ECONOMIC OVERVIEW
Global Economy
Global economy growth is projected to remain resilient at 3.3% in 2026 and 3.2% in 2027, broadly in line with 2025. Growth is expected to be supported by technology-led investment, fiscal and monetary support, accommodative financial conditions and private-sector adaptability, while shifting trade policies remain a key headwind.
Global headline inflation is projected to moderate from 4.1% in 2025 to 3.8% in 2026 and 3.4% in 2027, supported by softer demand and lower energy prices. However, inflation trends remain uneven across major economies, with geopolitical developments, trade policies and financial-market volatility continuing to influence the global economic outlook.
Source - World Economic Outlook Update, January 2026: Global Economy: Steady amid Divergent Forces
Indian Economy
Indias economic momentum remains strong, supported by resilient domestic demand and macroeconomic stability. In FY2025-26, Real GDP is estimated to grow 7.4%, while Nominal GDP is projected to grow 8.0%. Real GVA is estimated to grow 7.3%, reflecting broad-based expansion across key sectors.
Indias growth continues to be driven by domestic consumption and investment, which together account for around 70% of economic activity. Strong domestic demand, policy reforms and a healthy investment pipeline are expected to support economic growth in the coming years.
Source - Indian Economy Growth Rate, GDP & Economic Structure Insights IBEF
INDUSTRY OVERVIEW
Global Chemical Industry Overview
The global chemical industry is a key part of the manufacturing ecosystem, supplying essential inputs to industries including pharmaceuticals, agriculture, automotive, construction, textiles, paints and coatings, personal care, electronics and renewable energy.
The industry is increasingly shifting towards specialty and value-added chemicals, driven by technological advancements, evolving customer requirements, sustainability and stricter environmental standards.
Global chemical supply chains are also undergoing structural changes, with greater focus on supply-chain diversification, localisation and the "China+1" strategy, creating opportunities for established chemical manufacturing destinations such as India.
However, the industry continues to face challenges from raw material price volatility, geopolitical uncertainties, logistics disruptions, foreign exchange movements and evolving environmental and safety regulations, increasing the focus on operational efficiency, supplychain resilience and sustainable products.
Indian Chemical Industry
The Indian chemical industry was valued at approximately US$250 billion in 2024 and is expected to reach US$300 billion by 2028. Over the longer term, Indias chemicals and petrochemicals demand is projected to reach approximately US$1 trillion by 2040, highlighting the sectors significant growth potential.
India has also established a strong position in several chemical segments, accounting for approximately 16-18% of global production of dyestuffs and dye intermediates. Its established manufacturing ecosystem, skilled workforce and proximity to major feedstock markets further support the industrys long-term growth prospects.
Indian Specialty Chemicals Industry
Indias specialty chemicals market was valued at approximately US$64.5 billion in 2024 and is projected to reach US$92.6 billion by 2033, growing at a CAGR of around 3.8%.
Growth is being supported by industrialisation, urbanisation, innovation and rising demand from sectors such as personal care, pharmaceuticals, construction, automotive, agriculture, paints and coatings and other industrial applications.
Increasing demand for value-added and application-specific products, along with capacity expansion by Indian manufacturers, is creating opportunities for the country to strengthen its position in the global specialty chemicals value chain.
Export Potential and Indias Position in Global Trade
India is an important participant in global chemical trade, ranking 14th in chemical exports and 8th in chemical imports, excluding pharmaceuticals.
During FY26 (April-February), exports of chemicals and allied products stood at approximately US$18.65 billion, including US$6.89 billion of organic chemicals and US$2.20 billion of inorganic chemicals.
Indias established export ecosystem and the global China+1 strategy provide opportunities for specialty chemical manufacturers to expand their international presence, diversify revenues and serve global customers.
Specialty chemicals serve a wide range of end-use industries. For Ambani Orgochem, key demand drivers include paints & coatings, construction, pharmaceuticals & personal care, renewable energy, adhesives, textiles and paper.
Key Industry Growth Drivers
Key Industry Growth Drivers
Industry Challenges
Industry Challenges
OPPORTUNITIES, THREATS, RISKS & CONCERNS
India is emerging as an attractive destination for specialty chemical manufacturing, supported by cost competitiveness, skilled manpower, established manufacturing capabilities, government initiatives, import substitution and the global China+1 strategy. These factors create opportunities for Indian manufacturers to expand domestic and export markets.
For Ambani Orgochem, opportunities arise from growing demand for differentiated and value-added products, infrastructure development, rising consumption and expansion of downstream industries. The Companys focus on specialty and super-specialty chemicals, R&D, backward integration and new product development provides opportunities for long-term growth.
