Synopsis:- After posting a net loss of Rs. 8.7 crore in FY25, Manali Petrochemicals Limited has swung sharply to a consolidated net profit of Rs. 130 crore in FY26 aided materially by exceptional gains from subsidiary divestiture, two legal wins, and insurance settlements while core operating margins improved to 8 percent from 7 percent the prior year.
Shares of India’s sole domestic manufacturer of Propylene Glycol came into focus on Wednesday after the company’s board approved its audited financial results for the quarter and year ended March 31, 2026. The FY26 results reverse a loss-making prior year and include a recommended dividend of Re. 0.50 per share, subject to shareholder approval at the annual general meeting.
With a market capitalisation of Rs. 1,096.84 crore, the shares of Manali Petrochemicals Limited were trading at Rs. 63.92 per share, up 15.22 percent from its previous closing price of Rs.55.52. It is trading at a P/E of 7.35.
On a consolidated basis, the company reported total revenue from operations of Rs. 1,022 crore for FY26, up approximately 14 percent from Rs. 897 crore in FY25. Net profit came in at Rs. 130 crore against a loss of Rs. 8.7 crore in the prior year, a swing of over Rs. 217 crore. Operating profit for the full year stood at Rs. 78 crore with an OPM of 8 percent, modestly higher than 7 percent in FY25.
On a standalone basis, revenue from operations grew to Rs. 786 crore from Rs. 648 crore in FY25. Standalone net profit was Rs. 35 crore versus a loss of Rs. 8.7 crore. Both sets of numbers were audited by Brahmayya & Co., Chartered Accountants, who issued an unmodified opinion.
The board recommended a final dividend of Re. 0.50 (10 percent on face value of Rs. 5 each) per equity share for FY26, a resumption after the company had been loss-making in the prior year.
Exceptional Items
The reported profit leans significantly on exceptional items, and investors should look at these carefully. The largest contributor on the consolidated books was a gain of Rs. 52 crore from the divestiture of Notedome Limited and its subsidiary Notedome Europe GmbH to Italy-based C.O.I.M., completed on November 17, 2025. Two legal victories added further tailwinds: a customs duty case decided in the company’s favour by CESTAT Mumbai freed up a provision of Rs. 7.7 crore (net), and a long-running customer claim dismissed by the City Civil Court, Mumbai, reversed a further Rs. 10.83 crore provision.
On the insurance front, claims related to inventory losses from Cyclone Michaung were crystallised and settled in October 2025. However, the property, plant, and equipment claims carried at Rs. 11.80 crore net of interim receipts remain under insurer assessment. Auditors have flagged this as an Emphasis of Matter, with the eventual outcome still unascertainable.
The board also approved seeking member consent through postal ballot on three items: the reappointment of independent director Mr. T.K. Arun for a second five-year term beginning September 29, 2026; and revisions in remuneration for MD & CEO Mr. R. Chandrasekar and Wholetime Director Mr. G.R. Sridhar. The reappointment of Mr. Arun, who joined MPL’s board in 2018 and brings over four decades of experience across ports, infrastructure, and industrial promotion, maintains continuity in an already lean board structure.
Business Overview
Incorporated in 1986 and listed on both BSE (500268) and NSE (MANALIPETC), Manali Petrochemicals manufactures Propylene Oxide, Propylene Glycol, and Polyols from its two plants in Manali, Chennai. The company is the only domestic producer of Propylene Glycol and the first and largest Indian manufacturer of Propylene Oxide.
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