Epigral plans Q3FY27 CPVC and ECH capacity doubling

Epigral plans to commission 75,000 tonnes per annum of chlorinated polyvinyl chloride capacity and 50,000 tonnes per annum of epichlorohydrin capacity in Q3FY27. The additions would double CPVC capacity to 150,000 tonnes per annum and ECH capacity to 100,000 tonnes per annum, according to its 30 September 2026 project update.

What capacity will Epigral add in Q3FY27?

Epigral plans to add 75,000 tonnes per annum, or TPA, of chlorinated polyvinyl chloride, or CPVC, resin capacity and 50,000 TPA of epichlorohydrin, or ECH, capacity in Q3FY27. Its project update as of 30 September 2026 lists both manufacturing additions for commissioning in the quarter, alongside a 19.80-megawatt additional wind-solar hybrid power plant.

The stated additions and post-expansion totals indicate an existing CPVC capacity of 75,000 TPA and ECH capacity of 50,000 TPA. The presentation does not disclose a commissioning month within Q3FY27, project-wise capital expenditure, capacity utilisation, or expected revenue from either expansion.

How will the Q3FY27 projects change Epigral’s production scale?

Epigral says the CPVC addition will lift total capacity to 150,000 TPA, a 100% increase from the implied 75,000-TPA base. Management describes the resulting CPVC facility as the world’s largest plant by capacity and says Indian CPVC demand is expected to grow at about 12% to 13% compound annual growth rate, or CAGR.

Epigral says the ECH expansion will lift capacity to 100,000 TPA, also a 100% increase from the implied 50,000-TPA base. Management describes the resulting ECH facility as India’s largest by capacity and characterises Indian ECH demand growth as high double digit, without providing a numerical growth estimate.

The CPVC project has the larger absolute capacity addition, at 75,000 TPA versus 50,000 TPA for ECH, a difference of 25,000 TPA. Both are scheduled for Q3FY27, before the 125,000-TPA epoxy resin and formulations project and the multi-purpose plant, which are expected in H2FY28.

Why is Epigral expanding CPVC and ECH capacity?

Epigral says the CPVC project will increase in-house chlorine consumption and further strengthen its integrated complex. For the 75,000-TPA addition, management also cites its experience in establishing and operating CPVC plants and its market presence, alongside the stated 12% to 13% Indian demand-growth expectation.

Epigral says the ECH project will increase captive consumption of chlorine, hydrogen and caustic soda. The 50,000-TPA ECH addition specifically links the expansion to three inputs, while management cites operating experience and market presence in India and globally; it does not disclose expected post-project captive-consumption volumes.

The ECH project also connects to Epigral’s H2FY28 epoxy resin and formulations plan. The company identifies ECH and caustic soda as key raw materials for the 125,000-TPA epoxy project at its existing Dahej complex, placing the Q3FY27 ECH addition earlier in that disclosed value chain.

What projects and capital expenditure follow the Q3FY27 additions?

Epigral expects to commission its 125,000-TPA epoxy resin and formulations project at the existing Dahej complex in H2FY28. Management says the project is intended to serve construction, renewable energy, automotive, electronics, infrastructure, marine, aerospace, industrial flooring and other industrial applications.

A multi-purpose plant, or MPP, is also expected in H2FY28 at the existing Dahej complex. Epigral describes the MPP as downstream of the ECH and chlorotoluenes value chain, producing import-substitute products for agrochemical and pharmaceutical intermediates and water-treatment chemicals, but does not disclose its capacity.

Epigral reported capital expenditure of Rs 195 crore in FY2025 and Rs 394 crore in FY2026, followed by Rs 88 crore in FY2027 as of 30 September 2026. It estimates another Rs 312 crore of capital expenditure in FY2027, which would take FY2027 expenditure to Rs 400 crore if incurred, compared with Rs 394 crore in FY2026.

How do Epigral’s results and revenue mix frame the expansion?

Epigral’s derivatives and specialty chemicals revenue share rose to 57% in Q2FY27 from 50% in Q2FY26, while chlor-alkali declined to 43% from 50%. The seven-percentage-point shift occurred before the scheduled Q3FY27 CPVC and ECH additions and reflects a greater reported contribution from derivatives and specialty chemicals.

Q2FY27 total revenue was Rs 752 crore, up 28% from Rs 589 crore in Q2FY26 and 6% from Rs 709 crore in Q1FY27. Earnings before interest, tax, depreciation and amortisation, or EBITDA, were Rs 136 crore, 3% above Rs 132 crore a year earlier but 24% below Rs 179 crore in Q1FY27; EBITDA margin was 18%, versus 23% and 25%, respectively.

For H1FY27, revenue increased 21% to Rs 1,461 crore from Rs 1,204 crore in H1FY26, while EBITDA increased 7% to Rs 315 crore from Rs 296 crore. H1FY27 EBITDA margin was 22%, compared with 25% a year earlier, while net debt to EBITDA was 0.9 times in Q2FY27, against 0.8 times in both Q1FY27 and Q2FY26.

Conclusion

Epigral’s Q3FY27 programme is centred on two capacity doublings: CPVC would rise by 75,000 TPA to 150,000 TPA, while ECH would increase by 50,000 TPA to 100,000 TPA. Management links both projects to greater use of inputs within its integrated complex, as derivatives and specialty chemicals accounted for 57% of Q2FY27 revenue, up from 50% a year earlier.

The disclosed next milestones are the Q3FY27 commissioning of CPVC, ECH and the 19.80-megawatt wind-solar hybrid addition, followed by the 125,000-TPA epoxy resin and formulations project and MPP in H2FY28. The remaining Rs 312 crore of estimated FY2027 capital expenditure and delivery against the stated commissioning schedule are the next disclosed matters to watch.