Kothari Petrochemicals Ltd (Petrochem - Polymers) — fundamental analysis, earnings data, and key metrics. PE: 8.1. ROE: 23.8%. This stock is not currently in the Nifty 500 momentum outperformers list.
Deep value thesis based on recent earnings • Updated Feb 22, 2026
Kothari Petrochemicals is showing early signs of margin recovery and earnings inflection in Q3FY26 with 45.5% YoY PAT growth to ₹18.7 crore on stable revenue of ₹1,371.4 crore, suggesting operational improvements in its polyisobutylene business after years of underperformance.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Feb 22, 2026
Potential full-year PAT growth >15% with OPM sustainably above 13%, breaking 3-year earnings decline streak
Impact: +₹15 Cr revenue
“Q3 OPM at 13.6% vs 9.8% YoY, stable raw material prices”
Targeting D/E ratio below 0.8x from current 0.95x through working capital optimization
“Interest expense down 40% YoY to ₹5.9 crore in Q3”
New production facility expected to boost volumes by 20% with 500 bps higher-margin specialty products
Impact: +₹275 Cr revenue
“Management guidance in Q3 con-call”
Risks that could prevent re-rating or deepen the value trap
Raw material price volatility >20%
Impact: -800 bps margin impact
Management view: Diversification into specialty grades underway but 2+ years from material impact
Monitor: Specialty product mix %
Receivables days increase >120
Impact: -300 bps margin impact
Management view: Targeting 75 days by FY27 through process improvements
Monitor: Inventory turnover ratio
Further promoter pledge increase
Management view: No immediate plans for stake increase
Monitor: Promoter pledge %
Forward-looking targets from management for FY27
Revenue Growth Target
8%
Implied PAT Growth
18%
OPM Guidance
14.5%
Capex Plan
₹50 Cr
Credit Growth Target
5%
NIM Guidance
0%
Key Milestones
• D/E below 0.8x by June 2026
• Specialty product mix >35% by Q3 2026
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Kothari Petrochemicals Ltd's latest quarterly results (Dec 2025) show
Kothari Petrochemicals Ltd's current PE ratio is 8.1x.
Kothari Petrochemicals Ltd's price-to-book ratio is 1.8x.
Kothari Petrochemicals Ltd's fundamental strength based on key financial ratios
Kothari Petrochemicals Ltd has a debt-to-equity ratio of N/A.
Kothari Petrochemicals Ltd's return ratios over recent years
Kothari Petrochemicals Ltd's operating cash flow is positive (FY2025).
Kothari Petrochemicals Ltd's current dividend yield is 1.00%.
Kothari Petrochemicals Ltd's shareholding pattern (Dec 2025)
Kothari Petrochemicals Ltd's promoter holding has remained stable recently.
Kothari Petrochemicals Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Kothari Petrochemicals Ltd has 3 key growth catalysts identified from recent earnings analysis
Kothari Petrochemicals Ltd has 3 key risks worth monitoring
Kothari Petrochemicals Ltd's management has provided the following forward guidance for FY27
Based on quantitative research signals, here is why Kothari Petrochemicals Ltd may be worth studying
Kothari Petrochemicals Ltd investment thesis summary:
Kothari Petrochemicals Ltd's forward outlook based on current data signals
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.
