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Bhagiradha Chemicals & Industries Limited
NSE: BHAGCHEM BSE: 531719 INE414D01027 Commodities Chemicals 🔎 Screen
₹3,164 Cr
Market Cap
175.0
P/E
PEG
4.5%
ROCE
2.6%
ROE
0.34
D/E
10.6%
OPM
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📈 Price History
Ratio Health
Excellent
Good
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By Category
Shareholding
About

Bhagiradha Chemicals & Industries is an Agro Chemical Company in India involved in the manufacturing of insecticides, fungicides, herbicides etc. It was Promoted by late Sri S. Koteswara Rao, a former scientist of Indian Institute of Chemical Technology, Hyderabad in the year 1993.

✓ Strengths

No strengths data yet.

! Concerns 7
  • Stock is trading at 4.67 times its book value
  • The company has delivered a poor sales growth of 11.0% over past five years.
  • Promoter holding is low: 19.6%
  • Tax rate seems low
  • Company has a low return on equity of 3.14% over last 3 years.
  • Dividend payout has been low at 10.2% of profits over last 3 years
  • Promoter holding has decreased over last 3 years: -3.92%
Key Ratios Snapshot
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Strong YoY beat with revenue +29%, EBITDA +220%, and PAT swinging to positive, but QoQ PAT slipped 12% as higher depreciation and interest costs from Bheema facility weighed. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹158.1 Cr
+29% YoY (from ₹122.6 Cr); +39% QoQ (from ₹114.0 Cr)
EBITDA Margin
12.3%
Expanded ~730 bps YoY from 5.0%; QoQ stable at ~12.0%
PAT
₹4.1 Cr
Vs ₹(0.9) Cr loss in Q4FY25; but -12% QoQ from ₹4.6 Cr
Bheema Capacity Utilization
35%
Phase I only operational for Q4; standalone utilization steady at 92%
What Went Right
  • Revenue grew 29% YoY to ₹158.1 Cr, supported by volume growth and improved realizations (pricing & mix).
  • Gross margin jumped 717 bps YoY to 38.9%, aided by better realizations and easing raw material costs (ex crude-linked).
  • EBITDA more than tripled YoY to ₹19.4 Cr (₹6.1 Cr), margin at 12.3% vs 5.0%, driven by operating leverage and lower power costs from the solar plant.
  • PAT turned positive at ₹4.1 Cr (vs ₹0.9 Cr loss) despite higher depreciation (₹8.2 Cr vs ₹3.6 Cr) and interest (₹7.0 Cr vs ₹1.6 Cr) from Bheema commencement.
  • Bheema Phase 1 capitalized ~₹400 Cr; launched 3 new molecules and added 19 new customers (including 5 major) during FY26.
What to Watch
  • PAT declined 12% QoQ to ₹4.1 Cr despite revenue rising 39% QoQ, indicating cost pressures from the new facility's early stage.
  • Interest cost surged to ₹7.0 Cr in Q4 (vs ₹1.6 Cr YoY) and depreciation doubled to ₹8.2 Cr, both linked to Bheema commissioning, compressing net profit.
  • Management noted raw material cost increases (crude-linked) have not yet been fully passed through to finished product prices, constraining margin upside.
  • ROCE for FY26 fell to 4% (from 3% in FY25), reflecting elevated capital employed without commensurate earnings from the greenfield expansion.
  • Geopolitical risks from West Asia remain a monitorable factor that could impact supply chains, freight costs, and energy prices.
Management Guidance
  • Revenue target of ~3.5x at consolidated levels in the next 4 to 5 years with operating efficiency and better margin profile.
  • Expectation of meaningful ramp-up in operations and unlocking full revenue potential in FY27.
  • Phase 2 of Bheema (~₹400 Cr capex) expected to commence in Q2 FY28 with 12–24 months ramp-up; full potential target ~1.5x asset turn with improved margins.
Investor Lens
The thesis remains intact: Bhagiradha is investing heavily in greenfield capacity (Bheema Phase 1 now online, Phase 2 planned) to drive volume and backward integration. Q4 showed clear YoY improvement in revenue, margins, and profitability, confirming demand recovery. However, the new facility is still ramping (35% utilization) and dragging on earnings via higher depreciation and interest—QoQ PAT slipped despite revenue growth. The key watch items for next quarter: (1) Bheema utilization trajectory and margin contribution, (2) ability to pass through input cost increases, (3) debt servicing costs as total borrowings rose to ₹231 Cr (from ₹84 Cr in Mar25) and debt-to-equity to 0.3x, and (4) any escalation of West Asia conflict affecting energy and freight. If ramp-up proceeds as guided, FY27 revenue and margin expansion could justify the ongoing capex; for now, operational leverage is yet to fully materialize.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Revenue up 29% YoY, OPM triples to 12.3%; PAT jumps 563%.
Revenue
Revenue for March 2026 quarter stood at ₹158.1 Cr, a 28.9% jump from ₹122.6 Cr in March 2025. Sequentially, revenue grew 38.7% from ₹113.9 Cr in December 2025, driven by strong volume or pricing.
Profitability
Net profit rose to ₹4.1 Cr versus a near-breakeven YoY (₹0.6 Cr loss based on EPS of -0.07), marking a 562.5% YoY surge. However, PAT declined 11.9% QoQ from ₹4.65 Cr. Basic EPS improved to ₹0.31 from negative ₹0.07.
Margins
Operating profit margin expanded sharply to 12.29% from 4.95% a year ago, and was broadly flat versus 11.99% QoQ. The margin improvement reflects better cost control or higher realisations.
Cash Flow
No cash flow data provided in the results.
Balance Sheet
Borrowings stood at ₹235 Cr against reserves of ₹685 Cr (D/E 0.27). Total assets were ₹1,120 Cr. The balance sheet remains moderately leveraged with adequate equity buffer.
Key Risks
1) High PE of 245x suggests stretched valuation despite earnings recovery. 2) Low ROE of 2.53% indicates weak return on equity capital. 3) Dependence on sustained margin expansion for profitability.
Outlook
The strong YoY revenue and profit growth signal a turnaround in operations. However, the low ROE and high valuation warrant caution; future performance hinges on maintaining margin gains.
Generated by AI · Mar 2026 results · Not investment advice
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