Chemical Stock Hits 5% Upper Circuit After its Net Profit Soars 13,600%

Synopsis: A chemical company that specializes in polymer compounds, has witnessed its profits grow by 218 percent on QoQ basis, while also seeing its 9MFY26 profit grow by more than 13600 percent.

A microcap chemical stock, engaged in the manufacturing and trading of polymer compounds and specialty chemicals, has come into the spotlight after reporting its Q3 FY26 results.

With a market cap of Rs 7.3 Cr, AVI Polymers Ltd saw its stock hit the upper circuit with an intraday high of Rs 17.97 which is 5 percent higher than the previous close of Rs 17.12. The company’s stock has given a compounded return of 29 percent in the last five years.

The Q3FY26 Result

In the latest quarterly result the company has seen its revenue from operations increase by 348 percent QoQ, from Rs 29 Cr in Q2FY26 to Rs 132 Cr in Q3FY26. The net profits grew by 218 percent on QoQ basis, from Q2FY26’s Rs 2.2 Cr to Rs 7 Cr in Q3FY26.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 269600 percent YoY, from Rs 6 Lakh in 9MFY25 to Rs 16 Cr in 9MFY26. The net profits for the same period grew by 13,600 percent going from Rs 7 Lakh to Rs 10 Cr.

The company’s 5 year profit CAGR is at 64 percent, 3 years at 20 percent, and the TTM number for the same is at 12463 percent. The company also has a ROCE of 19 percent and a ROE of 15 percent.

BSE Approval and Rs 90 Crore Rights Issue Plan

AVI Polymers Ltd has received the in-principle approval from BSE for its proposed Rs 90 crore rights issue on 6th January 2026, this allows the company to proceed with its fundraising plans subject to regulatory compliances. Key details such as the issue price, rights entitlement ratio, record date, and payment terms will be finalized and announced in an upcoming board meeting.

Increase in Authorized Share Capital and Auditor Appointment

At the EGM held on December 11, 2025, shareholders approved an increase in AVI Polymers Ltd’s authorized share capital from Rs 6.5 crore to Rs 100 crore, expanding the equity base from 65 lakh to 10 crore shares while maintaining the Rs 10 face value. In the same meeting, shareholders unanimously approved the appointment of M/s Kapil Kumar Agrawal Associates as statutory auditors, with the resolution receiving 100 percent votes in favour, reflecting strong shareholder confidence.

Business Overview

AVI Polymers Ltd is an Indian chemicals company that mainly manufactures and trades polymer compounds and specialty chemicals. It started in 1993 and makes products used by industries like cables, plastics, textiles, paints, detergents and water-treatment. Its product range includes plastic & rubber compounds, dye intermediates, detergent chemicals, and various industrial chemical products.

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