EPIGRAL derivatives and specialty share rises to 57% in Q2FY27

EPIGRAL reported that derivatives and specialty chemicals supplied 57% of Q2FY27 revenue, compared with 50% in Q2FY26, while chlor-alkali represented 43%. The quarter’s revenue rose 28% year on year to Rs 752 crore. Epigral has scheduled additional CPVC and epichlorohydrin capacity for commissioning in Q3FY27.

What share of Epigral revenue came from derivatives and specialty chemicals?

Epigral derived 57% of Q2FY27 revenue from derivatives and specialty chemicals, versus 43% from chlor-alkali. The 57% share was the highest in the five quarters reported from Q2FY26 to Q2FY27, and placed derivatives and specialty chemicals 14 percentage points above chlor-alkali in the latest quarter.

The revenue mix changed by 7 percentage points year on year, with derivatives and specialty chemicals rising from 50% in Q2FY26 to 57% in Q2FY27. Chlor-alkali moved in the opposite direction, falling from 50% to 43%; the presentation provides mix percentages rather than revenue amounts for either category.

Epigral’s change was not uniform across the five quarters. Derivatives and specialty chemicals increased from 50% in Q2FY26 to 54% in Q4FY26, fell to 49% in Q1FY27, and then rose by 8 percentage points to 57% in Q2FY27; chlor-alkali followed the reverse pattern.

Did Epigral disclose a FY28 derivatives and specialty chemicals target?

Epigral did not disclose an FY28 revenue-share target for derivatives and specialty chemicals in the supplied presentation. The source reports the quarterly mix through Q2FY27 and gives project commissioning dates through H2FY28, but does not state that the category should reach roughly 70% of revenue by FY28.

The available data support a reported shift from a 50:50 mix in Q2FY26 to a 57% derivatives and specialty chemicals share in Q2FY27. However, no segment revenue amounts, FY28 category revenue forecast, or expected mix contribution from the multi-purpose plant is provided, so the scale of any future shift remains unquantified.

The disclosed capex programme provides the operational context for the mix change. Epigral expects 75,000 tonnes per annum, or TPA, of additional chlorinated polyvinyl chloride capacity and 50,000 TPA of additional epichlorohydrin capacity in Q3FY27, followed by epoxy resin and multi-purpose plant projects in H2FY28.

Which Epigral projects support its derivatives and specialty chemicals business?

Epigral expects to commission an additional 75,000 TPA of chlorinated polyvinyl chloride, or CPVC, capacity in Q3FY27, taking total CPVC capacity to 150,000 TPA. The presentation says the expansion will increase in-house chlorine consumption at the integrated complex and describes the resulting plant as the world’s largest by capacity.

The company also expects an additional 50,000 TPA of epichlorohydrin, or ECH, capacity in Q3FY27, doubling total ECH capacity to 100,000 TPA. Epigral identifies chlorine, hydrogen and caustic soda as inputs for captive consumption in the ECH expansion and describes the resulting facility as India’s largest ECH plant by capacity.

For H2FY28, Epigral plans to commission a 125,000-TPA epoxy resin and formulations project at its existing Dahej complex. The company identifies ECH and caustic soda as key raw materials for the project, which is intended to serve construction, renewable energy, automotive, electronics, infrastructure, marine, aerospace and industrial flooring applications.

Epigral also plans a multi-purpose plant, or MPP, at the Dahej complex in H2FY28. The MPP is downstream of the ECH and chlorotoluenes value chains and is intended for import-substitute products serving agrochemical, pharmaceutical-intermediate and water-treatment-chemical applications, although the source does not disclose its capacity.

How did Epigral's financial performance and capex change in Q2FY27?

Epigral reported Q2FY27 revenue of Rs 752 crore, up from Rs 589 crore in Q2FY26 and Rs 709 crore in Q1FY27. The presentation reports 28% year-on-year revenue growth, while the sequential increase was Rs 43 crore during the quarter in which derivatives and specialty chemicals accounted for 57% of revenue.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, were Rs 136 crore in Q2FY27, compared with Rs 132 crore in Q2FY26 and Rs 179 crore in Q1FY27. EBITDA margin was 18%, down from 23% a year earlier and 25% in the preceding quarter, despite the increase in revenue.

Profit after tax, or PAT, was Rs 64 crore in Q2FY27, up from Rs 51 crore in Q2FY26 but below Rs 99 crore in Q1FY27. PAT margin remained 9% year on year, compared with 14% in Q1FY27; for H1FY27, revenue was Rs 1,461 crore, EBITDA was Rs 315 crore and PAT was Rs 164 crore.

Epigral reported Rs 195 crore of capex spending in FY2025 and Rs 394 crore in FY2026. For FY2027, it reported Rs 88 crore of spending and estimated a further Rs 312 crore to be incurred, while the capex update as of September 30, 2026 also listed a 19.80-megawatt additional wind-solar hybrid power plant for Q3FY27.

Conclusion

Epigral’s reported revenue mix moved toward derivatives and specialty chemicals, which accounted for 57% in Q2FY27 against 50% in Q2FY26, as chlor-alkali declined to 43%. Revenue increased 28% year on year to Rs 752 crore, while EBITDA margin declined by 5 percentage points to 18% over the same period.

The next disclosed milestones are Q3FY27 commissioning of the additional 75,000-TPA CPVC and 50,000-TPA ECH facilities, followed by the 125,000-TPA epoxy resin project and MPP in H2FY28. The source does not state an FY28 revenue-mix target or an MPP capacity, leaving their eventual effect on the reported mix unresolved.