Chemplast Sanmar (CHEMPLASTS) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue was INR 1,033 crores, with EBITDA at INR 43 crores, showing improvement quarter-on-quarter and year-on-year, mainly due to better Suspension PVC margins.

• The company commercialized 17 products in the Custom Manufactured Chemicals Division, maintaining a healthy product pipeline.

• The Board approved unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2025.

• Statutory auditors issued unmodified limited review reports for both standalone and consolidated results.

• Ongoing capacity expansions in PVC, CMCD, and refrigerant gas, along with green power initiatives, are expected to improve future performance.

Financial highlights

• Q2 FY26 consolidated revenue was INR 1,033 crores, up from INR 992.75 crores year-over-year; H1 FY26 revenue was INR 2,133 crores.

• EBITDA for Q2 FY26 was INR 43 crores, up from INR 26 crores last year; EBITDA margin improved to 4% from 3% YoY.

• Consolidated net loss for Q2 FY26 was INR 51.04 crores, compared to a net loss of INR 31.26 crores in Q2 FY25; H1 FY26 net loss was INR 115.29 crores.

• As of September 30, 2025, consolidated net debt was INR 1,319 crores.

• Standalone total assets as of September 30, 2025, were INR 6,472.97 crores; consolidated total assets were INR 6,473.30 crores.

Outlook and guidance

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

• CSM business guidance of INR 1,000 crores by FY27 is maintained, with expected EBITDA margins of 20%-25% as scale ramps up.

• CMCD expected to be self-sustaining in operating cash flow by FY27-28, with future CapEx to be funded from internal accruals.

• Caustic Soda and Hydrogen Peroxide margins are likely to improve as demand growth outpaces supply.

• Suspension PVC margins may remain under pressure short-term but are expected to recover as downstream demand expands.