Prasol Chemicals IPO is a ₹500 crore mainboard issue of Prasol Chemicals Limited, comprising a ₹80 crore fresh issue and a ₹420 crore Offer for Sale (OFS). The IPO opens for subscription on September 8, 2026, and closes on September 10, 2026, with the shares proposed to list on the BSE and NSE on September 16, 2026. The Prasol Chemicals IPO price band is fixed at ₹643 to ₹676 per equity share, while the minimum retail application requires 22 shares, amounting to ₹14,872 at the upper price band. The company has reported strong FY26 revenue and profit growth, alongside improving operating and net profit margins, although manufacturing concentration, cash-flow volatility and contingent liabilities remain important risks for investors.
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Table of Contents
- Prasol Chemicals IPO 2026 Overview
- Prasol Chemicals IPO Dates and Timeline
- Prasol Chemicals IPO Price and Issue Structure
- Prasol Chemicals IPO Valuation
- Prasol Chemicals Business Model
- Prasol Chemicals Financial Performance
- Revenue and Profit Growth
- Margin Analysis
- Balance Sheet and Cash Flow Analysis
- Use of Prasol Chemicals IPO Proceeds
- Prasol Chemicals IPO Strengths
- Prasol Chemicals IPO Risks
- Prasol Chemicals IPO Review: Key Takeaways for Investors
- Prasol Chemicals IPO FAQs
Prasol Chemicals Limited is a specialty chemicals manufacturer focused on forward-integrated production of acetone and phosphorus-based specialty chemical derivatives. Its products are used across pharmaceuticals, agrochemicals, home care and personal care applications.
The Prasol Chemicals IPO 2026 has a total issue size of ₹500 crore. Of this, ₹80 crore will come through a fresh issue, while ₹420 crore will be offered for sale by the promoter and selling shareholders.
At the upper price band of ₹676, the company commands an implied market capitalisation of approximately RS 4000.8 Cr.
Prasol Chemicals IPO Key Details
| IPO Parameter |
Details |
| Company |
Prasol Chemicals Limited |
| IPO type |
Mainboard IPO |
| Total issue size |
₹500 crore |
| Fresh issue |
₹80 crore |
| Offer for Sale |
₹420 crore |
| Price band |
₹643 to ₹676 per share |
| Face value |
₹2 per share |
| Retail lot size |
22 shares |
| Retail investment at cap price |
₹14,872 |
| Listing exchanges |
BSE and NSE |
| Tentative listing date |
September 16, 2026 |
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Get the latest details on the issue size, price band, lot size, and key timelines with the Prasol Chemicals IPO before evaluating the offer.
The Prasol Chemicals IPO opens for public subscription on Tuesday, September 8, 2026, and closes on Thursday, September 10, 2026. Anchor bidding is scheduled for September 7, ahead of the public issue.
The basis of allotment is expected on September 11, followed by the initiation of refunds and demat credit on September 15. The tentative listing date is September 16, 2026.
| IPO Event |
Date |
| Anchor bidding |
September 7, 2026 |
| IPO opens |
September 8, 2026 |
| IPO closes |
September 10, 2026 |
| Basis of allotment |
September 11, 2026 |
| Refunds / Demat credit |
September 15, 2026 |
| Tentative listing |
September 16, 2026 |
JM Financial Limited and DAM Capital Advisors Limited are the Book Running Lead Managers (BRLMs), while KFin Technologies Limited is the registrar to the offer.
The Prasol Chemicals IPO price band has been fixed at ₹643 to ₹676 per equity share, with each share having a face value of ₹2.
The ₹500 crore issue is predominantly an OFS. The fresh issue accounts for only ₹80 crore, representing 16% of the total issue size, while the remaining ₹420 crore is an Offer for Sale by the promoter and selling shareholders.
This distinction is important because proceeds from the OFS generally go to the selling shareholders, whereas the fresh issue provides funds directly to the company for its stated purposes.
Prasol Chemicals IPO Lot Size
Retail investors must apply for a minimum of 22 equity shares. At the upper price band of ₹676, the minimum investment is:
22 shares × ₹676 = ₹14,872
Applications can subsequently be made in multiples of 22 shares.
At the upper price band of ₹676 per share, Prasol Chemicals has an implied market capitalisation of approximately RS 4000.8 Cr
The valuation needs to be viewed alongside the company's recent improvement in revenue, profitability and margins. Revenue from operations increased to ₹1,232.59 crore in FY26, while PAT reached ₹83.12 crore.
