Jubilant Agri and Consumer Products Limited (JACPL) is a diversified company operating under the umbrella of the Jubilant Bhartia group. With a history spanning over two decades, the company has established a strong presence in both business-to-consumer (B2C) and business-to-business (B2B) markets. Its operations are structured into two primary verticals: Performance Polymers & Chemicals, which accounts for 62% of the business, and Agri Products, which makes up the remaining 38%. The company boasts a significant manufacturing footprint with eight facilities strategically located across India, supported by a robust pan-India distribution network. This network serves approximately 1,300 distributors and 28,000 retailers in the consumer products segment alone. JACPL has a strong domestic focus, with 84% of its revenue generated within India, supplemented by a growing export business that constitutes 16% of revenue, reaching markets across the USA, Europe, Asia, and the Middle East. The company is committed to innovation, backed by strong in-house R&D capabilities, and is focused on expanding its consumer products business through new product launches and portfolio expansion.

Official Website: http://www.jacpl.co.in/

• Q3-FY26 Performance:

• Consolidated Revenue: Grew 13% year-over-year (YoY) to INR 4,510 million from INR 3,975 million in Q3-FY25. However, revenue declined 12% quarter-over-quarter (QoQ) from INR 5,130 million in Q2-FY26.

• Consolidated EBITDA: Increased 15% YoY to INR 393 million. The EBITDA margin improved slightly by 11 basis points (Bps) to 8.7%.

• Consolidated Profit After Tax (PAT): Remained flat YoY at INR 215 million. PAT margin contracted by 59 Bps to 4.8%. The company recorded a one-time exceptional item expense of INR 38.3 million related to the implementation of new labor codes.

• 9M-FY26 Performance:

• Consolidated Revenue: Grew by a strong 21% YoY to INR 14,059 million.

• Consolidated EBITDA: Increased significantly by 41% YoY to INR 1,665 million, with the EBITDA margin expanding by 165 Bps to 11.8%.

• Consolidated Profit After Tax (PAT): Grew by 49% YoY to INR 1,079 million, leading to a PAT margin of 7.7%, an improvement of 150 Bps.

• Historical Performance (FY22-FY25):

• Revenue Growth: The company has demonstrated a 5-year Compound Annual Growth Rate (CAGR) of approximately 23%. Revenue in FY25 stood at INR 15,610 million.

• Profitability: EBITDA showed a 5-year CAGR of around 24%. In FY25, EBITDA was INR 1,457 million with a margin of 9.33%. PAT for FY25 was INR 878 million.

• Balance Sheet: The company has progressively deleveraged its balance sheet. The Net Debt to Equity ratio has improved significantly from 1.00x in FY22 to a very healthy 0.15x in FY25. Net worth has consistently grown, reaching INR 3,255 million in FY25.

The company has delivered strong top-line and bottom-line growth in 9M-FY26, complemented by consistent margin expansion and a strengthening balance sheet over the past several years.

• Market Leadership: JACPL holds a dominant position in several key product categories.

• Agri-Products: It is the No. 1 producer of Single Super Phosphate (SSP) in Uttar Pradesh.

• Food Polymers: It is the No. 1 player in India and No. 2 globally for Solid Poly Vinyl Acetate (SPVA) in solid form, a key ingredient for chewing gum base.

• Latex: The company is the No. 1 producer in India and globally (excluding China) for Vinyl Pyridine (VP) Latex, which is critical for automobile tires and conveyor belts.

• Consumer Products: It is recognized as one of the leading consumer brands in the adhesives market.

• Diversified Portfolio: The company operates a balanced portfolio across B2B (Polymers, Latex) and B2C (Adhesives, Agri-Products) segments, which provides resilience against sector-specific downturns.

• Extensive Distribution Network: A pan-India distribution network comprising approximately 1,300 distributors and 28,000 retailers gives the company deep market penetration and a significant competitive advantage in reaching end-consumers.

• Strong Financial Position: A low debt-to-equity ratio of 0.15 and a high Return on Capital Employed (ROCE) of 34% in FY25 indicate strong financial health and efficient capital allocation.

JACPL's market leadership in niche segments, combined with its diversified business model and extensive distribution reach, forms a strong competitive moat.

• Adhesives:

• The domestic construction market continues to show strength, providing a positive outlook for adhesives.

• Growth is further supported by rising demand from urban housing renovations and the adoption of modular furniture.

• Government initiatives like GST 2.0 reforms and high budget allocations for the infrastructure sector are expected to act as significant demand boosters.

• Performance Polymers & Chemicals:

• The replacement tires and tire cord fabrics segment is currently experiencing a slowdown in both domestic and global markets, which could impact demand for VP Latex.

• Industrial polymers are under pressure due to general global economic weakness and uncertainty surrounding USA tariffs.

• The input cost environment has been challenging, but pricing is expected to normalize by Q1-FY27.

• Agri Products:

• The outlook is positive, supported by forecasts of an above-normal monsoon, which improves soil moisture and reservoir levels, strengthening sowing activity for the Rabi season.

• The government's approval of a INR 37,952 crore subsidy under the Nutrient-Based Subsidy (NBS) scheme for Rabi 2025-26 is expected to enhance fertilizer affordability and drive offtake.

The outlook is positive for the Agri and Adhesives segments, driven by strong domestic factors, while the Performance Polymers segment faces near-term global headwinds.

• Segment Performance (9M-FY26 vs 9M-FY25):

• Agri Products: This segment was the standout performer, with revenue growing by 54% to INR 5,311 million. EBIT turned around from a loss to a profit of INR 513 million.

