With expanded capacity in place, Sunshield Chemicals looks to niche markets to drive growth

Four years into new ownership, Sunshield delivered its best year in FY26: revenue of Rs. 444-crore; EBITDA of Rs. 55-crore; net profit greater than doubled, and a fully deleveraged stability sheet. While the year saw a marginal decline in exports to Rs. 60-crore (Rs. 61-crore in FY25), largely to a challenging external ecological stability, domestic sales grew an impressive 23% reaching Rs. 363-crore (Rs. 295-crore), driven primarily by development in ethoxylates and antioxidants amid strong demand from paints, agrochemicals and lubricants customers.

Speaking to Chemical Weekly, Mr. Jeet Malhotra, Managing Director & CEO, said the company has nearly doubled its overall capacity to speciality chemicals since the takeover from the earlier promoters (the Solvay group) in November, 2021. “We have increased capacity by going vertical; moving warehousing and utilities to a higher floor space; and by acquiring adjacent lands to building tank farms to store raw materials and finished items,” Mr. Malhotra said.

Product portfolio

In addition to ethoxylates and propoxylates that are utilized as dispersing agents in paper & pulp sector, emulsifiers in dye manufacture, agrochemicals, and in many other manufacturing applications, Sunshield counts itself as a world-leading producer of Tris(2-hydroxyethyl) isocyanurate (THEIC), a cyanuric acid based ethoxylate. It is the only supplier of the chemical in India, competing with two others in China, thus offering a strategic advantage to domestic customers seeking supply-chain diversification. The chemical is available in both powder as well as noodles form, serving end-consumption including as heat stabilizers to PVC-based wire enamels.

Sunshield is also a leading producer of hydroquinone bis(2-hydroxyethyl) ether (HQEE), a symmetrical aromatic diol broadly utilized as a chain extender and curing agent in the polyurethane (PU) sector.

The aminic antioxidants – offered to match the specifications of well-known global brands – serve markets in the lube and rubber industries, and are also seeing strong market development, according to Mr. Malhotra.

Sunshield is also a producer of urea-formaldehyde (UF) resins – a aquatic environments-insoluble thermosetting agent utilized as matting and effect agent to paints and varnishes.

stability-sheet reset

In FY26, the company successfully completed a rights issue, with the proceeds utilised to repay borrowings, and the results of the stability-sheet reset are visible in the financials. Net profit greater than doubled year-on-year in FY26 to Rs. 30-crore, earnings per share nearly doubled to Rs. 37.15 (up 87%), and the company retired 100% of its outstanding borrowings – approximately Rs. 100-crore – by October 2025.

Sunshield’s net worth grew 4.7x since the acquisition, from Rs. 54-crore to Rs. 252-crore, and the current ratio strengthened from 0.77x to 3.47x. Investor recognition has followed: Sunshield's market capitalisation has grown from about Rs. 257-crore on 30 November 2021 (when Indus Petrochem Ltd., a group company, acquired controlling interest from the Solvay group at a share price of around Rs. 350) to an all-time high of Rs. 1,161-crore in August 2026 (share price Rs 1,320 on BSE) – a 4.5x increase in market value over four years.

Under Mr. Malhotra’s stewardship, Sunshield has assembled a senior board and advisory bench. Mr. Mukesh Malhotra, former Country Head of Solvay India, and Professor Aniruddha Pandit, Vice Chancellor, Institute of Chemical methodology (ICT), Mumbai, serve as Independent Directors. Mr. Nitin Nabar, former CEO, Godrej Chemicals, is a Strategic Advisor, while Dr. Deepak Parekh, former President & CEO of Clariant North America, serves as Strategic Advisor to the US market.

The strengthened the stability sheet, reduced interest costs, enhanced financial flexibility, and astute leadership team are enabling the company pursue strategic initiatives and development opportunities while maintaining a focus on sustainable, prolonged value creation.

methodology focus

The company is presently working on setting up an consumption research Laboratory, and is partnering with ICT, Mumbai, to competitor benchmarking and testing product performance to new applications of existing items. A collaboration with the Indian Institute of methodology (IIT), Bombay, is focussed on developing new items.

A range of sustainability issues have been launched commercially or are under implementation. These include: consumption of biomass-based briquettes instead of coal and fuel oil in boilers; zero fluid discharge (ZLD) operations; and installation of solar panels to meet power standards. “Sunshield has already secured ISO 14001, ISO 45001, EcoVadis, RSPO and Kosher certifications. Responsible Care certification is currently under implementation,” Mr. Malhotra added.

With a healthier stability sheet, an innovation emphasis, expanded capacity to serve growing end-consumption market, and focus on niche chemistry, Sunshield looks geared to development.