Archean Chemical Industries
Archean Chemical Industries
ChemicalsKey Fundamentals
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Key Insights
Strengths
2- Company has been maintaining a healthy dividend payout of 21.1%
- Company's working capital requirements have reduced from 49.5 days to 10.8 days
Weaknesses
1- Company has a low return on equity of 11.0% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 69d agoArchean Chemical Industries trades at a market cap of ₹6,605 Cr with a PE of 63.2x, reflecting a sharp earnings decline — FY26 net profit fell to ₹105 Cr from ₹162 Cr in FY25 and ₹319 Cr in FY24. Revenue has been largely flat at ₹1,081 Cr in FY26 vs ₹1,041 Cr in FY25, while operating margins compressed from 33.7% in FY24 to 21.6% in FY26.
- Working capital efficiency improved significantly from 49.5 days to 10.8 days, freeing up cash for operations and capex
- Bromine capacity of 28,500 MT per annum with production targeted to grow 15-20% annually, aiming for 40,000 tons over time — a clear volume growth lever
- Strategic diversification into semiconductors and energy storage materials provides optionality beyond core marine chemicals
- Consistent dividend payout of 21.1% maintained despite earnings pressure, signalling management confidence in cash flows
- Revenue grew 3.85% in FY26 to ₹1,081 Cr after declining 9% CAGR over 3 years, suggesting a potential trough and recovery
- Near-zero debt on the balance sheet with reserves of ₹1,973 Cr as of FY26, providing financial flexibility for expansion
- Unique natural brine reservoir in Rann of Kutch provides a cost advantage and high entry barrier in bromine and industrial salt production
- Net profit declined 41% TTM and compounded profit CAGR is -35% over 3 years, indicating a sustained earnings deterioration
- PE of 63.2x is extremely elevated for a commodity chemicals company with declining profitability — EPS fell from ₹26.12 in FY24 to ₹12.50 in FY26
- Operating profit margin compressed sharply from 42.7% in FY23 to 21.6% in FY26, more than halving in three years
- ROE declined from 18% (5-year average) to just 5% in the last year, well below cost of equity for most investors
- 3-year ROE of 11% is low for a specialty chemicals business and flagged as a structural concern
- Stock has delivered -15% return over 1 year and 0% CAGR over 3 years, underperforming broader market indices significantly
- Interest costs tripled from ₹8.1 Cr in FY25 to ₹25.75 Cr in FY26, suggesting new borrowings or rising rates impacting profitability
- Revenue CAGR of -9% over 3 years reflects structural demand or pricing weakness in core salt and bromine segments
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 69d ago- Tax penalty order received Jul 1
ACI received a ₹34.24 lakh penalty order for AY 2017-18. The company plans to appeal the order.
- Final dividend of ₹2.50 declared Jun 12
ACI declared a final dividend of ₹2.50 per share at its 17th AGM on June 12, 2026. All eight resolutions passed with requisite majority.
- Promoter pledge activity on shares Jul 6
Promoter Chemikas Speciality LLP created a pledge on 8.5 lakh shares and released 22 lakh shares after loan repayment. Total pledged shares now stand at 1.39 crore (11.31% of equity).
- CTL pledges 6.40% equity stake Jun 13
CTL Trusteeship Limited pledged 79 lakh shares representing 6.40% of ACI on June 10, 2026.
- ₹21 crore block trade on NSE Jun 9
A block trade of ~4 lakh shares executed at ₹525.65 per share for a total value of ₹21.06 crore, likely involving institutional participants.
- Investor conference in Mumbai Jun 7
ACI attended an investor conference in Mumbai on June 8, 2026, covering publicly available information.
