SPEB Adhesives Limited (earlier known as SPEB Adhesives Private Limited) is an established manufacturer of specialty adhesives with more than four decades of industry experience. The Company traces its origins to 1972 and has developed strong technical capabilities in synthetic rubber-based adhesive formulations, with its principal manufacturing facility located at Talaja, Maharashtra.
SPEB primarily operates in the Industrial Adhesives segment and serves a diversified customer base across Hardware, Foam & Furnishing, Ducting & Insulation, Woodworking, Footwear, Automotive and Generator Set applications. The Company offers both solvent-based and water-based adhesive solutions and has built its business around application-specific formulations, long-standing customer relationships and repeat business.
The Company operates through a combination of dealer and distributor networks, industrial sales, institutional customers, government supply contracts and exports. During FY2025-26, SPEB continued to strengthen its market presence while simultaneously laying the foundation for the next phase of its growth through capacity expansion, product diversification and channel development.
The Company successfully completed its SME Initial Public Offering and was listed on the NSE Emerge platform on December 8, 2025, raising ?33.73 crore. The listing represents an important milestone in SPEBs evolution from a promoter-led enterprise into a professionally governed listed company and provides a stronger platform for future expansion.
The Indian adhesives industry continues to benefit from structural growth in manufacturing, construction, furniture and interiors, automotive, footwear, consumer durables, HVAC and infrastructure-related applications.
Within the broader adhesives industry, synthetic rubber-based adhesives remain important for applications requiring strong initial grab, flexibility, heat resistance, rapid setting and durable bonding. Demand is supported by increasing formalisation of manufacturing, growth in organised furniture and furnishing, expansion of automotive and HVAC applications and increasing preference for specialised application-specific adhesive solutions.
The Indian synthetic rubber-based adhesives market was estimated at approximately ?15,000-18,000 crore in FY2024 and is expected to grow at approximately 7-9% CAGR over the medium term, according to industry sources referenced in the Companys investor presentation. (NSE India Archives)
The industry is also witnessing a gradual transition towards water-based, low-VOC and environmentally preferable adhesive technologies. This transition presents both a challenge and a significant opportunity for companies with formulation expertise and the ability to invest in new manufacturing capabilities.
SPEB believes its combination of synthetic rubber expertise, application-specific products, established customer relationships and expanding water-based portfolio positions it well to participate in these structural trends.
While the Indian adhesive industry offers high-growth opportunities across consumer and industrial segments, several structural and operational barriers deter new entrants from establishing a significant foothold.
These entry barriers include:
High Brand Loyalty and Established Market Leaders
Technical Know-How and Product Formulation Expertise
Raw Material Volatility and Supply Chain Dependence
Capital Investment in Manufacturing and Testing Infrastructure
Regulatory and Environmental Compliance Requirements
Distribution Network and Customer Reach
After-Sales Technical Support and Application Guidance
Economies of Scale and Cost Advantage
The Company is engaged in 1 major reportable Segment during the year under review:
| Sr. No. Name and Description of main products/service | % to total turnover of the company |
| 1. Sale of Adhesives | 100% (7.53% from export and 92.47% from Domestic) |
FY2025-26 was a year of continued growth and strategic transformation for SPEB.
Revenue from operations crossed INR 5,000.00 Lakhs for the first time to an actual of INR 5,057.00 Lakhs in FY2025-26 from INR 4,487.00 Lakhs in FY2024-25, representing growth of 12.7%. Profit after tax (PAT) increased to INR 687.00 Lakhs from INR 606.00 Lakhs in the previous year, representing growth of 13.36%.
The Companys growth during the year was supported by:
Increased volumes across core synthetic rubber adhesive products;
Continued business from established OEM and institutional customers;
Expansion of the dealer and distributor network;
Increasing penetration across woodworking, foam and furnishing, HVAC and allied applications;
Introduction and expansion of specialised adhesive formulations; and
Initial development of new domestic and international sales channels.
The Company continues to focus on profitable growth rather than pursuing volume at the expense of margins.
SPEB has progressively expanded its product portfolio beyond its traditional multipurpose synthetic rubber adhesive business.
