J G Chemicals Ltd (BOM:544138)

Q1 2027 JG Chemicals Ltd Earnings Call Transcript

Aug 10, 2026 / 05:30 AM GMT

Release Date Price: ₹623.55 (+12.84%)

Transcript

Key Points

Positve

J G Chemicals Ltd (NSE:JGCHEM) delivered its best-ever quarterly performance in Q1 FY27, with revenue, EBITDA, and PAT reaching all-time highs, driven by strong demand across end-user applications.
The company's strategic capacity expansion is on track, with the Dahej greenfield facility and Naidupeta brownfield expansion expected to commission in Q3 FY27, positioning it among the top three global zinc chemical producers.
J G Chemicals Ltd (NSE:JGCHEM) continues to innovate with new high-margin products like LabPure Zinc Oxide and JGZRA, and is at an advanced stage of acquiring a patent for a jointly developed chemical, supporting future margin expansion.
The company's strong supply chain relationships ensured uninterrupted raw material supply despite severe global supply chain disruptions, allowing it to maintain continuous supply to its wide customer base and gain market share from less organized competitors.
Management raised its long-term EBITDA margin guidance to 14-15% and expects the Dahej plant to achieve 50-60% utilization in FY28, with a payback period of 3-4 years and ROCE in the mid-20s.
The company is expanding into high-growth non-rubber segments like ceramics, pharma, and specialty chemicals, with the Dahej plant strategically located to capture demand in Western India, and has already seeded the ceramic market with quicker approval processes (1-3 months).

Negative

J G Chemicals Ltd (NSE:JGCHEM) faces ongoing global supply chain disruptions due to geopolitical conflicts, which have impacted the supply chain for zinc dross, its primary raw material, creating potential operational risks.
The Dahej plant commissioning has been delayed to Q3 FY27 (November), leading management to adopt a more conservative utilization guidance of 50-60% for FY28, down from earlier expectations of 65-70%.
The company's EBITDA margin improvement is partly attributed to inventory gains from rising zinc prices, which are difficult to quantify and may not be sustainable if commodity prices normalize.
The recycled rubber project (JGTUR) is still in pilot trials with no detailed commercial plan shared, and management expects it to take another 12 months before commercial start, indicating slower-than-expected progress.
The company's export share remains relatively low at 10-15% of total sales, and management only expects it to inch up marginally, limiting near-term diversification benefits from global markets.
The zinc sulphate business contributes less than 5-6% of overall revenue, and while it has growth potential, its current scale is minimal, and the company faces challenges in ramping up new niche products which take time to gain customer traction.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

JGCH.NS - JG Chemicals Ltd
Q1 2027 JG Chemicals Ltd Earnings Call
Aug 10, 2026 / 05:30AM GMT

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Presentation
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Unidentified_1 [1]
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Good morning ladies and gentlemen. Welcome to the JG Chemicals Limited Q1 FY27 Earnings Conference Call.

As a reminder, all participant lines will be in the listen-only mode.

There will be an opportunity for you to ask questions after the management's opening remarks.

Should you need assistance during the conference call, please signal an operator by pressing then 0 on your touchstone phone.

Please note that this conference is being recorded.

I will now hand the conference over to Mr. Naveen Agarwal, Head Institutional Equities at SKP Securities Limited.

Thank you, and over to you.

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