However, the business remains exposed to raw material price volatility, supply-chain disruptions, geopolitical uncertainties, regulatory requirements, global competition and foreign exchange movements, which may impact operations and profitability.
Source: IBEF- Chemical Industry in India
COMPANY OVERVIEW
Ambani Orgochem Limited, incorporated in 1987, is a specialty and super-specialty chemical company with over four decades of experience in developing and manufacturing Water-Based Acrylic Emulsions, Metal Octoates, Organic Peroxides and Salicylic Acid & Derivatives for diverse industrial applications.
The Company serves industries including paints and coatings, pharmaceuticals, cosmetics, adhesives, construction, textiles, paper, renewable energy and other industrial segments. Its water-based acrylic emulsion capacity currently stands at approximately 2,000 tonnes per month, with the ongoing Tarapur expansion expected to increase capacity to approximately 4,500 tonnes per month.
The Company manufactures 20+ Organic Peroxide products, including Di-tert-amyl Peroxide (DTA) developed through in-house R&D, and is developing additional peroxide molecules and critical raw materials to strengthen backward integration. Its Salicylic Acid business currently has a capacity of approximately 50 tonnes per month, with planned expansion to approximately 200 tonnes per month, alongside the development of downstream salicylates.
Supported by its R&D Centre at Tarapur, specialised manufacturing capabilities, backward integration and focus on higher value-added products, Ambani Orgochem is strengthening its position as a differentiated super-specialty chemical company.
NEXT-GENERATION LEADERSHIP & TECHNICAL EXPERTISE
Mr. Aashay Shah represents the next generation of leadership at Ambani Orgochem Limited, bringing a strong technical and research-oriented perspective to the Company. He holds an MSc in Material Science Engineering from the University of Cincinnati, USA, and is a State Rank Holder in Diploma. He also pursued a PhD before choosing to discontinue it to focus on the Companys business and product development initiatives. With his technical expertise and deep involvement in R&D, he is a key driver behind the development of unique, differentiated and high-value products, supporting the Companys journey towards a stronger super-specialty chemical platform.
The chemical industry is diverse and competitive, with competition varying across product categories and driven by product quality, technical capabilities, pricing, manufacturing capacity, customer relationships and supply reliability.
Ambani Orgochem competes across multiple specialty chemical segments and differentiates itself through specialised manufacturing infrastructure, R&D capabilities, product development expertise, quality standards and value-added products.
In specialised segments such as Organic Peroxides and downstream Salicylates, technical expertise, specialised infrastructure, process know-how and regulatory requirements can create meaningful barriers to entry. The Companys focus on R&D, backward integration and product innovation supports its competitive positioning.
The Company will continue to focus on innovation, operational efficiency, customer relationships and expansion into new applications and geographies.
Factors affecting our Result of Operation
The Companys results of operations are influenced by various factors, including production volumes, capacity utilisation, product mix, customer demand, raw material prices, market conditions and successful execution of growth initiatives.
(a) Revenue Generation
Revenue is generated from the Companys four key product verticals - Water-Based Acrylic Emulsions, Metal Octoates, Organic Peroxides and Salicylic Acid & Derivatives. Revenue growth is influenced by production volumes, capacity utilisation, product mix, domestic and export demand, new product commercialisation and expansion into new applications.
(b) Ability to Successfully Implement Strategy and Growth & Expansion Plans
Future growth depends on successful execution of capacity expansion, R&D, new product development and backward integration initiatives. Key projects include the Tarapur acrylic emulsion expansion, Salicylic Acid capacity enhancement and development of new salicylates, peroxide molecules and critical raw materials. Execution may be affected by capital availability, technology development, regulatory approvals, raw material availability, scale-up and market acceptance.
(c) Market Conditions and Demand for our Products
The Companys performance is influenced by demand across paints and coatings, pharmaceuticals, cosmetics, adhesives, construction, textiles, paper, renewable energy and other industrial applications. Domestic and global economic conditions, raw material price volatility, competition, foreign exchange movements, regulatory requirements and supply-chain disruptions may impact operations and margins.
The Company seeks to address these factors through product diversification, R&D, backward integration, process optimisation and operational efficiency.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has established adequate internal financial control systems to ensure reliable financial reporting, compliance with applicable laws and regulations, proper authorisation and recording of transactions, and optimal utilisation and protection of resources.
The internal control framework is supported by segregation of duties, approval-based authorisation and regular internal audits. The Audit Committee oversees the scope and effectiveness of internal audits and reviews key findings and recommendations.
