Meghmani Organics has reported a weaker third quarter for FY26, with revenue and profitability declining year-on-year as softer export demand and lower capacity utilisation weighed on performance.
Revenue from operations fell 13% YoY to Rs. 484.9 crore in Q3 FY26, compared with Rs. 558 crore in the same quarter last year. EBITDA declined 15% YoY to Rs. 51.5 crore, while net profit dropped 26% YoY to Rs. 22.3 crore. EBITDA margin stood at 10.6%, largely flat versus last year, while net profit margin eased to 4.6%.
The Crop Protection segment remained the company’s largest contributor, accounting for nearly 79% of total revenue during the quarter. Segment revenue stood at Rs. 382.1 crore with EBITDA of Rs. 58.3 crore. Capacity utilisation in the segment was 66%, with production at 9,283 MT, down 14% YoY.
The Pigments segment contributed about 21% of quarterly revenue. Revenue for the segment came in at Rs. 102.8 crore, while EBITDA remained muted at Rs. 0.7 crore. Capacity utilisation stood at 38%, with production declining 21% YoY to 3,144 MT.
Despite the quarterly slowdown, performance for the first nine months of FY26 remained strong. Revenue from operations for 9M FY26 rose 9% YoY to Rs. 1,635.2 crore, while EBITDA surged 75% YoY to Rs. 202.5 crore. Net profit for the nine-month period jumped sharply to Rs. 105.7 crore, compared with Rs. 32.5 crore in the corresponding period last year.
Commenting on the results, Ankit Patel, Chairman & Managing Director said, “During the quarter, our export volumes were under pressure due to softer demand amid ongoing uncertainty in US trade policy. As a result of which, capacity utilisation in both the segments were lower which adversely impacted our revenue and profitability of the quarter.”
Highlighting growth initiatives, he added, “In our Crop Nutrition segment, alongside ongoing field trials across seven countries, we are actively developing new international markets for Meghmani Nano Urea. Sample consignments are currently being dispatched for further field evaluation. Parallelly, we are also expanding our product portfolio which will further strengthen our market position.”
On the pigments business, Patel noted continued headwinds, stating, “In Titanium Dioxide (TiO2), profitability remained under pressure due to elevated raw material costs and weaker price realisation. Price realisation was further impacted following the withdrawal of antidumping duty (ADD). We anticipate raw material prices to normalise in coming quarters which along with the re-imposition of ADD, should improve the market dynamics going forward.”
The company expects market conditions to stabilise in the coming quarters, supported by easing raw material costs, potential policy tailwinds, and continued expansion of its product and geographic footprint.
