Chemicals · Founded 1972 · www.thirumalaichemicals.com · BSE 500412 · NSE THIRUMALAI · ISIN INE338A01024
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Business
Thirumalai Chemicals Ltd. (TCL) is a leading Indian manufacturer of chemicals. Its core business involves the production of Phthalic Anhydride (PA), Maleic Anhydride (MA), and a range of food acidulants including Fumaric Acid and Malic Acid. Phthalic Anhydride is primarily used in plastics, paints, and pharmaceuticals. Maleic Anhydride finds applications in unsaturated polyester resins, agricultural chemicals, and food products. Fumaric and Malic acids are widely used in the food and beverage industry as acidulants, flavor enhancers, and preservatives. The company operates through a manufacturing-centric model, producing these chemicals for various industrial and food-grade applications, thereby generating revenue from their sales to a diverse customer base.
Revenue Mix
Thirumalai Chemicals' primary revenue streams are derived from its three main product categories:
Phthalic Anhydride (PA): This is historically one of its largest segments, crucial for the plastics and paint industries.
Maleic Anhydride (MA): Another significant segment, serving the resins and agricultural sectors.
Food Acidulants (Fumaric Acid & Malic Acid): This segment caters to the food and beverage industry, offering stable demand due to consumer staples.
While specific percentage contributions vary with market dynamics and production cycles, these three product groups constitute the vast majority of the company's revenue.
Industry
Thirumalai Chemicals operates in the Indian chemical industry, which is characterized by its cyclical nature, dependence on crude oil derivatives for raw materials, and varying degrees of fragmentation across different product lines. The company is a significant domestic player in its chosen niches, particularly for Phthalic Anhydride and Maleic Anhydride, where it holds a prominent position in terms of production capacity and market share in India. It also competes in the food acidulants market, which has both domestic and international players. TCL positions itself through long-standing relationships with customers, consistent product quality, and a focus on operational efficiency.
MOAT
Thirumalai Chemicals' competitive advantages stem from:
Scale and Cost Efficiency: Being one of the largest producers of PA and MA in India provides economies of scale in manufacturing and procurement, leading to cost efficiencies.
Process Know-how: Extensive experience and continuous improvement in chemical manufacturing processes lead to optimized yields and lower production costs.
Established Customer Relationships: Long-term relationships with a diverse set of industrial and food sector customers ensure stable demand and repeat business.
Product Quality and Consistency: Delivering high-quality and consistent products, particularly critical for industrial applications and food-grade chemicals, builds customer trust and reduces switching incentives.
Growth Drivers
Key factors that can drive growth for Thirumalai Chemicals over the next 3-5 years include:
Increasing Domestic Demand: Growth in end-user industries such as automotive, construction, food & beverage, and packaging in India will fuel demand for PA, MA, and food acidulants.
Capacity Expansions: Strategic investments in increasing production capacities for existing products or diversifying into related chemicals can boost sales volumes.
Export Opportunities: Leveraging cost advantages and quality to expand into international markets for its products.
Focus on Specialty Chemicals: Potential shift or increased focus on value-added specialty chemicals, which typically command better margins compared to basic commodities.
Backward Integration: Investments in securing raw material supplies or producing key intermediates to enhance cost control and reduce supply chain risks.
Risks
Raw Material Price Volatility: Prices of key raw materials (e.g., Orthoxylene for PA, Butane for MA) are largely linked to crude oil prices, leading to significant fluctuations in input costs and impacting profitability.
Industry Cyclicality: The chemical industry is cyclical, with demand and pricing influenced by economic cycles, inventory levels, and global supply-demand dynamics.
Competition: Intense competition from both domestic and international players can put pressure on pricing and margins.
Environmental Regulations: Stricter environmental norms and compliance costs could impact operations and require significant capital expenditure.
Foreign Exchange Fluctuations: Given reliance on imported raw materials and potential for exports, currency volatility can affect profitability.
Project Execution Risk: Delays or cost overruns in planned capacity expansions or new projects could impact financial performance.
