Andhra Petrochem Q1 FY26 Results (BSE: 500012)

24 Jul 2026 · Analysis by Alpha Inflection

Signal: Steady quarter

The read

The company delivered a strong YoY performance with revenue up 9.9% and net profit doubling to ₹107.68 Cr, but the QoQ decline (-8.3% revenue, -22.1% net profit) and the heavy reliance on other income and deferred tax for profit growth temper the enthusiasm. Operating leverage was evident as employee cost and depreciation grew far slower than revenue, but the core EBITDA margin only expanded ~20bps YoY, suggesting limited pricing power. A benign input cost environment (raw material cost up 4.3% vs revenue +9.9%) was the primary margin driver.

P&L walk

Revenue grew 9.9% YoY but fell 8.3% QoQ; EBITDA grew faster at 11.5% YoY on controlled employee cost (+2.0%) and depreciation (+4.5%), reflecting operating leverage. Other income jumped 21.9% YoY and a large deferred tax reversal boosted net profit by 99.3% YoY.

Key positives

• Revenue grew 9.9% YoY to ₹1,234.56 Cr, reversing the steep decline trend hinted at the 3-yr sales CAGR of -9.18%.
• Net profit surged 99.3% YoY to ₹107.68 Cr, aided by both operating improvement and other income.
• Employee cost grew only 2.0% YoY, well below revenue growth, providing operating leverage.
• Deferred tax reversal of ₹6.78 Cr contributed to the bottom line (vs ₹3.45 Cr a year ago).

Key concerns

• Revenue declined 8.3% QoQ from a strong Q4, indicating potential seasonality or demand lumpiness.
• EBITDA margin expanded only ~20bps YoY to 14.6%, despite a 400bps gross margin expansion — other expenses/overheads ate the gain.
• Other income jumped 21.9% YoY and accounted for ~11.5% of PBT, without which profit growth would be materially lower.
• The company's 3-yr revenue CAGR of -9.18% suggests structural challenges; one quarter of growth does not confirm a turnaround.

View original filing

Research and educational content only. Not investment advice.