Epigral Q1 FY27 net profit falls 38% to ₹99.7 crore despite 16% revenue growth
Synopsis
Epigral's Q1 FY27 profit fell nearly 38% even as revenues grew 16% — a classic margin-squeeze story driven by West Asia-linked freight disruptions and raw material swings. The real headline, however, is the board's ₹600 crore bet on epoxy resins, a forward-integration move targeting wind energy, EVs, and semiconductors that could redefine the company's earnings profile by FY28.
Key Takeaways
Epigral Limited reported a 37.9 per cent fall in Q1 FY27 net profit to ₹99.7 crore , down from ₹160.7 crore in Q1 FY26.
Revenue from operations rose 16.3 per cent year-on-year to ₹705.4 crore in the April–June 2025 quarter.
EBITDA grew 9.7 per cent to ₹179.2 crore , but the EBITDA margin contracted to 25.4 per cent from 26.9 per cent .
The board approved entry into the epoxy resin and formulations business with a capacity of 1,25,000 TPA and a ₹600 crore capex outlay.
Both the epoxy resin facility and the Multi-Purpose Plant (MPP) are targeted for commissioning in the second half of FY28 .
Management cited geopolitical tensions in West Asia as the primary driver of raw material and freight volatility during the quarter.
Integrated chemical manufacturer Epigral Limited on Monday, 27 July reported a 37.9 per cent year-on-year decline in consolidated net profit to ₹99.7 crore for the first quarter of FY27 (April–June 2025), down from ₹160.7 crore in Q1 FY26. The drop came even as the company posted double-digit revenue growth, underscoring margin pressure from volatile raw material costs and elevated freight expenses.
Revenue Growth Amid Profit Squeeze
Revenue from operations climbed 16.3 per cent year-on-year to ₹705.4 crore in Q1 FY27, up from ₹606.5 crore in the same quarter a year earlier, according to the company's stock exchange filing. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 9.7 per cent to ₹179.2 crore from ₹163.4 crore in Q1 FY26. However, the EBITDA margin narrowed to 25.4 per cent from 26.9 per cent in the year-ago quarter, reflecting the squeeze between rising input costs and realisation prices.
What Management Said
Maulik Patel, Chairman and Managing Director of Epigral Limited, attributed the profit decline to severe macroeconomic volatility driven by geopolitical tensions in West Asia. 'The quarter was marked by fluctuations in raw material and finished goods prices, alongside elevated freight costs and shipment delays,' Patel stated. He added: 'While geopolitical challenges persist, operating conditions have stabilised. Backed by India's strong economic growth trajectory, management maintains a positive outlook.'
₹600 Crore Expansion into Epoxy Resins
Alongside its quarterly results, Epigral's board approved entry into the epoxy resin and formulations business, with a planned production capacity of 1,25,000 tonnes per annum (TPA). The project, which also includes the setting up of a Multi-Purpose Plant (MPP), involves an estimated capital expenditure of approximately ₹600 crore. Both facilities are expected to be commissioned during the second half of FY28.
Why the Epoxy Bet Matters
The expansion marks Epigral's forward integration into advanced materials and specialty chemicals — segments serving industries including construction, renewable energy, automotive, electronics, infrastructure, marine, aerospace, and semiconductors. Epoxy resin is a critical input for wind turbine blades, fibre-reinforced polymers, industrial coatings, tile adhesives, electrical insulation, chemical storage systems, and automotive components. This comes amid India's accelerating infrastructure build-out and growing investments in renewable energy, which the company expects will sustain domestic demand. Notably, the move positions Epigral to capture value higher up the chemicals value chain rather than remain exposed solely to commodity-driven margin cycles.
Outlook
With operating conditions reportedly stabilising and a large capacity addition on the horizon, Epigral's near-term performance will hinge on raw material price trajectories and freight cost normalisation. The ₹600 crore capex commitment signals management's confidence in long-term demand, even as short-term profitability remains under pressure.
Point of View
And how management plans to hedge raw material exposure going forward.
NationPress
27 Jul 2026
Frequently Asked Questions
Why did Epigral's Q1 FY27 net profit fall so sharply?
Epigral's net profit fell 37.9 per cent to ₹99.7 crore in Q1 FY27 primarily due to fluctuations in raw material and finished goods prices, elevated freight costs, and shipment delays linked to geopolitical tensions in West Asia. These factors compressed margins even as revenues grew 16.3 per cent year-on-year.
What was Epigral's revenue in Q1 FY27?
Epigral reported revenue from operations of ₹705.4 crore in Q1 FY27 (April–June 2025), a 16.3 per cent increase from ₹606.5 crore in the same quarter of the previous financial year.
What is the ₹600 crore expansion Epigral has announced?
Epigral's board has approved entry into the epoxy resin and formulations business, with a planned production capacity of 1,25,000 tonnes per annum and an estimated capital expenditure of ₹600 crore. The project also includes a Multi-Purpose Plant (MPP), with both facilities expected to be commissioned in the second half of FY28.
Which industries will Epigral's epoxy resin business serve?
The epoxy resin facility will cater to industries including construction, renewable energy, automotive, electronics, infrastructure, marine, aerospace, and semiconductors. Key end-use applications include wind turbine blades, industrial coatings, tile adhesives, electrical insulation, and automotive components.
What is Epigral's outlook for the coming quarters?
Management has maintained a positive outlook, citing India's strong economic growth trajectory and stabilising operating conditions. The company expects domestic demand to remain strong, supported by infrastructure development, manufacturing growth, and renewable energy investments, though raw material and freight volatility remains a near-term risk.
