Chembond Chemic. Q1 FY27 Results (NSE: CHEMBONDCH)
Signal: Margin expansion
The read
The growth trajectory remains strong, with consolidated revenue accelerating to +32.3% YoY from +30.0% in Q4FY26, but the margin thesis is mixed: EBITDA margin improved to 16.3% despite gross-margin compression of about 1,061bps from higher raw-material intensity, while 21.8% of PBT came from other income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹86.48 Cr | +32.3% | -14.7% |
| EBIT | ₹12.93 Cr | +31.9% | |
| Net profit | ₹9.55 Cr | +52.3% | |
| EPS | ₹3.54 | +51.9% | |
| EBIT margin | 16.3% |
P&L walk
Revenue increased to ₹8,648.22 lakh, +32.3% YoY but -14.7% QoQ; raw-material cost rose to 45.1% of revenue from 34.5%, while EBITDA margin improved to 16.3% and PAT grew 52.3% to ₹954.99 lakh, helped partly by other income equal to 21.8% of PBT.
Segments
The filing treats the group as a single business segment, but the standalone-to-consolidated gap is material: standalone revenue was ₹1,843.73 lakh versus consolidated revenue of ₹8,648.22 lakh, while standalone PAT of ₹270.43 lakh represented only 28.3% of consolidated PAT.
Key positives
- Consolidated revenue reached ₹8,648.22 lakh, +32.3% YoY, accelerating from +30.0% YoY in Q4FY26.
- EBITDA margin improved to 16.3%, up 320bps YoY, as employee and other expenses grew slower than revenue.
- Consolidated EPS rose 51.9% YoY to ₹3.54, broadly matching the 52.3% PAT growth and indicating no material dilution signal.
Key concerns
- Gross margin compressed by about 1,061bps YoY to 54.9% as raw-material cost increased to 45.1% of revenue from 34.5%; the filing does not disclose the cause.
- Revenue declined 14.7% QoQ to ₹8,648.22 lakh after ₹10,138.41 lakh in Q4FY26, so the strong YoY trajectory has not yet translated into sequential consistency.
- Standalone revenue was flat YoY at ₹1,843.73 lakh, making consolidated growth dependent on subsidiaries and other group businesses.
Earnings quality: includes non-operating other income
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