Epigral Ltd Management Discussions

Global economic review

Overview

Global economic growth declined marginally from 3.3% in 2023 to an estimated 3.2% in 2024. This was marked by a slowdown in global manufacturing, particularly in Europe and parts of Asia coupled with supply chain disruption and weak consumer sentiment. In contrast, the services sector performed more creditably.

The growth in advanced economies remained steady at 1.7% from 2023 to 2024 as the emerging cum developing economies witnessed a growth decline at 4.2% in 2024 (4.4% in 2023).

On the positive side, global inflation was expected to decline from 6.1% in 2023 to 4.5% in 2024 (projectedat 3.5% and 3.2% in 2025 and 2026 respectively). This decline was attributed to the declining impact of erstwhile economic shocks, and labour supply improvements. The monetary policies announced by governments the world over helped keep inflation in check as well.

The end of the calendar year was marked by the return of Donald Trump as the new US President. The new US government threatened to impose tariffs on countries exporting to the US unless those countries lowered tariffs for the US to export to their countries. This enhanced global trade and markets uncertainty and emerged as the largest singular uncertainty in 2025.

Regional growth (%)	2024	2023
World output	3.2	3.3
Advanced economies	1.7	1.7
Emerging and developing economies	4.2	4.4

(Source: IMF, KPMG, Press Information Bureau, BBC, India Today)

Performance of the major economies, 2024

United States: Reported GDP growth of 2.8% in 2024 compared to 2.9% in 2023.

China: GDP growth was 5.0% in 2024 compared to 5.2% in 2023.

United Kingdom: GDP growth was 0.8% in 2024 compared to 0.4% in 2023.

Japan: GDP growth was 0.1% in 2024 compared with 1.9% in 2023.

Germany: GDP contracted by 0.2% in 2024 compared to a 0.3% decline in 2023.

(Source: CNBC, China Briefing, ons.gov.uk, Trading Economics, Reuters)

Outlook

The global economy has entered a period of uncertainty following the imposition of tariffs of products imported into the USA and some countries announcing reciprocal tariffs on US exports to their countries. This is likely to stagger global economic growth, the full outcome of which cannot be currently estimated. This risk is supplemented by risks related to conflicts, geopolitical tensions, trade restrictions and climate risks. In view of this, World Bank projected global economic growth at 2.7% for 2025 and 2026, factoring the various economic uncertainties.

(Source: IMF, United Nations)

Indian economic review

Overview

The Indian economy grew at 6.5% in FY 2024-25, compared to a revised 9.2% in FY 2023-24. This represented a four-year low due to a moderate slowdown within the Indian economy (marked by slower manufacturing growth and a decline in net investments). Despite the slowdown, India retained its position as the worlds fifth-largest economy.

Indias nominal GDP (at current prices) was H330.68 trillion in FY 2024-25 (H301.23 trillion in FY 2023-24). The nominal GDP per capita increased from H2,15,936 in FY 2023-24 to H2,35,108 in FY 2024-25, reflecting the impact of an economic expansion.

The Indian rupee weakened 2.12% against the US dollar in FY 2024-25, closing at H85.47 on the last trading day of FY25. In March 2025, the rupee recorded the highest monthly appreciation since November 2018, rising 2.39% (arising out a weakening US dollar).

Inflationary pressures eased, with CPI inflation averaging 4.63% in FY 2024-25, driven by moderating food inflation and stable global commodity prices. Retail inflation at 4.6% in FY 2024-25, was the lowest since the pandemic, catalysing savings creation.

Indias foreign exchange reserves stood at a high of $676 billion as of April 4, 2025. This was the fourth consecutive year when rating upgrades outpaced downgrades on account of strong domestic growth, rural consumption, increased infrastructure investments and low corporate leverage (annualized rating upgrade rate 14.5% exceeded the decade-long average of 11%; downgrade rate was 5.3%, lower than the 10-year average of 6.5%).

