Chemplast Sanmar (CHEMPLASTS) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 consolidated revenue was INR 1,125 crore, up 2% year-over-year but down from the previous quarter, amid a volatile global environment and geopolitical events impacting raw material availability and demand.

• EBITDA turned negative at INR 115 crore, down from a profit in the prior year and quarter, due to sharp input cost increases and exceptional charges.

• Net loss after tax was INR 176 crore, compared to a loss of INR 64 crore in Q1 FY26 and INR 45 crore in Q4 FY26.

• Demand for Paste PVC recovered in June as Middle East supply issues eased, and downstream operating rates improved to 70%-80%.

• Regulatory changes, including customs duty and anti-dumping measures, influenced competitive dynamics and market conditions.

Financial highlights

• Consolidated revenue was INR 1,125 crore, up 2% YoY but down 10% QoQ; standalone revenues from operations were INR 596 crore.

• EBITDA was a loss of INR 115 crore, with an exceptional charge of INR 149.92 crore for onerous contracts and inventory writedown.

• Net debt stood at INR 1,419 crore at quarter end.

• Specialty chemical segment revenue was INR 427 crore, up 31% YoY in volumes; Value Added Chemicals revenue was INR 179 crore.

• PAT was a loss of INR 176 crore, compared to a loss of INR 64 crore YoY and INR 45 crore QoQ.

Outlook and guidance

• Management expects continued demand recovery in Paste PVC, supported by customs duty reinstatement and improved supply.

• CMCD is on track for INR 1,000 crore revenue target, with strong order book and new product/geographic expansion.

• Full ramp-up of R32 refrigerant gas capacity expected by fiscal year-end, with both domestic and international sales planned.

• Management anticipates a turnaround in profitability from Q3 as high-cost inventory is consumed and spreads normalize.

• Ongoing investments in capacity expansion and new product development to drive future growth.