Sonal Adhesives Limited (BSE: 526901)
Source: Sonal Adhesives Limited Annual Report FY 2025-26 (Fiscal Year Ended March 31, 2026)
📋 Quick Facts: Company Snapshot
| Attribute | Disclosed Detail |
|---|---|
| Official Company Name | Sonal Adhesives Limited |
| Corporate Identity Number (CIN) | L02004MH1991PLC064045 |
| BSE Scrip Code | 526901 |
| Date of Incorporation / Commercial Production Year | 1991 |
| Promoters & Key Founding Figures | Mr. Sandeep Arora and Mrs. Mridu Arora |
| Registered Office & Plant Address | Plot No. 28/1A, Village Dheku, Takai Adoshi Road, Off Khopoli-Pen Road, Taluka – Khalapur, Dist. Raigad, P. O. Khopoli – 410203, Maharashtra |
| Telephone & Investor Relations Contact | Tel: +91 2192 262620 / +91 22 61316131 | Email: info@sonal.co.in / investor@sonal.co.in |
| Chairperson | Ms. Mridu Arora (Non-Executive Director) |
| Managing Director | Mr. Sandeep Arora |
| Chief Financial Officer (CFO) | Mr. Ajeet Singh |
| Company Secretary & Compliance Officer | Mr. Amish Ashar (w.e.f. November 12, 2025) |
| Promoter & Holding Group | Arora Family (Promoters); Associate Company of Sonal Impex Limited |
| Industry / Sector Classification | Packaging Materials & Specialty Chemicals (Adhesive Tapes, Emulsions) |
| Total Permanent Workforce | 26 Employees (3 Female, 23 Male) as of March 31, 2026 |
| Manufacturing Footprint | Integrated Manufacturing Facility at Khopoli, Raigad District, Maharashtra |
| Markets Served | Domestic (India) & International (Export Markets) |
| Statutory Auditors | M/s Haziyani & Associates, Chartered Accountants |
| Secretarial Auditor | CS Prashant Diwan, Practicing Company Secretary |
| Cost Auditors | M/s S K Agarwal & Associates, Practicing Cost Accountants |
| Registrar and Share Transfer Agent (RTA) | MUFG Intime India Private Limited, C-101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai – 400083 |
🏢 The Corporate Identity: Who They Are & Where They Came From
The Big Picture
Sonal Adhesives Limited is an established Indian manufacturer operating in the packaging and specialty chemical sectors. The company specializes in the production of Biaxially Oriented Polypropylene (BOPP) self-adhesive tapes, specialty industrial adhesives, and acrylic emulsions. Headquartered with manufacturing operations in Khopoli, Maharashtra, the enterprise serves critical industrial sectors including e-commerce, third-party logistics (3PL), fast-moving consumer goods (FMCG), pharmaceuticals, food processing, and consumer durables.
During the financial year 2025-26, the business demonstrated sustained top-line momentum, driven by expanding domestic logistics activity and a sharp surge in international exports. Operating within an industrial market benefited by automated carton sealing and branded packaging solutions, the company balances high-volume standard tape production with value-added customized, printed, and application-specific adhesive formulations.
The Founders, Promoters & Their Legacy
The enterprise was founded and promoted by Mr. Sandeep Arora and Mrs. Mridu Arora. Mr. Sandeep Arora, holding a Bachelor’s degree in Business Administration from New York University (NYU), brings over 30 years of operational and strategic leadership in the manufacturing of adhesive tapes and chemical emulsions. As Managing Director, he leads commercial operations, raw material procurement, and business expansion.
Mrs. Mridu Arora serves as Chairperson and Non-Executive Director. Holding a Master of Arts degree, she oversees governance, designing, and resource management with over 14 years of industry experience. Together, the promoter team maintains core executive control over the operational and business direction of the organization.
- Promoter Experience: Managing Director Sandeep Arora holds over three decades of business administration and manufacturing experience in self-adhesive tapes and industrial emulsions.
- Governance Oversight: Chairperson Mridu Arora provides strategic guidance across administrative structures and corporate governance committees.
The Journey: History & Evolution
Sonal Adhesives Limited commenced commercial production in 1991. Over its 35-year operational footprint, the company transitioned from a local tape manufacturer into a specialized packaging materials and chemical emulsions producer capable of catering to strict international standards.
The firm has expanded its capabilities from basic solvent and water-based tape coating to producing acrylic emulsions marketed under established proprietary brands. Key milestones include scaling plant capacities at Khopoli, establishing export distribution channels, securing ISO-compliant operational standards, and modernizing coating lines to process customized printed and heavy-duty packaging tapes.
