Acutaas Chemical Q1 FY27 Results (NSE: ACUTAAS)
Signal: Margin expansion
The read
5th consecutive quarter of margin expansion: EBITDA margin up ~253bps YoY to 34.8%, driven by input cost tailwind (raw material cost down 465bps as % of revenue) and operating leverage (other expenses +11.4% vs revenue +59.1%). Revenue growth accelerated to 59.1% YoY (vs 16.9% in Q1FY26), signaling strong demand momentum. PAT grew 67.7% to ₹74.26 Cr. QoQ dip from Q4FY26's peak (revenue -23.8%) is seasonal; the underlying trajectory remains positive.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3.3 Cr | 59.1% | -75.4% |
| EBIT | ₹1.05 Cr | 78.9% | |
| Net profit | ₹0.74 Cr | 67.7% | |
| EPS | ₹9.07 | 67.7% | |
| EBIT margin | 34.8% |
P&L walk
Revenue growth of 59.1% YoY driven by strong demand; gross margin expanded 465bps to 57.9% on raw material cost deflation (42.1% of revenue vs 46.75% a year ago); EBITDA margin expanded 253bps to 34.8% via operating leverage (other expenses +11.4%, depreciation +20.8% vs revenue +59.1%); PAT up 67.7% tracking EBITDA; EPS ₹9.07.
Segments
Single operating segment — custom synthesis and manufacturing of specialty chemicals for pharma API and others; no segment split.
Key positives
- Revenue surged 59.1% YoY to ₹329.67 Cr, accelerating from prior year's 16.9% growth.
- Gross margin expanded 465bps to 57.9% on raw material cost deflation (42.1% of revenue vs 46.75%).
- EBITDA margin expanded 253bps to 34.8% — 5th consecutive quarter of expansion.
- PAT up 67.7% to ₹74.26 Cr, EPS ₹9.07 (+67.7% YoY).
- Operating leverage evident: other expenses grew only 11.4% YoY, depreciation 20.8% vs revenue 59.1%.
- No exceptional items, clean earnings quality (other income below 20% of PBT).
Key concerns
- QoQ revenue drop of 23.8% from Q4FY26 (₹432.75 Cr) — typical seasonal lumpiness but notable magnitude.
- Finance cost rose 78.7% YoY, albeit from a low base (₹1.14 Cr).
- Subsidiary ACEPL diluted to 90% holding after preferential issue; minority interest emerging (₹0.73 Cr PAT).
- CGST anti-evasion inspection conducted in June 2026 — management expects no material impact, but outcome uncertain.
Research and educational content only. Not investment advice.