NGL Fine Chem Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

NGL Fine Chem Ltd trades at ₹3,463, in a confirmed uptrend and 28 weeks into that stage. That is +42.8% against its own 200-day average. It sits at 100% of a 52-week range of ₹1,279 to ₹3,463. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 36 straight weeks.

Today the stock is in a confirmed uptrend — week 28 of stage 2, confirmed. At ₹3,463 it trades +42.8% versus its 200-day average and sits at 100% of its 52-week range (₹1,279–₹3,463).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +1,723% while the NIFTY 500 moved +284% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 36 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

NGL Fine Chem Ltd's story is not scored yet against the markers our research file set on 31 May 2026. Where it sits in its own cycle: EXPANDING_MID_STAGE. Still open: May 2026 adds two new inconsistencies: EU revenue FY26 miss unacknowledged; Phase 2 peak revenue revised upward with incorrect prior-guidance attribution.

Our read, 31 May 2026. A veterinary API turnaround with confirmed FY26 delivery — four consecutive quarters of margin expansion, ₹48 Cr FY26 PAT (+127% YoY), with Phase 2 Tarapur commissioning imminent and US/EU regulatory ladders actively climbing, offset by two management consistency failures and a PE at 73rd percentile of 10-year history.

From the numbers. PE trough 23.6x (Mar 2025) re-expanded to 35.8x on FY26 EPS ₹77.91 — re-rating is EPS-led and fundamentally supported. QoQ momentum WEAKENING per prior snapshot. At 35.8x current vs 29x median and 43.7x prior peak, the…

From the price. Price stage 2, week 28 — above its 200-day line, relative strength falling.

From the research. A veterinary API turnaround with confirmed FY26 delivery — four consecutive quarters of margin expansion, ₹48 Cr FY26 PAT (+127% YoY), with Phase 2 Tarapur commissioning imminent and US/EU regulatory ladders actively…

What is proven. A veterinary API turnaround with confirmed FY26 delivery — four consecutive quarters of margin expansion, ₹48 Cr FY26 PAT (+127% YoY), with Phase 2 Tarapur commissioning imminent and US/EU regulatory ladders actively climbing, offset by two management consistency failures and a PE at 73rd percentile of 10-year history.

What is not proven yet. May 2026 adds two new inconsistencies: EU revenue FY26 miss unacknowledged; Phase 2 peak revenue revised upward with incorrect prior-guidance attribution.

Layer 1 read, 19 July 2026 — KEEP. Real vet-API margin turnaround, but the price has already caught most of it and the growth is working-capital-heavy. OPM recovered from a 6% trough to 18% and EPS from 0.87 to 25.4 across four quarters with FY26 PAT up 127% — a genuine earnings-led turn, not a re-rating trap. But the stock is already up 128% in a year (little earliness left), the growth is partly funded by working capital rather than cash (growth-quality weak), Q4 margin already slipped to 14%, and management left an EU-revenue miss unacknowledged — so it is a mid-innings fallback, not a fresh setup.

What would change Layer 1’s mind. If OPM slips back below ~11% for two consecutive quarters (a repeat of the FY25 trough) while working-capital days keep bloating, the turnaround would be exposed as forex/RM-driven and unfunded rather than structural, flipping P2->DROP; conversely a clean Phase-2 commissioning on the (already thrice-revised) timeline with regulated-market revenue arriving would argue for an upgrade.

Layer 2 read, 19 July 2026 — BENCH. Real turnaround but spent re-rating + working-capital-funded growth in the worst capital-cycle quadrant — bench it. The veterinary-API earnings recovery is genuine — operating margin ran from 7% to 18% and FY26 profit rose to Rs48cr (+36% revenue). But the price has already caught up (PE 40x at the 74th percentile, only -10% off its peak, no margin of safety) and the growth is being funded by rising working capital rather than cash generation (receivable/inventory days up 36% to 88). On top of that, institutions are exiting the sub-sector while everyone is adding capacity — the most dangerous supply-side setup — so there is no confirmable external edge to admit it this fortnight.

