Pasupati Acrylon 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.

Pasupati Acrylon Ltd trades at ₹58.7, in a confirmed uptrend and 12 weeks into that stage. That is +6.6% against its own 200-day average. It sits at 44% of a 52-week range of ₹46 to ₹74. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (5 weeks and counting).

Today the stock is in a confirmed uptrend — week 12 of stage 2, confirmed. At ₹58.7 it trades +6.6% versus its 200-day average and sits at 44% of its 52-week range (₹46–₹74).

Against the market, two honest reads. Cumulative: over the last 4 months the stock moved +26% while the NIFTY 500 moved +4% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (5 weeks and counting; last ahead the week of 2026-07-10) — 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

Pasupati Acrylon 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: Not stated in the research file. Our fortnightly research layers last read it on 19 July 2026.

Our read, 31 May 2026. A commodity fibre producer that added a government-backed ethanol distillery in FY25 — the new segment drove 62.6% revenue growth in FY26 and PAT near-doubled, but the core fibre business suffered an acrylonitrile supply disruption in Q4, and the PE is no longer depressed.

What is proven. A commodity fibre producer that added a government-backed ethanol distillery in FY25 — the new segment drove 62.6% revenue growth in FY26 and PAT near-doubled, but the core fibre business suffered an acrylonitrile supply disruption in Q4, and the PE is no longer depressed.

What is not proven yet. Fibre plant requires ~180 TPD of imported acrylonitrile; March 2026 supply disruption shut the plant 20 days; the Saudi Sadara facility (Aramco-Dow JV) temporarily closed in the same period — no domestic substitute exists.

Layer 1 read, 19 July 2026 — KEEP. Ethanol distillery flipped a sleepy fibre cyclical into a real EPS turn the market hasn't re-rated yet. EPS went from a ₹0.20 trough in Jun-2025 to ₹2.95 in Mar-2026 as OPM climbed 3%→16%, driven by the new government-backed ethanol segment now 32% of revenue. The PE is 7.4x (CHEAP) and price has risen only +15% in a year, so this is earnings leading price, not a re-rating. The catch: zero investor disclosure and a 20-day fibre-plant shutdown on acrylonitrile supply mean this is a Bronze-conviction, filings-only story.

What would change Layer 1’s mind. Q1-FY27 (Jun 2026) fibre OPM printing back below 10% (milestone M1) OR ethanol quarterly revenue below ₹75 Cr (OMC allocation not scaling with capacity, milestone M2) — either would show the turn was Q4 seasonality/one-off, not structural.

Layer 2 read, 19 July 2026 — BENCH. Real ethanol-driven earnings jump, but its P1 MoS is a DCF artifact and PE isn't actually cheap - hold, don't advance.

What would change Layer 2’s mind. A management concall/investor communication (currently zero) that discloses the shutdown and gives credible forward ethanol-allocation visibility AND a genuine PE de-rating back toward the 4-5x trough band - i.e. real momentum plus real cheapness together - would flip BENCH to ADVANCE. Conversely, a second undisclosed operational disruption or a lost OMC allocation would push it toward DROP.

The test written in advance. Acrylonitrile Import Supply Concentration — Acrylonitrile Import Supply Concentration Monthly acrylonitrile import data; any Middle East supply disruption headlines by the next result.

The test written in advance. OMC Allocation Risk — Ethanol Revenue Government-Controlled — OMC Allocation Risk — Ethanol Revenue Government-Controlled Quarterly OMC allocation announcements; Q1/Q2 FY27 ethanol segment revenue tracking by the next result.

The test written in advance. PE at Median — Not a Depressed Entry — PE at Median — Not a Depressed Entry PE below 6x would re-open the depressed-entry thesis; earnings miss would accelerate decompression by the next result.

What the company does. FY26 revenue ₹1,010 Cr (+62.6%) and PAT ₹69.92 Cr (+97.6%) — the ethanol segment (₹324 Cr, 32% of revenue) was the structural driver in its first full year of operation. The fibre plant was shut March 25–April 14, 2026 due to acrylonitrile raw-material supply disruption — a 20-day outage with no investor-facing disclosure, introducing a recurring supply chain risk. Board approved ₹25 Cr debottlenecking to expand ethanol from 180 KLPD to 240 KLPD by December 2026, funded from internal accruals — incremental revenue depends on OMC order allocation.

Lever 9 · Buyback — BUILDING. Ethanol plant: ₹324 Cr revenue and ₹33.71 Cr segment result in FY26 — 32% of total revenue in first full year; scaling from 180 KLPD to 240 KLPD by December 2026 for ~₹100–120 Cr incremental revenue. What proves it keeps working: Ethanol Segment Ramp — Government-Price-Fixed Revenue Pillar. It stops working if Monthly acrylonitrile import data; any Middle East supply disruption headlines.