The Companys key application areas include:
Foam & Furnishing SPEBs upholstery adhesive portfolio is designed for bonding foam, wood, resin and leather and is used in furniture, sofa, chair and related furnishing applications.
Flooring, Carpet & Wallpaper The Company offers specialised products for flooring, carpet and wallpaper applications, including Floor Bond and Wall Fix product ranges.
HVAC & Insulation SPEB supplies adhesives for ducting, insulation, chilled-water piping insulation and silent generator set applications, where strong bonding, heat resistance and durability are important.
Woodworking The Companys woodworking portfolio addresses plywood, MDF, HDF, furniture, wardrobes and interior applications. Products include heat-resistant and synthetic resin-based adhesive solutions, PURKONE (D4 Grade Adhesives) & Hot melt Adhesives (on trial phase - 3rd Party Import)
Automotive The Companys adhesive solutions are used in automotive interior applications including seats, roof panels and trunks.
Other Industrial Applications The Company continues to develop application-specific solutions for Woodworking, Upholstery, generator sets, industrial bonding and other specialised requirements in different chemistries.
The Companys investor presentation indicates that it offers more than 100 adhesive SKUs across its various applications. (NSE India Archives)
SPEBs existing manufacturing facility at Talaja, Maharashtra, has an installed capacity of approximately 3,600 tonnes per annum for solvent-based adhesives.
During FY2025-26, the existing facility operated at a healthy level of capacity utilisation of, providing the Company with an established manufacturing base and the ability to further scale volumes.
A key strategic initiative during the year was the development of the Companys new manufacturing facility at Khalapur, Raigad, Maharashtra.
The new facility is spread over approximately 16,193 square metres and is being developed in phases. Phase I is focused on bringing water-based adhesive manufacturing in-house, which is currently partly supported through contract manufacturing.
Upon completion of the planned expansion, the Companys combined installed capacity for solvent-based and water-based adhesives is expected to increase to approximately 8,550 tonnes per annum, representing a significant increase over the existing capacity. (NSE India Archives)
The expansion is expected to provide the Company with:
Increased manufacturing capacity;
Greater control over product quality and formulation in woodworking adhesives;
Reduction in dependence on outsourced water-based production;
Improved operating leverage;
Ability to address larger customer requirements; and
A platform for future product development.
The Company expects the new capacity to be ramped up progressively in line with market demand.
Innovation remains an important component of SPEBs long-term strategy.
The Company maintains in-house R&D capabilities focused on developing application-specific formulations, improving product performance and responding to evolving customer requirements.
During the year, the Company continued to focus on:
Synthetic rubber-based formulations;
SBS and polychloroprene-based adhesive systems;
Water-based adhesive technologies;
Higher-performance woodworking adhesives;
Flooring and wallpaper applications;
Heat-resistant formulations;
Lower-odour and lower-VOC products; and
Specialised adhesives for industrial applications.
Going forward, SPEB intends to increase its focus on advanced and adjacent adhesive categories, including cladding, wallpaper, epoxy and flooring adhesives.
The Company believes that product innovation will enable it to improve customer stickiness, increase wallet share and participate in higher-value applications.
SPEBs business has historically been driven primarily by B2C / B2B customers and industrial relationships.
The Company is now progressively strengthening its distribution-led model with the objective of increasing market penetration and developing a larger Distributor-to-Retailer (D2R) ecosystem.
The Companys strategy includes:
Appointment of independent distributors;
Expansion of dealer networks;
Strengthening presence in additional states;
Development of regional stock points and warehouses;
Increased retail visibility;
Digital Sales Platform for existing Dealer & Distributor Network;
Expansion of specialised products through retail channels;
Development of international distribution partners;
Digital lead generation;
The Company had a presence across more than 12 states and serving more than 450 plus active customers during FY2025-26. (NSE India Archives)
The next phase of the Companys distribution strategy is expected to focus on increasing the depth of penetration within existing markets alongside expanding geographic presence across India & into the Middle East with entire product line.
International expansion represents an important growth opportunity for SPEB.
The Company has identified the Gulf Cooperation Council (GCC) region as a key international market, leveraging its geographical proximity, established trade relationships and demand for adhesive solutions across furniture, construction, HVAC, footwear and industrial applications.
