Chemplast Sanmar Q1 FY27 Results (NSE: CHEMPLASTS)
Signal: Loss reversed
The read
Q1FY27 marks a sharp negative margin inflection after Q4FY26's 15% OPM: revenue grew 2.3% YoY to ₹1124.66 crore, but gross margin fell 1630bps to 18.9% as raw-material intensity rose to 81.1%, EBITDA margin fell to -10%, and PAT reached -₹175.54 crore; the recovery thesis remains dependent on commodity/S-PVC economics and input-cost normalisation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,124.66 Cr | +2.3% | -10.4% |
| EBIT | ₹-173.04 Cr | N/A | |
| Net profit | ₹-175.54 Cr | -173.2% | |
| EPS | ₹11.1 | N/A | |
| EBIT margin | -10% |
P&L walk
Consolidated revenue rose to ₹1124.66 crore, +2.3% YoY but -10.4% QoQ, while raw-material intensity increased to 81.1% from 64.8% and EBITDA margin fell to -10% from 1.6% YoY, pushing PAT to -₹175.54 crore from -₹64.25 crore.
Segments
Commodity chemicals were the principal drag: revenue fell 4.5% YoY to ₹616.73 crore and segment loss widened to -₹166.40 crore, versus a -₹65.57 crore specialities loss; the consolidated loss therefore sits mainly in the subsidiary-led commodity business.
Key positives
- Specialities revenue increased 19.6% YoY to ₹592.32 crore, outperforming consolidated revenue growth of 2.3%.
- Standalone EBITDA remained positive at ₹9.87 crore and standalone gross margin improved 3.9pp YoY to 45.7%, despite a 3.3% QoQ revenue decline.
- Other income was only ₹2.53 crore against a consolidated PBT loss of ₹232.26 crore, so the current loss is operational rather than treasury-income driven.
Key concerns
- Consolidated gross margin compressed 1630bps YoY to 18.9% as raw-material cost increased to 81.1% of revenue from 64.8%.
- Commodity segment loss widened to -₹166.40 crore while revenue declined 4.5% YoY, showing that the group-level weakness is concentrated in the commodity/S-PVC business.
- EBITDA margin fell from 1.6% in Q1FY26 and 15% in Q4FY26 to -10% in Q1FY27, reversing the recent margin recovery.
- A post-quarter fire at the Karaikal EDC plant temporarily disrupted operations; the financial impact remains undetermined pending insurance survey and assessment.
Research and educational content only. Not investment advice.