Meghmani Organics Ltd

Overview

• Standalone BRSR for FY2025-26; Meghmani operates in agrochemicals and pigments.
• Turnover: Agrochemicals 77.87%, Pigments 22.13%.
• Assurance: Limited third-party assurance on sustainability report.

Key ESG Risks & Opportunities

• Emissions & climate change risk; mitigated by renewables and energy efficiency.
• Water stress risk; addressed via wastewater minimization and reuse.
• Energy cost and grid reliability risk; mitigated by renewables and efficiency.
• Occupational health and safety risk; mitigated via ISO 45001 and safety programs.
• Anti-bribery, governance risk; mitigated by ABAC policy and ISO 37001.
• Product stewardship and sustainable procurement create growth opportunities.
• Supply chain resilience via supplier ESG assessments and contract ESG clauses.
• EcoVadis Silver rating signals governance improvements and ESG credibility.

Governance & Policy Highlights

• Board oversees BRSR; ESG Committee reviews performance and targets.
• Policies include ABAC (ISO 37001), POSH, Conflict of Interest, whistleblower system.
• Assurance: Limited third-party; EcoVadis Silver achieved.
• No material penalties or non-compliances reported in FY2025-26.

Social Responsibility & Workforce

• Total workforce: 1,330 employees and 1,672 workers.
• Board female representation: 1 of 10 directors (10%).
• LTIFR: employees 0.25; fatalities: none; 1 total recordable injury.
• 100% onsite vendors and contractors trained on ESG and safety.
• POSH complaints: zero in FY2025-26; robust grievance mechanisms.

Environmental Performance

• Renewable energy share: ~41.8% of total electricity consumption.
• Scope 1 emissions: 185,863 tCO2e; Scope 2: 39,698 tCO2e; total 225,561 tCO2e.
• Emissions intensity: 0.0000108 tCO2e per turnover; 4.47 tCO2e per tonne produced.
• Total waste ~71,900 MT; significant recycling/recovery and some incineration/landfill.
• EcoVadis Silver rating; 42% renewable energy usage; multiple ISO certifications.

Stakeholder Engagement & Complaints

• Key stakeholder groups identified: shareholders, investors, customers, suppliers, employees, government, communities, NGOs.
• Engagement channels: AGM, emails, webinars, site visits; frequency monthly/quarterly/annually.
• Shareholders filed 3 complaints; none pending resolution.
• Communities/NGOs engagements and CSR platform support ongoing.

Other Notable Metrics

• ESG integration: 100% value chain partners assessed for environmental impacts.
• Cybersecurity: ISO 27001-aligned ISMS; no data breaches reported in FY2025-26.
• Public policy: active advocacy through CHEMEXIL, FIEO, ICC, and other associations.
• CSR reach: education and rural development projects benefitting hundreds of participants.
• Waste management: 100%Plastic/EPR alignment and progressive packaging circularity goals.

Financial performance

• Standalone revenue ₹2,091.8 crore; PAT ₹125.3 crore; EBITDA ₹228.7 crore.
• Consolidated revenue ₹2,174.0 crore; EBITDA ₹176.4 crore; PAT ₹28.7 crore.
• Standalone PAT more than doubled vs prior year: ₹125.3 crore from ₹66.4 crore.
• Cash from operations ₹257.5 crore; net debt ~₹710.2 crore; CRISIL rating A/Negative.

Segments and operations

• Crop Protection drives ~78% of standalone revenue; Pigments ~22%.
• Crop Protection capacity: 55,980 MTPA; Pigments capacity: 33,180 MTPA.
• Crop Protection production: 40,371 MT; Pigments 13,191 MT.
• Capacity utilisation: Crop Protection 72%; Pigments 40%.

Growth and strategic developments

• Wholly owned Brazil subsidiary established to grow international footprint.
• Approved Nano DAP, Nano NPK, Nano Zinc fertilizers for Crop Nutrition.
• Target revenue growth 10-15% in FY2027 with double-digit EBITDA margins.
• Debt reduced by ₹160 crore; debt-to-equity 0.47x; plan to further deleverage.
• Scheme of Amalgamation approved to merge Kilburn Chemicals and MCNL with Meghmani Organics.

Governance and risk

• Independent Directors reappointed for 2026-29; board 50% independent.
• Board met four times; Audit Committee convened four times.
• ISO 37001, ISO 27001 and ISO 20400 implemented; robust governance framework.
• CSR unspent₹237 lakh transferred to Unspent CSR; ongoing projects under Meghmani Foundation.

ESG and sustainability

• EcoVadis Silver Medal; score 79/100 achieved.
• Energy mix: 41.8% renewable energy; wind-solar hybrid project underway to boost share.
• Wastewater recycled: 69%; solvent recovery rates 9.83% (low BP) and 2.39% (high BP).
• CSR focus areas include education, healthcare, rural development and road safety.

R&D and innovation

• GLP-accredited R&D Centre; 35 scientists.
• 105 new product registrations in FY2025-26.
• R&D expenditure ₹6.96 crore; five process patents granted.

Manufacturing and capacity

• Seven manufacturing facilities; ISO 9001/14001/45001/50001 certified.
• Crop Protection capacity 55,980 MTPA; Pigments 33,180 MTPA.
• TiO2 entry via Dahej facility at 75 TPD capacity.

