Yasho Industries Q2 FY27 results: net profit ₹33.68 crore vs ₹8.50 crore, revenue down 9.0%

How did Yasho Industries perform in Q2 FY27?

Yasho Industries reported consolidated Q2 FY27 revenue of ₹347.68 crore, EBITDA of ₹72.67 crore and a 20.9% EBITDA margin. Revenue was 9.0% lower than ₹381.93 crore in Q2 FY26, while EBITDA was 11.0% higher than ₹65.44 crore and the margin increased 3.8 percentage points from 17.1%.

Against Q1 FY27, revenue rose 13.0% from ₹307.74 crore, but EBITDA fell 0.6% from ₹73.10 crore and margin declined 2.9 percentage points from 23.8%. Profit before tax was ₹45.27 crore, profit after tax was ₹33.68 crore and basic EPS was ₹27.93; profit after tax fell 6.6% from ₹36.05 crore in the previous quarter.

On the standalone basis, Q2 FY27 revenue was ₹336.37 crore and profit after tax was ₹30.65 crore. The consolidated filing reported revenue from operations of ₹347.68 crore for the quarter and ₹655.42 crore for the first half, while total income was ₹656.98 crore for H1 FY27.

What changed in Yasho Industries' costs and profit?

Profit before tax increased by ₹33.52 crore from ₹11.75 crore in Q2 FY26 to ₹45.27 crore in Q2 FY27, while profit after tax increased by ₹25.18 crore from ₹8.50 crore to ₹33.68 crore. Total expenses fell by ₹68.20 crore, or 18.4%, to ₹302.66 crore, and there was no exceptional item.

Employee cost fell by ₹14.70 crore, or 41.9%, to ₹20.42 crore. Finance costs fell by ₹14.81 crore, or 53.1%, to ₹13.07 crore, depreciation fell by ₹11.91 crore, or 45.0%, to ₹14.58 crore, and other expenses fell by ₹8.13 crore, or 14.3%, to ₹48.60 crore. Cost of materials rose by ₹5.44 crore, or 2.3%, to ₹238.74 crore.

Other income fell by ₹0.44 crore, or 64.7%, to ₹0.24 crore. Tax expense rose by ₹8.34 crore, or 256.6%, to ₹11.59 crore. Management said freight costs increased from ₹10 crore in Q1 FY27 to ₹20 crore in Q2 FY27, while higher gas prices added ₹1.8 crore; the company said these costs could not be passed on immediately where purchase orders had already been accepted.

Sequentially, total expenses rose by ₹42.58 crore, or 16.4%, to ₹302.66 crore. Cost of materials rose by ₹24.43 crore, or 11.4%, and other expenses rose by ₹12.23 crore, or 33.6%; employee cost rose by ₹0.21 crore, finance costs by ₹1.79 crore and depreciation by ₹0.42 crore. Other income fell by ₹1.07 crore and tax expense fell by ₹1.33 crore.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹1517.59 crore, compared with ₹1155.06 crore at 31 March 2026. Total equity was ₹511.73 crore against ₹443.92 crore, while borrowings were ₹615.5 crore against ₹540.94 crore and cash was ₹3.57 crore against ₹3.52 crore. Inventories were ₹365.86 crore against ₹256.06 crore, trade receivables ₹248.97 crore against ₹181.16 crore and trade payables ₹202.24 crore against ₹89.46 crore.

For H1 FY27, consolidated operating cash flow was ₹96.96 crore, compared with ₹61.79 crore in H1 FY26. Investing cash flow was negative ₹138.52 crore against negative ₹44.64 crore, financing cash flow was ₹43.06 crore against negative ₹20.8 crore, and capital expenditure was ₹131.29 crore against ₹41.92 crore.

How has Yasho Industries done over the last 8 quarters?

