Punjab Chemicals & Crop Protection Q2 FY27 results: net profit down 27.4% to ₹13.46 crore, revenue up 28.0%

How did Punjab Chemicals & Crop Protection perform in Q2 FY27?

Consolidated revenue for Q2 FY27 was ₹326.70 crore, up ₹71.54 crore or 28.0% from ₹255.16 crore in Q2 FY26, but down ₹20.54 crore or 5.9% from ₹347.24 crore in Q1 FY27. Total income was ₹329.09 crore, up 26.0% year on year and down 5.4% sequentially. On a standalone basis, revenue was ₹326.51 crore and profit after tax was ₹13.89 crore.

EBITDA was ₹29.55 crore, up 12.6% from ₹26.24 crore in Q2 FY26 but down 27.6% from ₹40.81 crore in Q1 FY27. The EBITDA margin fell from 10.3% to 9.0% year on year and from 11.8% in the previous quarter. Profit before tax was ₹18.29 crore, down 16.4% year on year and 39.2% sequentially.

PAT was ₹13.46 crore, down ₹5.08 crore or 27.4% from ₹18.54 crore in Q2 FY26 and ₹8.61 crore or 39.0% from ₹22.07 crore in Q1 FY27. Basic EPS was ₹10.98, compared with ₹15.12 a year earlier and ₹18.00 in the previous quarter. The PAT margin was 4.1%, down 3.2 percentage points year on year and 2.3 percentage points sequentially.

What changed in Punjab Chemicals & Crop Protection's costs and profit?

Total expenses were ₹310.80 crore in Q2 FY27, up ₹71.45 crore or 29.9% from ₹239.35 crore in Q2 FY26. Cost of materials was ₹202.75 crore, up ₹61.18 crore or 43.2%, while employee cost rose ₹2.31 crore or 9.0% to ₹27.96 crore. Finance costs increased ₹1.89 crore or 50.0% to ₹5.67 crore, depreciation rose ₹1.33 crore or 20.0% to ₹7.98 crore, and other expenses increased ₹4.97 crore or 10.2% to ₹53.81 crore.

Other income fell ₹3.69 crore or 60.7% to ₹2.39 crore from ₹6.08 crore in Q2 FY26. There was no exceptional item in either quarter. Tax expense was ₹4.83 crore, up ₹1.48 crore or 44.2% from ₹3.35 crore, while profit before tax fell ₹3.60 crore or 16.4% to ₹18.29 crore. Management said gross margins were lower because new products were introduced at competitive pricing and the company also faced material cost increments.

Against Q1 FY27, total expenses were lower by ₹7.06 crore or 2.2%. Employee cost fell ₹6.18 crore or 18.1% to ₹27.96 crore, while cost of materials rose ₹2.90 crore or 1.5%, finance costs rose ₹1.56 crore or 38.0%, depreciation rose ₹0.66 crore or 9.0%, and other expenses rose ₹1.63 crore or 3.1%. Other income increased ₹1.71 crore or 251.5% to ₹2.39 crore, and tax expense fell ₹3.16 crore or 39.5% to ₹4.83 crore.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹673.94 crore, up ₹99.27 crore or 17.3% from ₹574.67 crore in H1 FY26. Total income was ₹675.05 crore, up ₹90.59 crore or 15.5% from ₹584.46 crore. H1 FY27 EBITDA was ₹72.30 crore, up 19.3% from ₹60.60 crore in H1 FY26, with the margin at 11.0% compared with 10.5%.

Profit before tax was ₹48.35 crore in H1 FY27, down ₹1.15 crore or 2.3% from ₹49.50 crore in H1 FY26. PAT was ₹35.53 crore, down ₹3.64 crore or 9.3% from ₹39.17 crore, while EPS was ₹28.98 compared with ₹31.95. The H1 PAT margin was 5.3%, compared with 6.8% in the year-ago period.

What do the balance sheet and cash flow show?

Total assets increased to ₹1,048.54 crore at 30 September 2026 from ₹823.00 crore at 31 March 2026. Total equity rose to ₹455.61 crore from ₹423.47 crore, while borrowings increased to ₹295.46 crore from ₹154.22 crore. Cash and bank balances were ₹9.87 crore, compared with ₹8.70 crore at the earlier balance-sheet date.

