Primo Chemicals Limited reported consolidated revenue from operations of Rs 134.84 crore in Q2 FY27, virtually flat against Rs 134.74 crore in the corresponding quarter last year, as the chlor-alkali industry continued to grapple with global pricing pressures and volatile input costs.
For the first half of FY27, consolidated revenue stood at Rs 275.12 crore, compared with Rs 276.69 crore in H1 FY26, reflecting a largely stable revenue performance amid challenging market conditions.
The company, however, made significant progress on the strategic front, advancing key initiatives aimed at strengthening operational efficiency, improving cost competitiveness and positioning the business for long-term growth.
A major development during the quarter was Primo Chemicals' acquisition of the remaining 51% stake in Flow Tech Chemicals on September 16, 2026, making it a wholly owned subsidiary.
Taking the integration process forward, the company's Board subsequently approved the draft scheme of amalgamation for submission to the National Company Law Tribunal (NCLT) for final approval.
The move marks an important step in Primo's efforts to consolidate its operations and streamline its corporate structure.
Primo also moved ahead with two key initiatives aimed at strengthening its energy and raw material cost structure.
The company entered into a five-year agreement with National Fertilizers Limited (NFL) for the supply of hydrogen gas through a dedicated pipeline, a move expected to support its operational requirements.
In another significant step towards securing renewable energy, Primo executed the Power Purchase Agreement (PPA) and Share Subscription and Shareholders' Agreement (SSSHA) for a 49.998 MW AC captive solar power plant under the OPEX model.
These initiatives are part of the company's broader strategy to enhance operational efficiency and improve long-term cost competitiveness.
The chlor-alkali industry continues to face headwinds from excess global supply, particularly in China, coupled with uneven downstream demand. Volatile energy costs and geopolitical disruptions are adding further uncertainty to production economics and international trade flows.
In India, demand for caustic soda continues to draw support from key industrial sectors, including alumina, textiles, chemicals, pulp and paper. However, planned capacity additions and competition in both domestic and export markets could weigh on capacity utilisation and pricing.
Caustic Soda Lye (CSL) prices remain a critical factor influencing revenue realisation. While domestic consumption provides underlying demand support, declining international prices and oversupply could restrict domestic price realisation and put pressure on margins.
Looking ahead, Primo expects near-term pricing and margins to remain sensitive to global supply-demand dynamics, CSL prices, chlorine realisation and energy costs.
Over the medium term, India's industrial growth is expected to provide opportunities for the sector, particularly through demand from alumina, chemicals and other established end-use industries.
However, the pace of growth will depend on the industry's ability to absorb new capacity, sustain demand and remain competitive in export markets.
With Flow Tech now a wholly owned subsidiary, the proposed amalgamation progressing towards regulatory approval and major hydrogen and solar power initiatives underway, Primo Chemicals is pursuing a strategic expansion of its operational and cost-efficiency platform amid a challenging industry environment.
