Synopsis: The shares of this chemical company were in the news today as it received a notice from the Regional Officer, Maharashtra Pollution Control Board, which ordered the shutdown of its Ambernath plant.
The shares of this company, which manufactures and deals in dyes, sizing chemicals, auxiliaries and electrical capacitors, were in the spotlight today as the company announced that it has received a notice from the pollution control board, which demands the shutdown of its Ambernath unit.
With a market cap of Rs 2,334 crore, the shares of Indokem Ltd crashed 5 per cent in today’s trading session and reached a low at Rs 829.15 when compared to its previous day’s closing price of Rs 872.75.
About the notice.
Indokem Ltd has shared that it has received a notice from the Maharashtra Pollution Control Board (MPCB) asking it to shut down its Ambernath unit within 72 hours. According to the MPCB notice, the company is alleged to have violated key environmental regulations, specifically the Water (Prevention and Control of Pollution) Act, 1974, and the Air (Prevention and Control of Pollution) Act, 1981, along with the rules framed under these laws.
These Acts govern how industrial units must treat wastewater, manage emissions, and operate pollution-control systems. The notice suggests that the unit may not have met certain compliance requirements under these statutes, prompting the directive for closure.
This puts the spotlight on the plant’s compliance record, but the company is already preparing a detailed response to get the order withdrawn. It also reassured that it has always followed the required environmental rules and will continue working closely with the authorities to clear the situation.
There will be financial distress caused by the closure of this unit, and its effect will be seen in the upcoming results of the company.
Financials and others.
The revenue from operations for the company stood at Rs 40.30 crore in Q2 FY26; when compared to Rs 43.29 crore in Q2 FY25, it has fallen by about 7 per cent on a YoY basis and on a QoQ basis, falling by 3 per cent from Rs 41.57 crore in Q1 FY26.
The PAT grew when you compare the Q2 FY26 profit at Rs 0.41 crore to the Rs 0.01 crore loss in Q2 FY25 and, on a QoQ basis, has fallen by 41 per cent from Rs 0.7 crore in Q1 FY26. The shares are trading at an ROCE and ROE of 7.38% and 5.21%, respectively.
Indokem Ltd, part of the Khatau group, was founded in 1946 and was among the early Indian companies to tap into the rising textile industry. Over the years, it has built a strong presence in textile dyes and chemicals, driven by a customer-centric approach and a focus on delivering value-added solutions. The company continues to serve both domestic and international markets with reliable support.
Written by Leon Mendonca.
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