Epigral Shares Surge 15% Following Record Quarterly Revenue Despite Profit Decline
Epigral shares climb 15% on record Q4 revenue; profit under pressure
Business Standard
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Shares of Epigral, an integrated chemical manufacturer in India, rose by 15% after reporting record quarterly revenue of ₹736 crore for Q4FY26. However, the company's net profit fell by 6.84% to ₹80.95 crore, raising concerns about profitability amidst strong demand and rising capacity expansions.
- 01Epigral's shares surged 15% to ₹1,400 after reporting record Q4 revenue.
- 02The company achieved net sales of ₹736 crore, a 17.29% increase from the previous year.
- 03Net profit declined by 6.84% to ₹80.95 crore in Q4FY26.
- 04The board recommended a final dividend of ₹5 per share.
- 05Capacity expansions are on track, with significant increases planned for CPVC resin and epichlorohydrin.
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Epigral, an integrated chemical manufacturer based in India, saw its share price increase by 15% to reach an intraday high of ₹1,400 on the National Stock Exchange (NSE) following the announcement of its highest-ever quarterly revenue of ₹736 crore for Q4FY26. This marks a 17.29% increase in net sales compared to the same quarter last year. Despite this revenue growth, the company's net profit fell by 6.84% to ₹80.95 crore, raising concerns about profitability. The company attributed its revenue growth to strong demand and improved utilization levels post-maintenance, while also noting challenges from the extended monsoon season. The board has proposed a final dividend of ₹5 per share, reflecting a 50% payout on the face value of ₹10. Furthermore, Epigral is progressing with its capital expenditure plans, which include significant expansions in CPVC resin and epichlorohydrin capacities, as well as increasing its wind-solar hybrid power plant capacity.
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The increase in share price and planned expansions could positively affect local employment and economic activity in the chemical manufacturing sector.
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