been looking at Valiant Organics this week
small chemical maker from Mumbai. they make the building blocks other factories use
chlorophenols for farm chemicals, nitroanilines for dyes, and PAP, a painkiller ingredient
70,000 tons a year of capacity across six units
45% of sales in the year to March 2026 went to dye and pigment makers
their own pitch:
"the company has primarily focused on manufacturing specialty chemicals that have a high demand but low supply"
— Valiant Organics, results presentation for the call of 1 February 2026
I went through their February 2026 file. it’s a slide deck, not a call transcript
there’s no call transcript I could read after November 2023
₹467 now. it was ₹208 in March
flat since 1 October
under ₹504, a level it hit once
above ₹430, where it bounced 3 times
The good and the bad
OPM 18% in April–June, was 12%
sales went from ₹204 Cr to ₹232 Cr on the same plants
gross margin was 42.2%
Core pre-tax profit ₹26 Cr, was ₹9 Cr
that’s pre-tax profit with other income taken out
operating profit ₹25 Cr to ₹42 Cr
₹92 Cr operating cash on ₹33 Cr profit
year to March 2026
₹11 Cr of ₹37 Cr pre-tax was other income
30% of April–June pre-tax profit
nothing I have says what it is
Borrowings ₹256 Cr, up from ₹249 Cr
March 2025 to March 2026
they had said term loans would be gone by March 2026
Customers take 120 days to pay, was 90
year to March 2026 against the year before
no comment from the company on why
What did management say
the promises on the card are from their 2023 calls. nothing newer that I could read
the record is poor
in May 2023 they aimed for ₹1,200 Cr of sales in the year to March 2024. it came in at ₹723 Cr
in November 2023 they said the year to March 2025 would bring a revival
it had sales of ₹719 Cr and a ₹3 Cr loss
they also said a turnaround in one to two years
first full-year profit was the year to March 2026, ₹33 Cr
the 22–25% margin from May 2023 hasn’t come. best recent quarter is 18%
the February 2026 deck is the newest thing in their own words
on April–December 2025 margins it says:
"indicating stronger pricing discipline and improved cost efficiencies."
— Valiant Organics, results presentation for the call of 1 February 2026
and on October–December 2025:
"While the third quarter witnessed pricing pressure and demand softness"
— Valiant Organics, results presentation for the call of 1 February 2026
pricing discipline and pricing pressure in the same deck
I’d like to hear someone explain that on a call
why the numbers moved
last 12 months (July 2025–June 2026), against the 12 before:
sales ₹755 Cr to ₹766 Cr
operating profit ₹62 Cr to ₹102 Cr, OPM 8% to 13%
profit ₹5 Cr to ₹55 Cr
sales hardly moved, so the profit came from margin
April–June 2026 against a year ago:
sales ₹204 Cr to ₹232 Cr
profit ₹8 Cr to ₹29 Cr
1. more sales through plants already built
operating profit ₹25 Cr to ₹42 Cr in April–June
sales up ₹28 Cr
work in progress on new plant fell from ₹86 Cr to ₹21 Cr
that’s March 2024 to March 2026, so most of the building is done
in November 2023 they said the plants ran 55–60% full
only two quarters of it so far
July–September 2025 sales were ₹157 Cr, October–December ₹159 Cr
our 16-lever read calls this too early
no tons or plant-use number since November 2023, so I can’t split more tons from better prices
2. raw materials costing less, prices under pressure
gross margin 35.0% in January–March 2025, 42.2% in April–June 2026
highest was 45.5% in July–September 2025
the deck says pricing discipline. it also says:
"despite near-term pricing pressures."
— Valiant Organics, results presentation for the call of 1 February 2026
prices under pressure and margin up, so inputs probably cost less
our 16-lever read: the biggest jump came in July–September 2025, when sales fell
that fits lower input costs, or better products
no product split since November 2023 to check
this one is unclear
gross margin under 38% for a quarter and I’d say the gap is closing
OPM 8% in October–December 2025, 18% six months later
3. one-offs in profit
October–December 2025 profit was ₹4 Cr
sales ₹159 Cr, OPM 8%
that quarter had this:
"Exceptional income of INR 57 million, related to an insurance claim refund"
— Valiant Organics, results presentation for the call of 1 February 2026
₹5.7 Cr. won’t come back
April–June 2026 had ₹11 Cr of other income. no file I have explains it
take it out and pre-tax profit is still ₹26 Cr, was ₹9 Cr
so the business did improve
4. interest down, debt not
interest was ₹8 Cr in July–September 2024, ₹3 Cr in January–March 2026
back to ₹5 Cr in April–June 2026
in August 2023 they said term loans would be fully repaid by March 2026
long-term loans were still ₹38.9 Cr in September 2025
loans they’d given out fell from ₹49.2 Cr to ₹0.5 Cr
money put into other companies rose from ₹93.6 Cr to ₹152.4 Cr
both March 2025 to September 2025
our read is the loans became a bigger stake in Valiant Laboratories, a group company
its share of loss was ₹2.3 Cr in October–December 2025
I haven’t seen the company explain this choice
P/E 25.9, usual level about 21
what I’m watching next
the July–September 2026 results
operating profit ₹30 Cr or more is what I want to see
a year ago it was ₹21 Cr, on ₹157 Cr of sales
OPM under 14% on sales under ₹200 Cr, and I’ll call April–June a one-quarter spike
gross margin under 38% means the input cost gap is closing
other income under 20% of pre-tax profit
and a call where they say how many tons they sold
anyone here work with dye or pigment makers? curious how orders look this year
The 90-second video
that’s it from me, see you tomorrow
— Roshan, Sector Alpha
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Prices as of 16 October 2026 · results to Apr–Jun 2026 · business analysis from 10 October 2026
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