Camlin Fine Q1 FY27 Results (NSE: CAMLINFINE)
Signal: Loss widened
The read
The trajectory has broken sharply from the FY25 margin expansion: revenue grew 27.5% YoY, but operational EBITDA fell 13.1% and margin contracted 160bps to 3.4% as raw-material intensity rose 450bps; the immediate inflection is a return to losses, with ₹111.10 million of exceptional charges and ₹18.26 million of discontinued-operation losses adding to the operating weakness.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹519.88 Cr | +27.5% | +22.4% |
| EBIT | ₹-1.51 Cr | -136.4% | |
| Net profit | ₹-32.97 Cr | -338.2% | |
| EPS | ₹-1.65 | -211.3% | |
| EBIT margin | 3.4% |
P&L walk
Revenue increased to ₹5,198.79 million, +27.5% YoY and +22.4% QoQ, but operational EBITDA declined to ₹176.44 million, -13.1% YoY and -16.7% QoQ, as raw-material intensity rose to 60.1% of revenue from 55.6%; finance costs fell 5.7% YoY, yet the group reported a ₹329.66 million loss after exceptional and discontinued-operation charges.
Segments
Specialty Ingredients was the clear driver at ₹4,013.17 million revenue and ₹254.66 million segment result, while Aroma remained loss-making at ₹33.81 million and Performance Chemicals & Others reported a ₹44.41 million loss; the consolidated loss was therefore concentrated outside the core Specialty Ingredients business and amplified by group-level charges.
Key positives
- Specialty Ingredients revenue reached ₹4,013.17 million, +36.7% YoY, and segment result was ₹254.66 million, providing the group's main source of operating profit.
- Consolidated finance costs declined 5.7% YoY to ₹140.05 million and 39.1% QoQ, partially offsetting the margin pressure.
- The group increased its Vinpai ownership to 95.41% after acquiring 501,842 shares for ₹194.63 million, potentially increasing future earnings consolidation, although the quarter does not yet demonstrate an earnings benefit.
Key concerns
- Gross margin compressed 590bps YoY to 39.9% as raw materials consumed increased to 60.1% of revenue from 55.6%; revenue grew 27.5% but cost absorption weakened, and management did not disclose the driver.
- Operational EBITDA declined 13.1% YoY to ₹176.44 million despite 27.5% revenue growth, reversing the prior FY25 margin expansion trend.
- Aroma generated a ₹33.81 million segment loss and Performance Chemicals & Others generated a ₹44.41 million loss, leaving Specialty Ingredients to carry the group's operating profitability.
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