Lever 1 · Operating leverage — BUILDING. Fibre OPM recovered from 3% (Q1 FY26) to 16% (Q4 FY26) as acrylonitrile costs stabilised — but Q4 included a 20-day plant outage, so normalised Q4 run-rate is uncertain. What proves it keeps working: Fibre Margin Cyclical Recovery (OPM 3%→16%). It stops working if Monthly acrylonitrile import data; any Middle East supply disruption headlines.

Lever 14 · A bigger market to sell into — BUILDING. India fastest-growing acrylic fibre market at 4.9% CAGR through 2036; domestic duopoly (Pasupati + Grasim) gives pricing proximity advantage over imported Chinese fibre. What proves it keeps working: India Acrylic Fibre Demand (4.9% CAGR Secular Floor). It stops working if Monthly acrylonitrile import data; any Middle East supply disruption headlines.

Sources: our stock research file (31 May 2026) · quarterly results through Jun 26. 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.

Pasupati Acrylon Ltd reported ₹238 Cr of revenue in the Jun 26 quarter, +10.2% year on year. That is the 5th straight quarter of year-on-year growth. Over 10 years it has compounded at 6.7% a year. The last full year, FY26, came in at ₹1,010 Cr. The last four reported quarters add to ₹1,032 Cr.

Why this happened. Global acrylic fibre market: USD 6.356 Bn (2026) → USD 9.591 Bn (2036), CAGR 4.2%; India at 4.9% CAGR. Driven by affordable knitwear, shawls, blankets. Pasupati's 45,000 MT/year at Thakurdwara serves UP/North India knitwear manufacturers. This is a stable volume floor, not a structural growth driver.

FY26 revenue came in at ₹1,010 Cr (+62.6% on the year), capping 10 years at 6.7% compound. The latest quarter (Jun 26) printed ₹238 Cr, +10.2% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +59.1% growth against the decade's 6.7% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +51.3% over the last 4 quarters against +30.0%/yr over the last 8 — accelerating; TTM profit +265.4% vs +103.2%/yr — accelerating.

FY26-Q4. revenue ₹245 Cr and profit ₹26 Cr as reported.

FY27-Q1. revenue ₹238 Cr and profit ₹27 Cr as reported.

Why-sources: our stock research file (31 May 2026) and the company’s own results for those quarters.

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.

Pasupati Acrylon Ltd's operating margin is 16.0% in the Jun 26 quarter, +13.2 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 2.8% to 14.0%. The current quarter is running above every full year in that window.

Why this happened. Q1 FY26 trough (Jun 2025): revenue ₹216 Cr, OPM 3%, PAT ₹1.75 Cr (−84.4% YoY). Recovery through Q2 (OPM 10%), Q3 (15%), Q4 (16%), with fibre segment annual result ₹65.96 Cr on ₹587 Cr revenue (11.2% margin). The March 2026 plant shutdown for ~20 days creates Q1 FY27 uncertainty: if acrylonitrile supply disruption recurs, the recovery is not durable.

The latest quarter's operating margin is 16.0%, +13.2 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 2.8%–14.0%.

Why the margin moved: operating margin went +13.6 pp year on year while gross margin went +13.2 pp — the gain came mostly from the gross line: input costs and pricing.

FY26-Q4. revenue ₹245 Cr and profit ₹26 Cr as reported.

FY27-Q1. revenue ₹238 Cr and profit ₹27 Cr as reported.

Why-sources: our stock research file (31 May 2026) and the company’s own results for those quarters.

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

Pasupati Acrylon Ltd earned ₹27.0 Cr of net profit in the Jun 26 quarter, +1,250.0% year on year. It is the 4th consecutive quarter of growth. Full-year FY26 profit was ₹70.0 Cr. The 10-year compound rate is 8.8%. That is 11.3% of the quarter's revenue. The same quarter a year earlier earned ₹2.0 Cr.

Jun 26 profit was ₹27.0 Cr, +1,250.0% year on year — the 4th consecutive quarter of growth. On the full year, FY26 printed ₹70.0 Cr (+100.0%), and the 10-year compound rate is 8.8%.

Why profit moved: revenue contributed +10.2% and the margin +13.2 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +494.9% vs revenue +59.1%. 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.

FY26-Q4. revenue ₹245 Cr and profit ₹26 Cr as reported.

FY27-Q1. revenue ₹238 Cr and profit ₹27 Cr as reported.

Why-sources: our stock research file (31 May 2026) and the company’s own results for those quarters.

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 112% of Pasupati Acrylon Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹52.0 Cr of operating cash against ₹70.0 Cr of profit. After ₹12.0 Cr of capital spending, ₹40.0 Cr was left as free cash.

FY26: operating cash of ₹52.0 Cr against reported profit of ₹70.0 Cr, leaving free cash of ₹40.0 Cr after ₹12.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 112% 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 112%: the cash cycle stretched 11 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 8.2× 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).

