Privi Speciality Chemicals: Scaling New Heights with Record Q2 & H1 FY26 Performance

Privi Speciality Chemicals Limited has delivered an outstanding financial performance for the second quarter and first half of Fiscal Year 2026, marking an all-time high in its operational history. The company reported a robust 26% year-on-year increase in revenue for Q2 FY26, reaching Rs. 678.82 crore. This strong top-line growth translated into an even more impressive bottom line, with EBITDA soaring by 59% to Rs. 182.14 crore and Profit After Tax (PAT) surging by 101% to Rs. 90.21 crore. For the first half of FY26, the consolidated revenue stood at Rs. 1,246.08 crore, a 24% increase from the previous year, while EBITDA grew by 53% to Rs. 323.19 crore and PAT by 94% to Rs. 147.76 crore. These results underscore the company's consistent operational excellence and strategic initiatives.

The remarkable performance is attributed to a combination of factors, including robust demand for its flagship products, the successful introduction of new products, and a relentless focus on process intensification and new capacity creation. Privi's management highlighted that the company has steadily improved its EBITDA margins, sustaining them above 20% for the past ten quarters. This consistent margin expansion is a testament to their disciplined approach to operational efficiency, growing contribution from value-added products, and the receipt of state incentives.

Strategic Growth and Operational Excellence

Privi Speciality Chemicals is not just delivering strong numbers; it is also executing a well-defined strategic roadmap for future growth. The company is in the midst of a three-phase expansion plan designed to enhance its capacity by approximately 50% over the next three to four years. A significant part of Phase I of this expansion has been completed ahead of schedule, providing an immediate boost to volumes. The remaining portion of Phase I is on track for completion by December 2025, which will increase the total production capacity from 48,000 metric tons to 54,000 metric tons by January 2026.

Furthermore, Phase II of the Multispecialty aroma chemicals project is also progressing as planned. The company's commitment to innovation is evident through its wholly-owned subsidiary, Privi Biotechnology, which focuses on research and development using biotechnology routes. This initiative has already led to the commercialization of several bio-waste-based products, with plans for a small demonstration plant to scale up production over the next 15 months. This focus on high-value, high-margin specialty molecules is crucial for diversifying the product portfolio and reducing dependency on any single product.

Financial Discipline and Market Position

Privi has also demonstrated strong financial discipline, with a calibrated effort to improve its working capital cycle. The net working capital days have improved from 136 days in March 2025 to 124 days in September 2025, aligning with management's target of 120-125 days. The company also successfully reduced its overall debt by Rs. 44 crore, bringing the net debt down to Rs. 1,020 crore as of September 2025. These improvements in financial health are critical for sustaining long-term growth and enhancing return ratios.

Privi's market position is strengthened by its strategic backward integration, particularly through the Crude Sulphate Turpentine (CST) route. This provides a significant competitive advantage in terms of supply visibility, cost efficiency, and price stability. The company's global presence, serving over 40 countries, and its status as a preferred supplier to top fragrance and FMCG companies highlight its strong standing in the aroma chemicals market. The management also noted the 'China plus One' shift, where global customers are increasingly preferring sustainable and integrated players like Privi, further bolstering its export opportunities.

Sustainability and Future Outlook

A significant highlight for Privi is its unwavering commitment to sustainability. The company was awarded the first prize in the Large Company category at the IFEAT 2025 conference in Sweden for its advanced bio-based aroma ingredient solutions. This achievement complements its Platinum rating from EcoVadis, the highest global recognition for ESG excellence, placing Privi among the top 1% of companies worldwide. These accolades reinforce the company's belief in responsible business practices and its vision to be a world-class aroma chemicals company.

Looking ahead, Privi's management has set an ambitious target of achieving Rs. 5,000 crore in revenue and Rs. 1,000 crore in EBITDA over the next three to four years. This represents a more than 2x growth from current levels, driven by ongoing capacity expansions, new product launches, and continued operational efficiencies. The company expects to maintain its EBITDA margins between 24% and 26%, including annual state incentives ranging from Rs. 7 crore to Rs. 10 crore. With a sustained CAGR of over 20% for the past two decades, Privi Speciality Chemicals is well-positioned to continue its growth trajectory, leveraging its robust infrastructure, innovative R&D, and strong market relationships.