Thirumalai Chemicals Ltd – Financial Results Filing Summary
For the quarter ended 30 June 2025 (Q1 FY26)

1. Auditor’s Note

• Type of report: Limited Review Report on standalone and consolidated unaudited quarterly financial results.
• Auditor: Walker Chandiok & Co LLP.
• Conclusion:
  • No qualifications, concerns, or issues reported.
  • The auditor states that nothing has come to their attention to indicate material misstatements or non-compliance with applicable accounting standards and SEBI regulations.
  • The review was conducted as per applicable standards (SRE 2410).
• Subsidiaries:
  • One subsidiary’s results reviewed by other auditors; no modification to opinion.
  • Two subsidiaries’ results not reviewed but considered immaterial.
• Overall: Standard boilerplate unqualified review report.

2. Financial Performance

*Note: Q4 FY25 figures represent the difference between audited full year FY25 and unaudited 9 months ended Dec 31, 2024.

Margins:

• Not explicitly provided; however, standalone Q1 FY26 operating loss before tax indicates margin pressure compared to previous quarters.
• Consolidated results show a loss before tax and net loss in Q1 FY26, compared to profit in Q1 FY25 and Q4 FY25.

3. Detailed Notes / Management Commentary

• Segment:
  • The Group operates in a single reportable segment: manufacture and sale of organic chemicals (per Ind AS 108).
• Accounting policies:
  • Results prepared as per Ind AS 34 and comply with SEBI Listing Regulations.
  • No changes in accounting policies or material adjustments reported.
• Taxation:
  • Negative tax expense (deferred tax credit) in Q1 FY26 standalone and consolidated results.
• Other comprehensive income:
  • Standalone: Positive OCI of ₹1,166 lakhs in Q1 FY26 vs negative in previous quarter.
  • Consolidated: OCI positive ₹944 lakhs in Q1 FY26 vs negative in previous quarter.
• Subsidiaries:
  • One subsidiary with revenue ₹909 lakhs and net loss ₹1,351 lakhs in Q1 FY26.
  • Two subsidiaries with immaterial losses.
• No mention of NPAs, slippages, or AUM (not a financial services company).

4. Segment Information

• Only one reportable segment: Manufacture and sale of organic chemicals.
• No further breakdown by product, geography, or business segment provided.

5. Capex, Projects, and Corporate Activity

• Investment limit increase:
  • Board approved increase in investment limit in TCL Specialties LLC (step-down subsidiary) from USD 105 million to USD 165 million via equity or debt as needed.
• Corporate changes:
  • Appointment of Mr. Aditya Sharma as Company Secretary and Compliance Officer effective August 18, 2025.
  • Resignation of Mr. R. Sampath as Non-Executive Director effective August 14, 2025.
  • Resignation of Mr. R. Pramod Kumar as Company Secretary effective August 18, 2025.
• No disclosures on capital expenditure, impairments, write-downs, acquisitions, disposals, restructuring, or cost-cutting measures in this filing.

6. Standalone vs Consolidated

• Both standalone and consolidated unaudited financial results provided and reviewed.
• Standalone results show a smaller loss compared to consolidated results in Q1 FY26.
• Consolidated results impacted by subsidiary losses (notably one with ₹1,351 lakhs net loss in Q1 FY26).
• Consolidated revenue slightly higher than standalone, reflecting group operations.

Summary for Investment Analysis Team

Recommendation:

• Monitor the impact of increased investment in TCL Specialties LLC on future financials.
• Investigate reasons for sharp decline in profitability and losses at subsidiary level.
• Track management changes for potential impact on governance and compliance.
• Await further disclosures on capex, projects, or strategic initiatives in subsequent filings.