Meghmani Organics FY25 Results: Strong Profit Recovery and 30% Revenue Growth

Meghmani Organics FY25 Results: Strong Growth, Clear Focus for Future

Meghmani Organics has posted a strong performance in FY25, led by solid growth in its crop protection business. The company is recovering well after a tough phase, and its focus on exports, product mix, and cost control is starting to pay off.

Let’s look at the key updates and numbers from the company’s recent earnings.

Financial Performance: Profit Rebound and Better Margins

In FY25, Meghmani Organics recorded:

Metric	Q4 FY25	FY25 (Full Year)	YoY Growth
Revenue	₹500 crore	₹2,000 crore	+30%
EBITDA	₹65 crore	₹180 crore	Up sharply
Net Profit (PAT)	₹34 crore	₹66 crore	Turnaround

The company turned profitable after losses in the previous year. In Q4 alone, the profit was ₹34 crore, compared to a ₹0.4 crore loss last year. FY25 profit stood at ₹66 crore, compared to a ₹57 crore loss last year.

EBITDA margins improved, thanks to better performance in the Crop Protection segment.

Business Mix: Agrochemicals Lead the Way

The total revenue for FY25 came from two main areas:

• Crop Protection: 72%
• Pigments: 28%

No major capex is planned for FY26, which allows the company to focus on cutting debt and improving margins.

Crop Protection: The Growth Engine

This segment saw the most progress in FY25.

Metric	FY25 Result	YoY Change
Production	42,000 MT	+14%
Plant Utilization	76%	Improved
Revenue	₹1,450 crore	+34%
EBITDA	₹177 crore	+301%

Multipurpose Plant (MPP) – A Big Opportunity

• FY25 revenue: ₹250 crore at 45% capacity use
• Target: ₹1,000 crore by FY27/28 at 90% utilization
• Seen as a major driver for future growth

New Products Added

Meghmani Organics introduced several new agrochemical products:

• Cyfluthrin
• Flubendamide
• Ethiprole
• Spiromesifen
• Flonicamid

These are expected to strengthen the product portfolio in coming years.

Export-Focused

Over 80% of the Crop Protection revenue comes from exports. The U.S. market is performing well, especially after an anti-dumping duty was imposed on Chinese 2,4-D, a competing product.

Brazil Expansion

The company is working on setting up a subsidiary in Brazil, which is expected to help it grow 15–20% in that market.

FY26 Outlook

• EBITDA Margin Guidance: 15–16%
• Demand Outlook: Improving, with inventory levels normalized across the industry

Pigments: Improving, But Still Under Pressure

Though pigments saw some recovery, this segment is still facing challenges.

Metric	FY25	YoY Change
Production	15,000 MT	+11%
Utilization	46%	Low
Revenue	₹553 crore	+20%
EBITDA	₹27 crore	Recovered

While the EBITDA turned positive from a loss last year, margins remain weak due to pricing pressure.

Key Challenges

• CPC Blue pigment prices are still down 40–45% from 2022 levels.
• Market remains oversupplied.
• No new investment is planned in traditional pigments.

Margin Expectation

• FY26 Margin Guidance: 8–10%
• Lower than the historical average of 15–16%

Titanium Dioxide (TiO₂): Difficult Year, But Relief Coming

This segment struggled in FY25 due to heavy dumping from China.

Detail	FY25
Segment Loss	₹55 crore
Utilization	Low

Good News for FY26

• On May 10, 2025, the Indian government imposed an anti-dumping duty of $460–681/MT on Chinese imports.
• Price recovery of ₹40–45/kg expected from Q3 FY26.
• Phase 2 capacity (33,000 TPA) is ready and can ramp up with low investment.
• Focused on export markets like Europe, Brazil, and the U.S., where Indian products now have a price advantage.

Crop Nutrition (Nano Urea and Others): Early Stages, Long-Term Bet

Meghmani Organics achieved self-sufficiency in its Crop Nutrition division in FY25, a key milestone.

Nano Urea Highlights

• Utilization is still low but expected to cross 50% in the next 2–3 years.
• Field trials are ongoing across India and in over 35 countries.
• Exports likely to grow as awareness improves.

New Products Coming

2–3 new crop nutrition products are expected in FY26.

Margin Outlook

• Q4 EBITDA margin was 20%, but this was due to a one-off gain.
• This level is not sustainable in the short term.

Renewable Energy & Cost Savings

Meghmani is making strong progress in using clean energy.

• 4 windmills are already running.
• A 4.5 MW hybrid (wind-solar) project is in progress.
• Goal: Over 50% of energy from renewable sources.

This shift is not just for sustainability. It also helps reduce power costs:

Source	Cost per Unit
Renewable	₹4–5
Grid Power	₹9–9.5

This cost advantage helps improve profit margins.

Debt Status and Capex Plans

Detail	Amount
Long-Term Debt (Mar 2025)	₹442 crore
FY26 Repayment Planned	₹160 crore

The company plans to become debt-free on a standalone basis by FY26 or FY27. No large capital investment is planned in the near future, which supports this goal.

Management Guidance for FY26

Here’s what the management expects for the coming year:

Metric	FY26 Target
Revenue Growth	15–20%
Consolidated EBITDA Margin	Double-digit
Crop Protection Margin	15–16%
Pigments Margin	8–10%
Crop Nutrition Margin	~20% (non-sustainable short term)
TiO2 Margin	Recovery from Q3 FY26

MPP (Multipurpose Plant) will be a key driver, with utilization expected to rise to 75–80% in 2–3 years.

Industry View & Competition

Agrochemicals

• Price pressure from Chinese players continues
• However, the inventory overhang is cleared
• Global demand is starting to pick up again

Pigments

• Still facing pricing issues due to excess supply
• Smaller players are adding to market pressure

Titanium Dioxide

• Supportive government policy is improving local industry strength

Nano Urea

• Adoption is improving with more trials and farmer education

Risks to Watch

Here are some challenges Meghmani Organics needs to manage:

• Price Pressure: Affects margins in Agrochem and Pigments
• Chinese Competition: A major factor across segments
• Low Utilization: Needs to improve, especially in TiO2
• Q4 Boost: Current margins were helped by one-offs, not guaranteed in FY26

Management’s View

The management team is positive about the future:

• Confident of returning to double-digit growth
• Cautious on margin improvement, as the market remains volatile
• Strategy is based on:
  • A balanced product mix
  • Strong export focus
  • Better cost control

Meghmani Organics is coming out of a tough cycle. Its Crop Protection business is leading the recovery, while segments like TiO₂ and Nano Urea are set up for future growth. Pigments remain under pressure, but cost control and no major spending plans are helping manage this phase.

With debt coming down, export markets growing, and a clear strategy, Meghmani Organics is in a good position to improve its profitability and stability over the next few years.

FAQs about Meghmani Organics

What is Meghmani Organics’ main business?

Meghmani Organics works mainly in agrochemicals (crop protection), pigments, and crop nutrition. It also has a growing presence in titanium dioxide.

What helped Meghmani Organics turn profitable in FY25?

Higher revenue, better margins in crop protection, and export demand helped the company swing to profit.

What is the company’s focus for FY26?

The company wants to grow revenue by 15–20%, improve margins, reduce debt, and avoid large capital spending.

Will Meghmani Organics benefit from anti-dumping duties?

Yes. Anti-dumping duties on Chinese products in the U.S. (for agrochemicals) and in India (for TiO₂) give Meghmani a price advantage in global markets.

What is the Multipurpose Plant (MPP)?

MPP is a flexible production facility. It made ₹250 crore in FY25 and is expected to scale up to ₹1,000 crore by FY27/28.

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