Chemcon Special. Q1 FY27 Results (NSE: CHEMCON)
Signal: Steady quarter
The read
The operating inflection is a 333bps YoY gross-margin expansion to 44.5% alongside reported EBITDA margin of 28.8%, lifting PAT 73.0% to ₹1,096.29 lakh; however, raw-material consumption rose to 63.6% of revenue from 53.8% and other income of ₹372.38 lakh represented 25.6% of PBT, so repeatability of the margin and profit step-up remains unproven.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹66.49 Cr | +24.23% | -11.85% |
| EBIT | ₹15.41 Cr | N/A | |
| Net profit | ₹10.96 Cr | +72.96% | |
| EPS | ₹2.99 | +71.84% | |
| EBIT margin | 28.8% |
P&L walk
Revenue increased 24.2% YoY to ₹6,648.68 lakh, while gross margin expanded 333bps to 44.5% and reported EBITDA margin reached 28.8%; PAT rose 73.0% to ₹1,096.29 lakh, with ₹372.38 lakh of other income equal to 25.6% of PBT.
Key positives
- Revenue reached ₹6,648.68 lakh, up 24.2% YoY, supporting the specialty-chemicals growth trajectory despite an 11.9% QoQ decline.
- Gross margin expanded 333bps YoY to 44.5%, while employee cost intensity declined to 8.6% of revenue from 9.3%.
- PAT increased 73.0% YoY to ₹1,096.29 lakh and EPS rose 71.8% to ₹2.99, broadly tracking profit growth.
Key concerns
- Raw-material consumption increased to 63.6% of revenue from 53.8% YoY even as gross margin expanded on the reported net material-cost basis; the filing does not explain the mix or inventory effect.
- Finance costs rose 150.8% YoY to ₹85.38 lakh, although they declined 15.6% QoQ.
- Revenue declined 11.9% QoQ to ₹6,648.68 lakh, and the filing provides no volume, realisation, utilisation or order-book data to assess the underlying demand trend.
Earnings quality: includes non-operating other income
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