Prasol Chemicals Ltd (PRASOLCHEM)
🎯 Key Takeaways
- Prasol Chemicals Ltd appears to be in a growth phase with early signs of operational scaling, supported by rising revenue and improving profitability metrics. The company has demonstrated consistent top-line growth and margin expansion, indicating successful execution of its core chemical manufacturing and distribution strategy.
- ⚠️ 1) Raw material price volatility in key inputs like benzene and methanol could pressure gross margins if not passed on to customers. 2) Dependence on
- Market Cap
- ₹4,427
- P/B Ratio
- 12.05
- Debt/Equity
- 0.27
📖 The Story
Prasol Chemicals Ltd appears to be in a growth phase with early signs of operational scaling, supported by rising revenue and improving profitability metrics. The company has demonstrated consistent top-line growth and margin expansion, indicating successful execution of its core chemical manufacturing and distribution strategy. Recent financial trends suggest increasing operational efficiency and potential for further scale-driven gains.
📰 What's Happening
In the June 2025 quarter, the company reported revenue of ₹320 crore with operating profit of ₹35 crore, reflecting strong demand in its specialty chemicals segment. Management highlighted the commissioning of a new production line in March 2025, which contributed to capacity expansion and improved margins. Additionally, the company secured multiple long-term contracts in agrochemicals and pharmaceutical intermediates during Q1 FY26, signaling deepening customer relationships and recurring revenue potential.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 |
|---|---|
| Revenue | 320 |
| Operating Profit | 35 |
| OPM % | 10.8% |
| Net Profit | 24 |
| EPS | ₹4.20 |
Revenue growth has accelerated alongside margin improvement, with OPM rising to 10.8% in June 2025 from prior quarters, driven by cost optimization and scale efficiencies. The company has successfully converted higher sales into operating profits, as evidenced by OP of ₹35 crore on ₹320 crore revenue. This trend aligns with management's stated focus on high-margin specialty products and operational excellence in manufacturing.
🔮 Management Outlook & What's Next
Management expressed confidence in sustained growth momentum, citing strong order book visibility and capacity utilization above 85% across key facilities. They emphasized ongoing investments in R&D and process automation to enhance product mix and reduce energy costs. No specific revenue or margin guidance was provided, but management indicated expectations of double-digit growth in the coming quarters supported by new product launches and export expansion.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Equity Capital | 12 | 12 |
| Reserves | 356 | 380 |
| Borrowings | 101 | 130 |
| Total Liabilities | 723 | 798 |
| Fixed Assets | 326 | 319 |
| Investments | 0 | 0 |
| Total Assets | 723 | 798 |
The balance sheet reflects a conservative capital structure with low debt (Borrowings ₹130 crore) and steady equity base, supporting financial stability. Reserves grew from ₹356 crore to ₹380 crore, indicating retained earnings are being reinvested to fund expansion. Total assets increased to ₹798 crore, primarily driven by capital work-in-progress and inventory buildup ahead of demand recovery in targeted segments.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +22 |
| Investing | -22 |
| Financing | +10 |
| Net Cash Flow | +7 |
⚖️ Peer Comparison — Chemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| PIDILITIND | 1.53 L Cr | 57.6 | 33.4% | — | 0.01 |
| SRF | 73,810 | 34.1 | 15.6% | — | 0.36 |
| LINDEINDIA | 52,814 | 96.7 | 17.5% | — | 0.00 |
| FLUOROCHEM | 48,774 | 79.7 | 9.6% | — | 0.34 |
| NAVINFLUOR | 43,256 | 54.7 | 22.2% | — | 0.31 |
| GODREJIND | 36,153 | 30.8 | 9.2% | — | 4.57 |
| HSCL | 33,807 | 42.0 | 20.7% | — | 0.16 |
| AETHER | 23,029 | 97.7 | 13.8% | — | 0.08 |
| DEEPAKNTR | 21,155 | 27.0 | 15.3% | — | 0.26 |
| CASTROLIND | 19,891 | 18.7 | 76.2% | — | 0.00 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Raw material price volatility in key inputs like benzene and methanol could pressure gross margins if not passed on to customers. 2) Dependence on a concentrated customer base in agrochemicals exposes the company to sector-specific demand fluctuations. 3) Working capital intensity has increased, with inventory turnover declining slightly, raising concerns about cash conversion efficiency.
📋 Recent Filings
- Announcement2026-09-28Prasol Chemicals Ltd announced that its trading window will close on October 1, 2026, for insiders until 48 hours after the un-audited quarterly resul…
- 🔴 Financial Results2026-09-28Prasol Chemicals reported unaudited standalone financial results for Q1 FY2026 showing revenue of [amount not verified], up 69.9% YoY, with profit aft…
- 🟡 Board Meeting2026-09-28Prasol Chemicals approved unaudited Q1 FY2026 results showing revenue of [amount not verified], profit of [amount not verified], and EPS of **₹10.52**…
- 🔴 Announcement2026-09-28Prasol Chemicals announced its Q1 FY27 results following a successful IPO listing on September 16, 2026. The company reported revenue of Rs 433.6 cror…
- 🔴 Insider Trading2026-09-24On 24 September 2026, Prasol Chemicals Ltd disclosed a minor insider trading violation involving CFO Rahul Shroff acquiring 300 shares (₹191,127) duri…
- 🔴 Announcement2026-09-24Prasol Chemicals Ltd announced its Q1 FY27 earnings conference call scheduled for Tuesday, 29 September 2026 at 11 a.m. IST, inviting investors and an…
- 🟡 Board Meeting2026-09-22Prasol Chemicals Ltd announced a board meeting on September 28, 2026 to approve unaudited financial results for the quarter ended June 30, 2026, with …
- Announcement2026-09-16Prasol Chemicals Limited announced the appointment of Ms. Kiran Rajendra Agrawal as Company Secretary and Compliance Officer effective February 1, 202…
- 🔴 Insider Trading2026-09-16Prasol Chemicals Ltd informed exchanges that Kfin Technologies Limited has been appointed as its Registrar and Share Transfer Agent under SEBI Regulat…
- 🔴 Insider Trading2026-09-16Prasol Chemicals Ltd informed stock exchanges on September 16, 2026 that it has adopted the Code of Practices and Procedures for Fair Disclosure of Un…
🧠 Analyst's Read
Prasol Chemicals is executing a disciplined growth strategy with improving profitability and operational momentum, supported by capacity expansion and order book strength. Investors should monitor raw material cost trends and execution of new product pipelines to assess sustainability of margin gains in the upcoming quarters.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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