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Kothari Petrochemicals Ltd: Stock Analysis & Fundamentals

Data from 3w ago

Kothari Petrochemicals Ltd (Petrochem - Polymers) — fundamental analysis, earnings data, and key metrics. PE: 11.1. ROE: 23.8%. This stock is not currently in the Nifty 500 momentum outperformers list.

Kothari Petrochemicals Ltd Key Facts

What's Happening

🏦Virtually debt-free company
👔Promoter buying — stake up 1.2% this quarter

Earnings Acceleration Triggers

1. Value Added Product Mix Shift
Q3 FY26HIGH
2. Interest Cost Reduction Deleveraging
OngoingMEDIUM

Key Risks

1. Force majeure declared on March 11, 2026, due to gas supply disruptions from the
HIGH
2. Persistent sector-wide inventory destocking and oversupply from China depressing
MEDIUM

Sector-Specific Signals

PIB Market Share (Domestic)90%0
Operating Margin (Excl. Other Income)18.84%520 bps
Net Debt-to-Equity-0.09Not Given
EBIT-to-Interest Coverage51.49xNot Given

Key Numbers

Current Price
₹137
Dividend Yield
0.74%
Market Cap
804 Cr
Valuation
N/A

Why Are Kothari Petrochemicals Ltd's Earnings Accelerating?

Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026

Value Added Product Mix Shift

Expected: Q3 FY26HIGH confidence

What: Operating Margin: 18.84%

Impact: 520 bps YoY expansion

Interest Cost Reduction Deleveraging

Expected: OngoingMEDIUM confidence

What: Net Debt/Equity: -0.09

Impact: ₹0.22 Cr interest cost

What Are the Key Risks for Kothari Petrochemicals Ltd?

Earnings deceleration risks from management commentary

Force majeure declared on March 11, 2026, due to gas supply disruptions from the

HIGH

Trigger: Force majeure declared on March 11, 2026, due to gas supply disruptions from the Middle East conflict.

Impact: PAT impact: Not Given

Management view: Formal notification to exchanges of Force Majeure event.

Monitor: geopolitical

Persistent sector-wide inventory destocking and oversupply from China depressing

MEDIUM

Trigger: Persistent sector-wide inventory destocking and oversupply from China depressing global prices.

Impact: PAT impact: Not Given

Management view: Focusing on cost management and product mix optimization.

Monitor: commodity

What Did Kothari Petrochemicals Ltd Report This Quarter?

Headline numbers from the latest earnings call

Revenue

₹134.84 Cr

YoY +2.72%QoQ -5.72%

Revenue growth was tepid YoY and declined sequentially, reflecting broader sector headwinds and inventory destocking.

EBITDA

₹25.40 Cr

YoY +48.01%Margin 18.84%

EBITDA reached record levels due to raw material cost management and product mix optimization despite volume pressure.

PAT

₹18.70 Cr

YoY +45.53%QoQ +1.52%

PAT grew significantly YoY, hitting an all-time high as margin expansion offset weak revenue growth.

Other Highlights

• Interest costs were just ₹0.22 crores in Q3 FY26.

• Nine-month FY26 revenue stands at ₹438.53 crores.

• Net debt-to-equity ratio remains at -0.09.

What Sector Metrics Matter for Kothari Petrochemicals Ltd?

Sub-sector-specific signals from the latest concall — each with management's stated reason for the change

PIB Market Share (Domestic)

90%

YoY 0QoQ 0

Why: The company maintains a dominant position as India's primary polyisobutylene manufacturer.

Operating Margin (Excl. Other Income)

18.84%

YoY 520 bpsQoQ 135 bps

Why: Expansion was driven by better raw material cost management and product mix optimization.

Net Debt-to-Equity

-0.09

YoY Not GivenQoQ Not Given

Why: Conservative financial management has maintained a net cash position.

EBIT-to-Interest Coverage

51.49x

YoY Not GivenQoQ Not Given

Why: High coverage is a result of minimal working capital borrowings and zero long-term debt.

PAT Margin

13.87%

YoY 408 bpsQoQ 99 bps

Why: Expansion driven by record profitability and operational efficiency.

5-Year Average ROE

21.4%

YoY Not GivenQoQ Not Given

Why: Reflects long-term capital efficiency in the PIB segment.

The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.

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Frequently Asked Questions: Kothari Petrochemicals Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What were Kothari Petrochemicals Ltd's latest quarterly results?

Kothari Petrochemicals Ltd's latest quarterly results (Dec 2025) show

  • PAT Growth YoY: +46.2%
  • Revenue Growth YoY: +3.1%
  • Operating Margin: 19.0%

What is Kothari Petrochemicals Ltd's current PE ratio?

Kothari Petrochemicals Ltd's current PE ratio is 11.1x.

  • Current PE: 11.1x
  • Market Cap: 804 Cr
  • Dividend Yield: 0.74%

What is Kothari Petrochemicals Ltd's price-to-book ratio?

Kothari Petrochemicals Ltd's price-to-book ratio is 2.4x.

