Post by Krunal Deotale

Probing from Analysts to the management of Epigral in Q4 FY26. While digging more into the latest concall from Epigral, there were few doubts that many analysts had. Major concern was related to the performance of last financial year. .. Answering to that management highlighted points that caused the marginally lower revenue of 1% YoY. They said it was due to drop in volume by 4% occurred because of global supply chain disruption, rising costs of raw materials and extended monsoon last year which slowed the demand for CPVC, etc. Another reason causing this, is because of their scheduled plant maintenance which took a few months and when done capacity utilization were optimum. Planned maintenance work of the plant was completed in October 2025, and got ready for another coming 8 years to work smoothly. They were confident about demand pick up from Q1 FY26 as capacity utilization stables. One more thing that analysts found emphasizing on is regarding capex and its execution. .. Epigral's growth depends a lot on how they shift towards the specialty segment from commodity chemicals. For this to achieve, it becomes necessary for them to complete all the capex programs in a timely manner. When asked about the project completion, new capex programs and their utilization levels management seemed very optimistic. They clearly told how they have achieved timely execution in the past and are also going to do it in the future. Once existing plants are in operation, they are also planning to announce a new capex as well, which will increase the finance cost for the company by almost 35%. To operate at optimum levels, they said it will take few months. Starting from 15-20% of capacity plants will reach 75-80% of optimization by FY28. This will significantly drive their revenue and growth. Another very interesting question is related to the demand of Epigral's monopoly product chlorotoluene. Chlorotoluene which majorly goes into agrochemical and pharmaceuticals has a sizable demand in India. Management was confident about its demand pick up from May onwards in FY27 and reaching 40% of capacity utilization in complete financial year. Products like ECH, CPVC & Chlorotoluene are high value products. And the unfavorable market conditions for chlor-alkali commodity can be compensated by this specialty basket. Probing from analysts were very sharp and management was also observed answering them clearly and not dodging or avoiding anything. Their confidence was speaking through their words but can only be seen in the numbers coming this financial year. What's your view on this? share in comments #Linkedin #Finance #100dayswithtvs #Concall #analysis #Epigral