What would change Layer 2’s mind. A Q1/Q2 FY27 print showing working-capital days reverting toward the ~65 3y-average WHILE OPM holds >=16% (proving self-funding growth), OR the capital-cycle stream flipping off CAPACITY_RISK (institutions stop fleeing) — either would move BENCH->ADVANCE next fortnight.

The test written in advance. Management Credibility — Four Documented Inconsistencies — Management Credibility — Four Documented Inconsistencies by the next result.

The test written in advance. Raw Material Cost Reversal — OPM Fragility — Raw Material Cost Reversal — OPM Fragility by the next result.

The test written in advance. US FDA Audit Binary Outcome — US FDA Audit Binary Outcome FY27/FY28 FDA audit announcement and outcome; 5 DMF filings progress + 6 additional target by the next result.

Lever 1 · Operating leverage — BUILDING. FY26 revenue ₹501 Cr (+36% YoY), PAT ₹48 Cr (+127% YoY) — four consecutive OPM expansions confirm turnaround is multi-quarter and structurally driven. What proves it keeps working: Operating Leverage Inflection — FY26 Confirmed. It stops working if Q1 FY27 concall: explicit update on EU revenue quantum and Phase 2 commissioning status; whether FY26 EU miss is acknowledged.

Lever 6 · Order-book wins — BUILDING. ₹210 Cr greenfield (₹182.75 Cr invested); delayed to early Q2 FY27, H2 FY27 commercial production — peak revenue potential ₹350-400 Cr (revised from prior ₹250-300 Cr guidance). What proves it keeps working: Tarapur Phase 2 Commissioning. It stops working if Q1 FY27 concall: explicit update on EU revenue quantum and Phase 2 commissioning status; whether FY26 EU miss is acknowledged.

Lever 10 · New geographies — BUILDING. EU: 3 CEPs approved + 3 under review targeting 6 by end-2026; EU revenue starting H2 FY27. US: 5 DMFs filed + 6 more planned; FDA audit FY27/FY28. What proves it keeps working: EU/US Regulated Market Ramp. It stops working if Q1 FY27 concall: explicit update on EU revenue quantum and Phase 2 commissioning status; whether FY26 EU miss is acknowledged.

Lever 3 · Management change — BUILDING. Portfolio doubled from 20 to 45 APIs in three years; annual new-product target 9-10; Fluralaner and Afoxolaner (patent expiry ~2 years) in companion-animal pipeline. What proves it keeps working: Portfolio Expansion — 45 APIs from 20. It stops working if Q1 FY27 concall: explicit update on EU revenue quantum and Phase 2 commissioning status; whether FY26 EU miss is acknowledged.

Sources: our stock research file (31 May 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

NGL Fine Chem Ltd reported ₹139 Cr of revenue in the Jun 26 quarter, +33.7% year on year. That is the 5th straight quarter of year-on-year growth. Over 10 years it has compounded at 18.0% a year. The last full year, FY26, came in at ₹501 Cr. The last four reported quarters add to ₹536 Cr.

Why this happened. Phase 1 is operational at 70-80% utilization. Phase 2 construction delayed from Q1 FY27 to early Q2 FY27 due to localized gas shortage and labor constraints; H2 FY27 commercial production target maintained. This is the third commissioning timeline slip. ₹182.75 Cr of the ₹210 Cr total capex invested through Q4 FY26, including ₹20 Cr for automation/digitalization and ₹30 Cr for metal cost inflation. Peak revenue potential from Phase 2 guided at ₹350-400 Cr — management explicitly revised upward from the prior ₹250-300 Cr (May 2025 call) but attributed the revision incorrectly (a documented inconsistency). Post-Phase 2 completion, annual capex guided at ₹15-20 Cr. Ramp to peak utilization…

FY26 revenue came in at ₹501 Cr (+36.1% on the year), capping 10 years at 18.0% compound. The latest quarter (Jun 26) printed ₹139 Cr, +33.7% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +40.8% growth against the decade's 18.0% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +40.7% over the last 4 quarters against +22.2%/yr over the last 8 — accelerating; TTM profit +171.4% vs +17.9%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

NGL Fine Chem Ltd's operating margin is 17.0% in the Jun 26 quarter, +6.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0% to 31.0%. The current quarter sits inside that band.

