A leading industrial supplier has secured significant orders in the petroleum sector, marking a substantial milestone in its operational expansion. The contracts, valued at ₹76.5 crore, represent a strategic partnership with two major national petroleum corporations.
The order encompasses the supply of specialised bitumen grades, including VG 30 and VG 40, totalling 18,000 metric tons. This substantial delivery underscores the company’s robust manufacturing capabilities and its strong position in the industrial supply chain.
Share Price Movement
The share price of Agarwal Industrial Corporation Limited went up by 3.05 percent to Rs. 1,079.05 per share on Wednesday, an increase from its previous close of Rs. 1,047.10 per share. The market capitalisation now stands at approximately Rs. 1,614.02 crore as of November 27, 2024.
What Happened
The company has secured orders worth ₹76.5 crore from Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation (IOC). These orders involve the supply of bulk bitumen. For BPCL, the company will deliver VG 30 grade bitumen totalling 12,500 MT, valued at approximately ₹55 crore. Additionally, the supply to IOC includes VG 30 and VG 40 grades, amounting to 5,500 MT, with an estimated value of ₹21.5 crore.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Agarwal Industrial Corporation’s consolidated revenue from operations has increased by 40.5 percent YOY from Rs. 232 crore in Q2 FY24 to Rs. 326 crore in Q2 FY25 and decreased by 53.9 percent QoQ from Rs. 708 crore in Q4 FY24.
The company’s consolidated net profit has increased by 12.5 percent, from Rs. 16 crore in Q2 FY24 to Rs. 18 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 53.8 percent QoQ from Rs. 39 crore.
Market Outlook
The company is engaged in the manufacturing and trading of bitumen and allied products, which are widely used in infrastructure projects. Additionally, the company has diversified into power generation through windmills, indicating a focus on renewable energy. The management seems optimistic about sustaining the growth trajectory by continuing to focus on operational efficiencies and exploring new market opportunities.
The company’s presence across manufacturing, bulk bitumen storage, and transportation, as well as its investments in wind power generation, suggest a well-diversified business model positioned for growth in the infrastructure and energy sectors.
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Large Entry Barriers
Agarwal faces significant entry barriers in India’s manufacturing and terminal storage sectors, including the need for 10 vessels, 7 manufacturing facilities, and 7 bulk storage terminals. Despite efficiently utilising 30,500 MT storage, challenges include high paving costs for cement roads and safety concerns with bitumen roads, deterring new industry entrants.
Shareholding Pattern
As of the November 2024 shareholding pattern, Agarwal Industrial Corporation Limited is primarily held by the promoters at 57.2 percent, domestic institutional investors hold 0.38 percent, and the public with 36.91 percent.
About Company
Agarwal Industrial Corporation Limited (AICL), a leader in India’s petrochemical sector, specialises in bitumen manufacturing and trading. Established in 1995 and headquartered in Mumbai, the company operates across diverse segments, including logistics and renewable energy. Its strategic focus on innovation and operational efficiency has bolstered its market presence, both domestically and internationally.
AICL’s business portfolio includes producing advanced bitumen products, offering logistics services with over 650 specialised vehicles, and generating renewable energy via windmills. The company manages seven bulk storage terminals with a 30,000 MT capacity and operates six cutting-edge manufacturing plants. Additionally, AICL’s global footprint spans five countries, demonstrating its international appeal. These diverse operations ensure AICL remains competitive and agile in meeting industry demands.
By leveraging its robust infrastructure and market expertise, AICL continues to expand. Focused on sustainable growth and innovation, it remains poised to capitalise on opportunities in India’s booming infrastructure sector.
Written By Fazal Ul Vahab C H
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