Pasupati Acrylon Ltd's cash conversion cycle runs 52 days in FY26, up from 41 days in FY21. Capital spending ran ₹196 Cr over the last 3 years. At FY26 sales of ₹1,010 Cr each day of that cycle holds about ₹2.8 Cr, so roughly ₹144 Cr sits inside the business at any moment.

FY26: debtors at 28 days, inventory at 53 days — roughly 1.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 52 days, looser than FY21's 41.

The full loop: cash goes out to suppliers and production on day 0; stock waits 53 days to sell; customers pay about 28 days after that; and suppliers themselves are paid at 29 days — netting out to the 52-day cycle.

In money terms: at FY26 sales of ₹1,010 Cr, each day of the cycle holds about ₹2.8 Cr — so the 52-day loop keeps roughly ₹144 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹196 Cr over the last 3 fiscal years against ₹24.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹0.0 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.

Pasupati Acrylon Ltd earns a ROCE of 21% in FY26. That is up from a trough of 6% in FY24. Return on invested capital clears the cost of that capital by +7.0 percentage points, so growth here adds value rather than only size. The wiring behind it is 6.9% net margin on 1.58× asset turns.

FY26 ROCE is 21%, recovered from a FY24 trough of 6% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 6.9% net margin × 1.58× asset turns × 1.47× balance-sheet leverage ≈ 16.0% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 19.0% − 12.0% = a +7.0 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. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Pasupati Acrylon Ltd carries ₹107 Cr of borrowings against ₹435 Cr of equity in FY26, a debt-to-equity of 0.25. Operating profit covers the interest bill 9×. Over 5 years borrowings went from ₹1.0 Cr to ₹107 Cr. Capital spending ran ₹196 Cr across the last 3 of those years.

FY26: borrowings of ₹107 Cr against equity of ₹435 Cr — a debt-to-equity of 0.25. Operating profit covers the interest bill 9×. Over 5 years borrowings went from ₹1.0 Cr to ₹107 Cr while capital spending ran ₹196 Cr in just the last 3 — part of the build-out is riding on borrowed money.

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 Pasupati Acrylon Ltd moved a full percentage point over the last two years — the register is quiet. Promoters moved +0.0 points over the same window, to 65.9%. The register is read on the four disclosed classes only; nothing is inferred between filings.

Why this happened. The grain-based distillery commissioned March 2025 sells under OMC purchase contracts at government-notified prices. The plant operated at 100% utilisation in FY26, triggering sequential capacity expansions: 150→180 KLPD approved May 13, 2026 at zero capex; 180→240 KLPD approved May 25, 2026 for ₹25 Cr, target December 2026. Revenue is visible but allocation-dependent — OMC confirms ₹215 Cr order for FY26. Ethanol margin was 10.4% in FY26 — structurally different from fibre: fixed government pricing, domestic grain inputs (lower volatility than imported acrylonitrile).

The register over the last two years — Foreign institutions: −0.2 points over 8 quarters to 0.4%; Promoters: +0.0 points over 8 quarters to 65.9%; Domestic institutions: +0.0 points over 8 quarters to 0.2%.

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.

Pasupati Acrylon 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.

Pasupati Acrylon Ltd trades at 5.5× P/E, near the bottom of its own range — cheaper only 29% of the time. Its long-run median P/E is 7.5×, measured across 10.2 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 5.5× is near the bottom of its own range — cheaper only 29% of the time, against a long-run median of 7.5× measured over 10.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

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

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

At its price on 20 July 2026, Pasupati Acrylon Ltd was priced for profit growth of about 0.2% a year. Profit itself has compounded 8.8% a year over the past 10 years. The market pays that at 5.5× P/E, the 29th percentile of its own 10-year range.

What the two numbers say together. The multiple is low against its own past, and the growth the price is paying for is below what this company has actually delivered. Both readings sit on the same earnings, so they are one reading rather than two.

How to hold this number: it is a reading of one day's price, taken on 20 July 2026, not a running figure. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements. Every other number on this page is read off the live quote.

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).

Pasupati Acrylon Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −15.4% at the trough to +1250.0% off a 4-quarter-old trough (single-quarter readings), ROCE lifting at 21.0%. The read is built from 10 quarters across 3 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.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

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

77.7/100 — rank 1 of 1 in Textiles - Acrylic Fibre · 69% evidence confidence

Pasupati Acrylon Ltd scores 77.7 out of 100 against the 1 companies it is compared with in Textiles - Acrylic Fibre, ranking 1. Confirmed research leader: earnings, capital efficiency and relative strength agree. Move to management, catalyst and risk diligence.

The four contributions add to the total exactly: 33.7 + 21.2 + 10.3 + 12.5 = 77.7. 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.

Frequently asked questions