Transcript of Earnings Conference Call for Financial Performance for the 4th Quarter and Year ended March 31, 2026
JGCHEM · price
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J.G. Chemicals, India's largest zinc oxide manufacturer, reported its highest ever annual performance for FY26 with revenue of INR 972.9 crores, EBITDA of INR 97.9 crores, and PAT of INR 68.6 crores. Q4 revenue grew 27.6% YoY to INR 286.2 crores. The company achieved double-digit volume growth despite a subdued first half, driven by strong demand from the automotive and tire industries following GST rate reductions from September 2025. Management highlighted that March quarter margins were impacted by ~150 basis points due to geopolitical disruptions causing raw material supply issues and doubled energy prices, but expect margins to return to the 10-11% range from Q1 FY27. The Dahej Gujarat plant is on track for Phase 1 commissioning in H1 FY27 with projected full capacity sales of INR 900 crores against INR 100 crores capex. The company also provided update on its recycled rubber pilot project receiving positive customer feedback and plans for commercial scaling.
Strong fundamentals with multi-year capacity expansion (70,000 MT to 115,000+ MT by 2029) positions the company well to benefit from robust tire industry capex of over INR 20,000 crores. The Gujarat plant entry into western India, particularly ceramics market, offers significant growth optionality. Near-term margin pressure from cost headwinds is expected to normalize from Q1 FY27 as price increases take effect.