Gem Aromatics Q2 FY27 results: net loss widens to ₹7.01 crore, revenue up 16.2%

How did Gem Aromatics perform in Q2 FY27?

Gem Aromatics reported consolidated revenue of ₹104 crore in Q2 FY27, up ₹14.47 crore or 16.2% from Q2 FY26 and ₹5.15 crore or 5.2% from Q1 FY27. EBITDA rose to ₹7.87 crore from ₹3.05 crore a year earlier and ₹3.31 crore in the previous quarter, while margin improved to 7.6% from 3.4% and 3.3%. The company reported a net loss of ₹7.01 crore, compared with a net loss of ₹2.58 crore in Q2 FY26 and ₹7.87 crore in Q1 FY27. Basic EPS was ₹1.29, compared with ₹0.04 and ₹1.56.

On the standalone basis, Q2 FY27 revenue was ₹92.38 crore, down 6.1% from the year-ago quarter, while profit before tax was ₹4.11 crore and profit after tax was ₹8.9 crore. The filing presented standalone and consolidated unaudited results for the quarter and half year ended September 30, 2026, and the board recorded the limited review report.

What changed in Gem Aromatics' costs and profit?

Total expenses increased to ₹110.41 crore in Q2 FY27 from ₹93.03 crore in Q2 FY26, while other income fell to ₹0.13 crore from ₹0.98 crore. Cost of materials consumed rose by ₹18.61 crore to ₹113.22 crore, employee cost rose by ₹4.53 crore to ₹6.45 crore, finance costs rose by ₹1.24 crore to ₹4.74 crore, depreciation rose by ₹6.48 crore to ₹9.53 crore and other expenses rose by ₹4.49 crore to ₹12.11 crore. There was no exceptional item in either quarter.

Management said consolidated profitability was affected by higher depreciation of ₹9.5 crore after capitalisation of approximately ₹265 crore of Dahej capex, against total planned capex of approximately ₹270 crore. The presentation said Q2 revenue growth was supported by improved product mix in Mint and recovery in the Clove business, while gross margin and EBITDA margin improved because of normalisation in Clove margins and a favourable shift towards higher-margin Mint products. Tax was ₹0.74 crore in Q2 FY27, compared with ₹0.06 crore in Q2 FY26.

How did the first half of FY27 go?

In H1 FY27, Gem Aromatics reported consolidated revenue of ₹202.85 crore, up from ₹177.16 crore in H1 FY26, and total income of ₹203.14 crore, up from ₹179.41 crore. Profit before tax moved from ₹8.27 crore to a loss of ₹14.82 crore, while profit after tax moved from ₹5.41 crore to a net loss of ₹14.89 crore. Basic EPS was a loss of ₹2.85, compared with EPS of ₹1.66 in H1 FY26.

Management said H1 consolidated profitability was affected by depreciation of ₹18.7 crore following capitalisation of approximately ₹265 crore of Dahej capex. The presentation showed H1 consolidated gross margin at 21.0%, down from 21.7% in H1 FY26, and EBITDA margin at 5.5%, down from 10.1%. Operating cash flow for the first half was negative ₹81.26 crore.

What do the balance sheet and cash flow show?

At September 30, 2026, Gem Aromatics reported total assets of ₹735.68 crore, compared with ₹641.89 crore at March 31, 2026. Total equity was ₹434.85 crore, compared with ₹449.93 crore, while borrowings rose to ₹258.69 crore from ₹149.78 crore and cash and cash equivalents rose to ₹12.68 crore from ₹8.15 crore. Inventories were ₹321.7 crore against ₹233.7 crore, trade receivables were ₹54.04 crore against ₹76.68 crore and trade payables were ₹24.28 crore against ₹19.21 crore.

H1 FY27 operating cash flow was negative ₹81.26 crore, compared with positive ₹21.21 crore in H1 FY26. Investing cash flow was negative ₹14.99 crore against negative ₹66.77 crore, financing cash flow was positive ₹101.05 crore against positive ₹77.75 crore, and capital expenditure was ₹20.25 crore compared with ₹66.94 crore.

How has Gem Aromatics done over the last 6 quarters?

Revenue increased year on year in each of the last two quarters, while the latest trend shows revenue rising from ₹78.9 crore in Q3 FY26 to ₹110.41 crore in Q4 FY26, falling to ₹98.85 crore in Q1 FY27 and increasing to ₹104 crore in Q2 FY27. Revenue was highest at ₹110.41 crore in Q4 FY26 and lowest at ₹78.9 crore in Q3 FY26.

EBITDA margin bottomed at 3.3% in Q1 FY27 and rose to 7.6% in Q2 FY27, after reaching 17.0% in Q1 FY26 and 14.2% in Q4 FY26. Profit after tax was highest at ₹7.98 crore in Q1 FY26 and moved to a loss of ₹7.87 crore in Q1 FY27 before improving to a net loss of ₹7.01 crore in Q2 FY27. The filing did not provide a figure for Q2 FY27 gross margin.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, along with the limited review report. The filing also stated that the trading window for designated persons and their immediate relatives remained closed from October 1, 2026 until 48 hours after the declaration of the results. The same-day filings did not provide a dividend, fund raise or appointment announcement.

What did Gem Aromatics' management say?

Management said the company’s focus was shifting towards using and monetising the expanded Dahej manufacturing platform and scaling newer product categories through Krystal Ingredients. It said revenue contributions from newer product verticals were expected to build progressively as customer approvals, qualifications and commercial volumes were completed. It also said shipments of GEM Cool 05 and GEM Cool 23 had commenced, with initial revenue contribution expected in Q3 FY27, while Safranal production had commenced with initial revenue contribution expected in Q3 FY27.

Management said production of MEHQ had commenced after initial trials and revenue contribution was expected in Q4 FY27. It said higher capacity utilisation at Dahej was expected to improve fixed-cost absorption and support profitability, while installed phenol-derivative capacity was expected to enhance domestic and export penetration and improve margins. Management also said the proposed Brazil subsidiary was expected to enhance distribution reach in Latin America.

The presentation identified new-product revenue as dependent on customer audits and approvals, product qualifications and commercial-volume ramp-up. It also highlighted higher Dahej depreciation, working-capital absorption, higher short-term borrowings and H1 finance cost of ₹7.6 crore as risks. The investor presentation dated October 31, 2026 also discussed process innovation, product customisation, higher-value specialty molecules and continued progress in customer engagement and product qualification.

How did Gem Aromatics shares react?

After the filing, Gem Aromatics fell 2.3% within five minutes, 3.5% within 15 minutes and 2.5% within 30 minutes from the price when the filing appeared. On the reaction day, the stock rose 0.7% from the pre-results close of ₹136.00, and by the next day’s close it was up 0.9% from that close. The Nifty Microcap 250 rose 1.4% on the reaction day; an industry median was not available.

Earlier reaction-day moves were negative 5.9% on August 13, 2026, negative 0.6% on May 21, 2026, positive 4.6% on January 27, 2026, negative 5.9% on November 13, 2025 and negative 6.7% on September 12, 2025.