Chemfab Alka. Q1 FY27 Results (NSE: CHEMFAB)
Signal: Revenue declined
The read
Consolidated revenue continued to slide 20% YoY as the PVC-O Pipes business collapsed 85%, but the Chemicals segment drove a sharp turnaround — from a loss to a profit at the PBIT level. Reported PAT jumped 125% YoY, but this was heavily aided by a one-off deferred tax credit of ₹3.80 Cr from switching to a lower tax regime. Excluding that, PAT would have been ~₹1.93 Cr, still an improvement from the ₹2.55 Cr in Q1FY26. The PVC-O Pipes drag remains a structural concern, while Chemicals' recovery is promising but needs confirmation on sustainability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹73.16 Cr | -20.08% | -2.16% |
| EBIT | ₹4.43 Cr | 106.9% | |
| Net profit | ₹5.73 Cr | 124.71% | |
| EPS | ₹3.99 | 125.4% | |
| EBIT margin | 3.04% |
P&L walk
Revenue fell 20% YoY as PVC-O Pipes segment collapsed 85%, but Chemicals segment revenue grew 28% and its PBIT swung from a loss of ₹3.72 Cr to a profit of ₹2.92 Cr. Operating margin contracted 280bps YoY to 3% due to the mix shift. Reported PAT of ₹5.73 Cr includes a one-off deferred tax credit of ₹3.80 Cr from switching to lower tax regime; without this, PAT would be ~₹1.93 Cr, still an improvement from ₹2.55 Cr YoY. Finance costs rose 41% YoY, consuming operating gains.
Segments
Chemicals segment turned around with a PBIT of ₹2.92 Cr (vs loss of ₹3.72 Cr in Q1FY26), while PVC-O Pipes segment continued to bleed with a PBIT loss of ₹0.57 Cr, though the loss narrowed from ₹0.87 Cr in Q4FY26.
Key positives
- Chemicals segment revenue grew 27.6% YoY to ₹6,741 lakh, and PBIT swung from a loss of ₹372.49 lakh to a profit of ₹292.03 lakh.
- Consolidated PAT improved 124.7% YoY to ₹5.73 Cr despite top-line decline, aided by a one-off deferred tax credit.
- Debt-equity ratio remained low at 0.33 per company fundamentals.
Key concerns
- PVC-O Pipes segment revenue crashed 85.1% YoY to ₹574.97 lakh, continuing its decline and dragging group revenue down 20%.
- PVC-O Pipes segment PBIT remained negative at ₹57.23 lakh loss, though improved from ₹87.08 lakh loss in Q4FY26.
- Finance costs surged 40.8% YoY to ₹220.75 lakh, eroding operating gains.
- Reported PAT is inflated by a one-off deferred tax credit of ₹380.27 lakh; adjusted PAT (~₹1.93 Cr) is well below the headline figure.
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