SK Minerals & Additives Ltd reported strong growth in FY26, driven by higher volumes, strategic sourcing initiatives, and increased working capital availability following its IPO. The company also outlined expansion plans in the high-margin polymer additives segment, which is expected to become a key growth driver in the coming years.
Financial Highlights
FY26 vs FY25
- Revenue increased 50% YoY to ₹318 Cr from ₹212 Cr.
- EBITDA margin improved to 10% from 9%.
- PAT margin expanded to 6% from 5%.
- Sales volume rose to 46,000 MT from 33,000 MT.
- Revenue in H2 FY26 doubled compared to H1 FY26, supported by long-term supplier contracts and improved working capital.
Polymer Additives Expansion
The company is entering the polymer additives segment with a focus on halogen-free flame retardants, positioning itself among the first domestic manufacturers in this category.
Key developments include:
- New manufacturing facility with capacity of 400 MT per month.
- Commercial operations expected within the next 3-6 months.
- Significant revenue contribution anticipated from FY27 onwards.
- Polymer additives margins projected at approximately 40%, higher than the company's current manufacturing margin of around 30%.
The products will initially cater to:
- Cable and wire manufacturers.
- Electrical and electronics equipment producers.
- Future applications in electric vehicle battery components.
Research & Development
- R&D team comprises 11 members, including doctorate holders.
- Three patent filings are planned over the next six months.
- Focus remains on developing specialized additives and import-substitution opportunities.
Capacity Expansion & Capex
- Current manufacturing capacity stands at 6,600 MT with overall utilization of around 70%.
- Food and feed segments are operating at nearly 95% utilization.
- Planned capex of ₹20 Cr over FY27-FY28.
- Company has acquired 9.6 acres of land for polymer additives and compounding facilities.
- Manufacturing capacity is targeted to increase to 18,000 MT over the next 12-18 months.
Order Book & Working Capital
- Current order book stands at ₹55 Cr.
- Government contracts: ₹42 Cr.
- Private sector contracts: ₹13 Cr.
- Working capital cycle is approximately 110 days.
- Management is evaluating invoice discounting and buyer's credit facilities to improve cash flow efficiency.
Outlook
Management aims to increase the contribution of manufacturing activities to total revenue from the current 23% to nearly 50% over the next two to three years. The company expects growth to be supported by new product launches, capacity expansion, import-substitution opportunities, and increasing demand from specialty chemicals, electrical equipment, and emerging EV-related applications.