Management & Ownership
Thirumalai Chemicals Ltd. is promoted by the Thirumalai family, who have a long history and deep expertise in the chemical industry. The company is professionally managed, with the promoter group typically playing a significant role in strategic direction and operational oversight. The ownership structure is characterized by a significant promoter holding, a common feature in many Indian businesses, indicating alignment of interests with the company's long-term performance. The management team focuses on operational efficiency, product quality, and strategic capacity enhancements.
Outlook
Thirumalai Chemicals operates in a core sector supporting numerous downstream industries, making it well-positioned to benefit from India's overall economic growth. The company's established market position, operational efficiencies, and diversified product portfolio across industrial chemicals and food acidulants provide a degree of resilience. Demand for its products is expected to grow, driven by industrialization, infrastructure development, and increasing consumer spending. However, the cyclical nature of commodity chemicals, vulnerability to raw material price volatility, and intense competition present ongoing challenges. Future performance will largely depend on the company's ability to manage input costs, successfully execute capacity expansions, and maintain its competitive edge through process innovation and customer loyalty amidst evolving market dynamics and regulatory landscapes.
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| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 492 | 527 | 555 | 525 | 447 | 523 | 450 | 445 | 416 | 424 |
| Other Income | 4 | 4 | 3 | 9 | 0 | 8 | 2 | 8 | 4 | 8 |
| Total Income | 496 | 530 | 558 | 534 | 447 | 531 | 452 | 454 | 420 | 433 |
| Total Expenditure | 498 | 523 | 524 | 502 | 467 | 508 | 477 | 449 | 431 | 418 |
| Operating Profit | -2 | 8 | 34 | 33 | -20 | 23 | -25 | 5 | -11 | 14 |
| Interest | 12 | 10 | 9 | 10 | 14 | 15 | 18 | 26 | 21 | 24 |
| Depreciation | 15 | 17 | 14 | 13 | 16 | 18 | 22 | 23 | 23 | 21 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8 |
| Profit Before Tax | -29 | -19 | 11 | 9 | -50 | -11 | -64 | -44 | -55 | -38 |
| Provision for Tax | -6 | 2 | 6 | 4 | -8 | 3 | -4 | -10 | -9 | -10 |
| Profit After Tax | -23 | -20 | 5 | 5 | -42 | -14 | -60 | -33 | -47 | -28 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | -23 | -20 | 5 | 5 | -42 | -14 | -60 | -33 | -47 | -28 |
| Adjusted Earnings Per Share | -2.2 | -2 | 0.5 | 0.5 | -4.1 | -1.4 | -5.9 | -2.8 | -3.9 | -2.3 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 1072 | 944 | 1028 | 1312 | 1261 | 1085 | 1086 | 1998 | 2132 | 2083 | 2050 | 1735 |
