Jubilant Agri Reports Strong Q2 Profit Surge, Plans Vadodara Capacity Expansion and Agri Business Demerger

Chemicals

Updated on 04 Nov 2025, 12:23 pm

Reviewed By

Abhay Singh | Whalesbook News Team

Short Description :

Jubilant Agri and Consumer Products Ltd. reported a significant 71.24% year-on-year surge in net profit to ₹42.28 crore for Q2 FY25, with revenue growing 26.1% to ₹511.8 crore. The company's board has approved a ₹50 crore investment to expand Performance Polymers manufacturing capacity by 30,000 MTPA at its Vadodara facility. Additionally, the board has approved the demerger of the Agri business into a separate entity, aiming to unlock value and enhance focus on distinct business segments.

Jubilant Agri Reports Strong Q2 Profit Surge, Plans Vadodara Capacity Expansion and Agri Business Demerger

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Stocks Mentioned :

Jubilant Ingrevia Limited

Detailed Coverage :

Jubilant Agri and Consumer Products Ltd. announced robust financial results for the second quarter ending September 2025. The consolidated net profit saw a substantial increase of 71.24% year-on-year, reaching ₹42.28 crore compared to ₹24.69 crore in the prior-year period. Revenue also climbed by 26.1% YoY to ₹511.8 crore from ₹406 crore. The company's operational efficiency was highlighted by a 53.6% growth in EBITDA to ₹62.8 crore and an improvement in the EBITDA margin to 12.27% from 10.07%.

In strategic corporate developments, the company's Board of Directors approved the expansion of its Performance Polymers manufacturing capacity by adding 30,000 MTPA at its Vadodara facility, involving an investment of approximately ₹50 crore over the next 12 months. This expansion aims to cater to growing demand and bolster its presence in specialty chemicals.

Furthermore, the Board sanctioned the demerger of the Agri business from Jubilant Agri and Consumer Products Ltd into Jubilant Agri Solutions Ltd. This move is driven by the distinct nature of the Performance Polymers and Chemicals business versus the Agri Division, each operating in different market dynamics and regulatory environments. The demerger seeks to unlock value and foster independent strategic focus. The scheme requires multiple regulatory and stakeholder approvals, including from shareholders, stock exchanges, SEBI, and NCLT. Shareholders will receive one equity share of the resulting company for each share held.

Impact: This combination of strong financial performance, targeted capacity expansion, and strategic demerger signals a significant restructuring aimed at enhancing shareholder value and operational focus. The initiatives are expected to positively influence the company's long-term growth prospects and market position. The stock experienced a minor dip on the announcement day, but the underlying strategic moves are constructive. Rating: 7/10.

Difficult Terms: * **YoY (Year-on-Year)**: A method of comparing financial data over two consecutive years for the same period (e.g., Q2 2025 vs. Q2 2024). * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance. * **EBITDA Margin**: EBITDA divided by revenue, expressed as a percentage, indicating profitability from operations. * **MTPA (Metric Tonnes Per Annum)**: A standard unit for measuring production or processing capacity over a year. * **Demerger**: A corporate restructuring where a company spins off a division or subsidiary into a separate, independent company. * **SEBI (Securities and Exchange Board of India)**: India's capital market regulator. * **NCLT (National Company Law Tribunal)**: A specialized judicial body in India for corporate matters.