Financial Performance Summary

Consolidated Profit and Loss Statement (₹ in crore)

| Particulars | Q2FY27 (Unaudited) | Q1FY27 (Unaudited) | Q2FY26 (Unaudited) | QoQ % Change | YoY % Change |

| Revenue from Operations | 272.88 | 253.01 | 126.03 | 7.85% | 116.51% |

| Total Income | 273.09 | 253.31 | 126.34 | 7.81% | 116.16% |

| Total Operating Expense | 261.47 | 218.88 | 112.03 | 19.46% | 133.40% |

| EBITDA (including OI) | 11.62 | 34.43 | 14.31 | -66.26% | -18.79% |

| EBITDA Margins % | 4.25% | 13.59% | 11.32% | -934 bps | -707 bps |

| Interest Cost | 3.83 | 3.49 | 1.91 | 9.62% | 100.70% |

| Depreciation and Amortisation | 3.81 | 3.73 | 4.12 | 2.10% | -7.49% |

| Profit Before Taxes (and exceptional items) | 3.98 | 27.21 | 8.28 | -85.36% | -51.91% |

| Profit After Taxes | 3.23 | 20.40 | 5.75 | -84.18% | -43.88% |

Management Commentary

Bimal Goculdas, Managing Director and CEO, provided the following operational context:

  • Q2 FY27 was a challenging quarter due to elevated sulfur prices throughout the period
  • Sulfur prices rose to levels that could not be absorbed or passed through sulfuric acid prices
  • Significant demand destruction occurred across end markets due to price divergence
  • Large share of market sales occurred below cost of production
  • Company made conscious decision to run plants below optimum capacity to avoid uneconomic volumes
  • Profitability decline primarily reflects commodity cycle and complete divergence between sulfur and sulfuric acid prices
  • Since mid-October, sulfur prices have come off highs and availability improved significantly
  • Production has been ramped up to match improved conditions

Borrowings and Financing

  • Borrowings increased during the quarter
  • Short-term borrowings increased due to higher working capital requirements driven by elevated sulfur prices
  • Long-term borrowings increased from funds raised at subsidized rates under a Government scheme for businesses adversely affected by the conflict in the Middle East

Business Segment Performance

  • Speciality chemicals business continued to make good progress
  • Boron segment output increased further
  • Wider speciality chemicals portfolio saw steady demand, particularly in export markets
  • Capacity utilization has started to inch up and is now higher than in earlier quarters

Outlook and Guidance

  • Macro environment remains too uncertain to predict or give guidance
  • Management confident of delivering more sustainable performance once operating environment stabilizes and sulfur prices cool off

Company Background

DMCC Speciality Chemicals Limited began operations in 1919 with one product and one manufacturing unit. It was the first manufacturer of sulphuric acid and phosphate fertilisers in India. The company evolved to establish its 'Ship' brand and is now a fully integrated speciality chemical company specializing in sulphur, boron and ethanol chemistry, exporting products worldwide. Products find application in pharmaceuticals, detergents, dyes, fertilisers, pigments and cosmetics.

Forward-Looking Statements Disclaimer

The document contains forward-looking statements subject to risks and uncertainties including government actions, political or economic developments, technological risks, and other factors that could cause actual results to differ materially. The company undertakes no obligation to update these statements.