Chennai: Specialty chemicals manufacturer Chemfab Alkalis Ltd. reported a mixed performance for the first quarter of FY27, with revenue from operations declining almost 20% year-on-year to ₹73.2 crore due to lower product realisations and lower sales volumes. However, the company delivered a sharp improvement in profitability, with net profit rising 128% to ₹5.7 crore, supported by stronger operational efficiencies and improved margins.
Revenue impacted by pricing pressures
During the June quarter, Chemfab’s revenue fell from ₹91.6 crore in the corresponding quarter last year to ₹73.2 crore, mostly attributed to lower caustic soda realizations and softer market demand across key end-user industries.
The company has faced volume pressures during the quarter, as lower industrial demand has created an overall challenge with oversupply in the broader industrial chemical sector.
Despite this decline in sales, management has maintained operational discipline by working to optimize production costs and improve manufacturing efficiency. The company is hopeful of stronger demand for its key products- its Chlor Alkali-based chemical business, and its OPVC water pipes business.
“We foresee sustained improvement in order booking from Q2FY27, with the resultant revenue benefits expected to flow through from Q3FY27. On a consolidated basis, the outlook remains firmly positive. Improving cost efficiencies in the Chlor-Alkali business, the ramp-up of captive hybrid power, and the anticipated revival in OPVC order booking and demand are together expected to drive a meaningful improvement in performance through the year. While external uncertainties persist, the Company remains firmly focused on execution discipline, positioning it well for sustainable and profitable growth in the year ahead.” Mr. V.M. Srinivasan, CEO, Chemfab Alkalis Ltd., said in a press release to the bourses.
