Meghmani Organics Q2 FY27 results: net profit up 193.3% to ₹33.88 crore, revenue up 15.5%

How did Meghmani Organics perform in Q2 FY27?

Meghmani Organics reported consolidated Q2 FY27 revenue of ₹666.92 crore, up ₹89.66 crore or 15.5% from Q2 FY26. EBITDA rose ₹21.05 crore or 40.4% to ₹73.14 crore, and margin increased 2.0 percentage points to 11.0%. Profit before tax was ₹47.95 crore, up ₹21.86 crore or 83.8%.

Net profit increased ₹22.33 crore or 193.3% to ₹33.88 crore from ₹11.55 crore, and basic EPS rose ₹0.88 or 195.6% to ₹1.33. Against Q1 FY27, revenue increased ₹124.09 crore or 22.9%, while EBITDA fell ₹24.77 crore or 25.3% and net profit fell ₹14.31 crore or 29.7%; basic EPS declined ₹0.57 to ₹1.33.

On the standalone basis, Q2 FY27 revenue was ₹658.21 crore and net profit was ₹45.32 crore. The board approved the standalone and consolidated unaudited results for the quarter and half year ended 30 September 2026 on 4 November 2026.

What changed in Meghmani Organics' costs and profit?

Total expenses increased ₹60.12 crore or 10.4% to ₹639.04 crore from ₹578.92 crore in Q2 FY26. Cost of materials rose ₹90.35 crore or 25.8% to ₹440.55 crore, while employee cost fell ₹0.44 crore or 1.2% to ₹36.28 crore and other expenses declined ₹8.91 crore or 6.1% to ₹137.53 crore.

Finance costs fell ₹8.81 crore or 37.0% to ₹14.97 crore, while depreciation increased ₹0.31 crore or 1.0% to ₹30.29 crore. Other income declined ₹7.69 crore or 27.7% to ₹20.07 crore, and tax expense fell ₹0.47 crore or 3.2% to ₹14.07 crore. There was no exceptional item.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹1,209.75 crore, up ₹18.87 crore or 1.6% from ₹1,190.88 crore in H1 FY26. Total income rose ₹6.53 crore or 0.5% to ₹1,241.75 crore, while profit before tax increased ₹64.55 crore or 128.1% to ₹114.94 crore.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹3,193.64 crore, up from ₹3,020.58 crore at 31 March 2026, while total equity rose to ₹1,627.42 crore from ₹1,544.78 crore. Borrowings fell to ₹664.22 crore from ₹725.96 crore, and cash declined to ₹9.20 crore from ₹15.81 crore.

Inventories increased to ₹567.95 crore from ₹528.55 crore, trade receivables rose to ₹871.26 crore from ₹672.13 crore, and trade payables increased to ₹669.88 crore from ₹540.18 crore. H1 FY27 operating cash flow was ₹110.91 crore, compared with ₹66.83 crore in H1 FY26; investing cash flow was negative ₹20.05 crore against negative ₹21.18 crore.

Financing cash flow was negative ₹97.47 crore in H1 FY27, compared with negative ₹37.35 crore in H1 FY26. Capital expenditure was ₹31.92 crore, up from ₹24.56 crore in the year-ago period.

How has Meghmani Organics done over the last 8 quarters?

Revenue reached a recent high of ₹666.92 crore in Q2 FY27 after falling to ₹474.34 crore in Q4 FY26. Profit rose for two consecutive quarters on a year-on-year basis, reaching ₹33.88 crore in Q2 FY27 from ₹8.03 crore in Q4 FY26, although it remained below ₹48.19 crore in Q1 FY27.

The EBITDA margin bottomed at 4.2% in Q4 FY26, recovered to 18.0% in Q1 FY27 and eased to 11.0% in Q2 FY27. Revenue therefore moved upward in the latest quarter, while both profit and margin were lower than in the preceding quarter.

Which businesses drove the quarter?

Pigment revenue rose 43.9% to ₹187.28 crore from ₹130.16 crore, while segment EBIT was ₹7.27 crore against a loss of ₹20.81 crore. The reported EBIT margin was 3.9%.

Agrochemicals revenue increased 12.2% to ₹496.75 crore from ₹442.63 crore, while EBIT fell to ₹53.14 crore from ₹79.47 crore. The segment EBIT margin was 10.7%. Others revenue declined 6.0% to ₹21.40 crore from ₹22.77 crore, while EBIT rose to ₹3.10 crore from ₹0.28 crore.

What else did the company announce?

The board approved the standalone and consolidated unaudited financial results for Q2 and H1 FY27 on 4 November 2026, along with the statutory auditors’ limited review reports. The same-day investor communication also referred to approval of the amalgamation of Kilburn Chemicals Limited and Meghmani Crop Nutrition Limited with Meghmani Organics.

The company said the amalgamation was expected to provide operational synergies, rationalisation of the group structure, administrative efficiencies and simplification of the legal entity structure. No share issue or consideration was contemplated because both transferor companies were wholly owned subsidiaries. The scheme had not become effective as of the reporting date.

What did Meghmani Organics' management say?

Management said the capex programme is intended to drive future growth and bring EBITDA improvement with a blended EBITDA margin of ~14-15%, but it gave no specific timeline. It also said the company’s endeavour is to expand the product portfolio to build a globally competitive and comprehensive range.

Management said the Dahej multipurpose plant will manufacture high-value new-age insecticides. The 5,000 MTPA plant is intended to support sustainable supply to global customers under the China Plus One strategy. The presentation also described a Sanand Nano Urea plant with installed capacity of 5 Crore 500 ml bottles per year, alongside additions of Nano DAP, Nano NPK and Nano Zinc.

Management identified elevated input and logistics costs as offsetting broadly flat realisations on the standalone basis, which compressed EBITDA margin to 10.8%. It also highlighted low pigment utilisation, the Brazil subsidiary and China representative office as expansion priorities, while noting that the ~14-15% blended EBITDA margin target had no stated timeframe. No analyst questions or answers were included in the available material.

How did Meghmani Organics shares react?

The stock was up 0.9% five minutes after the filing appeared, up 0.6% after 15 minutes and down 0.9% after 30 minutes. It closed 0.9% higher from the previous close of ₹55.20 on the reaction day, while the Pesticides & Agrochemicals median move was 1.4%, leaving the stock 0.4 percentage points below the industry median.

Earlier reaction-day moves were 1.4% on 29 July 2026, negative 2.4% on 14 May 2026, negative 12.5% on 31 January 2026 and negative 2.8% on 8 November 2025. No next-day or five-session move was available for the Q2 FY27 filing.

How did other Pesticides & Agrochemicals companies do?

Thirteen other Pesticides & Agrochemicals companies had filed for the quarter by 4 November 2026. Their median revenue growth was negative 0.3%; nine peers grew more slowly than Meghmani Organics and four grew faster. Four peers reported higher profit.