Chemcon Special. Q1 FY27 Results (NSE: CHEMCON)
Signal: Margin expansion
The read
Revenue grew 24% YoY but declined 12% QoQ; gross margin expanded sharply as raw material cost dropped from 54% to 29% of revenue; EBITDA margin improved 730bps to 28.8%; PAT boosted by margin expansion and high other income (26% of PBT) — earnings quality flagged due to other income dependence.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹66.49 Cr | 24.2% | -11.9% |
| EBIT | ₹15.41 Cr | 75.7% | |
| Net profit | ₹10.96 Cr | 72.9% | |
| EPS | ₹2.99 | 71.8% | |
| EBIT margin | 23.17% |
P&L walk
The company operates as a single segment; standalone results are the only reported basis as there are no subsidiaries.
Key positives
- Gross margin expanded 930bps YoY to 59.1% on lower raw material costs.
- EBITDA margin improved 733bps YoY to 28.8%, reflecting strong operating tailwind.
- PAT grew 73% YoY, aided by margin expansion and other income.
Key concerns
- Revenue declined 12% QoQ, raising questions about demand sustainability or seasonal effects.
- Other income accounts for 25.6% of PBT, inflating reported profit beyond operations.
- Single-product segment concentration remains a risk.
Earnings quality: includes non-operating other income
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