The hook
1/10
A ₹108 Crore Loss Reversed
Kanoria Chemicals ended FY2025 with a consolidated net loss of ₹108.1 crore and a negative EPS of ₹19.34. By FY2026 it had swung to a positive EPS of ₹9.15 and net income of ₹39.97 crore.
Kanoria Chemicals ended FY2025 with a consolidated net loss of ₹108.1 crore and a negative EPS of ₹19.34. By FY2026 it had swung to a positive EPS of ₹9.15 and net income of ₹39.97 crore.
Founded in 1960 and headquartered in Kolkata, Kanoria Chemicals makes alcohol-based chemical intermediates and performance resins. It survived decades of cycles, but the years around FY2023–FY2025 battered its margins and profitability.
Diversification into European automotive electronics and African denim created a conglomerate penalty. APAG Elektronik's EBITDA swung from a ₹277 million profit in FY2024 to a ₹66 million loss in FY2025; Kanoria Africa lost ₹312 million.
Management sold APAG Elektronik at an enterprise value of roughly EUR 16.4 million and disposed of the solar unit. The cleanup included ₹450 million in equity impairments, ₹294 million of goodwill impairment, and a letter of intent to sell a 13.79% African stake.
After a DGTR investigation into Pentaerythritol imports from China, Saudi Arabia, and Taiwan, India imposed definitive anti-dumping duties on 16 May 2024. This curbed predatory pricing and let Kanoria lift selling prices and recover operating margins.
Ankleshwar commissioned a 345 MTPD formaldehyde plant and an 18 MTPD hexamine plant in September 2024, with ₹90 crore capex. The metal oxide catalyst process runs at lower temperature and boosts efficiency. Quarterly operating profit jumped from ₹11.34 crore to ₹36.88 crore.
Standalone net sales reached ₹875.34 crore in FY2026, up from ₹678.30 crore in FY2025. Net profit swung from a ₹37.98 crore loss to a ₹34.41 crore profit, while adjusted EPS rose from -₹8.90 to ₹7.88.
The exit from loss-making subsidiaries left a leaner core. Cash flow from operations hit ₹73.73 crore in FY2026, funding ₹35.21 crore of investing activity. Debt-to-equity stayed between 0.22x and 0.33x, with interest cover improving to 2.47x.
About 29.57% of promoter holdings are pledged, which could amplify selling if the stock falls sharply. The business also depends on imported methanol and on anti-dumping duties that face sunset reviews; end-market demand is cyclical.
The company is betting on domestic specialty chemicals: another 300 MTPD formaldehyde line and a 6,000 MTPA Triacetin plant are planned. For the full financial, governance, and risk breakdown, read the complete deep dive.
Read the full analysis →