Chemplast Sanmar (CHEMPLASTS) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue was ₹1,100 crore, down 4% year-over-year, with EBITDA at ₹17 crore and a net loss of ₹64 crore, reflecting pricing pressures and increased dumping of PVC products from Europe and China.

• Anti-dumping duties are in place for Paste PVC from several countries, but dumping shifted to the EU and Japan; investigations and policy actions are ongoing, with final findings expected soon.

• The new Paste PVC plant in Cuddalore is fully ramped up, and Custom Manufactured Chemicals (CMCD) dispatches were on track, with the agrochemical sector showing early signs of recovery.

• Construction for MPB-3 phase III and MPB-4 civil works is progressing as planned, with completion expected by Q3 FY26.

• Un-audited standalone and consolidated financial results for the quarter ended 30 June 2025 were approved by the Board and reviewed by statutory auditors, with no material misstatements identified.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was ₹1,099.90 crore, down from ₹1,144.89 crore in Q1 FY25 and ₹1,150.88 crore in Q4 FY25.

• EBITDA for the quarter was ₹17 crore; net loss stood at ₹64 crore, with EBITDA margin dropping to 2% from 11% in Q1 FY25.

• Standalone revenue fell 12% year-over-year and 32% sequentially; standalone PAT was a loss of ₹28 crore.

• Specialty chemical revenue was ₹355 crore (flat YoY); value-added chemicals revenue dropped 3% YoY to ₹140 crore.

• Basic and diluted EPS (consolidated) for Q1 FY26 was ₹(4.02), compared to ₹1.51 in Q1 FY25.

Outlook and guidance

• Robust demand outlook for both PVC products, with positive trends in infrastructure and pipe demand; medium to long-term demand outlook remains strong.

• Expectation of ADD implementation by Q3 FY26, which should improve margins and performance.

• CMCD expansion projects are on track, with future investments prioritized for this segment.

• Margins in Specialty Paste PVC are expected to improve and sustain over the medium to long term due to global demand-supply tightness.

• The company continues to focus on its core segments and has implemented tax and asset revaluation strategies to optimize future performance.