Prasol Chemicals Ltd(PRASOLCHEM)

NSE: PRASOLCHEMBSE: 544912

₹ 773+0.46%refreshed 09 Nov, 03:30 pm ISTMarket cap: ₹ 4,575 crWebsite: www.prasolchem.comUpdated: 10 Nov 2026

About

Prasol Chemicals Ltd is an Indian specialty chemicals company. It makes acetone- and phosphorus-based derivatives, lubricant additives and higher-value tertiary derivatives at two plants in Maharashtra. Installed capacity was 98,644 MTPA as of FY26, and Q2 FY27 revenue was INR413 crore, the highest Q2 in its history. Exports were around 25% of revenue in Q2 FY27, and it keeps consignment stock points in Houston, Rotterdam and Shanghai.^[1][2]

Product mix

Basic and first-level derivatives (acetone/phosphorus-based) were about 50% of revenue as of Q1 FY27.^[1]
Primary, secondary and tertiary derivatives were 30-35% of revenue in Q1 FY27, and this share is growing as the company moves up the value chain.^[1]
Distribution and trading was about 20% of revenue as of Q1 FY27. The company aims to cut this to ~10% over five years by making more products in-house.^[1]
13 new products were commercialised over the three years to Q1 FY27.^[1]
Only two Indian manufacturers make the company's agro products, and imports are limited (Q2 FY27 call).^[2]

Manufacturing operations

Installed capacity was 98,644 MTPA as of FY26, across the Khopoli plant and the Mahad greenfield site (~19,900 tons).^[2][1]
Combined plant utilisation was 65-75% in Q2 FY27, against 70-72% in FY26.^[2]
Mahad utilisation rose from 13% in FY24 to 44% in FY26, and the site is now EBITDA and PBT positive. New products are expected to take it to 70%-plus by end FY27.^[1]
Lubricant additive output is fully sold, and the company has orders it cannot serve with current capacity (Q2 FY27).^[2]
Power at Mahad costs INR9-9.50 per unit. Renewable power is expected to save about INR1.25-1.50 per unit, depending on changing rules.^[2]

Key operating numbers

Gross margin was 30.1% in Q2 FY27, up from 27.9% a year earlier. It was 37.9% in Q1 FY27, which included a INR25 crore price-led inventory gain.^[2][1]
Q2 FY27 growth came mainly from higher realisations, with only single-digit domestic volume growth.^[2]
Net working capital days were 76 at end Q2 FY27, up from 63 at end Q1 FY27 and 50 in FY26. Management targets a return to 60-70 days by end Q3 FY27.^[2][1]

Customers and exports

Exports were about 25% of revenue in Q2 FY27, against 27% in FY26. Shipping shortages and higher sea freight delayed some shipments. The target is more than 30% in coming years.^[2]
Consignment stock points in Houston, Rotterdam and Shanghai supply international customers just in time, and more such points are planned.^[1]
Formula-based pricing arrangements with major customers are used to reduce inventory gains and losses from raw material price moves (Q2 FY27).^[2]
An antibacterial drug product has sample approval from a multinational customer. Commercial volumes of 100+ tons per month are targeted.^[1]

Expansion and capex

Phase 1 (INR250-300 crore) adds ~60,000 tons over 12-24 months, taking capacity to 150,000-160,000 tons. About INR75 crore had been invested by Q2 FY27, with INR75-100 crore more planned by March 2027.^[2]
About 25% of Phase 1 products are due for mechanical completion by March 2027 and to go live by June-July 2027. Another ~25% is to be taken up in H2 of next year.^[2]
Phase 1 expands every non-agro product by 30% to nearly 100%, including forward integration. No further agro capacity is planned under the current programme.^[2]
At peak utilisation, Phase 1 is expected to add INR500-550 crore of revenue. INR50-60 crore of it is for land and infrastructure.^[1]
INR25 crore is earmarked for floating-roof acetone storage tanks at Khopoli, and INR15-20 crore for an application testing lab (plans as of Q1 FY27).^[1]
A dedicated power cable to Mahad (INR2.5-3 crore) is due to be completed in 1.5-2 months from the Q2 FY27 call.^[2]
Phase 2 spending is expected to start in H2 FY28. The propylene-based project needs about 2.5 years, and the other R&D product project about 1.5-2 years.^[2]
Capex is to be funded from internal accruals and debt.^[2]

New product pipeline

A new 3-3.5 step process (down from 10 steps) has been developed for an antibacterial drug product. Plant mechanical completion is expected by January 2027, followed by 60-90 days of trial runs.^[1]
Mining chemicals have US lab approval and have moved to trials at individual mines, including with clients in South Africa. A breakthrough is expected within about 2.5 years.^[2]

Recent developments

The IPO raised gross proceeds of INR80 crore. Of the INR76.4 crore net, INR60 crore repaid borrowings and INR16.4 crore went to general corporate purposes.^[1]
Non-current borrowings were nil after the IPO, down from INR47.0 crore at March 2026 (Q2 FY27).^[2]
Agro orders moved from September to October 2026 because of a weather shift, with 150% growth in one agro product in October.^[2]

Market Cap

₹4,575 Cr

High / Low

₹929 / 601

Promoter holding

75.3%

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