Anupam Rasayan India Ltd. Shines in Q2 & H1 FY26: A Deep Dive into Growth and Strategy

Anupam Rasayan India Ltd., a prominent player in the specialty chemicals sector, has delivered a stellar performance in the second quarter and first half of fiscal year 2026. The company reported exceptional consolidated revenue from operations, reflecting a robust recovery in the chemical industry and strong execution across its business verticals. For Q2 FY26, consolidated revenue from operations surged by an impressive 148.8% year-on-year, reaching ₹731.4 crore. The first half of FY26 saw consolidated revenue climb to ₹1,229.9 crore, marking a substantial 122.1% year-on-year growth. This remarkable achievement means the company has already surpassed its entire FY25 revenue within just six months, underscoring the resilience of its business model and operational excellence.

The strong financial results were primarily driven by a positive turnaround in the agrochemical cycle, coupled with robust growth in the pharma and polymer segments. Life Science Related Specialty Chemicals, encompassing agrochemicals, personal care, and pharmaceuticals, contributed a significant 84% to the total revenue in H1 FY26. Within this, the pharmaceutical segment alone accounted for 23% of total revenue and registered an impressive 201% year-on-year growth, fueled by new product launches and the scale-up of recently commercialized molecules. Performance Materials, which includes polymer, electronic chemicals, and dyes and pigments, contributed the remaining 16% of total revenue and demonstrated an outstanding 306% year-on-year growth, supported by the ramp-up of newly launched polymer molecules and expanding customer engagements.

Financial Highlights: Q2 & H1 FY26

Note: All figures are in Crore. EBITDA includes other income.

Strategic Initiatives and Future Outlook

Anupam Rasayan's strategic focus on backward integration and portfolio expansion is clearly paying off. The acquisition of a ~26% stake in Tanfac Industries, for approximately ₹153 crore, has established Anupam as one of the few backward-integrated fluorination players globally. This strategic move ensures uninterrupted access to key raw materials like hydrofluoric acid (HF) and potassium fluoride (KF), crucial for fluorination chemistry. This integration is expected to enable future expansion of product series, reduce import dependence on China, and enhance the capacities of Tanfac's existing product portfolio through process improvements and debottlenecking. The targeted series for Anupam in fluorination chemistry alone represents a $5+ billion addressable market with a revenue potential of$220-260 million.

The company has also made substantial investments in its manufacturing capabilities, completing a CapEx of ₹678 crore announced in September 2022 for three new plants. These assets are now fully operational and are expected to significantly contribute to revenue generation going forward. Management highlighted that the US market continues to be a key growth driver, with 58% of total revenue coming from exports, and the majority of its products falling under the exempt category for recently imposed US tariffs, ensuring competitive pricing and stable margins.

Operational Efficiency and Management Commentary

Despite the strong growth, consolidated EBITDA margins for Q2 FY26 were slightly subdued at 19.5% due to dispatches from older inventory. However, management anticipates margin normalization to around 25% from Q3 onwards, driven by new contracts and pricing structures. The company is also making significant progress in improving working capital efficiency, with working capital days decreasing from 409 days in FY25 to 247 days in H1 FY26. The target is to further reduce this to 200 days by the end of FY26, which will enhance cash flow and asset turnover.

Anupam Rasayan's management expressed optimism about the company's outlook, projecting over 50% growth in FY26, primarily from the recovery in agrochemical sales and continued expansion in the polymer and pharma segments. The company is also open to exploring inorganic opportunities, especially in the polymer sector, to further strengthen its market presence. The robust order book of ₹14,646 crore, spread over 5-7 years, provides strong revenue visibility, with approximately ₹450 crore expected to contribute to revenue in FY26.

In conclusion, Anupam Rasayan India Ltd. has demonstrated exceptional performance and strategic clarity in Q2 and H1 FY26. With strong revenue growth, strategic backward integration, and a clear roadmap for operational efficiency and market expansion, the company is well-positioned for sustained growth and healthy profitability in the coming periods. The management's disciplined execution and focus on high-value chemistries instill confidence in its long-term trajectory.