Summary
Platinum Industries Limited - Q3 FY 2026 Earnings Call Summary Friday, February 13, 2026, 03:00 PM IST
Event Participants
Executives 2 Ashok Bothra (CFO), Krishna Rana (Chairman & Managing Director)
Analysts 4 Ashish Barod, Bhargav Buddhadev, Dhiral Shah, Yash Jhurani
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Standalone) | ₹102.62 crores | +31% YoY, +6% QoQ; driven by higher CPVC volumes and improved product mix. |
| Revenue (Consolidated) | ₹104.67 crores | +12% YoY; 9M FY26 consolidated revenue reached ₹318.42 crores (+7.7% YoY). |
| Gross Margin | ~31.0% | -160 bps YoY; lower due to a higher proportion of CPVC sales which yield lower margins. |
| EBITDA (Standalone) | ₹16.25 crores | 15.8% margin; reflects impact of higher COGS and employee costs from the new Palghar facility. |
| Profit After Tax (PAT) | ₹12.93 crores | +18% YoY, +6.5% QoQ; volume growth offset by increased depreciation and setup costs. |
| Earnings Per Share (EPS) | ₹2.35 | Reported for the quarter; reflects resilient performance amid capacity expansion. |
| Net Debt | ₹0.00 crores | Company remains net debt-free with a healthy cash position for organic/inorganic growth. |
Geographic & Segment Commentary
- India (Standalone): Revenue grew 31% YoY to ₹102.6 crores, supported by a 60-65% utilization rate at the new 12,000-tonne CPVC facility in Palghar. Management expects the remaining calcium zinc and lead-free lines to reach full commercial scale by April 2026.
- Egypt (International): Construction is slated for completion by May 2026, with pre-commissioning in June and commercial production by September 2025 (FY27). The facility targets 130 countries via Free Trade Agreements (FTAs) with significantly lower power costs (₹3/unit vs ₹15/unit in India).
- PVC & CPVC Stabilizers: CPVC contribution margins improved from 7% to 17% over recent quarters as the product lifecycle matures. PVC consumption in India saw a 10-12% degrowth between April and December, though segments like CPVC grew exponentially.
Company-Specific & Strategic Commentary
- Product Diversification (Oleo Chemicals): The company is expanding into Polyolefin additives (Oleamides) via Platinum Oleo Chemicals, targeting a 40,000-tonne capacity with a projected ₹150-200 crore Capex funded by debt or internal accruals.
- Pharma Entry: Formed a subsidiary, Rivadu LifeSciences Pvt Ltd (70% stake), to enter niche APIs, nutraceuticals, and excipients. The strategy involves an asset-light CDMO model initially, hiring third-party capacities before committing to internal Capex.
- Sustainability Shift: Increasing focus on lead-free “Calcium Zinc” stabilizers to align with global regulatory shifts; powder capacity for lead-free products has already increased utilization to 20-30% from 10%.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | >40% YoY for FY 2027 | Driven by Palghar ramp-up and the commencement of the Egypt facility. |
| Revenue CAGR | 35% from FY26 to FY29 | Excludes potential pharma revenue; supported by PVC consumption growth of 8% in India. |
| Revenue Potential | ₹1,400 crores | Combined potential from Unit 1 and Unit 2 in India at full capacity. |
| Egypt Revenue | ₹250-300 crores | Targeted over three years, representing roughly 50% capacity utilization initially. |
| PAT Margins | 11% - 12% | Long-term target for the entire portfolio once product mixes stabilize. |
Risks & Constraints
| Risk | Context |
|---|---|
| Project Delays | The Egypt plant was delayed by 9-12 months, shifting the anticipated ₹450-500 crore revenue target from FY25 to future periods. |
| Margin Pressure | Increased proportion of high-volume, lower-margin CPVC and lead-based products initially suppresses overall EBITDA margins. |
| Regulatory Transition | While Egypt focuses on lead-based stabilizers for African/Middle Eastern markets, a sudden global ban would require significant equipment cleaning and re-calibration to Calcium Zinc. |
Q&A Highlights
Value Chain Evolution
- Question: Are major pipe players like Prince Pipes bypassing middlemen to buy directly from manufacturers? (Yash Jhurani)
- Answer: Platinum is a manufacturer, not a middleman. Large players are moving away from “co-branding” compounds (like Lubrizol) to buy resin directly and use Platinum’s additives to control their own formulations and costs (Krishna Rana).
Egypt Strategic Rationale
- Question: What is the cost-benefit of the Egypt facility? (Mrunal)
- Answer: Strategic access to 130 countries via FTAs. Logistics costs to Central Asia are $500 from Egypt vs $6,000 from India. Power costs in Egypt are ~₹3 per unit compared to ~₹15 in Maharashtra (Krishna Rana).
Pharma Strategy
- Question: What is the roadmap for the new pharma subsidiary? (Bhargav Buddhadev)
- Answer: Partnering with a scientist who holds multiple patents. The model is asset-light (CDMO) for the first 2-3 years to generate revenue before investing in owned Capex (Krishna Rana).
Capacity & Utilization
- Question: What is the revenue potential of Indian factories? (Raj Shah)
- Answer: Total Indian revenue potential is ₹1,400 crores (PVC ~₹750cr, CPVC ~₹600cr). Current utilization for flakes is high (~95%), while powder lines are increasing from a low base (Ashok Bothra/Krishna Rana).
Key Takeaway
Platinum Industries delivered a resilient Q3 FY26 with 31% standalone revenue growth, reaching ₹102.62 crores, despite margin compression to 15.8% caused by a higher mix of lower-margin CPVC products. The company is undergoing a massive capacity expansion phase, transitioning from a 30,000 MT capacity to 150,000 MT across India and Egypt. Strategically, the firm is diversifying beyond stabilizers into Oleo Chemicals and Niche Pharma to de-risk its portfolio. Management remains highly optimistic, guiding for a 40% revenue jump in FY27 as the Egypt facility nears its September 2025 commissioning and the Palghar unit reaches optimal scale. While project delays in Egypt and shifting raw material costs remain watch points, the company’s net debt-free balance sheet provides the necessary cushion to execute its aggressive ₹1,400 crore revenue potential target in India.
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