Camlin Fine Sciences (CAMLINFINE) Q2 24/25 earnings summary

Executive summary

• Revenue grew 6.9% sequentially to INR 422 crore (Rs. 4,230 mn), driven by strong aroma and blends performance.

• Gross margin improved to 48.2%, with operational EBITDA margin rising to 10.2% from 7.2% in Q1 FY25.

• Significant impairments and asset write-downs in European and Chinese subsidiaries led to a consolidated net loss of INR 1,161 mn (₹16,578.77 lakh) for Q2 FY25.

• Board approved liquidation of CFS Pahang Asia Pte Ltd, with no material impact on consolidated financials.

• Rights issue planned to support working capital and business stabilization.

Financial highlights

• Q2 FY25 revenue up 6.9% sequentially and 4.2% year-over-year; H1 FY25 revenue at Rs. 8,254.8 mn.

• Operational EBITDA at Rs. 432.4 mn (10.2% margin), up from Rs. 284.1 mn (7.2%) in Q1 FY25.

• Exceptional items totaled over INR 151 crore (Rs. 1,510.4 mn), mainly due to impairments in Europe and China.

• PAT for Q2 FY25 at -Rs. 1,161.1 mn (₹16,578.77 lakh), with diluted EPS at -5.93.

• Gross debt stands at INR 741 crore, with net debt at INR 650 crore; annual loan repayments are INR 35 crore.

Outlook and guidance

• Blend business expected to grow 20% annually, with focus on expanding high-margin blends and additives.

• Aroma business capacity utilization targeted to rise from 40% to 55% by FY25-end, aiming for 75% in FY26.

• Management expects continued challenges in Europe and China, with ongoing review of underperforming assets.

• Performance Chemicals segment expected to grow 15–20% in the next financial year.

• EBITDA margin guidance remains in double digits, with potential to reach mid-teens as cost savings from Europe materialize.