During FY2025-26, the Company continued to develop its export business and initiated shipments of selected products into international markets.
Going forward, the Company intends to:
Increase export volumes;
Develop country-specific distributor networks;
Introduce additional products suitable for international markets;
Strengthen export sales capabilities;
Improve product registrations and certifications where required;
Establish regional warehousing capabilities on a phased basis; and
Expand beyond the GCC into selected international markets.
The Company believes exports can become an increasingly meaningful component of its revenue mix over the medium term.
The financial statements have been prepared in accordance with the requirements of the Companies Act, 2013 and applicable Accounting Standards.
(Rs. in Lacs)
| Particulars | For the Year Ended 31st March, 2026 | For the Year Ended 31st March, 2025 |
| INCOME | ||
| Revenue from Operations | 5,056.83 | 4,486.52 |
| Other Income | 87.42 | 107.30 |
| TOTAL INCOME | 5,144.25 | 4,593.82 |
| EXPENSES: | ||
| Cost of materials consumed | 3,288.47 | 3,093.43 |
| Purchases of Stock-in-Trade | -- | -- |
| Changes in inventories of finished goods and work-in-progress | (23.58) | 14.16 |
| Employee benefits expense | 441.88 | 330.66 |
| Finance Cost | -- | -- |
| Depreciation and amortisation Expense | 61.94 | 43.95 |
| Other Expenses | 446.43 | 265.75 |
| TOTAL EXPENSES | 4,215.14 | 3,747.95 |
| Profit before exceptional and extraordinary items and tax | 929.11 | 845.87 |
| Exceptional Items | -- | -- |
| Profit before extraordinary items and tax | 929.11 | 845.87 |
| Extraordinary Items | -- | -- |
| Profit before tax | 929.11 | 845.87 |
| Tax Expense: | ||
| Current Tax (Income Tax) | 237.00 | 223.78 |
| Deferred Tax | -16.62 | |
| Short/(Excess) Provision of Previous Year | 5.53 | -- |
| Profit/(Loss) for the period from Continuing operations | 686.58 | 605.47 |
| Profit/(Loss) for the period from discontinued operations | -- | -- |
| Tax expense of discontinuing operations | -- | -- |
| Profit/(Loss) for the period from discontinued operations (after tax) | -- | -- |
| Profit/(Loss) for the period | 686.58 | 605.47 |
SPEB maintains a disciplined approach towards financial management.
The Company has historically operated with a conservative capital structure and has focused on maintaining financial flexibility to support future expansion.
The successful SME IPO in December 2025 strengthened the Companys capital base and provides resources for planned expansion and growth initiatives.
As of March 31, 2026, a significant portion of the IPO proceeds remained available for the stated objects of the issue, including funding of the planned manufacturing expansion. The Company continues to deploy these funds in accordance with the objects disclosed in its offer documents and applicable regulatory requirements. (NSE India Archives)
Management believes SPEB is entering an important phase in its growth journey.
The Companys strategy for the coming years is built around five principal pillars:
1. Capacity Expansion Commissioning and ramp-up of the Khalapur manufacturing facility will substantially increase the Companys production capabilities.
2. Product Diversification The Company intends to expand beyond its traditional solvent-based synthetic rubber adhesive portfolio into water-based and adjacent adhesive categories.
3. Distribution Expansion SPEB intends to significantly increase its dealer, distributor and retail presence across India.
4. Export Growth The Company intends to establish a stronger presence in the GCC and selected international markets.
5. Higher-Value Product Mix The Company intends to increase the contribution from specialised and differentiated products, including products targeted at retail and higher-margin applications.
Management believes these initiatives can create a scalable platform for sustained revenue growth and improved profitability.
The principal growth drivers identified by Management are:
Growth of Indias manufacturing and infrastructure sectors;
Increasing formalisation of the Home & Interior Application industry;
Growth in organised woodworking and interior applications;
Increasing demand for specialised adhesive solutions;
Expansion of HVAC and insulation applications;
Growth of automotive and industrial manufacturing;
Increasing adoption of water-based adhesive technologies;
Import substitution opportunities;
Expansion of retail and D2R distribution;
Increased penetration in under-served geographies; and
Growth in exports, particularly to GCC markets.