The company also recorded a substantial improvement in operating EBITDA margin, which reached 11.30% in FY26, compared with 6.91% in FY24. Its PAT margin increased from 2.07% in FY24 to 6.74% in FY26.
However, the FY26 financial table provided compares consolidated figures for FY24 and FY25 with standalone figures for FY26. Therefore, the reported FY25 to FY26 growth rates should be read in the context of this basis-of-presentation difference rather than treated as a fully like-for-like consolidated comparison.
Prasol Chemicals operates in specialty chemistry, with a portfolio centred on acetone and phosphorus derivatives as well as complex chemistry products.
The company's products are used as raw materials and ingredients across several end markets, including:
- Pharmaceuticals and API synthesis
- Agrochemicals
- Home care products
- Personal care products
- Sunscreens
- Shampoos
- Disinfectants
- Flavours and fragrances
The company operates as a 3-Star Export House and exports its products to 69 countries. Its customer base reached 1,618 customers in FY26, indicating a broad customer network.
The top 10 customers accounted for 23.68% of operational revenues in FY26. This provides context on customer concentration, with the majority of operating revenue coming from customers outside the top 10.
Research and Product Development
Prasol Chemicals has an R&D team of 37 researchers, with 40 specialty chemical formulations under active development.
This product pipeline provides a potential avenue for expanding its specialty chemistry portfolio, although the provided data does not quantify the future revenue contribution from these formulations.
Prasol Chemicals reported significant growth in revenue and profitability over the period covered by the provided financial data.
Revenue from operations increased from ₹876.57 crore in FY24 to ₹1,012.49 crore in FY25, before reaching ₹1,232.59 crore in FY26. The FY26 figure represents a 21.74% increase over FY25 based on the figures provided.
PAT increased from ₹18.13 crore in FY24 to ₹43.57 crore in FY25, and further to ₹83.12 crore in FY26. The reported FY25 to FY26 increase in PAT was 90.77%.
FY24 Financial Performance
| Financial Metric |
FY24 |
| Revenue from operations |
₹876.57 crore |
| Profit Before Tax (PBT) |
₹33.51 crore |
| Profit After Tax (PAT) |
₹18.13 crore |
| Operating EBITDA margin |
6.91% |
| PAT margin |
2.07% |
| Total assets |
₹626.36 crore |
| Operating cash flow |
₹115.61 crore |
FY25 Financial Performance
| Financial Metric |
FY25 |
| Revenue from operations |
₹1,012.49 crore |
| Profit Before Tax (PBT) |
₹59.29 crore |
| Profit After Tax (PAT) |
₹43.57 crore |
| Operating EBITDA margin |
8.67% |
| PAT margin |
4.30% |
| Total assets |
₹723.09 crore |
| Operating cash flow |
₹22.26 crore |
FY26 Financial Performance
| Financial Metric |
FY26 |
| Revenue from operations |
₹1,232.59 crore |
| Profit Before Tax (PBT) |
₹111.90 crore |
| Profit After Tax (PAT) |
₹83.12 crore |
| Operating EBITDA margin |
11.30% |
| PAT margin |
6.74% |
| Total assets |
₹839.28 crore |
| Operating cash flow |
₹49.47 crore |
*FY26 figures in the provided data are standalone, while FY24 and FY25 figures are consolidated.
Prasol Chemicals recorded strong growth in both revenue and profitability between FY24 and FY26, with profit growth significantly outpacing revenue growth.
Revenue Growth
Prasol Chemicals' revenue from operations increased from ₹876.57 crore in FY24 to ₹1,232.59 crore in FY26.
Based on the supplied figures, the two-year revenue CAGR is 18.58%.
Revenue CAGR = [(₹1,232.59 crore / ₹876.57 crore)^(1/2) - 1] × 100 = 18.58%
The progression indicates that revenue expanded at a double-digit compound rate over the two-year period covered by the data.
Profit Growth
Profitability expanded considerably faster than revenue.
PAT rose from ₹18.13 crore in FY24 to ₹83.12 crore in FY26, resulting in a calculated two-year PAT CAGR of 114.12%.
PAT CAGR = [(₹83.12 crore / ₹18.13 crore)^(1/2) - 1] × 100 = 114.12%
PBT also increased from ₹33.51 crore in FY24 to ₹111.90 crore in FY26.
