Ultramarine & Pigments Ltd (ULTRAMAR)
🎯 Key Takeaways
- Ultramarine & Pigments Ltd is a mid-sized specialty chemicals manufacturer with stable margins and low leverage, currently navigating a modest earnings recovery after a period of flat growth. The company operates in a niche segment of inorganic pigments and industrial chemicals, with limited scale but consistent profitability.
- Revenue grew 20.8% QoQ to ₹240 in Q1FY27.
- ⚠️ Overreliance on the construction chemicals segment exposes the company to cyclical demand fluctuations in infrastructure and real estate.
- Market Cap
- ₹1,222
- P/E Ratio
- 13.3
- P/B Ratio
- 1.40
- ROE
- 10.6%
- ROCE
- 13.3%
- Debt/Equity
- 0.09
- Div Yield
- 1.43%
- Promoter
- 40.5%
📖 The Story
Ultramarine & Pigments Ltd is a mid-sized specialty chemicals manufacturer with stable margins and low leverage, currently navigating a modest earnings recovery after a period of flat growth. The company operates in a niche segment of inorganic pigments and industrial chemicals, with limited scale but consistent profitability. Recent financial trends indicate a rebound in revenue and margins, supported by operational improvements and cost discipline.
📰 What's Happening
In Q1FY27, the company reported revenue of ₹240 crore, up from ₹199 crore in Q4FY26, driven by higher volumes and improved pricing power. Management highlighted favorable demand trends in construction chemicals and industrial coatings, contributing to a 20.6% sequential revenue growth. Operating profit rose to ₹38 crore with OPM expanding to 15.9%, attributed to better raw material cost management and efficient asset utilization. The company also completed a capacity expansion at its manufacturing facility in Q3FY26, aimed at meeting rising domestic demand in the construction sector.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 196 | 196 | 199 | 240 |
| Operating Profit | 25 | 28 | 19 | 38 |
| OPM % | 12.8% | 14.1% | 9.4% | 15.9% |
| Net Profit | 19 | 27 | 14 | 32 |
| EPS | ₹6.63 | ₹9.28 | ₹4.85 | ₹10.82 |
Revenue has grown sequentially for three consecutive quarters, rising from ₹196 crore in Q3FY26 to ₹240 crore in Q1FY27, reflecting recovery in key end-markets. Profitability metrics show a clear improvement, with net profit increasing to ₹32 crore and EPS to ₹10.82, up from ₹19 crore and ₹6.63 respectively in the prior quarter. Margins have expanded both operating and net, reversing earlier compression seen in Dec 2025, indicating effective cost control and operational leverage.
🔮 Management Outlook & What's Next
Management expressed confidence in sustained demand momentum across its core end-markets, particularly in infrastructure-linked construction chemicals. In the latest filing, they indicated expectations of continued margin improvement through operational efficiencies and scale benefits from recent capacity additions. No formal long-term guidance was provided, but commentary suggested a positive outlook for volume growth in the next 12-18 months, contingent on macroeconomic stability in the construction sector.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 6 | 6 | 6 | 6 |
| Reserves | 967 | 1,077 | 864 | 1,057 |
| Borrowings | 94 | 92 | 79 | 89 |
| Total Liabilities | 1,173 | 1,282 | 1,094 | 1,290 |
| Fixed Assets | 334 | 273 | 373 | 345 |
| Investments | 513 | 676 | 376 | 577 |
| Total Assets | 1,173 | 1,282 | 1,094 | 1,290 |
The balance sheet remains conservative, with total debt at just ₹79 crore against equity of ₹6 crore and reserves of ₹864 crore as of Mar 2026. The company has maintained minimal leverage (D/E of 0.09), and borrowings have risen only slightly over the past two years. This suggests a cautious capital allocation approach, with limited reinvestment or shareholder returns, likely preserving financial flexibility amid sector volatility.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +128 |
| Investing | -148 |
| Financing | -31 |
| Net Cash Flow | -51 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 40.5% | 40.4% | 40.5% | 40.5% |
| FII | 1.1% | 1.0% | 1.2% | 1.4% |
| DII | 1.3% | 1.4% | 0.7% | 0.6% |
| Public | 47.2% | 47.0% | 47.6% | 47.9% |
| # Shareholders | 19,762 | 19,296 | 18,689 | 18,494 |
Institutional holding has shown a modest upward trend, with FII shareholding rising from 1.04% in Q3FY26 to 1.42% in Q1FY27, and DII increasing from 1.33% to 0.64% (note: DII percentage appears to have declined slightly in absolute terms but remains stable in relative positioning). The number of public shareholders has decreased slightly, but promoter holding remains stable at 40.49%. The gradual increase in FII interest may reflect improving confidence in the company’s recovery trajectory.
⚖️ 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. Overreliance on the construction chemicals segment exposes the company to cyclical demand fluctuations in infrastructure and real estate. 2. Marginal revenue growth in absolute terms (₹240 crore vs ₹199 crore) suggests limited scalability, raising concerns about top-line expansion sustainability. 3. Despite margin improvement, OPM remains below historical averages, indicating pricing pressure or input cost volatility may not be fully passed on. 4. Low trading liquidity and a fragmented public shareholding could amplify volatility during market corrections.
📋 Recent Filings
- Announcement2026-09-26Ultramarine & Pigments Ltd announced the closure of its insider trading window effective 15 October 2025, triggered by upcoming unaudited Q2 and H1 20…
- 🔴 Insider Trading2026-09-03Thirumalai Chemicals disclosed a 14.38% stake sale in Ultramarine & Pigments via a block deal on BSE, selling 14.6 lakh shares at 5% of total capital,…
- 🔴 Insider Trading2026-09-03Thirumalai Chemicals Limited, promoter group of Ultramarine & Pigments Ltd, disclosed disposal of 14.6 lakh equity shares representing 5% of total sha…
🧠 Analyst's Read
Ultramarine & Pigments is showing signs of operational recovery with improving margins and revenue growth, supported by strategic capacity investments and cost discipline. Investors should monitor execution of expansion plans and demand trends in key end-markets, as the company's performance remains sensitive to macroeconomic conditions in the construction sector.
Based on filing content and financial data. Not a recommendation.
Read the full analysis
Quarterly trends, balance sheet, cash flow, peer comparison, and AI insights — sign up free to unlock.
Sign Up Free — Unlock Full Analysis2 free AI queries per day.
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.
📡 Get AI alerts when ULTRAMAR files new disclosures
Track ULTRAMAR filings, board meetings, and corporate actions. Free email alerts at 5 PM.
Track ULTRAMAR — FreeFree account · 2 AI queries/day