J.G.Chemicals Ltd(JGCHEM)

NSE: JGCHEMBSE: 544138

₹ 558.55-2.77%refreshed 26 Oct, 03:30 pm ISTMarket cap: ₹ 2,189 crWebsite: www.jgchem.comUpdated: 24 Oct 2026

About

J.G. Chemicals Ltd is India's largest manufacturer of zinc oxide (ZnO), commanding approximately 30% domestic market share and ranking among the top ten globally, with three plants in Andhra Pradesh and West Bengal totalling 77,040 MTPA of production capacity. The company predominantly serves the tyre and rubber industries, which account for roughly 82% of revenue, with growing sales into pharma, ceramics, specialty chemicals, and agriculture. In FY26 it reported revenue of INR 972.93 crores, its highest-ever annual figure.^[1][2][3]

Business segments

Rubber and tyre applications contributed 85% of revenue in FY26, covering zinc oxide sold as a rubber activator and processing aid to tyre OEMs and non-tyre rubber goods manufacturers.^[3]
Non-rubber applications - pharma, ceramics, specialty chemicals, agriculture, and cosmetics - reached approximately 18% of revenue in Q1 FY27, up from ~15% in FY26, with management noting share increases every quarter year-on-year.^[4]
Zinc sulphate, added in FY23 at 10,080 MTPA capacity targeting the fertiliser industry, contributes less than 5% of revenue as of FY26.^[1][4]

Products and portfolio

The company offers over 90 specialised grades of zinc oxide as of end-FY26, up from 80+ at the end of FY25, spanning standard rubber grades, high-purity pharmaceutical and analytical grades, ceramics grades, and agricultural grades.^[3]
Two new grades were introduced in Q1 FY27: LabPure (high-purity zinc oxide for analytical reagent applications) and JG-ZRA (a zinc oxide rubber activator targeting non-tyre rubber customers and export markets).^[4]
A recycled rubber product branded JG TUR / Devulc is in pilot stage; pilot trials received positive responses from key tyre customers and commercial scale-up is expected to begin within 12 months of Q1 FY27.^[4]

Manufacturing operations

Three existing plants in Andhra Pradesh and West Bengal have combined installed capacity of 77,040 MTPA; the Naidupeta, Andhra Pradesh facility is the primary zinc oxide site.^[1]
A greenfield zinc chemicals plant at Dahej, Gujarat (40,000+ MTPA total planned capacity, INR 100 crore investment, 11.43 acres) is under construction; Phase 1 civil works are in advanced stages with equipment installation underway as of Q1 FY27.^[4][5]
Phase 1 of the Naidupeta solar power project was commissioned in FY26 and is progressively ramping up the renewable energy share; solar capex carries an approximately 3 - 3.5-year payback.^[3]
Current installed zinc chemical capacity including existing plants is approximately 70,000 MTPA as of Q1 FY27.^[4]

Key operating numbers

Capacity utilisation was in the early 80s percent of achievable capacity in Q1 FY27, up from the late 70s in Q3 - Q4 FY26, and from approximately 70% in Q2 FY26.^[4][6][5]
Volume growth was in the mid-teens percent in Q1 FY27 across all product categories; full-year FY26 volume growth was also in double digits.^[4][3]
Zinc sulphate capacity utilisation was approximately 60% in Q4 FY26.^[3]
Export revenue share was 10 - 15% in Q1 FY27; it was approximately 12% in H1 FY26 and 13 - 14% in 9M FY26.^[4][5][6]

Customers and distribution

The tyre sector is the dominant customer base; Indian tyre majors have announced cumulative capex plans of over INR 20,000 - 25,000 crore over three years as of Q4 FY26, a direct demand tailwind for the company.^[3]
Approximately 80% of revenue is concentrated in the tyre sector, which the company acknowledges as a risk; management is actively growing non-rubber channels to reduce concentration.^[1]
Company targets 15 - 20% market share in the ceramics zinc oxide segment once the Dahej plant is operational.^[5]

Expansion and capex

Dahej Phase 1 (15,000 - 17,000 MTPA in the first phase out of 40,000+ MTPA total), INR 100 crore investment, is now targeted for commissioning in Q3 FY27, approximately November 2026, delayed from the original H1 FY27 guidance.^[4]
Brownfield debottlenecking at Naidupeta adding approximately 5,000 tons of capacity is also targeted for Q3 FY27 commissioning, in parallel with Dahej.^[4]
Dahej Phase 1 utilisation is expected at 50 - 60% in FY28 (revised down from the prior 65 - 70% guidance due to the later commissioning start); Phase 2 construction is planned to commence when Phase 1 reaches approximately 80% utilisation, expected in FY29.^[4]
Combined Dahej Phase 1 and Phase 2 revenue potential is estimated at INR 900 crores once both phases are operational, with combined zinc chemical capacity exceeding 115,000 MTPA by approximately 2029.^[3]
Capex payback target for Dahej and all future capex plans is 3 - 4 years, with a target ROCE in the mid-20s percent.^[4]

Recent developments

CARE assigned a credit rating of CARE A+; Stable to J.G. Chemicals' total bank loan facilities of INR 19.75 crore, disclosed to exchanges on 24 September 2026.^[7]
The company proposed the incorporation of BDJ Materials and Metal Trading FZCO in Dubai, UAE as a wholly-owned step-down subsidiary of BDJ Oxides Private Limited, to support raw material sourcing and international finished goods distribution.^[4]
Cost increases from higher energy, freight, and raw material costs arising from geopolitical disruptions in March 2026 were passed through to all customers effective 1 April 2026.^[3]
The 25th AGM was scheduled for 30 September 2026 via VC/OAVM for the financial year ended 31 March 2026.^[8]

Market Cap

₹2,189 Cr

High / Low

₹691 / 300

Stock P/E

29.9

Price / Book

4.3

Book Value

₹135

EPS

₹16.8

No. of Shares

3.92 Cr

ROCE

18.1%

ROE

13.3%

OPM

9.4%

Debt / Equity

0.01

Sales

₹973 Cr

Net Profit

₹69 Cr

Promoter holding

71.0%

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