| Other Income | 8 | 5 | 4 | 7 | 12 | 21 | 7 | 12 | 30 | 19 | 21 | 22 |
| Total Income | 1080 | 949 | 1033 | 1319 | 1273 | 1106 | 1093 | 2010 | 2162 | 2102 | 2070 | 1759 |
| Total Expenditure | 1034 | 846 | 871 | 1022 | 1055 | 1007 | 865 | 1557 | 1946 | 2032 | 2001 | 1775 |
| Operating Profit | 46 | 103 | 162 | 296 | 217 | 99 | 228 | 452 | 216 | 70 | 69 | -17 |
| Interest | 35 | 23 | 17 | 13 | 12 | 17 | 21 | 20 | 31 | 42 | 49 | 89 |
| Depreciation | 18 | 25 | 36 | 31 | 36 | 44 | 50 | 57 | 56 | 63 | 61 | 89 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8 |
| Profit Before Tax | -7 | 55 | 109 | 253 | 169 | 38 | 157 | 375 | 129 | -35 | -41 | -201 |
| Provision for Tax | 7 | 23 | 39 | 83 | 55 | 15 | 39 | 94 | 40 | 4 | 5 | -33 |
| Profit After Tax | -14 | 32 | 71 | 170 | 114 | 23 | 118 | 281 | 90 | -39 | -46 | -168 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | -14 | 32 | 71 | 170 | 114 | 23 | 118 | 281 | 90 | -39 | -46 | -168 |
| Adjusted Earnings Per Share | -1.3 | 3.1 | 6.9 | 16.6 | 11.1 | 2.3 | 11.5 | 27.5 | 8.8 | -3.8 | -4.5 | -14.9 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -2% | 1% | 14% | 7% |
| Operating Profit CAGR | -1% | -47% | -7% | 4% |
| PAT CAGR | 0% | NAN% | NAN% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -37% | -2% | 5% | 20% |
| ROE Average | -4% | 0% | 9% | 12% |
| ROCE Average | 0% | 4% | 13% | 19% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 193 | 219 | 398 | 573 | 668 | 638 | 803 | 1085 | 1192 | 1146 | 1156 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 39 | 24 | 12 | 50 | 78 | 184 | 158 | 135 | 148 | 813 | 1401 |
| Other Non-Current Liabilities | 28 | 27 | 49 | 133 | 261 | 77 | 81 | 86 | 155 | 333 | 324 |
| Total Current Liabilities | 287 | 251 | 327 | 217 | 328 | 301 | 301 | 555 | 866 | 1029 | 926 |
| Total Liabilities | 547 | 520 | 786 | 973 | 1335 | 1200 | 1343 | 1862 | 2360 | 3320 | 3807 |
| Fixed Assets | 243 | 256 | 317 | 310 | 383 | 550 | 513 | 596 | 671 | 712 | 1251 |
| Other Non-Current Assets | 28 | 38 | 100 | 253 | 493 | 151 | 258 | 235 | 637 | 1475 | 1594 |
| Total Current Assets | 276 | 227 | 368 | 409 | 459 | 499 | 573 | 1031 | 1053 | 1134 | 961 |
| Total Assets | 547 | 520 | 786 | 973 | 1335 | 1200 | 1343 | 1862 | 2360 | 3320 | 3807 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 9 | 1 | 1 | 13 | 24 | 53 | 202 | 227 | 425 | 350 | 406 |
| Cash Flow from Operating Activities | 154 | 126 | 108 | 81 | 234 | 140 | 221 | 402 | 54 | 237 | -66 |
| Cash Flow from Investing Activities | -19 | -32 | -44 | -54 | -220 | -38 | -157 | -139 | -359 | -831 | -542 |