Revenue reached its highest level in Q2 FY26 at ₹381.93 crore and was lower at ₹347.68 crore in Q2 FY27. The latest quarter was higher than ₹307.74 crore in Q1 FY27 and ₹246.26 crore in Q4 FY26. Profit after tax reached its low of a net loss of ₹0.82 crore in Q3 FY25 and was ₹33.68 crore in the latest quarter, below ₹36.05 crore in Q1 FY27.

EBITDA margin was 17.1% in Q2 FY26 and 20.9% in Q2 FY27, after reaching 23.8% in Q1 FY27; the lowest margin in the listed trend was 16.6% in Q3 FY26. Revenue has risen in each of the last four quarters, while profit after tax rose year on year in each of the last three quarters. The latest quarter therefore showed higher revenue but lower profit and margin than Q1 FY27.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the limited review reports of Gokhale & Sathe. The results were filed with BSE on 28 October 2026, and the trading window had been closed from 1 October 2026 and was scheduled to reopen 48 hours after declaration of the results.

The same-day investor communications included the Q2 FY27 performance update and investor presentation. The presentation stated an FY28 revenue target of ₹1,600 crore and the press release reported H1 FY27 revenue of ₹656.98 crore. No dividend, fund raise or appointment was stated in the same-day filings provided.

What did Yasho Industries' management say?

Management said capacity utilisation reached 66% in Q2 FY27 and targeted 70% for FY27, expecting better utilisation in Q3 and Q4 FY27. It maintained an aspiration of more than 20% EBITDA margin for FY27 and the next several quarters, while saying that freight and input-cost increases were expected to be passed on to customers from the current quarter onward.

Management said FY27 capital expenditure remained ₹250 crore for two new Pakhajan manufacturing buildings, funded by ₹100 crore of internal accruals and ₹150 crore of sanctioned term loans. The company received ₹120 crore under a supply agreement, with trial production targeted for Q4 FY27 and commercialisation from Q1 FY28. Management also said it expected stronger performance in the second half of FY27.

Management identified logistics pressure as a risk, saying export shipments were delayed by 30 to 60 days against the normal 25 to 30 days because vessels were not available on time and freight costs were rising. It also said raw-material and fuel-price volatility could not be fully repriced on accepted purchase orders, customers were resisting higher prices and might switch to cheaper suppliers, and procurement was challenging amid the geopolitical crisis.

Parag Jhaveri, Managing Director and CEO, said the first-half performance was driven by volume growth, increasing demand across key markets and progress in strengthening the industrial chemicals business. He said the company’s priorities were improving profitability, strengthening working-capital management and maintaining a financial foundation to support growth.

How did Yasho Industries shares react?

The filing appeared during market hours. From the price when it appeared, the stock was up 1.2% after 5 minutes, up 1.6% after 15 minutes and up 1.3% after 30 minutes. On the reaction day, it fell 14.8% from the previous close of ₹3836.0 to the close of the first session that could trade on the news.

By the next day’s close, the stock was down 9.9% from its pre-results close, and by the fifth session it was down 13.9%. The Specialty Chemicals sector median was up 0.4% on the reaction day, up 0.4% by the next day and up 1.0% by the fifth day; Yasho’s moves were below the sector median by 15.2 percentage points, 10.3 percentage points and 14.9 percentage points, respectively.

Earlier results-day reactions were positive on 31 July 2026 at 20.4%, 18 May 2026 at 5.3%, 2 May 2025 at 3.0% and 11 February 2025 at negative 5.9%. Other reaction-day moves were 0.2% on 12 February 2026, negative 2.4% on 6 November 2025, negative 2.7% on 30 July 2025 and negative 3.5% on 13 November 2024.

How did other Specialty Chemicals companies do?

Among 50 other Specialty Chemicals companies that had filed for the quarter, the median revenue growth was 28.3%. One peer grew slower than Yasho Industries, while 49 grew faster than Yasho Industries. Of 46 peers for which profit was compared, 40 reported higher profit.