Gross foreign direct investment (FDI) into India rose 13.6% to $81 billion during the last financial year, the fastest pace of expansion since 2019-20. The increase in the year was despite a contraction during the fourth quarter of 2024-25 when inflows on a gross basis declined 6% to $17.9 billion due to the uncertainty caused by Donald Trumps election and his assertions around getting investments back into the US.

Growth of the Indian economy

	FY22	FY23	FY24	FY25
Real GDP growth (%)	8.7	7.2	9.2	6.5

(Source: MoSPI, Financial Express)

Growth of the Indian economy quarter by quarter, FY 2024-25

	Q1 FY25	Q2 FY25	Q3 FY25	Q4 FY25
Real GDP growth (%)	^6.5	5.6	6.2	7.4

(Source: The Hindu, National Statistics Office)

The banking sector continued its improvement, with gross non-performing assets (NPA) for scheduled commercial banks (SCBs) declining to 2.6% as of September 2024, down from 2.7% in March 2024. The capital-to-risk- weighted assets ratio for SCBs stood at 16.7% as of September 2024, reflecting a strong capital position.

Indias exports of goods and services reached $824.9 billion in FY 2024-25, up from $778 billion in the previous fiscal year. The Red Sea crisis impacted shipping costs, affecting price-sensitive exports. Merchandise exports grew 6% YoY, reaching $374.1 billion.

Indias net GST collections increased 8.6%, totalling H19.56 Lakh Cr in FY 2024-25. Gross GST collections in FY 2024-25 stood at H22.08 Lakh Cr, a 9.4% increase YoY.

On the supply side, real gross value added (GVA) was estimated to expand 6.4% in FY 2024-25.

The industrial sector grew by

6.5%, supported by growth in construction activities, electricity, gas, water supply and other utility services.

Indias services sector grew at 8.9% in FY 2024-25 (9.0% in FY 2023-24), driven by public administration, defence and other services (expanded at 8.8% as in the previous year). In the infrastructure and utilities sector, electricity, gas, water supply and other utility services grew a projected 6.0% in FY 2024-25, compared to 8.6% in FY 2023-24. Meanwhile, the construction sector expanded at 9.4% in FY 2024-25, slowing from 10.4% in the previous year.

Manufacturing activity was subdued in FY 2024-25, with growth at 4.5%, which was lower than 12.3% in FY 2023-24. Moreover, due to lower public spending in the early part of the year, government final consumption expenditure (GFCE) is anticipated to have slowed to 3.8% in FY25, compared to 8.1% in FY 2023-24.

The agriculture sector grew at 4.6% in FY 2024-25 (1.4% in FY 2023-24). Trade, hotel, transport, communication and services related to broadcasting segment were estimated to grow at 6.4% in FY 2024- 25 (6.3% in FY 2023-24).

From a demand perspective, the private final consumption expenditure (PFCE) exhibited robust growth, achieving 7.2% in FY 2024-25, surpassing the previous financial years rate of 5.6%.

The Nifty 50 and SENSEX recorded their weakest annual performances in FY 25 in two years, rising 5.3% and 7.5% during the year under review respectively. Gold rose 37.7% to a peak of $3,070 per ounce, the highest increase since FY 2007-08, indicating global uncertainties.

Total assets managed by the mutual fund (MF) industry jumped 23% or H12.3 Lakh Cr in fiscal 2025 to settle at H65.7 Lakh Cr. At close of FY 2024-25, the total number of folios had jumped to nearly 23.5 Cr, an all-time peak. During last fiscal, average monthly systematic investment plan (SIP) contribution jumped 45% to H24,113 Cr.

Foreign portfolio investments (FPIs) in India experienced high volatility throughout 2024, with total inflows into capital markets reaching approximately $20 billion by year-end. However, there was significant selling pressure in the last quarter, influenced by new tariffs announced by the new US government on most countries (including India).

Outlook

India is expected to remain the fastest-growing major economy. Initial Reserve Bank of India estimates have forecast Indias GDP growth downwards from 6.7% to 6.5% based on risks arising from US tariff levies on India and other countries. The following are some key growth catalysts for India in FY 2025-26.