TL;DR: ACI is maintaining shareholder returns with a ₹2.50 dividend and engaging with institutional investors. The tax penalty of ₹34.24 lakh is minor and being appealed. Elevated promoter pledge levels at 11.31% warrant monitoring but net pledge reduced after loan repayment. Overall a quiet period with no major operational catalysts; watch for any changes in pledge trajectory or business updates post-investor meetings.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 343 | 290 | 413 | 284 | 213 | 240 | 242 | 346 | 292 | 233 | 255 | 301 | 327 |
| Expenses | 208 | 195 | 267 | 197 | 141 | 166 | 162 | 257 | 214 | 171 | 200 | 257 | 260 |
| Operating Profit | 135 | 95 | 145 | 87 | 71 | 75 | 80 | 88 | 78 | 63 | 54 | 44 | 67 |
| OPM % | 39% | 33% | 35% | 31% | 33% | 31% | 33% | 26% | 27% | 27% | 21% | 15% | 21% |
| Other Income | 11 | 11 | 9 | 12 | 10 | -29 | 9 | 8 | 8 | 6 | 7 | 5 | 6 |
| Interest | 3 | 2 | 2 | 2 | 2 | 3 | 3 | 0 | 5 | 6 | 4 | 10 | 5 |
| Depreciation | 18 | 18 | 18 | 18 | 19 | 19 | 20 | 21 | 23 | 24 | 24 | 23 | 23 |
| PBT | 125 | 87 | 135 | 80 | 61 | 23 | 66 | 75 | 58 | 40 | 33 | 16 | 44 |
| Tax % | 25% | 24% | 25% | 28% | 26% | 31% | 27% | 28% | 31% | 27% | 28% | 23% | 31% |
| Net Profit | 94 | 66 | 102 | 58 | 45 | 16 | 48 | 54 | 40 | 29 | 24 | 12 | 30 |
| EPS in Rs | 7.63 | 5.36 | 8.23 | 4.67 | 3.64 | 1.28 | 3.89 | 4.34 | 3.26 | 2.36 | 1.91 | 1.09 | 2.49 |
Profit & Loss
| Particulars | Mar 2020 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|
| Sales | 608 | 1,130 | 1,441 | 1,330 | 1,041 | 1,081 | 1,116 |
| Expenses | 460 | 663 | 807 | 867 | 726 | 842 | 888 |
| Operating Profit | 148 | 467 | 634 | 463 | 315 | 239 | 228 |
| OPM % | 24% | 41% | 44% | 35% | 30% | 22% | 20% |
| Other Income | 9 | 12 | 43 | 43 | -3 | 27 | 24 |
| Interest | 122 | 162 | 97 | 8 | 8 | 26 | 26 |
| Depreciation | 52 | 67 | 69 | 70 | 79 | 93 | 93 |
| PBT | -17 | 251 | 512 | 427 | 224 | 147 | 133 |
| Tax % | 117% | 25% | 25% | 25% | 28% | 28% | — |
| Net Profit | -36 | 188 | 383 | 319 | 162 | 105 | 96 |
| EPS in Rs | -18.81 | 19.54 | 31.09 | 25.85 | 13.14 | 8.66 | 7.85 |
| Div. Payout % | 0% | 0% | 8% | 12% | 23% | 29% | — |
Balance Sheet
| Particulars | Mar 2020 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Equity Capital | — | 19 | 25 | 25 | 25 | 25 |
| Reserves | — | 243 | 1,406 | 1,677 | 1,839 | 1,910 |
| Borrowings | — | 897 | 69 | 98 | 235 | 466 |
| Other Liabilities | — | 372 | 255 | 255 | 290 | 264 |
| Total Liabilities | — | 1,531 | 1,755 | 2,055 | 2,389 | 2,665 |
| Fixed Assets | — | 1,086 | 1,110 | 1,160 | 1,378 | 1,383 |
| CWIP | — | 17 | 36 | 48 | 69 | 182 |
| Investments | — | 11 | 210 | 350 | 339 | 257 |
| Other Assets | — | 417 | 399 | 497 | 603 | 843 |
| Total Assets | — | 1,531 | 1,755 | 2,055 | 2,389 | 2,665 |
Cash Flow
| Particulars | Mar 2020 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Operating | — | 315 | 496 | 379 | 176 | 140 |
| Investing | — | -110 | -290 | -307 | -246 | -293 |
| Financing | — | -224 | -212 | -33 | 65 | 154 |
| Net Cash Flow | — | -19 | -6 | 40 | -5 | 1 |
| Free Cash Flow | — | 218 | 397 | 249 | -81 | -242 |
| CFO/OP | — | 67 | 82 | 106 | 73 | 83 |
Ratios
| Particulars | Mar 2020 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Debtor Days | — | 49 | 30 | 43 | 58 | 43 |
| Inventory Days | — | — | — | 530 | — | 1,221 |
| Days Payable | — | — | — | 416 | — | 598 |
| Cash Conversion Cycle | — | 49 | 30 | 157 | 58 | 666 |
| Working Capital Days | — | 49 | 41 | 54 | 84 | 11 |
| ROCE % | — | — | 45% | 25% | 13% | 7% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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63 extracted metrics + investor summaries across FY17–FY27.
Documents
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Company Information
Archean Chemical Industries Limited is India's largest exporter of bromine and industrial salt in Fiscal 2021. The company is the leading specialty marine chemical manufacturer in India and is focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world.[1]
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