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Chemplast Sanmar (CHEMPLASTS) investor relations material
Chemplast Sanmar Q3 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 FY26 was the most challenging quarter in three years, with consolidated revenues of INR 835 crores and a net loss of INR 119 crores, impacted by weak demand, regulatory setbacks, and production disruptions.
Significant pricing pressure across products led to negative EBITDA and PAT, but strategic initiatives, cost control, and capacity expansions in specialty chemicals and refrigerant gases continued.
Suspension PVC faced seasonal demand decline, weather disruptions, and regulatory uncertainty, but early signs of pricing revival emerged due to Chinese policy changes.
Paste PVC demand remained stable, with full capacity utilization at the Cuddalore facility and visible price improvements post-quarter.
Leadership transition announced, with the Managing Director stepping down effective April 2026.
Financial highlights
Consolidated Q3 FY26 revenue was INR 835 crores, down 21% year-over-year and 19% sequentially.
Net loss for Q3 FY26 was INR 119 crores, compared to a net loss of INR 48.82 crores in Q3 FY25.
For the nine months FY26, revenue was INR 2,968 crores, EBITDA at INR 4 crores, and net loss at INR 234 crores.
Q3 FY26 EBITDA was negative INR 57 crores, compared to positive INR 32 crores in Q3 FY25.
One-time impact of INR 2.68 crores due to new labor codes.
Outlook and guidance
Management expects Q3 to be the bottom of the PVC cycle, with demand and prices improving in January and February.
Suspension PVC market sentiment has improved due to the withdrawal of Chinese export tax rebates, expected to reduce dumping and support prices.
Custom Manufactured Chemicals segment maintains a target of INR 1,000 crore revenue by FY28, with a delay of a few quarters due to slow ramp-up of new molecules.
R32 refrigerant gas project expected to generate INR 600 crores in annual revenue after full ramp-up.
Margins in specialty paste PVC and suspension PVC expected to improve over the medium to long term as demand-supply tightness persists.
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