Analysis: Indo Borax & Chemicals Limited

Growth thesis

Indo Borax & Chemicals Ltd produces boric acid (50% Indian market share), DOT (agriculture micronutrient), boron oxide, and gypsum byproducts. Key segments include technical-grade boric acid (steel/refractories) and IP-grade (pharma/personal care), with DOT at 8% market share. Growth stems from scaling DOT production to 1,500 tons (from 980 tons FY26) and expanding IP-grade sales through marketing investments. Debottlenecking projects aim to optimize boric acid capacity (20,000 tons nameplate) without major CAPEX. Over 2-3 years, revenue could grow 20-35% annually as DOT scales and boron oxide (2.5x-3x pricing) enters commercial production by 2027-2028. Margins remain stable at 20-22% due to raw material contracts. Key execution risk: delayed boron oxide commercialization and DOT market adoption in agritech regions.

Why is Indo Borax & Chemicals Limited stock rising?

• Targeting revenue of Rs. 250+ crore in FY27 through debottlenecking, improved realisation, and introduction of new products
• Aiming to increase DOT sales by ~50% to 1,500 tons in the coming year, with further high double-digit growth in subsequent years
• Commissioning Boron Oxide plant within 3-4 quarters to tap into new applications and replace Boric Acid in certain uses
• Expanding Boric Acid capacity by 1,000-1,500 tons through operational efficiencies, with a larger capacity expansion under active discussion
• De-risking raw material sourcing by diversifying to suppliers from South America and North America beyond Turkey

Research report

companyname: Indo Borax & Chemicals Limited ticker: INDOBORAX sector: Chemicals / Specialty Chemicals Indo Borax & Chemicals Limited is a Mumbai-headquartered manufacturer of boron-based chemicals, incorporated in 1980. Its single manufacturing site is in Pithampur, Madhya Pradesh, with a total installed capacity of about 26,000 tons per annum (20,000 tons boric acid and 6,000 tons disodium octaborate tetrahydrate). The company employed 106 permanent staff as of FY2025. "Indo Borax & Chemical...

Catalysts

capex, new product segment, management upgrade

Growth guidance

FY27 revenue guided at Rs. 250-plus crore driven by capacity optimisation, improved operational efficiency, and higher realisations