Financial Performance Summary

Consolidated Financial Results for Q1 FY27 (Quarter ended June 30, 2026):

  • Revenue from Operations: ₹2,627 crore, representing approximately 41% year-on-year growth
  • EBITDA: ₹385 crore, reflecting stable operating performance despite temporary raw material cost pressure
  • EBITDA growth of approximately 79% year-on-year
  • EBITDA growth of approximately 13% quarter-on-quarter
  • Profit After Tax (PAT): ₹155 crore, registering 260% year-on-year growth
  • Capital Expenditure: ₹180 crore during the quarter

Performance Drivers and Operational Context

The company delivered strong performance despite a challenging global operating environment marked by:

  • Geopolitical tensions in West Asia disrupting global supply chains
  • Increased freight costs
  • Inflationary pressure on crude-linked raw materials

Key drivers of financial performance:

  • Optimized product mix
  • Effective inventory management
  • Forex gains
  • Despite volume degrowth during the quarter

Business Segment Performance

Energy Business: Experienced temporary disruption in exports to West Asia due to geopolitical tensions. The company successfully redirected a significant portion of these volumes to other international markets, limiting overall business impact.

Growth Initiatives and Project Updates

Zone IV Expansion and Chlorotoluene Value Chain Projects:

  • Affected by labor constraints causing 4-6 month delays
  • Expected to be commissioned in phases over the next three quarters

PEDA and MPP Products:

  • Have entered customer qualification phase
  • Expected to ramp up over next two quarters
  • MPP plants expected to become operational in Q2 FY27

Capacity Expansion:

  • Successfully completed Fuel Additives capacity expansion from 290 KTPA to 360 KTPA in July 2026

Capital Allocation Strategy

  • FY27 capital expenditure program remains on track within guided range of ₹700-800 crore
  • Supports future growth across high-value speciality chemical platforms

Strategic Partnerships and Projects

  • Long-term customer contracts continue to progress well and remain stable
  • Superform JV remains on track for commissioning and ramp-up in Q2 FY27
  • Re Aarti chemical recycling project execution progressing as planned for commissioning in H2 FY27

Operational Excellence Initiatives

Digital & AI Transformation:

  • Continued building enterprise-wide digital and analytics capabilities
  • Accelerated AI adoption across organization
  • 40+ GenAI use cases executed during the quarter to improve efficiency, reliability and productivity

Cost Optimization:

  • Continued initiatives across value chains through digital, advanced analytics and engineering interventions
  • 70% of identified ideas implemented
  • Delivering improvements in productivity, energy efficiency and product yields

Sustainability Achievement

  • Achieved EcoVadis Platinum Rating with score of 87/100
  • Places company among top 1% of companies globally for sustainability performance

Management Commentary

Mr. Suyog Kotecha, Chief Executive Officer & Executive Director, commented:

  • Company began FY27 with encouraging momentum despite dynamic global operating environment
  • Performance reflects strength of diversified portfolio and disciplined execution
  • Effectively managed geopolitical disruptions by leveraging global market presence and operational flexibility
  • Ability to manage inventory and global supply chain insulated from significant raw material deficit
  • Supported better pricing with customers
  • Expect volumes to recover in Q2 as demand scenarios tend to improve
  • Near-term macroeconomic uncertainties continue to persist
  • Business fundamentals remain strong
  • Focus remains on executing growth roadmap, improving operational efficiency, and strengthening customer partnerships
  • Strategic investments nearing completion with new capacities expected to come on stream

Outlook

The company remains cautiously optimistic on the outlook for FY27. Stable demand in key industries and emerging recoveries, combined with upcoming capacity expansions, customer qualifications, and operational excellence initiatives, are set to drive future growth.