Tariff-based competitiveness:

India identified at least 10 sectors such as apparel and clothing accessories, chemicals, plastics and rubber where the US high tariffs give New Delhi a competitive advantage in the American market over other suppliers. While India faced a 10% tariff after the US suspended the 26% additional duties for 90 days, the levy remained at 145% on China, the biggest exporter to the US. Chinas share of apparel imports into the US was 25%, compared with Indias 3.8%, a large opportunity to address differential (Source: Niti Aayog).

Union Budget FY 2024-25

The Union Budget 2025-26 laid a strong foundation for Indias economic trajectory, emphasizing agriculture, MSMEs, investment, and exports as the four primary growth engines.

With a fiscal deficit target of 4.4% of GDP, the government reinforced fiscal prudence while allocating H11.21 Lakh Cr for capital expenditure (3.1% of GDP) to drive infrastructure development.

The February 2025 Budget marked a shift in approach, with the government proposing substantial personal tax cuts. Effective April 1, 2025, individuals earning up to H12 Lakh annually will be fully exempt from income tax. Economists estimate that the resulting H1 Lakh Cr in tax savings could boost consumption by H3-3.5 Lakh Cr, potentially increasing the nominal private final consumption Expenditure (PFCE) by 1.5-2% of its current H200 Lakh Cr.

Free trade agreement: In a postBalance Sheet development,

India and the United Kingdom announced a free trade agreement to boost strategic and economic ties. This could lead to a significant increase in the export competitiveness of Indian shipments in the UK across the textiles, toys, leather, marine products, footwear, and gems & jewellery sectors. About 99% of Indian exports to UK will enjoy zero-duty access tariff cuts; India will cut tariffs on 90% of tariff lines and 85% could become fully dutyfree within 10 years.

Pay Commission impact: The

8th Pay Commissions awards could lead to a significant salary revision for nearly ten million central government employees. Historically, Pay Commissions have granted substantial pay hikes along with generous arrears. For instance, the 7th Pay Commission more than tripled its monthly salaries, raising the range from H7,000 to H90,000 to H18,000 to H12.5 Lakh, triggering a widespread ripple effect.

Monsoons: The India Meteorological Department predicted an ‘above normal monsoon in 2025. This augurs well for the countrys farm sector and a moderated food inflation outlook.

Easing inflation: Indias consumer price index-based retail inflation in March 2025 eased to 3.34%, the lowest since August 2019, raising hopes of further repo rate cuts by the Reserve Bank of India.

Deeper rate cuts: In its February 2025 meeting, the Monetary Policy Committee (MPC) reduced policy rates by 25 basis points, reducing it to 6% in its first meeting of FY 2025-26. Besides, Indias CPI inflation is forecasted at 4% for the fiscal year 2025-26.

Lifting credit restrictions:

In November 2023, the RBI increased risk weights on bank loans to retail borrowers and

NBFCs, significantly tightening credit availability. This led to a sharp slowdown in retail credit growth from 20-30% to 9-13% between September 2023 and 2024. However, under its new leadership, the RBI has prioritized restoring credit flow. Recent policy shifts have removed restrictions on consumer credit, postponed higher liquidity requirements for banks, and are expected to rejuvenate retail lending.

(Sources: CNBC, Press Information Bureau, Business Standard, Economic Times, World Gold Council, Indian Express, Ministry of External Affairs, Times of India, Business Today, Hindustan Times, Statistics Times)

Sectorial overview

Indias chemical industry overview

The Indian chemical sector, currently valued at approximately US$220 Bn, is poised for significant expansion. Projections indicate that the sector will reach US$300 Bn by 2025, driven by an anticipated 9% annual increase in chemical demand. This growth is further strengthened by Indias dominant position in generics, biosimilars, and vaccines, contributing over 50% of the global vaccine supply. Looking ahead, the sector is expected to contribute US$383 Bn to Indias GDP by 2030 and could potentially reach a staggering US$1 trillion by 2040.