Raw Material Price Risk Adhesive manufacturing is exposed to fluctuations in the prices of polymers, resins, solvents and other raw materials. Mitigation: The Company continuously monitors raw material prices, maintains relationships with multiple suppliers and seeks to optimise procurement and product formulations.
Competition The Indian adhesives market is competitive and includes large established players as well as regional manufacturers. Mitigation: SPEBs focus remains on application-specific formulations, customer service, technical support, product innovation and niche industrial applications.
Regulatory and Environmental Risk Increasing environmental regulations may affect solvent-based adhesive technologies. Mitigation: The Company is expanding its water-based adhesive portfolio and investing in in-house water-based manufacturing capabilities.
Capacity Expansion Risk New capacity involves execution, commissioning and utilisation risks. Mitigation: The Company plans to ramp up the new facility progressively in line with customer demand and market development.
Working Capital Risk Expansion of the distribution and retail business may increase working capital requirements. Mitigation: The Company intends to maintain disciplined credit policies, inventory management and receivables monitoring while scaling its channel network.
People remain an important part of SPEBs growth strategy.
The Company had 36 employees as of FY2025-26 and continues to strengthen its technical, sales, export, manufacturing and management capabilities.
As the Company expands into new geographies and product categories, Management intends to invest in experienced professionals across sales, strategy, exports, R&D, manufacturing and supply-chain functions.
| Sr. No. Particulars | March 31, 2026 | March 31, 2025 | Change | Reason for change |
| 1 Current ratio (in times) | 19.47 | 13.42 | 45% | The Current Ratio has increased due to significant increase in FDs which were created out of issue proceeds of IPO |
The Company has consistently maintained a healthy net worth, reflecting its sound financial position and prudent capital management. During the year under review, the successful completion of the Initial Public Offering (IPO) resulted in a significant increase in shareholders funds through the infusion of fresh equity capital. Consequently, while the Companys capital base expanded substantially, the net worth ratio, when compared with the previous financial year reflects a variation primarily attributable to the enlarged equity base following the IPO.
This movement is structural in nature rather than operational and underscores the Companys strengthened financial foundation, enhanced capital adequacy, and improved capacity to support future growth initiatives and business expansion.
The Company has established internal control systems commensurate with its size, scale and nature of operations.
The internal control framework is designed to provide reasonable assurance regarding:
Effectiveness and efficiency of operations;
Safeguarding of assets;
Accuracy and completeness of financial records;
Compliance with applicable laws and regulations; and
Timely identification and mitigation of operational and financial risks.
Following its listing on NSE Emerge, the Company has further strengthened its corporate governance framework and regulatory compliance systems.
Industrial relations during the year remained cordial. Management continues to focus on employee engagement, skill development, workplace safety and maintaining a productive work environment.
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 securities laws and regulations.
Actual results could differ materially from those expressed or implied due to various factors including changes in economic conditions, demand, competition, raw material prices, regulatory environment, foreign exchange movements, project execution, capacity utilisation and other risks and uncertainties.
The Company assumes no obligation to publicly update or revise any forward-looking statements based on subsequent events or developments, except as may be required under applicable laws and regulations.
FY2025-26 marked an important transition in the journey of SPEB Adhesives Limited. The Company not only crossed the ?50 crore revenue milestone but also strengthened its position as a specialty adhesives manufacturer with a broader product portfolio, expanding distribution network and a clear roadmap for capacity expansion.
The successful SME IPO and listing on NSE Emerge have provided the Company with a stronger capital base and greater visibility in the capital markets.
Managements focus for the coming years will be on converting this foundation into scalable growth by expanding manufacturing capacity, increasing the contribution of water-based and specialised adhesives, strengthening the domestic distribution network, developing exports and building a more diversified product portfolio.
The Companys objective is to build SPEB into a trusted, professionally managed and innovation-led specialty adhesives company with a strong presence across India and selected international markets.
Management believes that the Companys established technical expertise, long-standing customer relationships, diversified applications, expanding manufacturing footprint and disciplined financial approach provide a strong foundation for the next phase of growth.
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