Alkyl Amines faces headwinds from subdued demand, US actions

Alkyl Amines Chemicals Limited experienced a subdued first half of FY26, with marginal volume growth and flat topline due to suppressed prices. Executive director Kirat Patel attributed this to US government actions over the past six months, affecting direct exports to the US, customer demand, and increasing competitive aggression from Chinese players in the domestic market. The company also faced sanctions impacting some Indian distributors within its supply chain.

The methylamines segment was more significantly impacted than ethylamines, which primarily serve the domestic market. While methylamine volumes were lost, the contribution margin per kg was more affected in ethylamines due to selling price reductions. Overall contribution and gross margins were largely protected. The company anticipates subdued volume growth for FY26, falling short of its usual 10-15% annual growth.

Alkyl Amines expects mechanical completion of its new product plant in Kurkumbh by February-March 2026, with commercialization in Q1 FY26-27. This import-substitute product, targeting dyes, pigments, and electronics, has a capital expenditure of approximately INR 120 crores and an expected asset turnover of 1.5.