Indias leadership in the chemical sector is underscored by its export prowess, with chemicals being exported to over 175 countries and contributing 15% of total exports. The governments initiatives, such as the production-linked incentive (PLI) scheme and significant investments, aim to further boost refining and petrochemical capacity. Global trends like the China-plus-one strategy and Europes plant closures are driving demand for Indian chemicals, positioning India as a key player in the global chemical market.

The chemical and petrochemical sector in India is set to witness a surge in investment, with an estimated H8 Lakh Cr (US$ 107.38 Bn) by 2025. Moreover, the Petroleum, Chemicals, and

Petrochemicals Investment Region (PCPIR) policy is projected to attract an investment of H20 Lakh Cr (US$ 276.46 Bn) by 2035. A China+1 strategy, coupled with domestic demand resurgence, has led to strong revenue growth of 18-20% in 2022 and 14-15% in 2023, positioning India as a competitive global player. The countrys share in the global specialty chemicals market is set to rise from 3% to 4% by 2027, with an expected CAGR of 11-12%. Notably, the exports of organic and inorganic chemicals reached US$ 14.09 Bn in April-September 2024, demonstrating the sectors growing international footprint.

(Sources: india-briefing.com, ibef.org)

Chlorinated polyvinyl chloride (CPVC) resin industry overview

The global chlorinated polyvinyl chloride (CPVC) market is set to expand at a CAGR of 11.8% from 2025 to 2034. CPVC, a versatile thermoplastic resin, is widely used in plumbing, industrial piping, fire sprinkler systems and cable sheathing due to its high resistance to heat, chemicals, and pressure. This durability makes CPVC highly sought after in industries such as construction industrial and electrical.

The Indian chlorinated polyvinyl chloride (CPVC) market is projected to grow at a CAGR of 11.6% from FY 2023-24 to FY 2031-32. This growth is driven by the governments focus on infrastructure development, rapid urbanization, and the rising aspirations for modern lifestyles. CPVC is widely utilized in plumbing pipes and fittings due to its durability, heat resistance, and chemical resilience, making it a preferred material for reliable and efficient plumbing systems in residential and commercial buildings.

The demand for CPVC, as on FY 2024-25, was 2,50,000 TPA and expected to increase to 500,000 tons by FY 2029-30. These figures highlight the expanding role of CPVC in supporting modern construction needs across the country.

The CPVC market witnessed substantial demand, particularly in plumbing and construction, with a growing adoption in industrial and fire sprinkler systems applications. The materials temperature and corrosion resistance, along with its chemical inertness, make it an ideal choice for heat-resistant piping, fire sprinkler systems, and industrial fluid handling.

The Asia-Pacific region leads the global CPVC market, driven by urbanization, infrastructure growth, and increasing construction activity.

With rising investments, technological advancements, and expanding applications across industries, the CPVC market is poised for sustained growth, reinforcing its role as a crucial material in construction, industrial, and infrastructure development worldwide.

(Source: globalmarketinsights.com, prismaneconsulting.com)

Epichlorohydrin industry overview

The global Epichlorohydrin (ECH) market, valued at USD 2.85 Bn in 2024, is expanding at a CAGR of 4.90% from 2025-31 the rising demand for epoxy resins, which rely on ECH as a key precursor, is a primary driver of market growth. Epoxy resins are widely utilized across automotive, aerospace, construction, wind-mill and electronics industries due to their exceptional bonding strength, durability, and resistance properties. The increasing need for high-performance materials in infrastructure projects further fuels the demand for ECH.

The global epoxy resin industry is expected to grow at a 5% CAGR from 2024 to 2031, driving demand in coatings, adhesives, composites, and electrical applications. The pharmaceutical and agrochemical industries are also emerging as significant consumers. In India, the epoxy resins market is projected to grow at a 7.9% CAGR.

The Indian Epichlorohydrin (ECH) market is set for significant growth, driven by rising demand for epoxy resins across key industries. With a projected CAGR of 12-13% from 2025 to 2034,

Indias expanding industrial base and infrastructure development will fuel this growth.