Why this happened. The FY26 full-year delivery confirms what three quarters of recovery had suggested: the OPM collapse (FY25 annual 9.2%) has structurally reversed. Annual OPM reached 14.5% in FY26, up from 9.2% in FY25, with Q3 FY26 peaking at 18%. Q4 FY26 (Mar 2026) shows 14% OPM — sequential dip from 18% due to forex mark-to-market provisions on receivables and fixed-price RM contract inflation from geopolitical pressures (attributed explicitly in May 2026 call). Management secured partial price pass-through in Q1 FY27 and expects Q2 FY27 to show a stronger profile. Revenue growth was broad-based across geographies: 47 new customers added in Q4 FY26 alone, including Latin America as an emerging success…

The latest quarter's operating margin is 17.0%, +6.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0%–31.0%.

Why the margin moved: operating margin went +6.2 pp year on year while gross margin went +5.7 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

NGL Fine Chem Ltd earned ₹18.0 Cr of net profit in the Jun 26 quarter, +100.0% year on year. It is the 3rd consecutive quarter of growth. Full-year FY26 profit was ₹48.0 Cr. The 10-year compound rate is 15.9%. That is 12.9% of the quarter's revenue. The same quarter a year earlier earned ₹9.0 Cr.

Jun 26 profit was ₹18.0 Cr, +100.0% year on year — the 3rd consecutive quarter of growth. On the full year, FY26 printed ₹48.0 Cr (+128.6%), and the 10-year compound rate is 15.9%.

Why profit moved: revenue contributed +33.7% and the margin +6.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +700.0% vs revenue +40.8%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 86% of NGL Fine Chem Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹43.0 Cr of operating cash against ₹48.0 Cr of profit. After ₹86.0 Cr of capital spending, ₹−43.0 Cr was left as free cash.

FY26: operating cash of ₹43.0 Cr against reported profit of ₹48.0 Cr, leaving free cash of ₹−43.0 Cr after ₹86.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 86% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 86%: the cash cycle stretched 22 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 4.3× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

NGL Fine Chem Ltd's cash conversion cycle runs 104 days in FY26, up from 82 days in FY21. Capital spending ran ₹189 Cr over the last 3 years. At FY26 sales of ₹501 Cr each day of that cycle holds about ₹1.4 Cr, so roughly ₹143 Cr sits inside the business at any moment.

FY26: debtors at 95 days, inventory at 106 days — roughly 3.5 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 104 days, looser than FY21's 82.

The full loop: cash goes out to suppliers and production on day 0; stock waits 106 days to sell; customers pay about 95 days after that; and suppliers themselves are paid at 97 days — netting out to the 104-day cycle.

In money terms: at FY26 sales of ₹501 Cr, each day of the cycle holds about ₹1.4 Cr — so the 104-day loop keeps roughly ₹143 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹189 Cr over the last 3 fiscal years against ₹44.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹95.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

NGL Fine Chem Ltd earns a ROCE of 19% in FY26. That is up from a trough of 10% in FY25. Return on invested capital clears the cost of that capital by +0.1 percentage points, so growth here adds value rather than only size. The wiring behind it is 9.6% net margin on 0.92× asset turns.

