Sh.Pushkar Chem. Q2 FY27 Results (NSE: SHREEPUSHK)
Signal: Margin expansion
The read
The trajectory inflected sharply upward after Q1FY27: revenue growth accelerated to 58.2% YoY from 9.8% in Q1FY27, EBITDA margin expanded 190bps to 12.2% after a 0bps prior-quarter trend, and chemicals supplied the acceleration through higher realization/mix rather than volume growth. Gross margin nevertheless compressed 320bps YoY to 30.0%, so the durability of the margin recovery depends on whether the EBITDA improvement persists without disclosed cost-line support.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹403.5 Cr | 58.2% | 44.1% |
| Net profit | ₹35.7 Cr | 96.1% | |
| EPS | ₹11.05 | N/A | |
| EBIT margin | 12.2% |
P&L walk
Consolidated revenue rose 58.2% YoY to ₹403.5 crore, led by chemicals revenue growth of 85.6% despite a 16.8% chemicals-volume decline; EBITDA grew 87.7% and margin expanded 190bps to 12.2%, while PAT rose 96.1% to ₹35.7 crore.
Segments
Chemicals was the primary growth engine, with revenue up 85.6% YoY to ₹245 crore despite volume falling 16.8% to 14,368 MT; fertilisers grew 27.5% to ₹158 crore on 9.31% volume growth.
Key positives
- Revenue rose 58.2% YoY to ₹403.5 crore, accelerating from 9.8% YoY in Q1FY27; sequential growth was 44.1%.
- Chemicals revenue increased 85.6% YoY to ₹245 crore while chemicals volume declined 16.8%, showing strong realization and/or mix support.
- EBITDA rose 87.7% YoY to ₹49.2 crore and EBITDA margin expanded 190bps YoY to 12.2%, despite gross margin declining 320bps to 30.0%.
- H1FY27 revenue reached ₹683.6 crore, up 34.1% YoY, while H1 PAT rose 49.7% to ₹58.6 crore.
- Commercial production at Unit-5 commenced and increased dyes capacity by 6,000 MTPA; a further ₹70 crore plant with 3,000 MTPA annual capacity is planned for commissioning by March 2028.
Key concerns
- Gross margin compressed 320bps YoY to 30.0% even as revenue grew 58.2%, indicating input-cost, pricing or mix pressure that the filing does not explain.
- Total volume grew only 4.3% YoY to 93,645 MT, with chemicals volume down 16.8%; the 58.2% revenue increase is therefore heavily dependent on realization and mix.
- The proposed issuance of up to 8,54,060 promoter warrants at ₹526.90 each could dilute existing shareholders if converted; approvals and the subsequent conversion remain pending.
- The filing does not provide depreciation, finance-cost, tax, cash-flow or working-capital details, limiting earnings-quality assessment.
Research and educational content only. Not investment advice.