Technological advancements in ECH manufacturing processes are also contributing to market expansion. Innovations focused on improving production efficiency and reducing environmental impact are gaining traction, ensuring sustainability in ECH production.

Stricter environmental regulations are pushing manufacturers toward bio-based ECH production, reducing reliance on petroleum-based raw materials. Additionally, initiatives supporting industrial expansion, infrastructure development, and sustainable chemical production are expected to further enhance ECH market growth.

With robust demand from multiple sectors, continuous technological advancements, and strategic industry investments, the ECH market is set for steady growth, reinforcing its position as a critical raw material in epoxy resin production and industrial applications.

(Source: verifiedmarketresearch; Mordor Intelligence, Markets and Data, Grandview Research)

Chlor-Alkali industry overview

Overview

Indias chlor-alkali market, valued at USD 4.34 Bn in 2023, is projected to grow at a CAGR of 6-7% through 2029, in line with the countrys GDP growth. Key drivers include increasing demand from the paper and pulp industry, textiles, alumina, chemicals, pharmaceuticals, and various other industries.

In terms of tonnage, demand has increased from 4.1 Mn tons in FY 2022-23 to 4.4 Mn tons in FY 2023-24, reflecting a 7% growth in line with the countrys GDP growth.

The Indian Caustic Soda market, driven by increasing industrial demand and infrastructure development, is experiencing robust growth. In terms of volume, the market reached 3.96 MMT in 2024 and is expected to expand at a CAGR of 6%, reaching 6.43 MMT by 2034. With its strong industrial base and government support, Indias Caustic Soda market is poised for sustained growth, presenting opportunities in both domestic consumption and exports.

Caustic soda enjoys diverse applications in India, with major consumption in industries such as textiles, alumina, organic and inorganic chemicals, soaps and detergents, pharmaceuticals, and paper and pulp. Its key uses include pulp bleaching in paper manufacturing, saponification in soap production, and acid neutralization in chemical manufacturing.

(Source: TechSci Research, Expert Market Research, Research and Markets, Precedence Research)

Chloromethanes and Hydrogen Peroxide markets

Chloromethane: In FY 2024-25, the demand for chloromethane (CMS) stood at 6,96,000 TPA compared to 6,15,000 TPA in FY 2023-24, while the capacity stood at 8,25,600 TPA. The global chloromethane market, valued at USD 4.2 Bn in 2023, is expected to reach over USD 5.8 Bn by 2032, growing at a 4.4% CAGR.

This growth is fueled by rising demand from pharmaceuticals, agrochemicals, and chemical industries, where chloromethane serves as a key solvent and raw material for products like silicone compounds, methylamines, and methyl cellulose.

Chloromethane plants produce a range of substances, including methyl chloride, methylene dichloride, chloroform, and carbon tetrachloride. These products have diverse applications across various industries. Methylene dichloride is primarily used in the pharmaceutical industry (91%) as a solvent, and also in foam blowing, aerosols, polycarbonate resins, and adhesive formulations.

Chloroform is essential in fluoropolymer production (55%), particularly for Tetrafluoro Ethylene used in non-stick coatings, and also in refrigerant gases (25%) like R22. Carbon tetrachloride serves as a raw material in agrochemical intermediate production. These derivatives play critical roles in various applications, including pharmaceuticals, refrigerants, coatings, and chemical storage.

Hydrogen Peroxide: The global Hydrogen Peroxide market reached USD 3.5 Bn in 2024 and is projected to grow at a CAGR of 3.15%, reaching USD 4.6 Bn by 2033. This growth is driven by rising sanitation awareness, increasing demand for food and beverage processing, and the booming electronics sector.

Market drivers - Include sectors like paper & pulp, textile and chemical industry and potentially semiconductor and solar panels in future.

The Indian Hydrogen Peroxide market is experiencing steady.

This market is expected to grow at a CAGR of around 7.5% over the next few years, driven by strong demand from various industries.

Industrial applications, particularly in the textiles, paper, and chemicals sectors, are key drivers of this growth. Hydrogen Peroxide is widely used for bleaching and disinfection due to its eco-friendly properties. The paper and pulp industry is the largest consumer, accounting for approximately 45% of the demand in FY 2022-23. This sectors rapid expansion and focus on sustainable practices significantly boost Hydrogen Peroxide demand.