The Corporate Umbrella
Sonal Adhesives Limited functions as a standalone operating corporate unit without any direct corporate subsidiaries, joint ventures, or associate companies under its ownership. However, the business is categorized as an Associate Company of Sonal Impex Limited.
⚙️ The Business Engine: What They Do & Where They Operate
The Core Divisions
The company’s operations are organized into two primary business units integrated within its manufacturing complex:
- BOPP Self-Adhesive Tapes Division: Focuses on manufacturing single-sided and double-sided self-adhesive packaging tapes. This division generates the primary portion of overall corporate revenue, supplying standard carton-sealing tapes, colored tapes, noise-free packaging tapes, heavy-duty industrial packaging tapes, and custom-printed tapes for brand identity and tamper evidence.
- Specialty Adhesives & Emulsions Division: Formulates water-based acrylic emulsions and specialty chemical adhesives catering to paper conversion, paperboard packaging, textile processing, and industrial lamination applications. Products in this division are marketed under the registered proprietary brand names SONAL and ADICRYL.
The operational framework of both divisions relies heavily on key chemical raw materials, including BOPP films, monomer chemicals, polypropylene resins, and petrochemical derivatives. Strategic emphasis remains anchored on material optimization, adhesive formulation refinement, and energy conservation during industrial processing.
The Product & Service Catalog
The commercial portfolio caters to diverse industrial and commercial sealing requirements:
- BOPP Packaging Tapes: High-tensile, durable pressure-sensitive tapes designed for automated and manual carton sealing across warehousing and shipping networks.
- Customized & Printed Tapes: Specialized tapes engineered with corporate logos, anti-tamper warnings, and custom color codes to support supply chain tracking and brand visibility.
- Specialty Adhesives (SONAL Brand): Polymer-based formulations tailored for rigid box manufacturing, paper lamination, and packaging carton assembly.
- Acrylic Emulsions (ADICRYL Brand): High-performance emulsion polymers synthesized for application in specialty paper coatings, pressure-sensitive label stock, and textile processing.
The Names You Know
The company markets its specialty adhesives and chemical emulsion product range globally under two core brand identities:
- SONAL: Flagship brand name for specialty industrial adhesives used in packaging and paperboard applications.
- ADICRYL: Proprietary brand designation for polymer emulsions and synthetic acrylic binders.
Mapping the Domestic & Global Reach
Sonal Adhesives Limited maintains a dual-market distribution model, supplying domestic industrial hubs across India while aggressively expanding its international export footprint. During FY 2025-26, export turnover experienced extraordinary growth, doubling its contribution to total revenues.
| Geographic Segment | FY 2025-26 Revenue (₹ in Crores) | FY 2024-25 Revenue (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| Domestic Market (India) | 92.48 | 93.76 | -1.37% |
| Export Market (International) | 33.97 | 16.57 | +105.01% |
| Total Revenue from Operations | 126.44 | 110.33 | +14.60% |
Foreign exchange earnings for the financial year ended March 31, 2026, totaled ₹34.20 Crores (compared to ₹17.92 Crores in FY 2024-25), while foreign exchange outgo stood at ₹5.42 Crores (compared to ₹4.71 Crores in FY 2024-25).
The Brick & Mortar Footprint
The company’s administrative and manufacturing operations are consolidated at a single integrated unit in Maharashtra:
- Khopoli Manufacturing Facility: Located at Plot No. 28/1A, Village Dheku, Takai Adoshi Road, off Khopoli-Pen Road, Taluka Khalapur, District Raigad, Maharashtra. The facility integrates polymer emulsion reactors, tape coating towers, slitting and rewinding machinery, custom printing presses, and quality testing laboratories.
📊 The Financial Health: The Numbers Simplified
Earnings, Expenses, & Take-Home Profits
During FY 2025-26, total income expanded to ₹128.27 Crores from ₹111.67 Crores in FY 2024-25, registering top-line growth of 14.87%. Revenue from operations surged 14.60% to ₹126.44 Crores, driven primarily by an exceptional 104.97% surge in export tape sales.