  • Price-to-Book (P/B): 2.4x
  • Book Value per Share: ₹57
  • Current Price: ₹137

Is Kothari Petrochemicals Ltd a fundamentally strong company?

Kothari Petrochemicals Ltd's fundamental strength based on key financial ratios

  • Return on Capital (ROCE): 30.0%

Is Kothari Petrochemicals Ltd debt free?

Kothari Petrochemicals Ltd has a debt-to-equity ratio of N/A.

  • Total Debt: ₹3 Cr

What is Kothari Petrochemicals Ltd's return on equity (ROE) and ROCE?

Kothari Petrochemicals Ltd's return ratios over recent years

  • FY2023: ROCE 29.0%
  • FY2024: ROCE 42.0%
  • FY2025: ROCE 30.0%

Is Kothari Petrochemicals Ltd's cash flow positive?

Kothari Petrochemicals Ltd's operating cash flow is positive (FY2025).

  • Cash from Operations (CFO): ₹59 Cr
  • Free Cash Flow (FCF): ₹16 Cr
  • CFO/PAT Ratio: 89% (strong cash conversion)

What is Kothari Petrochemicals Ltd's dividend yield?

Kothari Petrochemicals Ltd's current dividend yield is 0.74%.

  • Dividend Yield: 0.74%
  • Current Price: ₹137

Who holds Kothari Petrochemicals Ltd shares — promoters, FII, DII?

Kothari Petrochemicals Ltd's shareholding pattern (Mar 2026)

  • Promoters: 72.2%
  • FII (Foreign): 0.0%
  • DII (Domestic): 0.1%
  • Public: 27.7%

Is promoter holding increasing or decreasing in Kothari Petrochemicals Ltd?

Kothari Petrochemicals Ltd's promoter holding has remained stable recently.

  • Current Promoter Holding: 72.2% (Mar 2026)
  • Previous Quarter: 72.2% (Dec 2025)
  • Change: 0.00% (stable)

Is Kothari Petrochemicals Ltd a new momentum entry or an established outperformer?

Kothari Petrochemicals Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.

What are the growth catalysts for Kothari Petrochemicals Ltd?

Kothari Petrochemicals Ltd has 2 key growth catalysts identified from recent earnings analysis

  • Value Added Product Mix Shift — Directly responsible for record PAT despite stagnant revenue.
  • Interest Cost Reduction Deleveraging — Zero debt status insulates the company from rising interest rates and supports expansion.

What are the key risks in Kothari Petrochemicals Ltd?

Kothari Petrochemicals Ltd has 2 key risks worth monitoring

  • [HIGH] Force majeure declared on March 11, 2026, due to gas supply disruptions from the — Force majeure declared on March 11, 2026, due to gas supply disruptions from the Middle East conflict.
  • [MEDIUM] Persistent sector-wide inventory destocking and oversupply from China depressing — Persistent sector-wide inventory destocking and oversupply from China depressing global prices.

What is Kothari Petrochemicals Ltd's management guidance for growth?

Kothari Petrochemicals Ltd's management has provided the following forward guidance

  • Revenue outlook: Not Given
  • Margin outlook: Not Given
  • Capex plan: Not Given for Not Given

What sector-specific metrics matter most for Kothari Petrochemicals Ltd?

Kothari Petrochemicals Ltd's most important sub-sector-specific KPIs from the latest concall

  • PIB Market Share (Domestic): 90% (YoY 0) (QoQ 0) — The company maintains a dominant position as India's primary polyisobutylene manufacturer.
  • Operating Margin (Excl. Other Income): 18.84% (YoY 520 bps) (QoQ 135 bps) — Expansion was driven by better raw material cost management and product mix optimization.
  • Net Debt-to-Equity: -0.09 (YoY Not Given) (QoQ Not Given) — Conservative financial management has maintained a net cash position.
  • EBIT-to-Interest Coverage: 51.49x (YoY Not Given) (QoQ Not Given) — High coverage is a result of minimal working capital borrowings and zero long-term debt.
  • PAT Margin: 13.87% (YoY 408 bps) (QoQ 99 bps) — Expansion driven by record profitability and operational efficiency.
  • 5-Year Average ROE: 21.4% (YoY Not Given) (QoQ Not Given) — Reflects long-term capital efficiency in the PIB segment.

Is Kothari Petrochemicals Ltd worth studying for long term investment?

Based on quantitative research signals, here is why Kothari Petrochemicals Ltd may be worth studying

  • Cash flow is positive — CFO ₹59 Cr

What is the investment thesis for Kothari Petrochemicals Ltd?

Kothari Petrochemicals Ltd investment thesis summary:

Research Signals (Bull Case)

  • Growth catalyst: Value Added Product Mix Shift

Risk Factors (Bear Case)

  • Key risk: Force majeure declared on March 11, 2026, due to gas supply disruptions from the

What is the future outlook for Kothari Petrochemicals Ltd?

Kothari Petrochemicals Ltd's forward outlook based on current data signals

  • Key Catalyst: Value Added Product Mix Shift
  • Key Risk: Force majeure declared on March 11, 2026, due to gas supply disruptions from the

The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.