The sharp increase in profitability relative to revenue was accompanied by expansion in both operating EBITDA margin and PAT margin.
Margin expansion is an important part of the Prasol Chemicals IPO analysis, as the company reported improvement in both operating EBITDA margin and PAT margin over the period covered by the financial data.
FY24 Margin
| Margin Metric |
FY24 |
| Operating EBITDA margin |
6.91% |
| PAT margin |
2.07% |
FY25 Margin
| Margin Metric |
FY25 |
| Operating EBITDA margin |
8.67% |
| PAT margin |
4.30% |
FY26 Margin
| Margin Metric |
FY26 |
| Operating EBITDA margin |
11.30% |
| PAT margin |
6.74% |
The operating EBITDA margin increased from 6.91% in FY24 to 11.30% in FY26, representing an expansion of 439 basis points. The PAT margin rose from 2.07% to 6.74%, an improvement of 467 basis points.
The combination of revenue growth and margin expansion contributed to the substantial increase in absolute profitability. However, FY26 figures are standalone, whereas FY24 and FY25 figures are consolidated in the provided data. This difference in reporting basis should be considered when interpreting the margin movement across the years.
Prasol Chemicals' total assets increased from ₹626.36 crore in FY24 to ₹723.09 crore in FY25 and ₹839.28 crore in FY26. Based on the supplied figures, total assets increased 16.07% from FY25 to FY26.
FY26 total equity or net worth stood at ₹448.51 crore, while Return on Net Worth (RoNW) was 18.53%.
Operating Cash Flow
Operating cash flow has been volatile during the period.
It declined sharply from ₹115.61 crore in FY24 to ₹22.26 crore in FY25, before recovering to ₹49.47 crore in FY26.
The FY25 to FY26 increase was 122.24%, but FY26 operating cash flow remained below the FY24 level.
This makes cash-flow conversion an important metric to monitor alongside the company's reported improvement in PAT.
The fresh issue component of the Prasol Chemicals IPO is ₹80 crore.
Of this amount, ₹60 crore is proposed to be used towards partial or full repayment of outstanding debt.
The company's total outstanding debt stood at ₹343.67 crore as of July 15, 2026.
Debt repayment should reduce the company's outstanding borrowings and is expected to lower annual interest servicing costs. Based on the supplied analysis, the resulting reduction in leverage could also support an improvement in Return on Capital Employed (ROCE).
The remaining portion of the ₹80 crore fresh issue is not specified in the provided data, so no additional use-of-proceeds assumptions can be made.
The Prasol Chemicals IPO presents several strengths based on the company's operating and financial data.
1. Strong Revenue Growth
Revenue from operations increased from ₹876.57 crore in FY24 to ₹1,232.59 crore in FY26, corresponding to a calculated two-year CAGR of 18.58%.
2. Significant Profitability Improvement
PAT increased from ₹18.13 crore in FY24 to ₹83.12 crore in FY26. The calculated two-year PAT CAGR stands at 114.12%.
The increase in PAT was significantly faster than revenue growth.
3. Expanding Operating Margins
Operating EBITDA margin improved from 6.91% in FY24 to 11.30% in FY26, representing a 439-basis-point expansion.
PAT margin also increased from 2.07% to 6.74%.
4. Diversified Specialty Chemical Portfolio
Prasol Chemicals manufactures acetone and phosphorus derivatives and supplies products across pharmaceutical, agrochemical, home care and personal care applications.
The company also has 40 specialty chemical formulations under development, supported by an R&D team of 37 researchers.
5. International Customer Reach
The company exports to 69 countries and had a customer base of 1,618 in FY26.
The top 10 customers contributed 23.68% of operational revenue, meaning revenue is not predominantly dependent on these largest customers based on the supplied figures.
6. Potential Balance Sheet Improvement
The ₹60 crore debt repayment allocation from the fresh issue can reduce borrowings from the reported ₹343.67 crore outstanding as of July 15, 2026.
Lower debt could reduce interest servicing requirements and strengthen the balance sheet.
Despite the improvement in financial performance, investors should consider several business and financial risks.
1. Manufacturing Facility Concentration
Prasol Chemicals' manufacturing operations are concentrated across facilities in Maharashtra, specifically Mahad and Khopoli.