| Cash Flow from Financing Activities | -142 | -93 | -52 | -16 | 16 | 46 | -38 | -70 | 206 | 643 | 375 |
| Net Cash Inflow / Outflow | -8 | 0 | 12 | 10 | 29 | 148 | 25 | 194 | -99 | 49 | -233 |
| Closing Cash & Cash Equivalent | 1 | 1 | 13 | 24 | 53 | 202 | 227 | 425 | 350 | 406 | 183 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -1.34 | 3.14 | 6.9 | 16.64 | 11.09 | 2.26 | 11.49 | 27.46 | 8.77 | -3.79 | -4.5 |
| CEPS(Rs) | 0.4 | 5.59 | 10.4 | 19.63 | 14.64 | 6.57 | 16.33 | 32.99 | 14.21 | 2.38 | 1.46 |
| DPS(Rs) | 0.4 | 1 | 1.88 | 2 | 2 | 0 | 2.2 | 2.5 | 1.5 | 1 | 0 |
| Book NAV/Share(Rs) | 18.86 | 21.36 | 38.89 | 55.95 | 65.22 | 62.32 | 78.41 | 105.96 | 116.4 | 111.93 | 112.86 |
| Core EBITDA Margin(%) | 3.26 | 9.56 | 14.13 | 21.65 | 16.33 | 7.2 | 20.33 | 22.06 | 8.73 | 2.45 | 2.38 |
| EBIT Margin(%) | 2.39 | 7.61 | 11.29 | 19.87 | 14.36 | 5.07 | 16.4 | 19.8 | 7.53 | 0.34 | 0.41 |
| Pre Tax Margin(%) | -0.58 | 5.36 | 9.79 | 18.92 | 13.39 | 3.52 | 14.47 | 18.79 | 6.07 | -1.66 | -1.99 |
| PAT Margin (%) | -1.18 | 3.14 | 6.33 | 12.74 | 9.01 | 2.14 | 10.84 | 14.07 | 4.21 | -1.86 | -2.25 |
| Cash Profit Margin (%) | 0.35 | 5.6 | 9.55 | 15.03 | 11.89 | 6.2 | 15.4 | 16.91 | 6.82 | 1.17 | 0.73 |
| ROA(%) | -2.1 | 6.03 | 10.82 | 19.37 | 9.84 | 1.83 | 9.26 | 17.55 | 4.26 | -1.37 | -1.29 |
| ROE(%) | -6.72 | 15.61 | 22.91 | 35.1 | 18.31 | 3.55 | 16.33 | 29.79 | 7.89 | -3.32 | -4.01 |
| ROCE(%) | 7 | 24.18 | 32.75 | 49.1 | 25.97 | 6.84 | 19.56 | 35.47 | 11.16 | 0.36 | 0.32 |
| Receivable days | 59.78 | 50.14 | 43.73 | 35.13 | 33.6 | 34.15 | 29.83 | 22.23 | 22.09 | 24.98 | 34.03 |
| Inventory Days | 47.83 | 29.8 | 36.11 | 37.88 | 45.89 | 56.81 | 46.74 | 34.11 | 48.03 | 49.94 | 44.35 |
| Payable days | 54.1 | 70.16 | 114.25 | 86.31 | 84.49 | 125.15 | 138.25 | 105.69 | 114.58 | 111.14 | 110.96 |
| PER(x) | 0 | 5.73 | 12.82 | 10.26 | 8.01 | 15.6 | 7.44 | 9.69 | 19.59 | 0 | 0 |
| Price/Book(x) | 0.43 | 0.84 | 2.28 | 3.05 | 1.36 | 0.57 | 1.09 | 2.51 | 1.48 | 2.09 | 2.15 |
| Dividend Yield(%) | 4.93 | 5.56 | 2.12 | 1.17 | 2.25 | 0 | 2.57 | 0.94 | 0.87 | 0.43 | 0 |
| EV/Net Sales(x) | 0.2 | 0.28 | 0.91 | 1.33 | 0.76 | 0.32 | 0.69 | 1.17 | 0.78 | 1.42 | 1.87 |
| EV/Core EBITDA(x) | 4.68 | 2.53 | 5.76 | 5.91 | 4.39 | 3.48 | 3.29 | 5.16 | 7.66 | 42.09 | 55.27 |
| Net Sales Growth(%) | -15.98 | -11.95 | 8.93 | 27.57 | -3.88 | -13.98 | 0.09 | 84.04 | 6.71 | -2.3 | -1.61 |
| EBIT Growth(%) | -55.99 | 179.12 | 61.77 | 110.98 | -31.9 | -69.63 | 223.89 | 122.28 | -59.4 | -95.54 | 15.92 |
| PAT Growth(%) | -215.66 | 334.26 | 119.8 | 141.18 | -33.37 | -79.6 | 407.94 | 138.96 | -68.06 | -143.18 | -18.85 |
