Chemplast Sanmar Ltd
NSE:CHEMPLASTS
Chemplast Sanmar Ltd
Chemplast Sanmar Ltd. operates as a specialty chemicals manufacturer. The company is headquartered in Chennai, Tamil Nadu. The company went IPO on 2021-08-24. The firm also produces other chemicals, such as caustic soda, chlorochemicals, hydrogen peroxide, refrigerant gas and industrial salt. Its chlorochemicals manufactures a range of products using an integrated manufacturing process. Its hydrogen peroxide is a chemical used in various industries, including pulp and paper, textile and water treatment for chemical synthesis, sterilization and bleaching. The salt needed for chlorine manufacture is supplied by salt fields at Vedaranyam. The Company’s custom manufactured chemicals product includes organic chemicals and phyto chemicals. Its manufacturing facilities are located at Mettur, Berigai and Vedaranyam in Tamil Nadu and Karaikal in the Union Territory of Puducherry.
Chemplast Sanmar Ltd. operates as a specialty chemicals manufacturer. The company is headquartered in Chennai, Tamil Nadu. The company went IPO on 2021-08-24. The firm also produces other chemicals, such as caustic soda, chlorochemicals, hydrogen peroxide, refrigerant gas and industrial salt. Its chlorochemicals manufactures a range of products using an integrated manufacturing process. Its hydrogen peroxide is a chemical used in various industries, including pulp and paper, textile and water treatment for chemical synthesis, sterilization and bleaching. The salt needed for chlorine manufacture is supplied by salt fields at Vedaranyam. The Company’s custom manufactured chemicals product includes organic chemicals and phyto chemicals. Its manufacturing facilities are located at Mettur, Berigai and Vedaranyam in Tamil Nadu and Karaikal in the Union Territory of Puducherry.
Revenue Decline: Chemplast Sanmar reported Q3 consolidated revenue of INR 835 crores, a 20% year-on-year drop, marking its most challenging quarter in three years.
Net Loss: The company posted a net loss of INR 119 crores for the quarter, bringing the 9-month net loss to INR 234 crores.
PVC Headwinds: Suspension PVC business was hit by seasonally weak demand, weather-related disruptions, regulatory setbacks, and continued price pressure from imports.
Signs of Recovery: Management sees Q3 as the bottom of the PVC cycle, with demand and prices improving in January and February, and expects breakeven in Suspension PVC by February-March.
Regulatory Shift: The upcoming withdrawal of China’s export tax rebate on Suspension PVC (effective April 2026) is expected to boost local market conditions and reduce dumping.
Custom Chemicals Delay: The Custom Manufactured Chemicals business faced an agrochemical slowdown, deferring its INR 1,000 crore revenue target by a few quarters but management maintains confidence for FY '28.
Capacity Expansion: R32 refrigerant gas plant ramp-up is underway, targeting 14,000 tonnes capacity and expected to generate around INR 600 crores annual revenue after full ramp.
Leadership Change: Managing Director Ramkumar Shankar will step down in April 2026, with Ganesh Kumar set to succeed him.
