Thirumalai Chemicals Limited (TIRUMALCHM) AI Stock Analysis

• Market Cap: ₹22.61B
• Dividend Yield: 0.43%
• Average Volume (3M): 8.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: -11.11%
• EPS Growth: -340.74%
• Country: IN
• Employees: 537
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -3.07
• Shares Outstanding: 118,656,160
• 10 Day Avg. Volume: 7,979
• 30 Day Avg. Volume: 8,178
• PEG Ratio: -2.87
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 1.21
• P/FCF Ratio: -3.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹182.00 ▼(-22.29% Downside)

Thirumalai Chemicals Limited is facing significant financial and technical challenges. The company's declining financial performance, coupled with bearish technical indicators, suggests a cautious outlook. The negative P/E ratio and low dividend yield further highlight valuation concerns. Investors should be wary of the risks associated with this stock.

Positive Factors

Product portfolio breadth and downstream integration

A mix of high-volume anhydrides plus downstream acids provides structural resilience: value-added derivatives can command better margins and reduce pure-commodity exposure. Over months this integration supports more stable revenue mix and the ability to capture downstream pricing spreads.

Diversified end-market exposure

Serving multiple industrial end markets spreads demand risk across sectors (plastics, coatings, F&B, pharma). Structural demand from several end markets helps buffer the business against single-market cyclicality and supports steadier order flows over a multi-month horizon.

Relatively stable equity ratio / balanced asset structure

A stable equity ratio suggests the company has not over-relied on asset-side gearing and retains a balanced funding mix. That provides enduring capacity to manage working capital swings, absorb shocks, and negotiate financing while addressing operational issues over the medium term.

Negative Factors

Sustained revenue decline

An ongoing revenue contraction undermines scale economics and weakens pricing leverage. If the decline persists, fixed-cost absorption worsens, margins compress further, and the company may struggle to fund required investments or restructuring without eroding competitiveness.

Negative operating and free cash flow

Negative operating cash flow and FCF indicate the business is not converting earnings into liquidity, stressing working capital and reserves. This structural cash shortfall limits capital allocation flexibility, raises refinancing risk, and constrains investments needed to restore competitiveness.

Rising leverage with deteriorating returns

Higher leverage coupled with falling ROE increases financial fragility: interest burdens rise while capital returns weaken. Over months this narrows strategic options, elevates default/refinancing risk in downturns, and can force asset sales or painful cost cuts that harm long-term growth.

Thirumalai Chemicals Limited Business Overview & Revenue Model

Company Description

Thirumalai Chemicals Limited manufactures and sells organic chemicals in India. It offers phthalic anhydride, maleic anhydride, malic acid, fumaric acid, and diethyl phthalate; and generates power from wind operated generators, as well as engineering and technical services. The company serves plastics, paints, food, cosmetic, and pharmaceutical industries. It also exports its chemical products to approximately 34 countries. The company was incorporated in 1972 and is based in Mumbai, India.

How the Company Makes Money

Thirumalai Chemicals Limited generates revenue through the production and sale of specialty chemicals, with key revenue streams coming from its core products like phthalic anhydride and maleic anhydride. The company benefits from a diverse customer base that spans various industries, including textiles, automotive, and construction, which helps stabilize its income amidst market fluctuations. Additionally, TIRUMALCHM may engage in long-term contracts with major clients, ensuring consistent demand for its products. Strategic partnerships with other chemical manufacturers and distributors also play a crucial role in expanding its market reach and enhancing its revenue potential.

Thirumalai Chemicals Limited Financial Statement Overview

Summary

Thirumalai Chemicals Limited faces significant financial challenges. Declining revenue and profitability, coupled with increasing leverage and cash flow issues, pose risks to its financial stability. Management may need to focus on cost control and improving operational efficiency to restore profitability and strengthen the balance sheet.

Income Statement

Thirumalai Chemicals Limited experienced volatility in its income statement over the years. The company showed a declining revenue trend from 2023 to 2025, with a notable drop in profitability. The net profit margin turned negative in 2024 and 2025, indicating operational challenges. Despite a strong gross profit margin in earlier years, recent margins reflect increased cost pressures and reduced operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has increased over the years, suggesting higher leverage and potential risk. However, the equity ratio remains relatively stable, indicating a balanced asset structure. The return on equity has declined significantly, reflecting reduced profitability and returns for shareholders.

