Diamines & Chem. Q1 FY27 Results (NSE: DIAMINESQ)
Signal: Loss reversed
The read
The operating trough appears to be easing as consolidated revenue rose 17.3% YoY and EBITDA margin moved to 6.3% from -32.24%, but this is not yet a group-level earnings recovery: the speciality chemicals segment still lost ₹2.40 lakh, the subsidiary lost ₹34.37 lakh, and commercial production from the new project has not started.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹14.37 Cr | +17.3% | +54.7% |
| EBIT | ₹-0.02 Cr | N/A | |
| Net profit | ₹-0.1 Cr | -96.3% | |
| EPS | ₹0.1 | N/M | |
| EBIT margin | 6.3% |
P&L walk
Revenue rose to ₹1,437.20 lakh, +17.3% YoY and +54.7% QoQ, while EBITDA margin recovered to 6.3% from -32.24% YoY; however, the group still reported a ₹10.33 lakh loss after a ₹34.37 lakh subsidiary loss and ₹5.57 lakh associate loss.
Segments
The speciality chemicals segment remained the only active operating segment, with revenue of ₹1,437.20 lakh but a ₹2.40 lakh loss; the consolidated result was dragged further by the subsidiary's ₹34.37 lakh loss and associate's ₹5.57 lakh loss, while the trading division had no activity and was discontinued.
Key positives
- Consolidated revenue recovered to ₹1,437.20 lakh, +17.3% YoY and +54.7% QoQ, reversing four consecutive quarters of YoY revenue decline.
- Consolidated EBITDA margin improved to 6.3% from -32.24% YoY, while standalone EBITDA margin reached 7.9%.
- Standalone PAT turned positive at ₹27.32 lakh from a ₹238.98 lakh loss YoY, with employee cost rising only 2.0% against 17.5% revenue growth.
Key concerns
- Consolidated speciality chemicals segment result remained negative at ₹2.40 lakh despite revenue growth, showing that the operating recovery has not yet translated into segment profitability.
- The wholly owned subsidiary reported a ₹34.37 lakh loss on ₹0.99 lakh revenue, materially exceeding the group's ₹10.33 lakh consolidated loss.
- Commercial production has not commenced because distillation-process optimisation remains ongoing, leaving the project contribution and timing uncertain.
- Gross margin contracted 570bps YoY to 48.0% as raw-material cost increased to 54.5% of revenue from 52.8%.
Research and educational content only. Not investment advice.