Valiant Organics posted better performance during the reporting period. It gives me immense pleasure to address you and present improved profitability, better margins and improved operational momentum through our Annual Report FY 2025-26. The improvement was broad-based and reflected better execution across manufacturing, procurement, product mix, cost management and capital discipline.
We achieved this progress in a demanding industry environment. We worked hard to improve operating discipline into better financial outcomes. The year demonstrated the resilience of our business and reinforced our ability to deliver sharper chemistry and stronger performance.
The specialty chemicals industry continued to face a challenging demand and pricing environment. Excess supply from China kept realisations under pressure, while demand across dyes, pigments and agrochemicals remained subdued and volatile. Global customers maintained lean inventories and placed orders closer to actual requirements, affecting volume visibility and production planning. Geopolitical uncertainty and disruptions across shipping routes also increased freight volatility and complicated export logistics.
These factors impacted demand, pricing and capacity utilisation across the industry, particularly visible in product categories linked to dyes, pigments and agrochemicals. In this environment, pursuing volume without adequate contribution would have weakened business quality. We, therefore remained selective in our commercial decisions and focussed on maintaining sustainable margins, improving working-capital efficiency and protecting our financial strength.
We are positioned across three established chemistry platforms comprising chlorination, ammonolysis and hydrogenation. These capabilities are supported by six manufacturing units, longstanding customer relationships and experience in handling complex chemical processes at scale. Our diversified manufacturing base allows us to serve customers across dyes and pigments, agrochemicals, pharmaceuticals and other specialty chemical applications.
Our position in chlorophenols remains a distinctive strength. We are the only domestic producer and a leading global manufacturer in this product family, with a significant share of sales directed to international markets. Our ammonolysis platform benefits from an established position in Para Nitroaniline and access to key raw materials through group sourcing arrangements. Hydrogenation is our largest chemistry platform and provides a strong base for downstream products and higher value derivatives. The growing pharmaceutical intermediates business further broadens our portfolio and reduces dependence on any single end-user industry.
Our operating strategy during the year was centred on extracting more value from the assets already in place. Across our manufacturing units, teams worked to identify constraints in reactors, utilities and downstream handling systems. Cycle times were reduced, batch scheduling was improved and maintenance practices were strengthened. We also increased the use of automation and tighter process controls to improve consistency, reliability and plant availability.
Cost improvement was pursued across the business. Fixed overheads and administrative expenditure were rationalised, while greater attention was given to energy and utility consumption per tonne of production. Yield improvement, solvent and catalyst recovery, lower process losses and improved by-product recovery helped reduce input costs. Procurement planning was tightened through alternate vendor development, vendor rationalisation and more disciplined inventory management. These measures were structural in nature and contributed directly to the improvement in margins. These are expected to further improve in coming years.
Alongside operations improvements, we focussed on product quality. In-process controls, finished-goods testing and impurity profiling were enhanced, particularly for pharmaceutical intermediates. R&D remained focussed on improving yields, selectivity, safety and resource efficiency. Our capital allocation approach remains disciplined. The immediate priority is to improve utilisation and pursue brownfield debottlenecking before committing to large greenfield expenditure.
Revenue from operations for FY 2025-26 stood at ₹738.38 crore, compared with ₹718.76 crore in the previous year. EBITDA increased by 63.1% to ₹100.80 crore, while EBITDA margin improved by 505 basis points to 13.65%. We returned to profitability with a profit before tax of ₹34.40 crore, compared with a loss in FY 2024-25. Earnings per share climbed to ₹12.26.
Environmental responsibility and workplace safety remained integral to our operations. We invested in wastewater treatment, recycling and chemical recovery across our facilities. Five of our six manufacturing units now operate with Zero Liquid Discharge systems. At Jhagadia, around 70% of the water used in operations is recovered and reused, while Ahmedabad reduced overall water consumption by approximately 25% through improved recycling and reuse of treated water.
We continued to strengthen occupational health and safety through daily briefings, regular training, emergency-response preparedness and periodic audits. During the year, we spent ₹56.79 lakhs on CSR initiatives covering healthcare, housing support, digital education, rural infrastructure, public safety and environmental awareness. These initiatives remained focussed on practical needs in communities around our operations.
Our priorities for the next phase are focussed on improving utilisation across existing assets, strengthen the contribution from pharmaceutical intermediates and develop higher-value derivatives from other chemistry platforms. Import-substitution opportunities, customer-led product development and selective diversification of the end-user mix will remain mportant areas of focus.
Global customers continue to evaluate alternate and dependable sources of supply outside China. Our process capabilities, export experience and established customer relationships position us to participate in this shift. A recovery in agrochemical demand can support volumes across our chlorination and hydrogenation platforms, while the growth of India’s pharmaceutical value chain creates opportunities for PAP and related intermediates. We will pursue these opportunities with the same emphasis on return, execution discipline and balance sheet strength.
We enter FY 2026-27 with improved profitability, stronger operating discipline and greater conviction on our growth priorities. Our focus will remain on building a more efficient, higher value and resilient business.
I thank our employees for their commitment, our customers and suppliers for their trust, our bankers and business partners for their support, and the Board for its guidance. I also thank our shareholders for their continued confidence in Valiant Organics.
Warm Regards,
Managing Director