The Mahad facility experienced an approximately six-month shutdown in FY24 due to gas leakage incidents.
The facility also reported a loss of ₹12.17 crore at 44.09% capacity utilisation in FY26.
This concentration creates operational exposure because disruptions at key manufacturing facilities can affect production and financial performance.
2. Operating Cash Flow Volatility
Operating cash flow fell from ₹115.61 crore in FY24 to ₹22.26 crore in FY25 before recovering to ₹49.47 crore in FY26.
Although the FY25 to FY26 recovery was 122.24%, the FY26 figure remained below FY24.
Investors therefore need to assess cash generation alongside reported accounting profits.
3. Contingent Liabilities
Total contingent liabilities stood at ₹109.12 crore as of March 31, 2026.
This represented 24.33% of net worth.
The level of contingent liabilities is therefore a material consideration when assessing the company's overall financial obligations and balance sheet risk.
4. FY26 Comparison Basis
The supplied financial table reports FY24 and FY25 figures on a consolidated basis, while FY26 figures are standalone.
Consequently, the reported FY25 to FY26 growth rates and two-year comparisons should be interpreted with this difference in reporting basis in mind.
The Prasol Chemicals IPO combines strong reported revenue and profit growth with notable margin expansion. Revenue from operations increased to ₹1,232.59 crore in FY26, while PAT rose to ₹83.12 crore. The company's EBITDA margin stood at 11.30%, while its PAT margin was 6.74% in FY26.
The company's specialty chemical portfolio, exports to 69 countries, broad customer base and pipeline of specialty chemical formulations under development support its business profile. Prasol Chemicals manufactures acetone-based, phosphorus-based and other customised specialty chemicals serving sectors including pharmaceuticals, agrochemicals and home and personal care.
The proposed use of ₹60 crore from the fresh issue towards repayment or pre-payment of borrowings is another positive factor, as it can reduce outstanding debt and associated interest costs. The company's outstanding indebtedness was approximately ₹343.7 crore as of July 15, 2026.
However, the IPO also carries identifiable risks. Manufacturing concentration in Maharashtra, the previous shutdown at the Mahad facility, volatility in operating cash flow and contingent liabilities need to be considered. Investors should also note that the financial figures presented for FY26 are on a standalone basis, while FY24 and FY25 figures in the supplied comparison are consolidated.
At the upper price band of ₹676 per share, investors should assess the IPO valuation alongside the company's revenue growth, profitability, margin expansion, leverage, cash-flow generation and operational risks. Overall, the financial improvement is a key positive, but the company's cash-flow volatility, manufacturing concentration and balance-sheet considerations remain important factors in evaluating the Prasol Chemicals IPO.
Want to compare Prasol Chemicals with other mainboard issues across sectors? Use the IPO dashboard to track issue sizes, price bands, listing details, and other key IPO parameters.
1. What is the Prasol Chemicals IPO price band?
The Prasol Chemicals IPO price band is ₹643 to ₹676 per equity share. Each equity share has a face value of ₹2.
2. What is the Prasol Chemicals IPO date?
The Prasol Chemicals IPO opens for public subscription on September 8, 2026, and closes on September 10, 2026. Anchor bidding is scheduled for September 7, 2026.
3. What is the Prasol Chemicals IPO issue size?
The total Prasol Chemicals IPO issue size is ₹500 crore, comprising a ₹80 crore fresh issue and a ₹420 crore Offer for Sale.
4. What is the minimum investment for the Prasol Chemicals IPO?
The minimum retail lot is 22 shares. At the upper price band of ₹676, the minimum investment is ₹14,872.
5. What is the Prasol Chemicals IPO valuation?
At the upper price band of ₹676 per share, Prasol Chemicals has an implied market capitalisation of approximately RS 4000.8 Cr. The company reported FY26 revenue from operations of ₹1,232.59 crore and PAT of ₹83.12 crore in the supplied financial data.
6. Is Prasol Chemicals IPO worth applying for?
Prasol Chemicals IPO may be worth considering for investors seeking exposure to a specialty chemicals company with strong FY26 revenue and profit growth, improving margins and a planned ₹60 crore debt repayment from the fresh issue. However, manufacturing concentration, operating cash-flow volatility and contingent liabilities remain key risks. Investors should assess the Prasol Chemicals IPO price and valuation alongside its financial performance and risks before deciding whether to apply.