Ambica Agarbathies & Aroma industries Limited has submitted to the Exchange, the financial results for the period ended Jun 30, 2025.
AMBICAAGAR · price
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Ambica Agarbathies reported Q1FY26 revenue from operations of Rs. 3,014.35 lakhs, up about 31% from Rs. 2,300.63 lakhs in the same quarter last year. Total income rose to Rs. 3,188.15 lakhs from Rs. 2,405.36 lakhs. However, profit after tax was almost flat at Rs. 113.53 lakhs versus Rs. 111.73 lakhs, signalling heavy margin compression despite strong top-line growth. In segment terms, the core Agarbathies division saw its profit before tax fall sharply to Rs. 139.46 lakhs from Rs. 288.57 lakhs, while the Hotel division swung back to a small profit of Rs. 12.26 lakhs from a Rs. 138.34 lakh loss. Basic EPS stood at Rs. 0.66 versus Rs. 0.65. The company also disclosed that it has been irregular in repaying EMIs to UC Housing Finance due to weak cash flows in its hotel division following the COVID-19 disruption, though management expects to regularise payments.
The strong revenue growth is encouraging, but the near-zero PAT growth and sharp segment-level profit decline in the core agarbathies business point to rising costs and weak pricing power, which may worry shareholders. The admitted EMI default on the hotel division loan is a credit red flag and could weigh on investor sentiment despite the auditor issuing an unmodified review report.