| EPS Growth(%) | -215.66 | 334.26 | 119.78 | 141.18 | -33.37 | -79.6 | 407.94 | 138.96 | -68.06 | -143.18 | -18.85 |
| Debt/Equity(x) | 0.73 | 0.42 | 0.15 | 0.09 | 0.15 | 0.31 | 0.23 | 0.15 | 0.37 | 1.01 | 1.48 |
| Current Ratio(x) | 0.96 | 0.9 | 1.12 | 1.89 | 1.4 | 1.66 | 1.9 | 1.86 | 1.22 | 1.1 | 1.04 |
| Quick Ratio(x) | 0.62 | 0.63 | 0.66 | 1.31 | 0.82 | 1.17 | 1.47 | 1.42 | 0.85 | 0.86 | 0.77 |
| Interest Cover(x) | 0.8 | 3.38 | 7.54 | 20.72 | 14.88 | 3.27 | 8.51 | 19.43 | 5.14 | 0.17 | 0.17 |
| Total Debt/Mcap(x) | 1.7 | 0.49 | 0.07 | 0.03 | 0.11 | 0.55 | 0.21 | 0.06 | 0.25 | 0.49 | 0.69 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 41.98 | 41.95 | 41.95 | 41.92 | 41.92 | 41.89 | 41.87 | 36.13 | 37.13 | 37.13 |
| FII | 1.88 | 2.17 | 2.51 | 2.86 | 2.77 | 1.97 | 1.88 | 2.15 | 1.97 | 2.06 |
| DII | 0.18 | 0.55 | 1.29 | 1.31 | 1.21 | 1.07 | 1 | 9.27 | 9.41 | 9.87 |
| Public | 55.97 | 55.34 | 54.26 | 53.91 | 54.1 | 55.07 | 55.25 | 52.44 | 51.49 | 50.94 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 4.3 | 4.29 | 4.29 | 4.29 | 4.29 | 4.29 | 4.29 | 4.29 | 4.48 | 4.48 |
| FII | 0.19 | 0.22 | 0.26 | 0.29 | 0.28 | 0.2 | 0.19 | 0.26 | 0.24 | 0.25 |
| DII | 0.02 | 0.06 | 0.13 | 0.13 | 0.12 | 0.11 | 0.1 | 1.1 | 1.13 | 1.19 |
| Public | 5.73 | 5.67 | 5.56 | 5.52 | 5.54 | 5.64 | 5.66 | 6.22 | 6.21 | 6.14 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 10.24 | 10.24 | 10.24 | 10.24 | 10.24 | 10.24 | 10.24 | 11.87 | 12.06 | 12.06 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -2% | +1% | +14% | +7% |
| Operating Profit CAGR | -1% | -47% | -7% | +4% |
| PAT CAGR | — | 0% | 0% | — |
| Share Price CAGR | -37% | -2% | +5% | +20% |
| ROE Average | -4% | 0% | +9% | +12% |
| ROCE Average | 0% | +4% | +13% | +19% |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 41.98 | 41.95 | 41.95 | 41.92 | 41.92 | 41.89 | 41.87 | 36.13 | 37.13 | 37.13 |
| FII | 1.88 | 2.17 | 2.51 | 2.86 | 2.77 | 1.97 | 1.88 | 2.15 | 1.97 | 2.06 |
| DII | 0.18 | 0.55 | 1.29 | 1.31 | 1.21 | 1.07 | 1 | 9.27 | 9.41 | 9.87 |
| Public | 58.02 | 58.05 | 58.05 | 58.08 | 58.08 | 58.11 | 58.13 | 63.87 | 62.87 | 62.87 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 4.3 | 4.29 | 4.29 | 4.29 | 4.29 | 4.29 | 4.29 | 4.29 | 4.48 | 4.48 |
| FII | 0.19 | 0.22 | 0.26 | 0.29 | 0.28 | 0.2 | 0.19 | 0.26 | 0.24 | 0.25 |
| DII | 0.02 | 0.06 | 0.13 | 0.13 | 0.12 | 0.11 | 0.1 | 1.1 | 1.13 | 1.19 |
| Public | 5.94 | 5.94 | 5.94 | 5.95 | 5.95 | 5.95 | 5.95 | 7.58 | 7.58 | 7.58 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 10.24 | 10.24 | 10.24 | 10.24 | 10.24 | 10.24 | 10.24 | 11.87 | 12.06 | 12.06 |
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