Archean Chemical Industries Q2 FY27 results: net profit up 7.9% to ₹31.33 crore, revenue up 27.5%

How did Archean Chemical Industries perform in Q2 FY27?

Archean Chemical Industries reported consolidated revenue of ₹297.36 crore for Q2 FY27, up ₹64.18 crore or 27.5% from ₹233.18 crore in Q2 FY26. EBITDA rose ₹7.60 crore or 12.1% to ₹70.20 crore, but its margin fell 3.2 percentage points to 23.6% from 26.8%. Profit before tax was ₹45.73 crore, up ₹5.82 crore or 14.6%, while net profit was ₹31.33 crore, up ₹2.29 crore or 7.9%. Basic EPS rose ₹0.24 to ₹2.60.

Against Q1 FY27, Q2 FY27 revenue fell ₹29.84 crore or 9.1% from ₹327.20 crore, while EBITDA rose ₹2.94 crore or 4.4% to ₹70.20 crore. EBITDA margin increased 3.0 percentage points to 23.6% from 20.6%. Profit before tax rose ₹1.51 crore or 3.4% to ₹45.73 crore, net profit rose ₹0.98 crore or 3.2% to ₹31.33 crore, and basic EPS rose ₹0.12 to ₹2.60. On a standalone basis, revenue was ₹290.72 crore and profit after tax was ₹43.20 crore.

The investor presentation gave separate standalone figures, including total income of ₹305.4 crore for Q2 FY27, compared with ₹231.8 crore in Q2 FY26 and ₹332.1 crore in Q1 FY27. These standalone figures differ from the consolidated revenue and profit figures used above.

What changed in Archean Chemical Industries' costs and profit?

Total expenses rose ₹56.23 crore or 28.2% to ₹255.88 crore in Q2 FY27 from ₹199.65 crore in Q2 FY26. Cost of materials consumed increased ₹31.45 crore or 248.2% to ₹44.12 crore, employee cost rose ₹2.56 crore or 15.2% to ₹19.41 crore, and other expenses increased ₹31.63 crore or 20.6% to ₹185.23 crore. Finance costs fell ₹0.65 crore or 11.8% to ₹4.87 crore, while depreciation rose ₹0.31 crore or 1.3% to ₹23.86 crore.

Other income fell ₹2.13 crore or 33.4% to ₹4.25 crore from ₹6.38 crore in Q2 FY26. Tax expense rose ₹3.53 crore or 32.5% to ₹14.40 crore from ₹10.87 crore. There was no exceptional item in either quarter. Despite higher expenses and tax, profit before tax rose ₹5.82 crore and net profit rose ₹2.29 crore from the year-ago quarter.

Compared with Q1 FY27, other expenses fell ₹24.80 crore or 11.8% to ₹185.23 crore, while cost of materials consumed rose ₹5.62 crore or 14.6% to ₹44.12 crore. Finance costs fell ₹0.58 crore or 10.6% to ₹4.87 crore, other income fell ₹1.36 crore or 24.2% to ₹4.25 crore, and tax rose ₹0.54 crore or 3.9% to ₹14.40 crore. There was no exceptional item in either quarter.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue rose ₹99.02 crore or 18.8% to ₹624.56 crore from ₹525.54 crore in H1 FY26. Total income increased ₹94.27 crore or 17.5% to ₹634.42 crore from ₹540.15 crore, while profit before tax fell ₹7.96 crore or 8.1% to ₹89.95 crore from ₹97.91 crore.

H1 FY27 net profit was ₹61.69 crore, down ₹7.49 crore or 10.8% from ₹69.18 crore in H1 FY26. Basic EPS declined ₹0.53 or 9.4% to ₹5.08 from ₹5.61.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets stood at ₹2,827.46 crore against ₹2,664.78 crore at 31 March 2026. Total equity was ₹1,960.78 crore compared with ₹1,932.94 crore, while borrowings rose to ₹551.39 crore from ₹466.38 crore. Cash and cash equivalents increased to ₹48.21 crore from ₹41.23 crore, inventories rose to ₹246.39 crore from ₹214.92 crore, trade receivables increased to ₹129.96 crore from ₹127.28 crore, and trade payables rose to ₹147.01 crore from ₹105.23 crore.

