Any current/future new fundraising through debt or equity?

No immediate plans for new fundraising through debt or equity. The company is currently preparing for worst-case scenarios due to uncertain market conditions. Available funds (around Rs. 65 crores) are planned to be deployed for network growth and geographical expansion. No major additional plant or CapEx deployment beyond the current year is planned at this time.

Any current/future capex/capital investment/strategic investment?

Current year CAPEX has increased to around ₹20-21 crores, mainly due to the full-year impact of the demerger, including assets transferred to their books and office building renovations. Preparing for potential adverse scenarios with readiness for all eventualities. No plans for major new plant setups or large-scale capital investments beyond current year CAPEX. Intend to deploy some funds in network growth and geographical expansion. Focus on expanding existing capacity and improving infrastructure rather than greenfield projects currently.

Future growth expectations in sales/revenue/volumes?

Company aspires to reach ₹1000 crore sales within four years, aiming for nearly triple current sales (~₹330-340 crores). Growth strategies include geographical expansion, entering new markets, and organic growth from a larger base. Volume growth drives most sales increases; price increases have contributed minimally. Construction chemicals volume growth forecasted at 15-20%, water chemicals around 10% for the current year. Water business shows fastest growth and strong order book, with new client additions driving volume increases. Distribution and cleaning & hygiene businesses showing positiv

Future growth expectations in earnings/operating earnings/profits/EPS?

The company aims to triple sales to ₹1000 crores within four years through geographical expansion, new market activation, and organic growth. Volume growth is expected to drive sales, with construction chemicals projected at 15-20% and water chemicals around 10% volume growth. EBITDA margins may face slight pressure (~3%) due to input cost volatility but could stabilize as higher-priced contracts are locked in. Profit growth is linked closely to sales volume increases and operational efficiencies rather than price hikes, as price growth contributed minimally historically. The water bus

Current/ Expected Orderbook/ Pending Orders?

The Water Business Unit (BU) is entering the period with a strong order book for both chemicals and equipment. There are ongoing activities and developments in the bioremediation space, with expectations of increased contributions from the wastewater treatment subsection. New client additions have driven volume growth in the water chemicals business, with contracts extending till mid of the current financial year. Several public sector contracts have come up for tendering, with bids already submitted at higher prices. The company is actively pursuing new market opportunities and expanding geog

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Chembond Chemicals LtdQ1 FY27Chemicals & Petrochemicals

Chembond Chemicals Ltd Q1 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹242P/E: 15.7Market Cap: ₹504 CrSector: Chemicals & Petrochemicals

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Company aspires to reach ₹1000 crore sales within four years, aiming for nearly triple current sales (~₹330-340 crores).
→Growth strategies include geographical expansion, entering new markets, and organic growth from a larger base.
→Volume growth drives most sales increases; price increases have contributed minimally.
→Construction chemicals volume growth forecasted at 15-20%, water chemicals around 10% for the current year.
→Water business shows fastest growth and strong order book, with new client additions driving volume increases.
→Distribution and cleaning & hygiene businesses showing positive growth due to team realignment and product additions.
→Despite some margin pressure due to input cost inflation, long-term growth momentum is expected to continue, supported by industry growth and new business wins.

Margin guidance

Category 3

→The company aims to triple sales to ₹1000 crores within four years through geographical expansion, new market activation, and organic growth.
→Volume growth is expected to drive sales, with construction chemicals projected at 15-20% and water chemicals around 10% volume growth.
→EBITDA margins may face slight pressure (~3%) due to input cost volatility but could stabilize as higher-priced contracts are locked in.
→Profit growth is linked closely to sales volume increases and operational efficiencies rather than price hikes, as price growth contributed minimally historically.
→The water business remains the largest contributor (~85-87%), with plans to reduce its share by growing other segments faster, diversifying revenue streams.
→Integration of cleaning & hygiene and water treatment technologies is expected to improve margins and growth trajectory.
→Overall, earnings and profits are forecasted to improve steadily with sales growth, despite temporary margin pressures from raw material cost fluctuations.

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Fundraise plans

→No immediate plans for new fundraising through debt or equity.
→The company is currently preparing for worst-case scenarios due to uncertain market conditions.
→Available funds (around Rs. 65 crores) are planned to be deployed for network growth and geographical expansion.
→No major additional plant or CapEx deployment beyond the current year is planned at this time.

Order book

Yes

→The Water Business Unit (BU) is entering the period with a strong order book for both chemicals and equipment.
→There are ongoing activities and developments in the bioremediation space, with expectations of increased contributions from the wastewater treatment subsection.
→New client additions have driven volume growth in the water chemicals business, with contracts extending till mid of the current financial year.
→Several public sector contracts have come up for tendering, with bids already submitted at higher prices.
→The company is actively pursuing new market opportunities and expanding geographically to increase its order book.

Capex plans

Yes

→Current year CAPEX has increased to around ₹20-21 crores, mainly due to the full-year impact of the demerger, including assets transferred to their books and office building renovations.
→Preparing for potential adverse scenarios with readiness for all eventualities.
→No plans for major new plant setups or large-scale capital investments beyond current year CAPEX.
→Intend to deploy some funds in network growth and geographical expansion.
→Focus on expanding existing capacity and improving infrastructure rather than greenfield projects currently.

How does Chembond Chemicals Ltd rank vs peers in Chemicals & Petrochemicals?

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1Chembond Chemicals Ltd

Rev 3Mar 3

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