• Adhesives: The business sustained strong momentum, with revenue growing 17% to INR 3,716 million and EBIT increasing by 15% to INR 332 million.

• Performance Polymers & Chemicals: This segment reported moderate revenue growth of 7% to INR 8,748 million, while EBIT remained flat.

• Growth Drivers:

• Adhesives: Growth is driven by a wider distribution reach, a stronger contractor loyalty ecosystem, and increased brand visibility from higher Advertising & Promotion (A&P) spending.

• Agri Products: Favorable monsoons, strong agricultural sentiment, an improved mix of value-added products, and expansion into new territories have fueled growth. The company also entered the bulk fertilizer segment to leverage its existing network.

• Long-Term Growth: The company has a demonstrated track record of growth, with 5-year CAGRs of ~23% for revenue and ~24% for EBITDA.

The Agri and Adhesives businesses are currently the primary growth engines, driven by strong domestic demand and strategic expansion initiatives.

• New Product Launches: The company is focused on launching new and innovative products, such as Jubiquik Maestro (Cyanoacrylate adhesive) and Jubiguard Durashield HDPE, to capture new market segments and drive volume-led growth.

• Channel Expansion: There is a clear strategy to expand the distribution network and penetrate new territories, particularly in the Agri business, which has entered 8 new states in the last two years.

• Portfolio Expansion: In the Performance Polymers segment, the focus is on adding new customers and broadening the product portfolio, such as the new SBR Latex range, to gain market share in the future.

• Infrastructure Push: The government's focus on infrastructure spending presents a significant opportunity for the Adhesives business, which is a key supplier to the construction industry.

JACPL is poised to capitalize on opportunities through product innovation, geographic expansion, and leveraging favorable macroeconomic tailwinds in the construction and agriculture sectors.

• Existing Capacity: The total manufacturing capacity for Polymers and Chemicals stands at 80,000 MTPA.

• Current Utilization: As of November 2025, the existing capacity utilization is approximately 79%, indicating healthy demand and room for operational leverage.

• Capex Plan: The Board has approved an expansion of the Performance Polymers manufacturing capacity (WWA and SBR Latex) at the Samlya, Vadodara site.

• Proposed Addition: 30,000 MTPA.

• Investment: Approximately INR 50 Crores.

• Timeline: The new capacity is expected to be added within approximately 12 months.

• Funding: The expansion will be funded entirely through internal accruals, reflecting the company's strong cash flow position.

• Rationale: The capex is aimed at catering to increased demand for its products.

The planned capex is a strategic investment to meet growing demand and will be funded internally, highlighting the company's financial strength and confidence in future growth.

• Demerger of Agri Business: The company is undergoing a significant corporate restructuring. The Board has approved a Scheme of Arrangement to demerge the Agri Division into a separate entity named Jubilant Agri Solutions Limited.

• Structure: Shareholders of JACPL will receive 1 share of the new company for every 1 share held in the demerged company.

• Listing: The new entity, Jubilant Agri Solutions Limited, will be listed on both the BSE and NSE.

• Status: The scheme is currently awaiting approval from SEBI and the stock exchanges. This move is intended to unlock value for shareholders by creating two focused businesses.

• Strategic Focus:

• Adhesives: The focus remains on profitable, volume-led growth through new products and channel expansion, while maintaining strategic A&P spending to drive demand.

• Polymers: The plan is to navigate global softness by adding new customers and expanding the product portfolio to position for future market share gains.

The demerger of the Agri business is a major strategic initiative aimed at creating focused entities, which is expected to unlock significant value for investors in the long run.

• Consolidated Margins (Q3-FY26):

• EBITDA margin stood at 8.7%, a slight improvement of 11 Bps YoY but a sharp contraction of 375 Bps QoQ.

• PAT margin was 4.8%, down 59 Bps YoY.

• Consolidated Margins (9M-FY26):

• EBITDA margin expanded significantly by 165 Bps YoY to 11.8%.

• PAT margin improved by 150 Bps YoY to 7.7%.

• Segment Profitability (Q3-FY26):

• Performance Polymers & Chemicals: EBIT margin was pressured, with EBIT declining 23% YoY despite a 4% rise in sales. This was attributed to higher input costs for certain raw materials.

• Agri Products: This segment saw a dramatic margin turnaround, posting an EBIT of INR 89 million compared to a loss of INR 39 million in Q3-FY25, driven by a better product mix and higher volumes.

• Adhesives: Margins were stable, supported by lower input costs, with EBIT growing 12% YoY.

While the company achieved strong margin expansion over nine months, the third quarter saw pressure in the Polymers segment due to input costs, offset by a strong recovery in the Agri business.

• Input Cost Volatility: The Performance Polymers & Chemicals segment is susceptible to fluctuations in raw material prices. In Q3-FY26, higher input costs pressured EBITDA margins, though prices are expected to normalize.

• Global Demand Softness: The industrial polymers business is exposed to global economic conditions. Current weakness, particularly in the tyre sector, and tariff uncertainty in the USA are impacting demand.

• Regulatory Changes: The Agri Nutrient business reported lower revenue and margins due to regulatory changes in FCO (Fertiliser Control Order) norms for Bio-stimulants, highlighting the risk of policy shifts in the agriculture sector.

• Demand Environment: The Adhesives business noted a "slightly softer demand environment" in key markets, which could pose a risk to its high-growth trajectory if the trend continues.

The key risks are external, stemming from global demand cycles and input cost volatility, along with domestic regulatory changes that could impact the Agri business.