As of , Chemplast Sanmar Ltd (Petrochem - Polymers) has a deep value score of 6/100 (rated Very Weak).
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Chinese Export Tax Rebate Withdrawal: 13%
Impact: $70 to $80 per metric ton
“decision by the Chinese government to withdraw the export tax rebate on Suspension PVC effective from April 2026. This rebate... amounted to 13% of the export price”
What: R32 Capacity: 14 KTPA
Impact: INR 600 Cr revenue
“the R32 capacity expansion of 14 KTPA is underway... Commercial sales are expected to start post the swing plant commissioning by the end of this quarter.”
What: European Plant Shutdowns: 230,000 tons
“Actually, we did see some rationalization that has happened in Europe. There was one Netherlands plant at around 230,000 tons that shut down”
What: New Managing Director: April 1, 2026
“I will be stepping down as Managing Director... Mr. Ganesh Kumar will be taking over as Managing Director from April”
What: Paste PVC Utilization: 100%
“Our Paste PVC expansion has seen precision and execution with the new line reaching 100% utilization in quick time.”
Earnings deceleration risks from management commentary
Trigger: The Ministry of Finance did not accept the recommendation, leading to continued low-priced imports.
Management view: Industry is now approaching the government for Minimum Import Price (MIP) as a bridging measure.
Monitor: regulatory
Trigger: Global supply glut and dumping from China and the EU.
Management view: Filed a new petition against European Union producers for Paste PVC dumping.
Monitor: commodity
Trigger: Unusually rough weather conditions disrupted production schedules.
Management view: Not explained on call
Monitor: logistics
Trigger: Implementation of statutory changes in labour regulations.
Impact: PAT impact: INR 2.68 crores
Management view: One-time hit already accounted for.
Monitor: labor
Key quotes from recent conference calls
“Do we still hold the guidance of INR1,000 crores by FY '27? ... we eventually would land up between -- in that range. [Previous CMCD Revenue Guidance guidance]”
“the R32 capacity expansion of 14 KTPA is underway... Commercial sales are expected to start post the swing plant commissioning by the end of this quarter. [Initiative: R32 Capacity Expansion]”
“antidumping duty recommended by the Director General of Trade Remedies not being accepted by the Ministry of Finance. [Risk (regulatory): HIGH]”
“On the Paste PVC side, we saw continued pricing pressure from imports originating from the European Union. [Risk (commodity): HIGH]”
Headline numbers from the latest earnings call
Revenue
INR 835 crores
Why: Performance was impacted by seasonal demand decline in Suspension PVC and weather-related production disruptions caused by feedstock ships being unable to berth.
Revenue hit a multi-year low due to a 'perfect storm' of operational and market headwinds.
EBITDA
INR 4 crores (9M FY'26)
Why: Margins were compressed by a sharp fall in import parity prices and continued pricing pressure from European Union imports in the Paste PVC segment.
The company is operating near EBITDA break-even on a 9-month basis due to severe pricing pressure.
PAT
INR -119 crores
Why: The net loss was driven by lower volumes in Suspension PVC and a one-time impact of INR 2.68 crores from new labour codes.
Losses widened significantly this quarter compared to the INR 51 crore loss in Q2.
Other Highlights
• One-time impact of INR 2.68 crores due to implementation of new labour codes.
• Suspension PVC revenue of INR 394 crores, down from INR 525 crores last year.
• Specialty Chemicals volume increased 13% YoY despite pricing volatility.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Paste PVC Capacity Utilisation
100%
Why: The new Cuddalore facility reached full utilization quickly due to steady market absorption.
China Share of Suspension PVC Imports
52%
Why: China remains the dominant exporter of low-priced PVC to India.
EU Share of Paste PVC Imports
45%
Why: European producers are dumping Paste PVC into India due to weak domestic demand in the EU.
PVC Price Increase
INR 7,000 - 8,000
Why: Market sentiment improved in January leading to price hikes.
Suspension PVC - VCM Spread
$200
Why: Spreads are currently at the upper end of the historical $175-$200 range.
Caustic Soda Realisation
INR 30,000 - 34,000
Why: Prices are range-bound due to India becoming a net exporter.
Total R32 Capacity
14 KTPA
Why: Expansion project underway to diversify into refrigerant gases.
Suspension PVC Breakeven Margin
INR 11,000 - 12,000
Why: This is the required margin after variable costs to reach breakeven.
Forward-looking targets from management for First full year of production
OPM Guidance
20–25%
Capex Plan
₹250 Cr
INR 550-600 crores
CMCD steady state EBITDA margin
INR 250 crores
10 KTPA R32 plant
R32 Production Target
Guidance Changes
CMCD INR 1,000 Cr Revenue Target: FY '27 → FY '28
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -21% | -10% | Inflection Down |
| PAT (Net Profit) | -143% | -50% | Stable |
| OPM | -7.0% | -1000 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Chemplast Sanmar Ltd has a deep value score of 6/100 (rated Very Weak). This score is calculated from three components
Chemplast Sanmar Ltd's quarterly profit (PAT) growth trajectory
Chemplast Sanmar Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Chemplast Sanmar Ltd's earnings momentum is Monitoring.
Chemplast Sanmar Ltd's valuation metrics
Chemplast Sanmar Ltd's revenue and margin trends
Chemplast Sanmar Ltd's trailing twelve month (TTM) performance
Chemplast Sanmar Ltd key facts
Chemplast Sanmar Ltd shows limited deep value signals currently — score is 6/100 (Very Weak). Monitor for improvement.
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Chemplast Sanmar Ltd has 5 key growth catalysts identified from recent earnings analysis
Chemplast Sanmar Ltd has 4 key risks worth monitoring
In Q3 FY26, Chemplast Sanmar Ltd's management highlighted
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
