AksharChem (I) H1FY27 Results (NSE: AKSHARCHEM)
Signal: Loss reversed
The read
The key inflection is the H1FY27 operating recovery: revenue rose 61.7% to 30,135.27 lakh and gross margin expanded to 67.6% from approximately 42.0%, turning PAT from a 65.80 lakh loss into 2,853.40 lakh profit. However, raw-material intensity rose to 56.1% of revenue, finance costs increased 70.9%, and PPE plus CWIP was broadly flat, so the durability and source of the margin expansion remain unclear.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹301.35 Cr | +61.7% | N/A |
| Net profit | ₹28.53 Cr | N/A | |
| EPS | ₹35.52 | N/A |
P&L walk
Standalone H1 revenue rose 61.7% to 30,135.27 lakh and PAT swung to 2,853.40 lakh from a 65.80 lakh loss; gross margin expanded 2,560bps, but finance costs rose 70.9% and the asset base was broadly flat.
Key positives
- Revenue increased 61.7% YoY to 30,135.27 lakh, materially outpacing the 44.0% rise in total expenses to 27,138.70 lakh.
- Gross margin expanded approximately 2,560bps to 67.6% from 42.0%, supporting the PAT turnaround.
- PAT improved from a 65.80 lakh loss to 2,853.40 lakh profit, while EPS rose from negative ₹0.82 to ₹35.52.
- Operating cash flow remained positive at 1,599.60 lakh in H1FY27.
Key concerns
- Raw-material consumption increased 61.1% to 16,901.45 lakh and rose to 56.1% of revenue from 53.0%, despite the sharp gross-margin expansion; the filing does not explain the divergence.
- Finance costs rose 70.9% to 480.28 lakh, materially faster than revenue growth.
- Operating cash flow of 1,599.60 lakh was below PAT of 2,853.40 lakh, indicating incomplete cash conversion in the half year.
- PPE plus CWIP declined slightly while depreciation rose 9.0%, requiring monitoring of asset replacement and depreciation coverage.
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