FY26 ROCE is 19%, recovered from a FY25 trough of 10% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 9.6% net margin × 0.92× asset turns × 1.66× balance-sheet leverage ≈ 14.7% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 12.1% − 12.0% = a +0.1 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified

NGL Fine Chem Ltd carries total debt of ₹109 Cr against shareholder equity of ₹329 Cr as of Mar 26, a debt-to-equity of 0.33. On the annual view that ratio went from 0.15 in FY22 to 0.33 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹109 Cr against shareholder equity of ₹329 Cr — a debt-to-equity of 0.33. On the annual view, debt-to-equity went from 0.15 (FY22) to 0.33 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of NGL Fine Chem Ltd moved a full percentage point over the last two years — the register is quiet. Foreign institutions moved +0.0 points over the same window, to 0.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

Why this happened. Portfolio doubled from 20 to 45 APIs in three years; annual new-product target 9-10; Fluralaner and Afoxolaner (patent expiry ~2 years) in companion-animal pipeline.

The register over the last two years — Promoters: −0.3 points over 8 quarters to 72.5%; Foreign institutions: +0.0 points over 8 quarters to 0.1%; Domestic institutions: +0.0 points over 8 quarters to 0.0%.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

NGL Fine Chem Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

NGL Fine Chem Ltd trades at 37.3× P/E, mid-range by its own standards (66th percentile). Its long-run median P/E is 30.6×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 37.3× is mid-range by its own standards (66th percentile), against a long-run median of 30.6× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +127.9% against a +150.0% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +1.0%/yr price move, ~−2.9%/yr came from earnings growth and ~+3.9 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

Stage: Turning around Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

NGL Fine Chem Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −48.8% at the trough to +171.4%, a 3-quarter improving streak, ROCE lifting at 19.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: growth inflections are where re-ratings start — the curves say a turn is forming, so the question becomes whether the next quarters confirm it.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

76.2/100 — rank 1 of 3 in Pharma - Animal · 84% evidence confidence

NGL Fine Chem Ltd scores 76.2 out of 100 against the 3 companies it is compared with in Pharma - Animal, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 34.1 + 16.1 + 8.3 + 17.7 = 76.2. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What NGL Fine Chem Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

🚨 European Market Materialization Delayed · 25 May 2026. In the Nov 2025 call, management stated they had already begun selling in the European market and provided specific revenue guidance of up to INR 30 crores from the EU for that current fiscal year (FY26). However, in the May 2026 call, management completely contradicted this timeline, stating they anticipate European business to only begin coming in toward the second half of the current year (FY27), failing to address the previously guided FY26 sales.

Peak Revenue Guidance Revision Unacknowledged · 25 May 2026. During the May 2025 call, management explicitly stated the total peak sales potential from the new Phase 2 capacity investment would be between INR 250 crores and INR 300 crores. In the May 2026 call, management materially revised this peak revenue target up to a range of INR 350 to 400 crores, incorrectly claiming they had previously indicated this higher baseline.

Contradictory Statements on Fluralaner Patent Status · 18 November 2025. Management provided directly conflicting information regarding the patent status of Fluralaner, a key growth product. In the May 2025 call, they stated the patent expired in March 2025, enabling successful commercial sales. Conversely, in the November 2025 call, they stated the patent does not expire until 2027 and sales are only for developmental purposes, creating severe confusion around a core growth driver. Earlier call (May 2025): “Yes. So, we anticipate sales only from fluralaner right now coming through. That’s gone off patent in March this year. And its doing quite well.” Later call (Nov 2025): “Analyst: So, Fluralaner still remains under patent and we are just only supplying sample quantity, right? Management: Yeah, that is only for developmental purposes. That patent expires in 2027.”

🚨 Capex Completion Timeline Delayed · 18 November 2025. In both the November 2024 and May 2025 calls, management guided for the completion of their Phase 2 expansion by Q3 FY26. However, the November 2025 call silently pushed this timeline to Q4 FY26, a one-quarter delay, while simultaneously and paradoxically claiming the project 'remains on track.' Later call (Nov 2025): “Our ongoing capital projects remain on track for completion by Q4 FY26 with commissioning scheduled for Q1 FY27.”

Every quote above is taken word for word from the company’s own earnings calls.

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