Chembond Chemicals Q2 FY27 results: net profit down 54.7% to ₹3.26 crore, revenue up 31.1%

How did Chembond Chemicals perform in Q2 FY27?

Chembond Chemicals reported consolidated revenue of ₹95.77 crore in Q2 FY27, up 31.1% from ₹73.04 crore in Q2 FY26 and 10.7% from ₹86.48 crore in Q1 FY27. Total income was ₹95.86 crore, up 30.5% year on year and 7.4% quarter on quarter. EBITDA was ₹8.34 crore, down 21.9% from ₹10.68 crore and 26.4% from ₹11.33 crore, while the EBITDA margin fell to 8.7% from 14.6% and 13.1%.

Profit before tax was ₹7.01 crore, down 27.1% from ₹9.62 crore in Q2 FY26 and 45.1% from ₹12.78 crore in Q1 FY27. Net profit was ₹3.26 crore, down 54.7% year on year and 65.9% quarter on quarter, with basic EPS of ₹1.21. On the standalone basis, revenue was ₹19.53 crore, up 34.8%, and profit before tax was ₹2.84 crore, while PAT was ₹3.36 crore.

What changed in Chembond Chemicals' costs and profit?

The main cost movement was in materials: cost of materials consumed was ₹50.39 crore, up ₹22.06 crore or 77.9% from ₹28.33 crore in Q2 FY26. Employee cost was ₹16.03 crore, up ₹2.08 crore or 14.9%, other expenses were ₹16.52 crore, up ₹2.95 crore or 21.7%, and finance costs were ₹0.17 crore, up ₹0.02 crore or 13.3%. Depreciation was ₹1.25 crore, down ₹0.07 crore or 5.3%, and there was no exceptional item.

Total expenses were ₹88.85 crore, up ₹25.02 crore or 39.2% from ₹63.83 crore in Q2 FY26. Other income was ₹0.09 crore, down ₹0.32 crore or 78.0% from ₹0.41 crore, while tax was ₹3.75 crore, up ₹1.33 crore or 55.0% from ₹2.42 crore. PBT fell by ₹2.61 crore to ₹7.01 crore, and PAT fell by ₹3.93 crore to ₹3.26 crore.

How did the first half of FY27 go?

In the first half of FY27, Chembond Chemicals recorded consolidated revenue of ₹182.25 crore, up ₹43.83 crore or 31.7% from ₹138.42 crore in H1 FY26. Total income was ₹185.13 crore, up ₹43.61 crore or 30.8%, while PBT was ₹19.79 crore, up ₹0.4 crore or 2.1%.

H1 FY27 PAT was ₹12.81 crore, down ₹0.65 crore or 4.8% from ₹13.46 crore in H1 FY26. Basic EPS was ₹4.75, down ₹0.27 or 5.4% from ₹5.02. The investor presentation attributed the profit pressure to extreme volatility in material costs, while the revenue outlook remained positive across the business units.

What do the balance sheet and cash flow show?

As on 30 September 2026, total assets were ₹269.27 crore against ₹253.67 crore on 31 March 2026, and total equity was ₹217.11 crore against ₹207.42 crore. Borrowings were ₹1.13 crore, while cash was ₹7.07 crore. Inventories were ₹28.83 crore, trade receivables ₹119.53 crore and trade payables ₹32.12 crore.

H1 FY27 operating cash flow was ₹16.5 crore, compared with ₹8.71 crore in H1 FY26. Investing cash flow was negative ₹18.98 crore against negative ₹8.54 crore, financing cash flow was negative ₹2.55 crore against negative ₹3.96 crore, and capital expenditure was ₹1.75 crore against ₹2.96 crore.

How has Chembond Chemicals done over the last 7 quarters?

Revenue reached ₹101.38 crore in Q4 FY26, its highest level in the listed period, before declining to ₹86.48 crore in Q1 FY27 and rising to ₹95.77 crore in Q2 FY27. Chembond Chemicals’ revenue rose year on year in each of the last three quarters. Q4 FY26 and Q4 FY25 shared a 15.7% EBITDA margin, while Q2 FY27 ended at 8.7%, the lowest in the series.

PAT peaked at ₹11.63 crore in Q4 FY26, fell to ₹9.55 crore in Q1 FY27 and then declined to ₹3.26 crore in Q2 FY27. The latest quarter therefore showed higher revenue than Q1 FY27 but lower profit and EBITDA margin, with the margin falling from 13.1% to 8.7%.

What else did the company announce?

The board approved the standalone and consolidated unaudited results for the quarter and half year ended 30 September 2026, along with the limited review report. It appointed Mrs. Mamta Nirmal Shah as a Non-Executive Non-Independent Director and issued a postal ballot notice for members’ approval. Remote e-voting runs from 1 November 2026 to 30 November 2026, with 26 October 2026 as the eligibility cut-off date.

The company also submitted an investor presentation for the quarter and half-year results. The presentation reported H1 FY27 consolidated revenue of ₹182.25 crores, up 32% year on year, and consolidated EBITDA of ₹22.55 crores, up 2%. No dividend or fund-raising matter was stated in the same-day filings.

What did Chembond Chemicals' management say?

Management said material costs reached 56% of sales against 46%, delaying price pass-through and compressing profitability. Chairman and Managing Director Nirmal V. Shah said, “The costs have been increasing at a pace that's faster than us being able to pass them on to our customers.” Management also said the order book was strong, continuing business extended into FY28 and Q4 was expected to remain seasonally strong.

Management maintained a three-year revenue aspiration of ₹1,000 crore through organic growth, expansion of smaller businesses and selective inorganic opportunities. It said the FY27 equipment order pipeline was about ₹15-20 crore and that capacity was not a constraint. New-age industries were expected to increase from roughly 7-8% of water revenue to about 12-15% over the next three years if projects execute.

Management said input and logistics conditions could ease if Iran-war-related crude and material costs normalise, with the effects of recent cost increases expected to be overcome in one to two quarters. It hoped supply-chain and material-cost conditions would normalise by end-FY27 but gave no assurance or visibility on timing. Management also said about 25-30% of water sales were fixed-price PSU contracts, limiting cost pass-through.

How did Chembond Chemicals shares react?

After the after-market filing, the stock was down 0.9% after five minutes, up 8.2% after 15 minutes and up 5.3% after 30 minutes relative to the price when the filing appeared. It closed the reaction day 6.8% below its pre-results close of ₹226.50. By the next day's close, the stock was down 10.8% from that pre-results close, while the Nifty Microcap 250 was up 2.1%.

By five sessions after the pre-results close, the stock was unchanged, while the Nifty Microcap 250 was up 1.8%. The stock’s reaction-day move was also weaker than its earlier results-day moves on 16 July 2026, when it fell 4.9%, and on 21 January 2026, when it rose 18.1%.