Chemplast Sanmar (CHEMPLASTS) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 saw consolidated revenue of INR 1,125 crores (₹1,124.66 crore), up 2% year-over-year but down sequentially, amid a volatile global environment and geopolitical events impacting raw material availability and demand.

• EBITDA turned negative at INR 115 crores due to sharp increases in input costs and exceptional charges, with PAT loss at INR 176 crores.

• Demand for Paste PVC recovered late in the quarter as Middle East supply issues eased, and downstream operating rates improved.

• CMCD showed strong recovery with a healthy order book, expanded molecule pipeline, and geographic expansion.

• Refrigerant Gas business commenced commercial production of R32, with positive customer feedback and ongoing ramp-up.

Financial highlights

• Consolidated revenue was INR 1,125 crores, down from INR 2,900 crores last year, with EBITDA loss of INR 115 crores and PAT loss of INR 176 crores.

• Net debt stood at INR 1,419 crores; interest cost around INR 235 crores annually.

• Standalone revenues from operations were INR 596 crores (₹592.32 crore) with EBITDA of INR 74 crores.

• Exceptional charge of INR 149.92 crores for onerous contracts and inventory writedown in the previous quarter.

• Standalone results in the previous quarter included an INR 898 crore impairment provision related to the subsidiary.

Outlook and guidance

• Management expects continued demand recovery in Paste PVC, aided by customs duty reinstatement and regulatory measures.

• CMCD is on track for its INR 1,000 crore revenue target, with new product opportunities and geographic expansion.

• Full ramp-up of R32 Refrigerant Gas capacity expected by fiscal year-end.

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

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