Overall, the Indian Hydrogen Peroxide market is poised for expansion, driven by industrial applications and the increasing demand for eco-friendly solutions.

(Source: IMARC)

Industry growth drivers

Increase in population: As of 2025, India remains the most populous country in the world, surpassing China, with an estimated population of 1.46 Bn. This demographic expansion is set to create significant opportunities for the Indian chemical industry, fuelling demand across various sectors such as construction, infrastructure, agriculture, consumer goods, and industrial applications.

Urbanization: Indias urban population is projected to reach 675 Mn by 2035, making it the second-largest urban center globally, following Chinas one billion urban residents. Rapid urbanization is expected to boost demand for housing, infrastructure, healthcare, and pharmaceuticals, driving growth in the chemical sector.

Demographic dividend:

In 2025, the median age of Indias population stands at approximately 28.8 years, compared to the global median of 30.5 years. With a predominantly young workforce, India has a competitive advantage in productivity and consumption, which is expected to drive sustained demand for chemicals in industries like manufacturing, electronics, and automotive.

Growing replacement demand: Rising disposable incomes and economic growth are accelerating the shift toward modern lifestyles. Increased consumer spending on higher- quality goods, advanced construction materials, and innovative agricultural inputs is creating strong demand for specialty chemicals, polymers, and high-performance materials.

Increased consumption:

Indias per capita chemical consumption remains relatively low at approximately USD 91, significantly behind developed economies. However, with rapid industrialization, an expanding middle class, and increasing urbanization, this figure is set to rise sharply over the next decade. Sectors such as construction, automotive, and personal care are expected to be key drivers of this growth.

Strategic partner: In recent years, global chemical manufacturing has shifted focus from China and other developed economies toward India. This trend is driven by factors such as escalating trade tensions, stringent environmental policies, rising labour costs in China, and supply chain disruptions caused by the COVID-19 pandemic. India, with its favourable business environment and robust infrastructure investments, is emerging as a preferred hub for chemical production.

Supplier shift: Chinas chemical industry has undergone extensive restructuring, marked by stricter environmental regulations, industry consolidation, and tighter financial controls. These shifts have introduced uncertainties for companies reliant on Chinese suppliers. As a result, many businesses are diversifying their supply chains by sourcing raw materials and manufacturing components from India, capitalizing on its cost-effective labour market and investor-friendly policies.

‘Plus One strategy: In

FY 2024-25, Indias specialty chemicals sector continues to grow robustly, driven by strong domestic demand and increasing export opportunities. The China-plus-one strategy adopted by global economies has accelerated this growth, encouraging manufacturers to expand operations in India. Sales are projected to grow by over 20%.

Plant closures in Europe strengthened Indias position as companies seek alternative suppliers under a Europe-plus- one scenario.

(Source: The wire, Trading economics, PWC, IBEF, Amai India, Statista, economictimes.com, ciiblog.in, livemint, Venture high, India chemical industry, Ey.com, Times of India)

Company overview

Founded in 2007, Epigral Limited, formerly known as Meghmani Finechem Limited, is a leading integrated chemical manufacturer. Committed to fulfilling Indias demand for essential chemicals, the Company emphasizes responsible and sustainable practices. With a clear focus on growth, Epigral upholds the highest standards of quality and environmental care.

The Company operates a state- of-the-art automated production facility, aligned with global manufacturing benchmarks. Its diverse product portfolio includes CPVC Resin, CPVC Compound, Epichlorohydrin, Chlorotoluenes Value Chain, Caustic Soda, Caustic

Potash, Chlorine, Hydrogen, Chloromethanes, and Hydrogen Peroxide.

Catering to the domestic and international markets, Epigral actively supports the ‘Make in India vision, promoting sustainable progress and contributing to a safer, brighter future.