However, total expenses rose from ₹109.25 Crores to ₹126.44 Crores, impacted by elevated raw material prices, increased power and fuel costs, and higher administrative expenses. Cost of materials consumed reached ₹110.98 Crores compared to ₹97.51 Crores in the prior fiscal year. Finance expenses increased to ₹1.62 Crores due to higher short-term working capital borrowings and bank line adjustments. Consequently, Net Profit After Tax (PAT) stood at ₹1.37 Crores compared to ₹1.76 Crores in FY 2024-25.
| Statement of Profit & Loss Line Item | FY 2025-26 (₹ in Crores) | FY 2024-25 (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| Revenue from Operations | 126.44 | 110.33 | +14.60% |
| Other Income | 1.83 | 1.34 | +36.57% |
| Total Revenue | 128.27 | 111.67 | +14.87% |
| Expenses | |||
| Cost of Materials Consumed | 110.98 | 97.51 | +13.81% |
| Purchase of Stock in Trade | 0.31 | 1.32 | -76.52% |
| Changes in Inventories of WIP and Finished Goods | -1.80 | 0.39 | N/M |
| Employee Benefit Expense | 0.51 | 0.52 | -1.92% |
| Finance Cost | 1.62 | 1.29 | +25.58% |
| Depreciation and Amortisation Expense | 1.29 | 0.74 | +74.32% |
| Other Expenses | 13.53 | 7.46 | +81.37% |
| Total Expenses | 126.44 | 109.25 | +15.73% |
| Profit Before Exceptional Item and Tax | 1.83 | 2.43 | -24.69% |
| Exceptional Items | -0.17 | 0.00 | N/M |
| Profit Before Tax | 1.66 | 2.43 | -31.69% |
| Tax Expenses | |||
| Current Tax | 0.16 | 0.50 | -68.00% |
| Deferred Tax Expense / (Credit) | 0.08 | 0.10 | -20.00% |
| Short Provision for Tax Relating to Prior Years | 0.05 | 0.06 | -16.67% |
| Total Tax Expense | 0.29 | 0.66 | -56.06% |
| Profit After Tax (PAT) | 1.37 | 1.76 | -22.16% |
| Other Comprehensive Income (OCI) | |||
| Remeasurements of Defined Benefit Plans | 0.02 | -0.01 | N/M |
| Tax on Remeasurements of Defined Benefit Plans | -0.00 | 0.00 | N/M |
| Total Other Comprehensive Income | 0.01 | -0.01 | N/M |
| Total Comprehensive Income for the Year | 1.38 | 1.76 | -21.59% |
| Earnings Per Equity Share (Face Value ₹10/- per share) | |||
| Basic & Diluted EPS before Exceptional Items (₹) | 2.55 | 2.91 | -12.37% |
| Basic & Diluted EPS after Exceptional Items (₹) | 2.26 | 2.91 | -22.34% |
Assets, Borrowings, & Net Worth
The company’s total assets expanded to ₹49.03 Crores as of March 31, 2026, compared to ₹41.35 Crores in the previous year. Property, Plant and Equipment rose to ₹13.24 Crores due to ongoing plant modernizations. Total Current Assets expanded significantly to ₹34.51 Crores from ₹27.22 Crores, driven by increased inventories of ₹15.76 Crores and higher trade receivables of ₹14.21 Crores.
Total debt expanded during the year. Non-current borrowings grew to ₹6.17 Crores (up from ₹2.39 Crores), while current borrowings increased to ₹15.61 Crores (up from ₹8.71 Crores). This expansion reflected enhanced credit facilities, including the takeover of a ₹5.62 Crores term loan from Kotak Mahindra Bank by Model Co-op Bank with an enhanced credit limit of ₹6.50 Crores. Total Equity expanded to ₹10.35 Crores from ₹8.97 Crores.
