J.g.chemicals Limited

With over five decades of experience in the zinc oxide industry, promoters have a strong understanding of industry fundamentals, competitive dynamics, and customer requirements. Their extensive network and longstanding relationships across the value chain have supported JGCL’s (and its subsidiary) growth as the largest zinc oxide producer in India. Growing scale of operations and healthy margins JGCL’s total operating income (TOI) on a consolidated basis witnessed a compounded annual growth rate

JGCL’s total operating income (TOI) on a consolidated basis witnessed a compounded annual growth rate (CAGR) of ~10% for five years ended FY26 and stood at ~₹977 crore against ~₹617 crore in FY22, supported by increase in sales volume and realisation. Majority revenue is driven by reputed tire manufacturers. PBILDT margin has been range bound between 7-10% and stood at ~9% in FY26. Going forward, growth is expected to be supported by the company’s ongoing ₹100-crore expansion project at Dahej, G

The company’s capital structure stood comfortable marked by overall gearing ratio of 0.01x as on March 31, 2026, against 0.60x as on March 31, 2022, primarily due to the company coming up with its initial public offer (IPO) in FY24. Following the IPO, the company has maintained a negligible debt position and enjoys adequate liquidity to comfortably fund its operational requirements. Debt coverage indicators also strengthened, with total debt to gross cash accruals (TD/GCA) improving from 2.06x a

Both the sourcing of key raw materials and sale of its finished product (zinc oxide) are linked to the prevailing London Metal Exchange (LME) zinc prices. The pricing of its finished product, zinc oxide, is determined based on the corresponding LME zin c price prevailing at the time of raw material procurement. This pricing mechanism provides a hedge against foreign exchange fluctuations in zinc prices to a large extent. Changes in raw material costs are effectively passed through to customers i

JGCL's revenue profile remains concentrated, with zinc oxide contributing ~95% of overall revenue and top four customers accounting for ~45% of sales in FY25. Despite ongoing efforts to broaden its customer base and diversify across end -user industries, tyre segment continues to dominate demand. While the company expanded its product portfolio to include zinc sulphate, the segment currently contributes only ~5% of revenue. Therefore, the company's ability to reduce its dependence on

The company operates in a working capital intensive business, as reflected in its inventory holding period of 42 days in FY26, compared to 45 days in FY22, indicating that it generally maintains ~1.5 month's inventory. The collection period remained largely stable at 58 days in FY26 versus 54 days in FY22, highlighting a consistent receivables cycle over the years. Accordingly, th e operating cycle stood at 95 days in FY26 compared to 96 days in FY22.