Epigral touched a high if Rs 1208.90 on Monday after Q1 revenue jumped 16% and the company unveiled a ₹600 crore epoxy resin expansion plan.

The specialty chemicals maker reported revenue of ₹705.4 crore for the quarter ended June 30, up from ₹606.5 crore a year ago.

Operating profit, or EBITDA, rose too, holding margins steady at around 25%. Net profit, though, came in lower at ₹99.7 crore compared to ₹160.7 crore last year.

That fall looks worrying at first glance, but it isn’t really about the business slowing down. It comes down to tax. Last year, Epigral had booked a one-time tax benefit of nearly ₹81 crore after shifting to a lower tax rate.

This year, there was no such benefit, just a regular tax bill of ₹34 crore. Once that difference is accounted for, the company’s actual operating profit before tax was up 25% from last year.

Alongside the results, Epigral confirmed plans to enter the epoxy resin business, a material used in everything from wind turbine blades to car parts and industrial coatings.

The company will build a new plant with a capacity of 1,25,000 tonnes a year at its existing Dahej site in Gujarat, along with a separate multi-purpose plant, both expected to be up and running by the second half of FY28.

Before that, a smaller pilot unit is planned to go live by the second quarter of FY27 to test the process and get customer approvals early.

In the weeks before this announcement, Epigral had also set up a new subsidiary, Epigral Advanced Materials Limited, and saw its credit rating reaffirmed by CRISIL in June.

By the end of Monday’s trading session, Epigral shares settled at ₹1,157, slightly lower by 0.49% from the previous close, after giving up the gains seen earlier in the day.

In the broader market, the stock was later seen trading near ₹1,165, up about 0.20%.

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