Cash Flow

The cash flow statements highlight cash management issues, with negative free cash flow in recent years due to high capital expenditures. The operating cash flow has turned negative, straining liquidity and cash reserves. The negative operating cash flow to net income ratio in the latest period underscores the company's challenge in converting profits into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.45B	20.50B	20.72B	21.20B	19.97B	10.85B
Gross Profit	3.90B	4.63B	3.87B	6.01B	7.65B	4.16B
EBITDA	150.00K	488.00M	645.40M	2.16B	4.52B	2.28B
Net Income	-1.11B	-461.00M	-387.90M	898.30M	2.81B	1.18B
Balance Sheet
Total Assets	0.00	38.07B	33.20B	23.60B	18.62B	13.43B
Cash, Cash Equivalents and Short-Term Investments	1.83B	1.86B	4.49B	4.59B	5.54B	3.25B
Total Debt	0.00	17.86B	12.52B	5.14B	1.65B	1.83B
Total Liabilities	-11.56B	26.51B	21.74B	11.68B	7.77B	5.40B
Stockholders Equity	11.56B	11.56B	11.46B	11.92B	10.85B	8.03B
Cash Flow
Free Cash Flow	0.00	-6.79B	-5.74B	-3.09B	3.29B	1.60B
Operating Cash Flow	0.00	-658.80M	2.37B	541.30M	4.02B	2.21B
Investing Cash Flow	0.00	-5.42B	-8.31B	-3.59B	-1.39B	-1.57B
Financing Cash Flow	0.00	3.75B	6.43B	2.06B	-699.80M	-379.70M

Thirumalai Chemicals Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 234.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TIRUMALCHM, the sentiment is Negative. The current price of 234.2 is above the 20-day moving average (MA) of 206.22, above the 50-day MA of 223.21, and below the 200-day MA of 266.88, indicating a bearish trend. The MACD of -11.66 indicates Positive momentum. The RSI at 27.03 is Positive, neither overbought nor oversold. The STOCH value of 29.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TIRUMALCHM.

Thirumalai Chemicals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCL	75 Outperform	₹25.62B	26.12	―	0.65%	-10.12%	-22.38%
PUNJABCHEM	64 Neutral	₹14.91B	24.83	―	0.24%	10.70%	32.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IOLCP	60 Neutral	₹21.72B	18.75	―	0.97%	5.74%	16.06%
IGPL	59 Neutral	₹11.16B	34.33	―	2.59%	-10.71%	-40.89%
TATVA	53 Neutral	₹27.01B	82.44	―	0.07%	16.88%	0.69%
TIRUMALCHM	41 Neutral	₹22.61B	-13.23	―	0.43%	-11.11%	-340.74%

Thirumalai Chemicals Limited Corporate Events

Thirumalai Chemicals Files SEBI Dematerialisation Compliance Certificate for December Quarter

Thirumalai Chemicals Limited has notified the stock exchanges that it has received a confirmation certificate from its Registrar and Transfer Agent, MUFG Intime India Private Limited, for the quarter ended 31 December 2025 under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The registrar confirmed that all securities lodged for dematerialisation during the quarter were duly processed, accepted or rejected as appropriate, listed on the relevant stock exchanges, and that the corresponding physical certificates were cancelled and replaced in the company’s register of members within prescribed timelines, underscoring the company’s adherence to regulatory requirements in handling its dematerialised securities.

Thirumalai Chemicals’ US Subsidiary Begins Commercial Operations at New MAN Facility

Thirumalai Chemicals Limited has announced that its step-down wholly owned U.S. subsidiary, TCL Specialties LLC, has commenced the first phase of commercial operations at its new manufacturing facility with the initial sale of Maleic Anhydride. The US plant, which houses a 40,500 tonnes per annum Maleic Anhydride unit and a 30,000 tonnes per annum food ingredients unit for malic and fumaric acids, is undergoing phased commissioning expected to be completed and stabilized in the first half of 2026, positioning the company to serve currently underserved Maleic Anhydride markets in the North-Eastern and Mid-West United States and strengthening its presence in high-growth applications such as composites, specialty chemicals and biodegradable polymers.

Thirumalai Chemicals’ Subsidiary Launches New Facility in West Virginia

Thirumalai Chemicals Limited’s subsidiary, TCL Specialties LLC, has initiated pre-commissioning and startup activities at its new West Virginia facility. The facility, which includes a Maleic Anhydride plant and a Food Ingredients plant, aims to address underserved markets in the US and reduce reliance on imports. The strategic location in the Marcellus-Utica shale region and the use of proprietary technologies promise cost efficiency and environmental benefits, aligning with the US’s push for domestic manufacturing.

Thirumalai Chemicals Faces Revenue Impact Due to Machinery Outage

Thirumalai Chemicals Limited announced that its step-down subsidiary, Optimistic Organic Sdn Bhd (OOSB) in Malaysia, is experiencing a prolonged outage in its Maleic Anhydride unit due to machinery failure. This outage is expected to reduce the company’s consolidated revenue by INR 235 crore annually, impacting 9.6% of its FY25 revenue. The company is actively seeking solutions to restore operations, although the financial impact remains significant.

Thirumalai Chemicals Secures Shareholder Approval for Equity Issuance

Thirumalai Chemicals Limited announced the results of a postal ballot, where a special resolution to issue equity shares through a preferential issue on a private placement basis was overwhelmingly approved by shareholders. This move is likely to strengthen the company’s financial position and enhance its market presence, signaling a positive outlook for stakeholders.