Dividend and capital allocation

• Dividend not declared for FY2025-26; policy disclosed.
• IEPF: ₹5.31 lakh unclaimed dividend transferred; 36,400 shares transferred.

Risks and outlook

• Key risks: commodity price volatility, currency fluctuations, supply chain, and regulatory changes.

Key dates and details

• Book Closure: Sep 2, 2026 to Sep 8, 2026 (inclusive) for AGM.
• Record Date: Sep 1, 2026 to determine e-voting entitlement.
• AGM Date: Sep 8, 2026 at 11:00 AM (VC/OAVM).
• Security: Equity Shares (BSE 543331 / NSE MOL).
• Purpose: For ascertaining names of shareholders entitled for e-voting.

Meeting Details

• Date: July 30, 2026; Time: 5:00 PM IST; Type/Mode: group virtual earnings conference call; organiser: Meghmani Organics Limited.

Participants

• Key company participant: Chairman & Managing Director.

Purpose

• Purpose: earnings results discussion for Q1 FY2027.

Availability

• Audio recording available; file name FY-27-Earnings-Call-Audio-Recording.mp3.

Key financials

• Revenue from operations ₹522.9 crore in Q1 FY27, up 15% QoQ and down 12% YoY.
• EBITDA ₹93.7 crore, up 16% YoY, margin 17.9%.
• Net profit ₹57.6 crore, up 42% YoY, net profit margin 11.0%.
• Crop Protection revenue ₹391.6 crore; EBITDA ₹77.8 crore; margin 19.9%; capacity utilisation 63%.
• Pigments revenue ₹131.3 crore; EBITDA ₹15.9 crore; EBITDA margin 12.1%; capacity utilisation 39%.
• Crop Nutrition positive; nano fertilisers Nano DAP, Nano NPK, Nano Zinc expected to boost growth.
• TiO2 operations suspended due to unviability from high raw material costs and ADD withdrawal.
• Crop Protection ~75% and Pigments ~25% of Q1 FY27 revenue.
• Revenue decline YoY due to softer demand amid macro uncertainties.

Business Overview

• Diversified chemical company with Crop Protection, Pigments, TiO2, and Crop Nutrition segments.
• Strategic initiatives include Nano Urea, Brazil subsidiary, TiO2 entry via Kilburn Chemicals, and amalgamation.

Operational Highlights

• Q1 standalone revenue ₹522.9 cr; EBITDA ₹93.7 cr; margin 17.9%.
• Crop Protection revenue ₹391.6 cr; EBITDA ₹77.8 cr; margin 19.9%.
• Pigments revenue ₹131.3 cr; EBITDA ₹15.9 cr; margin 12.1%.
• Q1 production: Crop Protection 8,880 MT, -17% YoY; Pigments 3,233 MT, -14% YoY.
• Nano Urea plant in Sanand commissioned; capacity 5 crore bottles/year.
• TiO2 entry via Kilburn Chemicals acquisition; 12 MW captive power plant at Dahej.
• EcoVadis Silver Medal; 3-year Responsible Care accreditation for Crop Protection.
• Amalgamation: Board approved KCL & MCNL merger into MOL; NCLT filings in 2026.
• Revenue mix in Q1 FY27: Crop Protection ~75%, Pigments ~25%.

Financial Performance

• Standalone revenue ₹522.9 cr; EBITDA ₹93.7 cr; margin 17.9%.
• Standalone PAT ₹57.6 cr; PAT margin 11.0%.
• Consolidated revenue ₹542.8 cr; EBITDA ₹97.9 cr; margin 18.0%.
• Consolidated PAT ₹48.2 cr; PAT margin 8.9%.
• Q1 FY27 revenue declined 12% YoY; gross margin 45.6%.

Capital Structure & Liquidity

• Long-term borrowings ₹27 cr; prior year ₹96 cr.
• Short-term borrowings ₹506 cr.
• Cash & cash equivalents ₹22 cr; current assets ₹1,244 cr; current liabilities ₹1,111 cr.
• Share capital ₹25 cr; reserves ₹1,733 cr; total equity ₹1,758 cr.
• Free float 51.05%; market cap ₹1,239 cr; shares outstanding 25.4 cr.

Strategic Priorities & Outlook

• Capex program aimed at growth; blended EBITDA margin target 14-15%.
• TiO2 expansion via KCL; near-term pigment growth.
• Nano Urea portfolio expansion; 8 new Crop Nutrition products.
• Brazil subsidiary to capture large agro market; Make in India approach.

Risks & Mitigation

• Macro demand uncertainty; mitigated by price realisation and favorable product mix.
• TiO2 antidumping duty under review by DGTR after withdrawal.

Governance & Leadership

• Ankit Patel: Chairman & MD since Aug 14, 2023; also on Epigral Ltd board.
• Karana Patel and Darshan Patel: Executive Directors since Aug 14, 2023.
• Independent directors: Varesh Sinha, Urvashi Shah, Manubhai Patel, Nikunt Raval, Ganapati Yadav.
• Scheme of Amalgamation: Board approved merger and 2026 filings.