In a move that reflects growing investor enthusiasm for India’s chemical manufacturing story, Prasol Chemicals has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an IPO worth around INR 500 crore.
The offer comprises a fresh issue of INR 80 crore and an offer for sale (OFS) of INR 420 crore by existing shareholders. DAM Capital Advisors is the book-running lead manager, and KFin Technologies will act as registrar to the issue.
🧭 A Specialty Chemicals Veteran with Global Reach
Founded in 1992, Prasol Chemicals has emerged as one of India’s most integrated specialty chemical manufacturers, with operations spanning acetone-based, phosphorous-based, and customized specialty molecules. Its products find applications across pharma, agrochemicals, coatings, lubricants, and home & personal care industries. The company serves customers in over 69 countries, backed by two manufacturing facilities — at Khopoli and Mahad, both in Maharashtra.
As of July 2025, Prasol Chemicals has a portfolio of over 150 active products and a pipeline of 40 new molecules, nine of which have cleared the pilot stage.
💰 Financial Performance
| FY 2023 | FY 2024 | FY 2025 | Q1 FY 2026 | |
| Revenue from Operations | 930.08 | 876.57 | 1,012.49 | 319.56 |
| Operating EBITDA | 86.95 | 60.53 | 87.77 | 40.60 |
| Operating EBITDA Margin (%) | 9.35 | 6.91 | 8.67 | 12.71 |
| PAT (Profit After Tax) | 48.89 | 18.13 | 43.57 | 24.34 |
| PAT Margin (%) | 5.22% | 2.07% | 4.30% | 7.62% |
| Adjusted RoAE (%) | 17.01 | 5.71 | 12.57 | 6.41 |
| Adjusted RoCE (%) | 14.84 | 12.61 | 14.95 | 7.08 |
| Net Debt / Equity (x) | 0.53 | 0.22 | 0.23 | 0.28 |
⚙️ Operational Highlights
| KPI | FY 2023 | FY 2024 | FY 2025 | Q1 FY 2026 |
| Countries Served | 56 | 50 | 50 | 45 |
| Export Revenue (%) | 29.13 | 25.32 | 28.35 | 27.52 |
| Number of Customers | 1,597 | 1,560 | 1,586 | 1,015 |
| Top 10 Customers’ Revenue Share (%) | 23.27 | 18.46 | 21.96 | 23.91 |
🧱 Manufacturing Backbone
Prasol Chemicals operates two major facilities:
- Khopoli (est. 1995): Installed capacity of 70,914 Million tonnes per annum (MTPA); FY25 capacity utilisation at 68.6%.
- Mahad (est. 2020): Installed capacity of 17,000 MTPA; FY25 utilisation at 25.2%.
The Mahad facility was non-operational between 27 October 2023, and 3 May 2024, due to an industrial incident but has since stabilised. By Q1 FY26, the plant achieved an annualised utilisation of 57.6%, boosting consolidated profitability.
Together, both plants offer 87,914 MTPA of annual capacity, supported by Zero Liquid Discharge (ZLD) compliance and automated distributed control systems (DCS).
🧬 R&D: The Innovation Core
Prasol Chemicals follows a stage-gate innovation framework, ensuring a systematic approach from ideation to commercialisation through defined decision checkpoints. The Khopoli R&D centre, with 18 scientists (including 3 PhDs), focuses on:
- Complex chemistries — hydrogenation, condensation, catalytic oxidation
- Green chemistry — adoption of heterogeneous catalysts
- Forward/backward integration — using intermediates for new products
- New testing labs for lubricants, construction, and mining chemicals
With 13 new products commercialised since FY23, R&D continues to drive product differentiation and margin expansion.
🌍 Expanding Global Footprint
Exports contributed 28.35% of total revenue in FY25, with Europe as the largest market (13.75%), followed by Asia-Pacific (6.53%) and the Americas (4.29%).
To deepen global engagement, Prasol Chemicals has:
- Sales offices in Shanghai and London
- Consignment stock points in Houston (U.S.) and Rotterdam (Netherlands)
The company’s long-term relationships with marquee clients such as Lubrizol India, Clean Science & Technology, Alembic Pharmaceuticals, Coromandel International, and Gharda Chemicals underscore its credibility and reliability in the global specialty supply chain.
💡 Verdict: A Quiet Contender with a Global Edge
The specialty chemicals industry, valued at USD 1.19 trillion in 2024, is projected to grow at 8% CAGR to USD 1.75 trillion by 2029. Within this landscape, Prasol Chemicals represents a compelling mid-cap story blending diversification, innovation, and fiscal discipline.
After years of consolidation and post-Mahad revival, Prasol Chemicals is entering the IPO market with momentum on its side — a strong balance sheet, robust R&D pipeline, and increasing exports. While valuations will depend on the final price band, Prasol’s business fundamentals position it as an R&D-led, export-oriented specialty chemical platform aligned with global sustainability and supply chain shifts.
🧾 Conclusion
As Prasol Chemicals prepares to list, it exemplifies the new wave of Indian specialty chemical firms combining science, sustainability, and scale. From acetone molecules to phosphorous intermediates, Prasol has built a resilient foundation — and with its DRHP now public, it’s ready to transform three decades of chemical expertise into long-term shareholder value.
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