Chembond Chemic. Q2 FY27 Results (NSE: CHEMBONDCH)
Signal: Steady quarter
The read
The key inflection is negative: after Q4FY26 revenue growth of 30.0%, Q1FY27 growth of 32.3% and three earlier quarters of margin expansion or stability, Q2FY27 revenue grew 31.1% but gross margin collapsed 960bps to 42.7% as material intensity rose to 52.6%; consolidated EBITDA fell 21.9% and PAT fell 54.7%, while the standalone parent remained profitable with PAT up 18.2%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹95.77 Cr | +31.1% | +10.7% |
| EBIT | ₹7.08 Cr | -24.3% | |
| Net profit | ₹3.26 Cr | -54.7% | |
| EPS | ₹1.21 | -55.0% | |
| EBIT margin | 8.71% |
P&L walk
Revenue increased to ₹9,576.93 lakh, +31.1% YoY and +10.7% QoQ, but raw-material cost rose to 52.6% of revenue from 38.8%, compressing gross margin to 42.7%; EBITDA fell 21.9% YoY to ₹833.84 lakh, while higher tax and lower other income drove PAT down 54.7% to ₹326.02 lakh.
Key positives
- Consolidated revenue reached ₹9,576.93 lakh, up 31.1% YoY and 10.7% QoQ, extending the recent acceleration from +15.3% in Q3FY26 and +30.0% in Q4FY26.
- Standalone revenue grew 34.8% YoY to ₹1,952.77 lakh and standalone PAT rose 18.2% to ₹335.59 lakh, showing the parent business remained profitable despite group-level pressure.
- Consolidated operating cash flow was ₹1,649.52 lakh for H1FY27, while borrowings were only ₹113.02 lakh against cash and bank balances of ₹3,425.65 lakh.
Key concerns
- Consolidated gross margin fell 960bps YoY to 42.7% as material cost increased to 52.6% of revenue from 38.8%; the filing does not disclose a mitigation or cause.
- Consolidated EBITDA margin declined 590bps YoY to 8.71% and EBITDA fell 21.9% to ₹833.84 lakh despite 31.1% revenue growth, indicating severe cost absorption.
- PAT fell 54.7% to ₹326.02 lakh as current tax rose to ₹407.89 lakh from ₹317.68 lakh and other income fell to ₹9.44 lakh from ₹40.74 lakh.
- Trade receivables increased to ₹11,952.64 lakh and inventories to ₹2,882.84 lakh at 30 September 2026, while cash and cash equivalents declined to ₹706.75 lakh from ₹1,210.47 lakh at 31 March 2026.
Research and educational content only. Not investment advice.