SYNOPSIS: Mukul Agrawal ups stake in Tatva Chintan Pharma Chem, a ₹3,239 crore specialty chemicals leader with 62% exports, strong Q2FY26 recovery, and dominance in PTCs, SDAs, and Glymes.
Ace investor Mukul Agrawal has increased his stake in a lesser-known but strong company that quietly leads its segment. Even though it doesn’t grab headlines, the business has solid growth, stable performance, and a strong market position. His move has created fresh interest in the stock, check the below article to know more.
Tatva Chintan Pharma Chem Ltd, with a market capitalization of Rs. 3,239 crore, is trading at Rs. 1,385 per equity share, down by 0.16 percent from its previous day’s close price of Rs. 1,387.20 per equity share.
About the Company
Established in 1996 by first-generation engineer-entrepreneurs, the company operates modern plants in Ankleshwar and Dahej SEZ, Gujarat, with a combined reactor capacity of 552 KL and 39 assembly lines as of March 2025. It runs a DSIR-recognized state-of-the-art R&D facility in Vadodara and has emerged as a pioneer in conventional synthesis, electrolysis and continuous flow chemistry, an efficient and environmentally friendly technology. The company was listed on the NSE and BSE in July 2021 and now serves customers across 25 countries, including the USA, UK, China, Germany, Japan and South Africa, with exports contributing 62 percent of FY25 revenue and offshore support provided through subsidiaries in the USA and the Netherlands.
The company manufactures a diverse range of specialty chemical products, including Phase Transfer Catalysts, Structure Directing Agents, Electrolyte Salts and Pharma and Agrochemical Intermediates.
Is it a market leader?
One of India’s leading producers of PTCs with a global presence, Tatva Chintan has been manufacturing Phase Transfer Catalysts (PTCs) since 1996. PTCs help transfer reactants between phases in multi-phase systems, improving reaction speed, conversion, yields, and reducing by-products, energy use, and waste. They are widely used in pharmaceuticals, flavors and fragrances, agrochemicals, and environmental processes. The company generated Rs. 125.5 crore revenue in FY25 and Rs. 58.4 crore in H1FY26, contributing 33 percent and 24 percent of overall revenue respectively.
Tatva Chintan, the 2nd largest global manufacturer of Structure Directing Agents (SDAs) and the largest commercial supplier in India, is a leading producer of high-purity quaternary salts essential for synthesizing precision zeolites, which are used as catalysts and absorbents. SDAs are critical in emission control systems for NOx removal, crude cracking, and continuous flow chemistry processes. The company’s growth is supported by rising demand due to stricter emission norms, versatile applications, and limited global competition. Tatva Chintan generated Rs. 119.7 crore in revenue in FY25 and Rs. 98.7 crore in H1FY26, contributing 31 percent and 41 percent of its overall revenue, respectively.
Tatva Chintan, India’s largest producer of electrolyte salts for supercapacitor batteries since 2016, makes salts used in supercapacitors for EVs, electronics, and energy storage. These salts help supercapacitors charge fast, work in low temperatures, and last long, improving battery life. Rising demand comes from EVs, solar storage, smart grids, and other high-energy devices. Revenue was Rs. 6 crore in FY25 (2 percent of total) and Rs. 2 crore in H1FY26 (1 percent). Major users include automotive, renewable energy, electronics, and transport sectors.
Tatva Chintan makes a range of pharmaceutical and agrochemical intermediates, including disinfectants, catalysts, solvents, and especially Glymes, which are used as solvents in pharma APIs and lithium batteries. These products are used across pharma, agrochemicals, paints and coatings, Li-ion batteries, and personal care. The company has been manufacturing PASC since 2016 and earned Rs. 128.7 crore in FY25 (34 percent of revenue) and Rs. 79.3 crore in Q1FY26 (33 percent). Tatva Chintan is also India’s largest and the world’s third-largest producer of Glymes.
Tatva Chintan is a strong market leader because it is India’s top maker of PTCs, the largest SDA producer in the country, the second-largest SDA maker in the world, and a leading supplier of electrolyte salts and Glymes. Its deep expertise, strong export presence, and role in high-growth industries like EVs, catalysts, and emission control firmly establish it as a specialty-chemicals leader with competitive advantages that are hard to replicate.
Financial Outlook
The company delivered strong results in Q2FY26, with revenue increasing to Rs. 123.52 crore, up 47.9 percent year on year from Rs. 83.49 crore and 5.7 percent quarter on quarter from Rs. 116.86 crore, while profit rose to Rs. 9.92 crore compared with a loss of Rs. 0.66 crore a year ago and Rs. 6.65 crore in the previous quarter, reflecting a 49.2 percent quarter-on-quarter jump and a clear year-on-year turnaround.
The reported EBITDA of Rs. 22.2 crore increased by 28.32 percent from Rs. 17.3 crore in Q1 FY26 and increased by 296.43 percent from Rs. 5.6 crore in Q2 FY26. The EBITDA margin improved to 18 percent from 7 percent in Q2 FY25 and 14.8 percent in Q1 FY26.
Over the past five years, the company has delivered a revenue CAGR of 8 percent, a profit CAGR of -31 percent. A return on equity (ROE) of about 0.78 percent, a return on capital employed (ROCE) of about 1.2 percent and debt to equity ratio of 0.11 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 453 higher as compared to its industry P/E 29.
Ace Investor Holdings
As of September 2025, ace investor Mukul Mahavir Agarwal holds a 2.14 percent stake in the company, amounting to 5 lakh shares. He first made a fresh investment in June 2025, when he acquired a 1.28 percent stake, or 3 lakh shares.
Conclusion
Tatva Chintan emerges as a true hidden gem which is quietly dominating niche specialty chemical segments while steadily expanding its global footprint. With strong Q2FY26 recovery, rising export demand, leadership in multiple high-value chemistries, and growing confidence from ace investor Mukul Agrawal, the company stands well-positioned for long-term growth. Despite limited market attention, its improving fundamentals and strategic R&D focus make it a compelling story for investors looking beyond the obvious names.
Written by Akshay Sanghavi
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