For H1 FY27, net cash generated from operating activities was ₹117.32 crore, compared with ₹91.04 crore in H1 FY26. Net cash used in investing activities rose to ₹124.70 crore from ₹62.01 crore, and financing cash flow was positive ₹14.37 crore against negative ₹29.35 crore. Capital expenditure was ₹145.75 crore, compared with ₹29.66 crore in the year-ago period.

How has Archean Chemical Industries done over the last 8 quarters?

Revenue reached its highest level of the listed quarters at ₹327.20 crore in Q1 FY27 before falling to ₹297.36 crore in Q2 FY27. It was lower at ₹233.18 crore in Q2 FY26. Revenue has now risen year on year for two consecutive quarters, according to the trend data.

Net profit bottomed at ₹12.23 crore in Q4 FY26 and recovered to ₹30.35 crore in Q1 FY27 and ₹31.33 crore in Q2 FY27. EBITDA margin also rose from its low of 14.5% in Q4 FY26 to 20.6% in Q1 FY27 and 23.6% in Q2 FY27, remaining below the 26.8% recorded in Q2 FY26.

What did Archean Chemical Industries' management say?

Management said exports contributed nearly 79% of Q2 FY27 operating revenue, and supply-chain challenges resulted in longer transit times and elevated freight costs. Industrial Salt revenue rose 9% to ₹161 crores, but sales volumes moderated to 0.8 million tons because of road-development-related logistics constraints; management said the affected road infrastructure was now fully operational.

Management said bromine revenue rose 76% to ₹127.5 crores, supported by higher sales volumes of 4,086 tons, improved realisations and a steady improvement in production throughput. It said Bromine Derivatives revenue rose 81% to ₹36 crores, led by organic bromides, and that the company had launched new products with additional products under development on a campaign basis.

For Acume’s PTA plant, management said the focus was on “stabilisation of plant and breakeven in FY27.” It expected “Meaningful business expected to contribute in H2FY27” from Sulphate of Potash and said the Flame Retardant Bromine project was expected to come on stream over the next 12-18 months. Management also said it intended to expand Industrial Salt operations and improve operational efficiencies.

Management said SiCSem had begun construction of an integrated SiC compound-semiconductor fab and ATMP unit in Info Valley, Bhubaneshwar, with planned annual capacity of 60,000 wafers and packaging capacity of 96 million units. It also said it intended to establish a zinc-bromide battery giga-factory in India in the near future and planned to acquire 21% of Offgrid Energy Labs for $12 million.

Management identified export concentration and logistics, PTA plant stabilisation, delayed speciality mud chemicals commercialisation and losses in new businesses as risks. It said speciality mud chemicals customer trials were still progressing, while ACUME, IDEALIS and NEUN reported H1 FY27 PBT losses of ₹12.8 crores, ₹8.1 crores and ₹3.3 crores, respectively.

How did Archean Chemical Industries shares react?

The stock was down 1.7% within five minutes after the filing, down 2.4% after 15 minutes and down 2.9% after 30 minutes. From the pre-results close of ₹453.40, the reaction-day close was down 1.7%, and by the next day's close the stock was down 2.4% from that pre-results close. The Specialty Chemicals industry median was down 2.0% on the reaction day, so Archean Chemical Industries outperformed the sector by 0.3 percentage points.

On the reaction day, the Nifty Microcap 250 was down 2.5%, while the industry median was down 2.0%. By the next day's close, the industry median was up 0.1% and the Nifty Microcap 250 was down 1.1%; Archean Chemical Industries was down 2.4% from its pre-results close, trailing the industry by 2.5 percentage points. Earlier results-day moves included declines of 5.7% on 30 July 2026 and 5.1% on 12 May 2026.

How did other Specialty Chemicals companies do?

Among 48 Specialty Chemicals companies compared, the median revenue growth was 28.3%. Of the other companies, 23 grew slower than Archean Chemical Industries and 25 grew faster. Of the 44 peers for which profit was compared, 39 reported higher profit.