J.G.Chemicals Q2 FY27 Results (NSE: JGCHEM)

3 Nov 2026 · Analysis by Alpha Inflection

Signal: Margin expansion

The read

The key inflection is a return to margin expansion: revenue growth accelerated to 63.9% YoY and EBITDA margin improved to 11.5% from 8.0% a year ago after three consecutive quarters of contraction in the prior-results series; the improvement coincided with raw-material cost falling to 84.6% of revenue from 86.5%, while the expanding asset base and lower depreciation require monitoring as Dahej and Naidupeta investments progress.

P&L walk

Revenue accelerated to ₹3610.06 million, +63.9% YoY and +14.4% QoQ, while EBITDA margin recovered to 11.5% from 8.0% a year ago; PAT reached ₹313.91 million, +73.0% YoY, supported by operating improvement rather than other income, which fell 85.3% YoY.

Key positives

• Revenue increased to ₹3610.06 million, +63.9% YoY and +14.4% QoQ, materially reaccelerating from +45.0% YoY in Q1FY27.
• EBITDA margin expanded to 11.5% from 8.0% a year ago, a 350bps improvement after three prior quarters of YoY contraction.
• Raw-material cost grew 61.1% YoY to ₹3052.84 million, slower than revenue growth of 63.9%, reducing raw-material intensity to 84.6% from 86.5%.
• Operating cash flow rose to ₹414.49 million in H1FY27 from ₹131.17 million in H1FY26, providing support for the expansion cycle.

Key concerns

• Depreciation fell 9.7% YoY to ₹11.80 million despite property, plant and equipment increasing to ₹879.32 million and CWIP to ₹119.44 million, creating a depreciation-to-capex accounting-quality watchpoint.
• EPS rose 87.7% YoY to ₹7.60 versus PAT growth of 73.0% to ₹313.91 million, requiring monitoring for changes in the weighted-average share count or minority-interest allocation.
• The filing does not disclose product-level volumes, realisations or utilisation, limiting the ability to separate volume growth from price and mix.

View original filing

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