Transcript of Conference call for Investors and Analysts
GEMAROMA · price
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Gem Aromatics reported Q4 FY26 standalone revenue of INR112 crores (+34% sequential) and consolidated revenue of INR110 crores (+40% sequential). Gross margins improved to 23.4% standalone and 30.5% consolidated, while EBITDA margins reached 13.4% and 14.2% respectively. PAT grew 182% sequentially to INR12 crores standalone. The Dahej facility (Krystal Ingredients) has incurred ~INR260 crores of its ~INR270 crores capex, with INR800 crore peak revenue potential (3-3.5x asset turn). Commercial production of Gemcool 5 and Safranal commenced in February 2026, and the Silvassa plant received EcoVadis Platinum rating. However, phenol derivative production remains delayed due to geopolitical-driven raw material (phenol) price spikes and supply disruptions. Management guided FY28 consolidated revenue of ~INR1,100 crores and EBITDA margins of 16-18%, but declined to provide FY27 guidance citing geopolitical uncertainty and raw material volatility.
Sequential recovery is encouraging, but year-on-year Q4 revenue fell significantly due to U.S. tariff uncertainty and mint export volume decline. Near-term phenol derivative ramp-up remains uncertain due to raw material headwinds. Dahej facility ramp-up and improving gross margins are positives, but the stock faces execution risk on new product launches and delayed FY27 guidance creates investor uncertainty.