The Management periodically evaluates, documents and tests the effectiveness of internal financial controls, with improvements undertaken on an ongoing basis. Internal audit reports and recommendations are placed before the Audit Committee/Board of Directors for review.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
| Particulars | Standalone FY 2025-26 | Standalone FY 2024-25 | Change (%) | Consolidated FY 2025-26 | Consolidated FY 2024-25 | Change (%) |
| Revenue from Operations (? Lakhs) | 24,073.89 | 19,253.87 | 20.02% | 24,073.89 | 19,253.87 | 20.02% |
| Total Income (? Lakhs) | 24,365.02 | 19,392.75 | 20.40% | 24,365.03 | 19,392.76 | 20.40% |
| Reserves & Surplus (Lakhs) | 4,083.62 | 4,068.94 | - | 4,080.76 | 4,068.54 | - |
DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS:
| Sr. No. Ratios | FY2025-26 | FY2024-25 | Change % | Reason for major deviation (i.e. change of ____% or more/less as compared to the immediately previous financial year) |
| 1. Current Ratio | 1.01 | 1.01 | 0.73% | - |
| 2. Debt equity Ratio | 2.99 | 2.66 | 12.64% | - |
| 3. Debt Service Coverage Ratio | 0.54 | 0.40 | 36.69% | The Ratio has improved during the year due to increase in profitability and changes in working capital borrowings limits |
| 4. Return on Equity Ratio | 0.02 | (0.02) | -242.63% | The ratio improved on account of profit earned by the company during the current financial year as compared to loss in previous year |
| 5. Inventory turnover ratio | 4.84 | 5.08 | -4.73% | - |
| 6. Trade Receivables | 5.22 | 5.60 | -6.69% | - |
| 7. Trade Payables turnover ratio | 2.06 | 2.24 | -7.96% | - |
| 8. Net Capital turnover ratio | 129.75 | 231.92 | -44.05% | The ratio has decreased during the year mainly |
| 8. Net Profit Ratio | 0.01 | -0.00 | -218.03% | The ratio has improved during the year due to improvement in operational performance and profitability of the Company |
| 8. Return on Capital Employed | 0.10 | 0.06 | 72.49% | The ratio has improved on account of increase in earnings before interest and tax during the current year. |
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
The Company considers its employees a key asset and remains focused on attracting, developing, motivating and retaining talent. Training, skill development, performance recognition and leadership development remain important areas of focus.
The Company promotes an inclusive, collaborative and performance-oriented work environment, while continuing to strengthen employee wellbeing, workplace safety and health across its offices and manufacturing facilities.
CORPORATE COMMUNICATIONS
The Company remains committed to transparent and effective communication with its stakeholders through appropriate communication channels. Corporate communications focus on strengthening stakeholder engagement, enhancing the Companys visibility and effectively communicating its business, developments and initiatives.
FUTURE OUTLOOK
The outlook for the Indian specialty chemicals industry remains favourable, supported by rising domestic demand, supply-chain diversification and increasing demand for value-added products. Ambani Orgochem is focused on strengthening its four key businesses while progressively building a super-specialty chemical platform through R&D, specialised manufacturing and backward integration. Key initiatives include the expansion of Acrylic Emulsions from approximately 2,000 to 4,500 tonnes per month and Salicylic Acid from approximately 50 to 200 tonnes per month, along with the development of new peroxide molecules, salicylates and specialised products. Going forward, the Company will focus on capacity expansion, innovation, backward integration and operational efficiency to build a differentiated product portfolio and create sustainable long-term value.
CAUTIONARY STATEMENT
Certain statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, industry dynamics, government policies, regulatory developments, market conditions, competitive environment, and other risks beyond the Companys control.
The forward-looking statements contained in this report are based on information available to the management as of the date of publication and reflect the Companys current assumptions, expectations, and business outlook. While the Company believes these assumptions are reasonable, they are subject to inherent uncertainties and risks that could cause actual outcomes to differ materially from those anticipated. Readers are therefore advised not to place undue reliance on these statements. The Company assumes no obligation to publicly update, amend, or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable laws and regulations.
| For and on behalf of the Board of Directors |
| For Ambani Orgochem Limited |
| (Formerly known as Ambani Organics Limited) |
| Place: Mumbai |
| Date: 04/09/2026 |
| Sd/- Rakesh Shah |
| DIN: 00503074 |
| Managing Director |
| Sd/- Apooni Shah |
| DIN: 00503116 |
| Whole Time Director |
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