Products

CPVC Resin: Epigral has significantly expanded its CPVC Resin capacity by 45,000 tons per annum (TPA) at its Dahej Complex. The expansion has boosted Epigrals total capacity to 75,000 TPA, cementing its position as Indias largest CPVC Resin producer. The Company plans to further expand its capacity by an additional 75,000 TPA, aiming to reach a global milestone of 150,000 TPA, the worlds largest capacity.

Chlorotoluenes Value Chain:

The Companys Chlorotoluene project, along with its value chain, was established within the Dahej complex. As the first of its kind in India, it manufactures key intermediates essential for producing active ingredients used in pharmaceutical and agrochemical industries.

Epichlorohydrin: Epichlorohydrin, derived from bio-based glycerin, is a clear and colorless liquid with purity levels exceeding 99.90%.

It is used in various industries such as epoxy resins, water treatment chemicals, automotive, pharmaceuticals, paper reinforcement, and infrastructure chemicals. A unique technology facilitates brine recycling, lowering process waste. Epigrals Epichlorohydrin capacity is set to reach 100,000 TPA with an additional 50,000 TPA, making it the countrys largest plant.

Chlor-Alkali: Epigral stands among Indias leading Chlor- Alkali producers, offering a broad portfolio comprising Caustic Soda, liquid Chlorine, hydrochloric acid, Hydrogen gas, sodium hypochlorite, diluted sulfuric acid, and Caustic Potash.

Chloromethanes (CMS): The Company manufactures methyl chloride, methylene dichloride, chloroform, and carbon tetrachloride. These products play a critical role in pharmaceuticals, refrigerants, and the production of tetrafluoroethylene (TFE).

Hydrogen Peroxide: As the third- largest producer of Hydrogen Peroxide (H2O2) in India, Epigral supplies this versatile chemical for diverse industrial applications across paper and pulp, textiles, effluent treatment, and the broader chemical sector.

Financial review

• During FY 2024-25, the revenue of the Company was H2,565 Cr, an increase of 33% compared to FY 2023-24.

• EBITDA in FY 2024-25 stood at H711 Cr, a growth of 48% compared to H481 Cr in FY 202324.

• The Company recorded a profit after tax (PAT) of H357 Cr in FY 2024-25 as against H196 Cr in FY 2023-24.

Operational review

• The Companys overall production increased by 11%, primarily driven by Derivatives and Specialty products.

• Overall capacity utilization stood at 81% in FY 2024-25, up from 78% in FY 2023-24.

• Captive chlorine consumption reached 72%, strengthening integrated manufacture.

The more we produced, the less we consumed from external sources

Product	Current capacity (TPA)	New / additional capacity (TPA)
Caustic Soda	4,,00,000	-
Caustic Potash	21,000	-
Chloromethanes	50,000	-
Hydrogen Peroxide	60,000	-
Epichlorohydrin	50,000	50,000
CPVC Resin	75,000	75,000
CPVC Compound	35,000
Captive Power Plant (CPP)	132 MW	-
Chlorotoluene & value Chain	NA	NA
Wind-solar hybrid power plant	18.34 MW	19.80 MW

Human resource management

Epigral continues to strengthen its leadership position through effective human resource strategies. The Company invests in a range of training programs, including formal sessions, informal learning, and hands-on experience, creating a dynamic work environment with engaging roles and open communication with management. These efforts have led to one of the highest employee retention rates in the industry, fostering internal leadership development and expanding growth opportunities.

As of March 31, 2025, Epigral Limited employed 1,079 professionals. To support its ambitious expansion plans, the Company has also brought on board senior management experts across multiple functions.

Internal control systems

The Company has strong internal control procedures commensurate with its size and operations. The Board of Directors, responsible for the internal control system, sets the guidelines and verifies its adequacy, effectiveness and application. The Companys internal control system is designed to ensure management efficiency, measurability and verifiability, reliability of accounting and management information, compliance with all applicable laws and regulations and the protection of the Companys assets. This will help identify and manage the Companys risks (operational, compliance-related, economic and financial)

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be ‘forward looking statements within the meaning of applicable securities laws and regulations.