| Balance Sheet Line Item | As at March 31, 2026 (₹ in Crores) | As at March 31, 2025 (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| ASSETS | |||
| Non-Current Assets | |||
| Property, Plant and Equipment | 13.24 | 12.74 | +3.92% |
| Investment in Co-op Institutions | 0.05 | 0.00 | N/M |
| Trade Receivables (Non-Current) | 0.82 | 0.96 | -14.58% |
| Other Financial Assets (Non-Current) | 0.42 | 0.42 | 0.00% |
| Other Non-Current Assets | 0.00 | 0.00 | N/M |
| Non-Current Tax Assets (Net) | 0.00 | 0.01 | -100.00% |
| Total Non-Current Assets | 14.53 | 14.13 | +2.83% |
| Current Assets | |||
| Inventories | 15.76 | 12.92 | +21.98% |
| Cash and Cash Equivalents | 0.09 | 0.07 | +28.57% |
| Bank Balances Other Than Cash & Cash Equivalents | 1.19 | 0.95 | +25.26% |
| Other Financial Assets (Current) | 0.02 | 0.01 | +100.00% |
| Trade Receivables (Current) | 14.21 | 11.43 | +24.32% |
| Other Current Assets | 3.23 | 1.85 | +74.59% |
| Total Current Assets | 34.51 | 27.22 | +26.78% |
| Total Assets | 49.03 | 41.35 | +18.57% |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Equity Share Capital | 6.06 | 6.06 | 0.00% |
| Other Equity | 4.29 | 2.91 | +47.42% |
| Total Equity | 10.35 | 8.97 | +15.38% |
| Non-Current Liabilities | |||
| Non-Current Borrowings | 6.17 | 2.39 | +158.16% |
| Provisions (Non-Current) | 0.33 | 0.16 | +106.25% |
| Deferred Tax Liabilities (Net) | 0.49 | 0.41 | +19.51% |
| Total Non-Current Liabilities | 6.98 | 2.95 | +136.61% |
| Current Liabilities | |||
| Current Borrowings | 15.61 | 8.71 | +79.22% |
| Trade Payables – Micro and Small Enterprises | 0.99 | 0.97 | +2.06% |
| Trade Payables – Creditors Other Than Micro & Small Enterprises | 13.68 | 12.52 | +9.27% |
| Other Financial Liabilities (Current) | 0.43 | 6.19 | -93.05% |
| Other Current Liabilities | 0.95 | 0.71 | +33.80% |
| Provisions (Current) | 0.01 | 0.01 | 0.00% |
| Current Tax Liabilities (Net) | 0.03 | 0.33 | -90.91% |
| Total Current Liabilities | 31.70 | 29.43 | +7.71% |
| TOTAL EQUITY AND LIABILITIES | 49.03 | 41.35 | +18.57% |
Cash Flow: Tracking the Money Movement
Operations during FY 2025-26 generated a net cash outflow of ₹7.01 Crores from operating activities, compared to a net inflow of ₹6.90 Crores in FY 2024-25. This outflow was primarily caused by working capital expansion, including inventory additions of ₹2.84 Crores and trade receivable increases of ₹2.65 Crores.
Investing activities utilized ₹2.01 Crores, mainly comprising capital expenditure on fixed assets of ₹1.78 Crores and securities purchases of ₹0.05 Crores. Financing activities provided ₹9.05 Crores, supported by short-term loan drawdowns of ₹6.89 Crores and long-term borrowing additions of ₹3.78 Crores, net of ₹1.62 Crores in finance costs paid.
| Cash Flow Statement Summary Item | FY 2025-26 (₹ in Crores) | FY 2024-25 (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| Operating Profit Before Working Capital Changes | 4.51 | 4.42 | +2.04% |
| Net Cash from Operating Activities | -7.01 | 6.90 | N/M |
| Purchase of Property, Plant and Equipment (CapEx) | -1.78 | -8.86 | -79.91% |
| Net Cash Used in Investing Activities | -2.01 | -9.06 | -77.81% |
| Net Cash Generated from Financing Activities | 9.05 | 2.20 | +311.36% |
| Net Increase in Cash and Cash Equivalents | 0.02 | 0.04 | -50.00% |
| Cash and Cash Equivalents at Beginning of Year | 0.07 | 0.03 | +133.33% |
| Cash and Cash Equivalents at End of Year | 0.09 | 0.07 | +28.57% |
Funding the Future: CapEx, CWIP & R&D Spending
Capital outlay during FY 2025-26 totaled ₹1.78 Crores spent on Property, Plant and Equipment additions at the Khopoli plant site. This followed a major fixed asset expansion of ₹8.86 Crores incurred in FY 2024-25 to upgrade coating lines and plant infrastructure.
Energy conservation investments were executed across plant operations to mitigate power charges. During FY 2025-26, power and fuel expenditures included ₹2,44,36,205 paid for 19,87,080 units of purchased electricity, ₹1,66,63,427.20 for 23,80,448 kg of eco-friendly briquettes, ₹32,50,458.44 for furnace oil (58,147.28 kg), and ₹9,13,900 for diesel generator fuel (10,000 kg).
🗺️ The Corporate Family Tree: Structure & Investments
Subsidiaries, Associates, & Joint Ventures (Form AOC-1)
Sonal Adhesives Limited does not own any subsidiary companies, joint ventures, or associate companies as of March 31, 2026. Therefore, disclosure under Form AOC-1 is not applicable.
The company itself is classified as an Associate Company of Sonal Impex Limited.
Strategic Investments & Treasury Holdings
During FY 2025-26, the company made a strategic investment of ₹5,00,000 to acquire 50,000 Equity Shares of Model Co-op Bank Limited. This equity investment was executed pursuant to financial credit line arrangements established with the bank under the provisions of Section 186 of the Companies Act, 2013.
👥 Power & Control: Who Pulls the Strings?
