classify it, it should be about a 1.5%, about 150 basis points or so.”
Anuj Jhunjhunwala, page 18 of the filed PDF · View the filing
Facilities break even above 60-65% utilization, with the company preferring to operate above 75%.
Answered by Anirudh Jhunjhunwala
Asked by Aditya: At what utilization levels does a facility break even?
p. 17
“Our facilities would break even above 60%, 60% to 65%, but ideally, we like to operate our capacities above 75%.”
Anirudh Jhunjhunwala, page 17 of the filed PDF · View the filing
Ceramic plant closures due to gas shortages are seen as temporary, while tire demand remains healthy with strong order books through May-June.
Answered by Anirudh Jhunjhunwala
Asked by Deep Gandhi: What is the demand outlook given rising crude/rubber prices and Morbi ceramic plant shutdowns?
p. 21
“However, what we can say that even as we speak the months of May, June, we have a very, very healthy order book and a very healthy demand projection.”
Anirudh Jhunjhunwala, page 21 of the filed PDF · View the filing
Risks flagged
Geopolitical conflict disrupted global supply chains and raw material (zinc dross) sourcing
p. 7
“There is no denying the fact that the war has impacted virtually every industrial supply chain across the world, and zinc dross, our primary raw material, has been no exception.”
Anuj Jhunjhunwala, page 7 of the filed PDF · View the filing
Complete freeze in imports from the Middle East and delays in shipments from Europe during March
p. 7
“During the month of March, there was a complete freeze in imports from the Middle East and also there were huge delays in shipments from Europe.”
Anuj Jhunjhunwala, page 7 of the filed PDF · View the filing
Sudden spike in energy prices in March affecting margins
p. 8
“Moreover, March was also characterized by a sudden spike in energy prices.”
Anuj Jhunjhunwala, page 8 of the filed PDF · View the filing
Ceramic sector plants in Morbi facing shutdowns due to gas shortages
p. 21
“Yes, we also hear that some plants are closed because of non-availability or reduced availability of gas. So, some ceramic plants are closed.”
Anirudh Jhunjhunwala, page 21 of the filed PDF · View the filing
Tire industry facing input cost pressures
p. 21
“As far as the tire demand is concerned, yes, tire industry is facing a huge input cost pressure in all their items.”
Anirudh Jhunjhunwala, page 21 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.