Anupam Rasayan CDMO scale-up and acquisitions drive high-value specialty chemicals growth

Investment View and Rating Change

In its August 19, 2026 result update, Deven Choksey Research changed its rating on Anupam Rasayan India Ltd. to ACCUMULATE. The investment case is based on the company’s transition from a conventional specialty-chemicals supplier to a diversified, high-value custom synthesis and advanced-materials platform.

Anupam Rasayan is expanding its exposure to pharma CDMO, performance materials, electronic chemicals, EV battery materials, semiconductors, aerospace and defence. This is intended to reduce its dependence on cyclical agrochemicals.

The broker’s target price is Rs 1,374, compared with a CMP of Rs 1,226. The target is based on 38 times FY28E forward PE.

Q1 FY27 Financial Performance

Q1 FY27 revenue in the broker’s financial snapshot was Rs 6,550 million, increasing 31.0 per cent year on year and 27.8 per cent quarter on quarter, although it was 9.4 per cent below Deven Choksey’s estimate. EBITDA rose 12.4 per cent year on year and 27.4 per cent quarter on quarter to Rs 1,624 million. The EBITDA margin of 24.8 per cent was broadly in line with the broker’s estimate, supported by a better contribution from high-value products.

PAT declined 13.3 per cent year on year and 21.2 per cent quarter on quarter to Rs 386 million, while the PAT margin fell to 5.9 per cent. Higher depreciation and finance costs following recent acquisitions affected profitability. In the Q1 FY27 concall, management reported consolidated revenue of Rs 667.55 crore, up 36 per cent year on year, with exports representing 36 per cent of revenue.

Custom Synthesis and Advanced-Materials Platform

Anupam Rasayan commercialised three molecules in Q1 FY27, taking its portfolio to more than 125 products. More than 90 molecules remain under development across agrochemicals, pharma, semiconductors, EV batteries and performance materials.

The broker highlights the company’s complex-chemistry capabilities in continuous flow chemistry, photochemistry and fluorination. It notes that Anupam Rasayan was the first globally to commercialise Ethyl Trifluoroacetate using continuous-flow chemistry, viewing this as evidence of R&D execution, scalability and process control.

Tanfac Industries provides access to key fluorination inputs such as hydrofluoric acid and potassium fluoride. This improves supply security and supports the development of higher-value fluorinated products.

Acquisitions and Expansion Potential

Jayhawk Fine Chemicals

The acquisition of US-based Jayhawk Fine Chemicals, at an enterprise value of about US$134 million, strengthens Anupam Rasayan’s access to high-purity specialty chemicals and semiconductor, electronics and defence customers.

Jayhawk’s approximately 800-acre site is currently utilised at below 10 per cent, providing substantial brownfield expansion potential. Management expects Jayhawk to add 10–15 per cent to overall revenue growth.

Bliss GVS Pharma

The Bliss GVS Pharma acquisition, involving consideration of about Rs 1,600 crore, was expected to close in September 2026. Management is targeting an increase in Bliss utilisation from about 30 per cent to 60–70 per cent over two to three years. Cross-selling is expected to support operating leverage.

Management expects 20–25 per cent organic revenue growth in FY27, in addition to a 10–15 per cent contribution from Jayhawk. It does not expect major additional capex beyond investments already reflected in the balance sheet.

Growth Catalysts and Financial Outlook

Deven Choksey identifies the following as key catalysts:

• The Rs 1,75,000 crore letter-of-intent pipeline.
• Commercialisation of Tanfac’s HFC-32, targeted for Q3 FY27.
• Scaling of US performance-material revenues.

The broker forecasts FY26–FY28 revenue, EBITDA and PAT CAGR of 39 per cent, 42 per cent and 56 per cent, respectively. Its FY27E and FY28E revenue estimates are Rs 34,585 million and Rs 45,773 million, while FY28E EPS is estimated at Rs 36.2.

Valuation and Key Risks

The target price of Rs 1,374 is based on 38 times FY28E forward PE. Deven Choksey observes that specialty-chemical peers trade at around 30 times FY28E PE.

Key risks identified by the broker include:

• Challenges in acquisition integration and execution.
• Slower order or LOI conversion.
• Product-mix changes and input-cost pressure affecting margins.
• Fluctuations in end-market demand.
• Elevated leverage constraining growth and profitability.