1260% Profit Growth: Chemical stock jumps 8% after announcing its Q3 results

Synopsis: A small cap stock has witnessed a significant surge soon after the company announced its Q3FY26 result, which included a YoY net profit growth of 1260 percent, while the revenue grew by 26 percent YoY.

A chemical stock engaged in the manufacturing and sale of chemicals used as industrial raw materials surged 8 percent after the company announced its Q3FY26 results. The Chennai-based company is India’s first and largest manufacturer of Propylene Oxide and is also the country’s only domestic producer of Propylene Glycol.

With a market cap of Rs 1,046 Cr, Manali Petrochemicals Ltd saw its stock hit an intraday high of Rs 63 which is more than 8 percent higher than the previous close of Rs 58. 

The Q3FY26 Result

In the latest quarterly result the company has seen its revenue from operations increase by 26 percent YoY, from Rs 196 Cr in Q3FY25 to Rs 247 Cr in Q3FY26, while the QoQ decreased by less than 1 percent from Rs 248 Cr. The net profits grew by 1260 percent going from Rs 5 Cr in Q3FY25 to Rs 68 Cr in Q3FY26, while the QoQ increased by 277 percent from Q2FY26’s Rs 18 Cr.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 10 percent YoY, from Rs 666 Cr in 9MFY25 to Rs 729  Cr in 9MFY26. The net profits for the same period grew by 455 percent going from Rs 18 Cr to Rs 100 Cr.

The company has a 3 year sales CAGR of negative 19 percent, while the TTM is at 4 percent. The company’s 3 year profit CAGR is at negative 57 percent, while the TTM number is at 225 percent. 

Strategic Actions

Apart from the result, the company also highlighted the consistent performance of its international subsidiaries during the quarter and reported a gain from the disposal of a UK subsidiary, reflecting ongoing strategic restructuring. The Chairman noted that despite prevailing macro-economic uncertainty, the company’s focus on cost optimisation, product mix alignment, and disciplined execution has supported performance. He also emphasised the strength of the M&A strategy and reiterated the company’s commitment to sustainably improving internal operational metrics over the long term.

Revenue Mix

According to the latest available data on the company’s revenue mix, we can tell that Manali Petrochemicals Ltd gets 27 percent of its revenue from Propylene Glycol, 19 percent from Slab Stock Polyol , 10 percent from Prepolymers , while the rest comes from Base Polyol, Systems Polyols, Propylene Oxide and Other Chemicals.

Incorporated in 1986, Manali Petrochemicals Limited manufactures Propylene Oxide, Propylene Glycol, and Polyols, which are widely used as key industrial raw materials across multiple end-user industries.

Based in Chennai, the company is India’s only domestic producer of Propylene Glycol and the country’s first and largest manufacturer of Propylene Oxide, a crucial input for its derivative products.

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