Kavita Nair
Analyst — Materials
The pattern
ReportedAcross the coverage set, reported volumes have been broadly flat for three years while realisations have fallen. EBITDA margin at Ratnagiri Speciality Chemicals moved from 18.1% in FY2024 to 11.3% in FY2026 on that basis.
Customer inventories built during an earlier shortage are being worked down. That process ends; the question is when.
Our view
Our viewWe read this as cyclical rather than structural, because the contracts and the molecule approvals are intact. A holder who disagrees would point to leverage: net debt to EBITDA of 2.8x leaves little room if the recovery takes another two years. Both readings are defensible from the same disclosures.
Sources
- Annual reports FY2024–FY2026Volume and realisation disclosures.
This note is published for information only. It is not investment advice, not a recommendation, and not a solicitation to buy or sell any security. Figures were current at the date of publication and are not updated afterwards.