Chemplast Sanmar (CHEMPLASTS) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue was INR 1,100 crore, down 4% year-over-year, with EBITDA at INR 17 crore and a net loss of INR 64 crore, impacted by global PVC dumping and pricing pressure.

• The Board approved un-audited standalone and consolidated financial results for the quarter, with no material misstatements identified.

• The new Paste PVC plant in Cuddalore achieved full capacity utilization, and the Custom Manufactured Chemicals Division (CMCD) maintained strong engagement and project progress.

• Persistent pricing pressure and dumping in Paste and Suspension PVC impacted profitability; anti-dumping investigations are ongoing, with final findings expected soon.

• Medium to long-term demand outlook for both Paste and Suspension PVC remains strong, with positive signals from the automobile and infrastructure sectors.

Financial highlights

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

• Consolidated net loss after tax for Q1 FY26 was INR 64.25 crore, compared to a profit of INR 23.89 crore in Q1 FY25 and a loss of INR 54.17 crore in Q4 FY25.

• EBITDA margin dropped to 2% in Q1 FY26 from 11% in Q1 FY25 and 3% in Q4 FY25.

• Suspension PVC revenue grew 12% sequentially to INR 646 crore, remaining flat year-over-year.

• Specialty chemical revenue was INR 355 crore, flat year-over-year; value-added chemicals revenue dropped 3% to INR 140 crore.

Outlook and guidance

• Robust demand outlook for both Paste and Suspension PVC, with positive trends in the automobile and infrastructure sectors.

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

• Expectation of improved performance following the anticipated imposition of anti-dumping duties (ADD) on key PVC imports.

• CMCD expansion projects are on track, with completion expected in the next 2-3 months; future investments will prioritize this segment.

• Value-added chemicals like Caustic Soda and Hydrogen Peroxide are expected to see stable or improving realizations.