Gem Aromatics Q2 PAT Up 117% YoY on Margin Expansion

Quarterly Performance (Q2FY27 vs Q2FY26):

Revenue from Operations: ₹92.4 Cr (vs ₹98.4 Cr in Q2FY26) - decline of 6.1% YoY
Gross Profit: ₹21.1 Cr (vs ₹13.8 Cr in Q2FY26) - growth of 52.9% YoY
Gross Margin: 22.9% (vs 14.0% in Q2FY26) - expansion of 890 bps
EBITDA: ₹11.9 Cr (vs ₹6.1 Cr in Q2FY26) - growth of 95.1% YoY
EBITDA Margin: 12.9% (vs 6.2% in Q2FY26) - expansion of 670 bps
PAT: ₹8.9 Cr (vs ₹4.1 Cr in Q2FY26) - growth of 117.1% YoY
PAT Margin: 9.6% (vs 4.2% in Q2FY26) - expansion of 540 bps
EPS: ₹1.7 (vs ₹0.8 in Q2FY26)
Cash PAT (Depreciation + PAT): ₹10.6 Cr (vs ₹5.6 Cr in Q2FY26)

Sequential Performance (Q2FY27 vs Q1FY27):

Revenue from Operations: ₹92.4 Cr (vs ₹83.0 Cr in Q1FY27) - growth of 11.3% QoQ
Gross Profit: ₹21.1 Cr (vs ₹14.7 Cr in Q1FY27) - growth of 43.5% QoQ
Gross Margin: 22.9% (vs 17.7% in Q1FY27) - expansion of 520 bps
EBITDA: ₹11.9 Cr (vs ₹8.5 Cr in Q1FY27) - growth of 40.0% QoQ
EBITDA Margin: 12.9% (vs 10.3% in Q1FY27) - expansion of 260 bps
PAT: ₹8.9 Cr (vs ₹7.3 Cr in Q1FY27) - growth of 21.9% QoQ
PAT Margin: 9.6% (vs 8.7% in Q1FY27) - expansion of 90 bps
EPS: ₹1.7 (vs ₹1.4 in Q1FY27)
Cash PAT (Depreciation + PAT): ₹10.6 Cr (vs ₹8.9 Cr in Q1FY27)

Half-Yearly Performance (H1FY27 vs H1FY26):

Revenue from Operations: ₹175.4 Cr (vs ₹174.8 Cr in H1FY26) - growth of 0.3%
Gross Profit: ₹35.8 Cr (vs ₹32.9 Cr in H1FY26) - growth of 8.8%
Gross Margin: 20.4% (vs 18.8% in H1FY26) - expansion of 160 bps
EBITDA: ₹20.4 Cr (vs ₹16.6 Cr in H1FY26) - growth of 22.9%
EBITDA Margin: 11.6% (vs 9.5% in H1FY26) - expansion of 210 bps
PAT: ₹16.2 Cr (vs ₹10.6 Cr in H1FY26) - growth of 52.8%
PAT Margin: 9.2% (vs 6.1% in H1FY26) - expansion of 310 bps
EPS: ₹3.1 (vs ₹2.2 in H1FY26)
Cash PAT (Depreciation + PAT): ₹19.4 Cr (vs ₹13.6 Cr in H1FY26)

Quarterly Performance (Q2FY27 vs Q2FY26):

Revenue from Operations: ₹104.0 Cr (vs ₹89.5 Cr in Q2FY26) - growth of 16.2% YoY
Gross Profit: ₹26.4 Cr (vs ₹12.6 Cr in Q2FY26) - growth of 109.5% YoY
Gross Margin: 25.4% (vs 14.0% in Q2FY26) - expansion of 1140 bps
EBITDA: ₹7.9 Cr (vs ₹3.0 Cr in Q2FY26) - growth of 163.3% YoY
EBITDA Margin: 7.6% (vs 3.4% in Q2FY26) - expansion of 420 bps
PAT: ₹-7.0 Cr (vs ₹-2.6 Cr in Q2FY26) - increased loss
PAT Margin: -6.7% (vs -2.9% in Q2FY26)
EPS: ₹-1.3 (vs ₹-0.04 in Q2FY26)
Cash PAT (Depreciation + PAT): ₹2.5 Cr (vs ₹0.5 Cr in Q2FY26)

Sequential Performance (Q2FY27 vs Q1FY27):