The Brain Trust: Board of Directors & Key Managerial Personnel (KMP)
The leadership structure of Sonal Adhesives Limited combines executive promoters and independent professionals. The composition of the Board of Directors and Key Managerial Personnel as of March 31, 2026, is detailed below:
| Name of Director / KMP | Designation / Role | DIN | Category |
|---|---|---|---|
| Ms. Mridu Arora | Chairperson & Non-Executive Director | 07260461 | Promoter / Non-Independent |
| Mr. Sandeep Arora | Managing Director | 00176939 | Promoter / Executive Director |
| Mr. Vipul Desai | Non-Executive Independent Director | – | Independent Director (Appointed Addl 12/08/2025; Director 25/09/2025) |
| Mr. Tejas Shah | Non-Executive Independent Director | – | Independent Director |
| Mr. Ajeet Singh | Chief Financial Officer (CFO) | Not Applicable | Key Managerial Personnel |
| Mr. Amish Ashar | Company Secretary & Compliance Officer | ACS: 27153 | Key Managerial Personnel (Appointed w.e.f. 12/11/2025) |
Key governance transitions during FY 2025-26 included the appointment of Mr. Vipul Desai as Independent Director following the retirement of Mr. Nitin Rane on September 25, 2025. In executive Secretarial leadership, Ms. Anuradha Dubey resigned on October 10, 2025, and Mr. Amish Ashar was appointed Company Secretary and Compliance Officer effective November 12, 2025.
Who Owns the Stock? Shareholding Pattern
The total paid-up equity share capital of the company stands at ₹6,06,10,000 divided into 60,61,000 equity shares of face value ₹10/- each. Promoters hold core control over equity stock. Managing Director Sandeep Arora holds 3,30,031 equity shares in his individual capacity. Promoters Mr. Sandeep Arora and Mrs. Mridu Arora hold controlling equity blocks alongside promoter entity Sonal Impex Limited.
🎯 The Strategic Outlook: Future Plans & Potential Pitfalls
Competitive Advantages & Economic Moats
Sonal Adhesives Limited maintains key operational strengths within the Indian adhesive tape and packaging sectors:
- Integrated Chemical & Tape Manufacturing: In-house emulsion polymerization facilities allow custom formulation of synthetic acrylic adhesives tailored specifically for high-speed coating lines.
- Established Brand Equity: Proprietary market presence of the SONAL and ADICRYL brands across industrial packaging, paper conversion, and textile processing verticals.
- Expanding Export Infrastructure: Demonstrated international sales capabilities, evidenced by export sales doubling to ₹33.97 Crores in FY 2025-26.
- Flexible Customization Capabilities: Custom tape printing, specialized adhesive coating, and noise-free tape slitting catered directly to e-commerce packaging standards.
What Could Go Wrong? Key Challenges & Business Risks
The company faces specific operational, raw material, and financial headwinds outlined by management:
- Raw Material Volatility: Primary inputs including BOPP films, polypropylene resins, and acrylic monomers are directly tied to global crude oil prices and petrochemical supply chains.
- Margin Pressures: Intensified market competition from regional and unorganized unbranded tape converters squeezed net profit margins to 1.07% in FY 2025-26.
- Foreign Exchange Risk: Expanding export order books expose revenue realizations to currency volatility.
- Leverage & Interest Costs: Rising short-term working capital borrowings increased finance expenses by 25.67% to ₹1.62 Crores during the year, reducing interest coverage to 0.47.
The Next Chapter: Growth & CapEx Initiatives
Strategic growth objectives center on operational efficiency, product diversification, and disciplined capital allocation:
- Export Market Expansion: Capitalizing on strong global demand for high-tensile BOPP packaging tapes across logistics networks.
- Customized Value-Added Offerings: Shifting production focus toward higher-margin customized, printed, and tamper-evident packaging tapes.
- Process Optimization & Yield Improvement: Enhancing slitting line speeds, reducing scrap rates, and adopting biomass briquettes to curb energy expenditures.
Business momentum remained positive entering FY 2026-27, with Q1 revenue from operations reaching ₹27.52 Crores (compared to ₹28.29 Crores in Q1 FY 2025-26 and ₹34.23 Crores in Q4 FY 2025-26).
The Verdict: Strategic Outlook & Conclusion
Sonal Adhesives Limited remains a key niche participant in India’s packaging materials and specialty chemical sector. By executing an export-driven commercial strategy and maintaining focus on operational productivity, the company continues to position itself to capture long-term demand growth in logistics and packaging automation.
Note: Financial ratios, margins, YoY growth percentages, and % revenue shares are calculated by IndianCompanies.in based on disclosed Ind AS financial statements.
Official Site: http://www.sonal.co.in