Inventories fell to ₹213.23 crore from ₹245.77 crore, but trade receivables increased to ₹453.92 crore from ₹203.50 crore. Trade payables rose to ₹216.86 crore from ₹172.95 crore. Management said September receivables exceeded ₹450 crore after extended customer credit terms and that year-end normalisation was expected.

For H1 FY27, operating cash flow was negative ₹99.40 crore, compared with ₹82.96 crore in H1 FY26. Investing cash flow was negative ₹28.59 crore against negative ₹20.34 crore, while financing cash flow was ₹128.33 crore against negative ₹54.66 crore. Capital expenditure was ₹28.24 crore, compared with ₹19.07 crore in the year-ago period.

How has Punjab Chemicals & Crop Protection done over the last 8 quarters?

Revenue rose year on year in each of the last seven quarters. It peaked at ₹347.24 crore in Q1 FY27 and fell to ₹326.70 crore in Q2 FY27; across the earlier series, the low was ₹202.28 crore in Q4 FY25. PAT reached its high of ₹22.07 crore in Q1 FY27 and declined to ₹13.46 crore in Q2 FY27, while the earlier low was ₹6.07 crore in Q3 FY25.

The EBITDA margin peaked at 13.2% in Q4 FY26 and fell to 9.0% in Q2 FY27, matching the low of 9.0% recorded in Q3 FY25. Revenue, profit and margin all moved lower from Q1 FY27, following revenue of ₹347.24 crore, PAT of ₹22.07 crore and an 11.8% EBITDA margin in that quarter.

What else did the company announce?

On 3 November 2026, the board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. It also approved remuneration for Managing Director Shalil Shashikumar Shroff for 15 January 2027 to 14 January 2029 and aggregate remuneration for non-executive non-independent director Shivshankar Shripal Tiwari, both subject to shareholder approval.

The board approved the cancellation of 15,033 unsubscribed equity shares, subject to shareholder approval, and issued a postal ballot notice seeking approval for the remuneration and share-cancellation matters. The company also filed an investor presentation for Q2 and H1 FY27 and made the 4 November 2026 earnings-call audio recording available on its website. The same-day filings did not announce a dividend or fund raise.

What did Punjab Chemicals & Crop Protection's management say?

Management maintained its previous FY27 guidance and said Q3 and Q4 should be good quarters and sufficient to achieve that guidance. CFO Devendra Gupta said: "We are sure the coming quarters, Q3 and Q4, are going to be good quarters in terms of our performance, and we should be able to achieve our previous guidance." Management also said deferred exports were expected in H2, although this was not quantified.

Management said the approximately ₹100 crore capex proposal would be funded 25% through equity or internal accruals and 75% through already-sanctioned debt. MOU products were expected to contribute ₹15–20 crore in FY28, followed by a gradual ramp over the following two years. Current R&D spending was close to 2% of top line and was expected to accelerate as the team, laboratory and pilot plant were expanded.

The company identified demand deferrals from weak monsoon, uneven rains and hot European weather; geopolitical supply disruption and 5–15% raw-material price inflation; slow overseas approvals; extended international customer credit terms; and new-product scale-up as risks. CEO Vinod Gupta said the company would continue product development, customer validation and gradual commercial scaling.

How did Punjab Chemicals & Crop Protection shares react?

The stock was up 1.2% after five minutes, up 0.2% after 15 minutes and up 0.3% after 30 minutes from the price when the filing appeared. On the reaction day, it closed 4.4% below the previous close, and by the next day's close it was down 2.7% from that pre-results close.

The Pesticides & Agrochemicals industry median was unchanged on the reaction day and up 1.5% by the next day's close. Punjab Chemicals & Crop Protection therefore underperformed the industry by 4.4 percentage points on the reaction day and by 4.2 percentage points by the next day's close. Earlier reaction-day moves included declines of 3.2% on 31 July 2026, 5.1% on 1 May 2026 and 10.4% on 3 November 2025.

How did other Pesticides & Agrochemicals companies do?

Thirteen other Pesticides & Agrochemicals companies had filed results for the quarter by 4 November 2026. Their median revenue growth was negative 0.3%. Twelve peers grew more slowly than Punjab Chemicals & Crop Protection, while one peer grew faster than the company.

Five of the 13 peers reported higher profit, based on profit comparisons for all 13 companies. The company therefore had year-on-year revenue growth of 28.0% against a peer median of negative 0.3%.