Revenue from Operations: ₹104.0 Cr (vs ₹98.9 Cr in Q1FY27) - growth of 5.2% QoQ
Gross Profit: ₹26.4 Cr (vs ₹16.3 Cr in Q1FY27) - growth of 62.0% QoQ
Gross Margin: 25.4% (vs 16.4% in Q1FY27) - expansion of 900 bps
EBITDA: ₹7.9 Cr (vs ₹3.3 Cr in Q1FY27) - growth of 139.4% QoQ
EBITDA Margin: 7.6% (vs 3.3% in Q1FY27) - expansion of 430 bps
PAT: ₹-7.0 Cr (vs ₹-7.9 Cr in Q1FY27) - reduced loss
PAT Margin: -6.7% (vs -8.0% in Q1FY27) - improvement of 130 bps
EPS: ₹-1.3 (vs ₹-1.6 in Q1FY27)
Cash PAT (Depreciation + PAT): ₹2.5 Cr (vs ₹1.3 Cr in Q1FY27)

Half-Yearly Performance (H1FY27 vs H1FY26):

Revenue from Operations: ₹202.8 Cr (vs ₹177.2 Cr in H1FY26) - growth of 14.4%
Gross Profit: ₹42.7 Cr (vs ₹38.4 Cr in H1FY26) - growth of 11.2%
Gross Margin: 21.0% (vs 21.7% in H1FY26) - contraction of 70 bps
EBITDA: ₹11.2 Cr (vs ₹17.9 Cr in H1FY26) - decline of 37.4%
EBITDA Margin: 5.5% (vs 10.1% in H1FY26) - contraction of 460 bps
PAT: ₹-14.9 Cr (vs ₹5.4 Cr in H1FY26) - swing to loss
PAT Margin: -7.3% (vs 3.1% in H1FY26)
EPS: ₹-2.9 (vs ₹1.7 in H1FY26)
Cash PAT (Depreciation + PAT): ₹3.8 Cr (vs ₹10.3 Cr in H1FY26)

Revenue Performance:

Consolidated revenue recorded YoY and QoQ growth in Q2FY27
Supported by improved product mix in Mint business
Recovery in the Clove business contributed to growth
Company continues to make progress across newer product verticals
Revenue contributions expected to build progressively as customer approvals are completed and commercial volumes ramp up

Margin Performance:

Consolidated gross margin and EBITDA margin improved both YoY and QoQ in Q2FY27
Driven by normalization of Clove margins
Favorable shift towards higher-margin products, particularly within Mint portfolio
With Krystal Ingredients in early stages of ramp-up, increasing capacity utilization expected to drive operating leverage

Profitability Factors:

Dahej facility in early stages of ramp-up
Depreciation remains relatively elevated in relation to current operating volumes
As capacity utilization progressively increases, improved fixed-cost absorption expected to support profitability going forward

Cooling Agents:

Following successful completion of customer audits and receipt of initial trial orders
Shipments of GEM Cool 05 and GEM Cool 23 have commenced
Initial revenue contribution expected in Q3FY27

Safranal:

Phenol Derivatives:

Mr. Yash Vipul Parekh, MD & CEO, commented:

Q2FY27 witnessed YoY growth in revenue from operations
Business continued to operate in a seasonally softer quarter
Focus shifting towards utilizing and monetizing expanded manufacturing platform at Dahej
Scaling newer product categories through Krystal Ingredients
Continued progress in customer engagement and product qualification
Focus on converting opportunities into recurring commercial business as they scale
Innovation and R&D remain central to long-term strategy
Continued focus on process innovation, product customization and development of higher-value specialty molecules
Multipurpose capabilities at Dahej provide flexibility to address evolving customer requirements
Supporting development of specialty products
Strengthening international presence with proposed Brazil subsidiary expected to enhance distribution reach in Latin America
Actively working towards expanding footprint in the region and tapping into new growth opportunities
Committed to disciplined execution and sustainable value creation
Focus on progressively scaling Krystal Ingredients' Dahej facility
Strengthening product capabilities and expanding presence across global markets

Business Overview:

Established in 1997
Leading manufacturer of specialty ingredients, essential oils, aroma chemicals, and value-added derivatives
Management team with nearly three decades of industry experience
Strong foundation rooted in innovation, quality, and customer trust

Product Portfolio:

Diverse portfolio of over 80 products
Categories include: Mint & Mint Derivatives, Clove & Clove Derivatives, Synthetic and Natural ingredients
Expanding into new categories: Citral Derivatives, Phenol Derivatives, Cooling Agents, Safranal, and Damascones

Customer Base and Applications:

Products cater to industries including oral care, cosmetics, pharmaceuticals, nutraceuticals, wellness, and personal care
Serves over 240 domestic and 44 global customers across 20 countries
Partners with leading brands including Colgate-Palmolive, Dabur, Patanjali, SH Kelkar, Symrise, and others

Manufacturing Facilities:

Certifications:

ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, FSSC 22000, ISO 22000:2018, and ISO TS 22002-1:2009