Chemplast Sanmar LimitedChemicalsCHEMPLASTS
Q1 FY27 concall · earnings callChemplast Sanmar Limited
The quarter was shaped by severe margin compression in the PVC segment due to high-cost VCM inventory and market volatility, partially offset by a strong recovery in the Custom Manufactured Chemicals Division.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Revenue | ₹1,125 Cr | — | |
| Consolidated EBITDA | INR-115 crores loss | — | |
| Net Loss | ₹176 Cr | — | |
| Specialty Chemicals Revenue | ₹427 Cr | — | |
| Specialty Chemicals Volume Growth | 21% year-on-year | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹1,057.55 Cr+19.1% YoY+6.5% QoQ | ₹-48.82 CrLoss narrowed YoYLoss widened QoQ | ₹-3.06Loss/share narrowed YoYLoss/share widened QoQ |
| Q2 FY25 | ₹992.75 Cr+0.5% YoY-13.3% QoQ | ₹-31.28 CrTurned loss-making YoYTurned loss-making QoQ | ₹-1.95Turned negative YoYTurned negative QoQ |
| Q1 FY25 | ₹1,144.89 Cr+14.9% YoY+9% QoQ | ₹23.89 CrTurned profitable YoYTurned profitable QoQ | ₹1.51Turned positive YoYTurned positive QoQ |
| Q4 FY24 | ₹1,050.72 Cr-8.4% YoY+18.3% QoQ | ₹-31.13 CrTurned loss-making YoYLoss narrowed QoQ | ₹-1.97Turned negative YoYLoss/share narrowed QoQ |
| Q3 FY24 | ₹888.10 Cr-25.3% YoY-10.1% QoQ | ₹-89.38 CrTurned loss-making YoYTurned loss-making QoQ | ₹-5.65Turned negative YoYTurned negative QoQ |
TL;DR
- Consolidated revenue was INR1,125 crores, but EBITDA loss was INR115 crores due to sharp input cost increases.
- PVC spreads were negative in Q1 due to high-cost VCM inventory ($1000+/ton) which will be consumed by August.
- Current replacement VCM cost is $700/ton, with a PVC selling price of $900+, yielding a spread of ~$160.
- Custom Manufactured Chemicals Division delivered a much improved performance, with 14 molecules commercialized and a pipeline of close to 50.
- Reinstatement of customs duties and a Madras High Court order on bonds for Paste PVC imports are expected to moderate low-price dumping.
- A fire incident in the Karaikal PVC plant caused a manual shutdown; there were no injuries and the fire was extinguished quickly.
Said on the call
“With all of that getting washed out, I think from Q3, we should see a reasonable performance.”
From the Q&A
| Topic | What management said |
|---|---|
| VCM Sourcing and PVC Margins | High-cost VCM inventory (~$1000/ton) affected Q1 and will be consumed by July/August; replacement cost is now ~$700/ton with a PVC selling price of ~$900+, giving a ~$160 spread. Management expects spreads to improve from Q3. |
| Antidumping Duty (ADD) Status | For Paste PVC, a Madras High Court order requires importers to provide bonds for retrospective duty recovery, acting as a deterrent. For Suspension PVC, the industry is re-looking at filing an ADD application. |
| Custom Manufactured Chemicals (CMCD) Performance | The Q1 improvement is due to the ramp-up of previously commercialized molecules. The pipeline has expanded to ~50 molecules with 14 commercialized. The INR1,000 crores target remains on track and is currently focused on agchem. |
| R32 Refrigerant Gas | All capacities are on track to be online by the end of this fiscal year. Go-to-market strategy includes both domestic and international sales, with active partnership discussions. |
| Utilization and ROCE in CMCD | Utilization on already commissioned assets is around 60-70%, which is considered healthy for multipurpose plants. The business is reaching a stage to optimize costs and achieve industry-level returns. |
| Debt and Liquidity | Management stated conserved cash and current accruals are sufficient to service debt obligations and complete committed growth capex without requiring additional external funding. |
| Path to Profitability | Key positive triggers include reinstated customs duties, MIP on Suspension PVC, declining VCM costs, strong CMCD order book, and the upcoming R32 capacity. The worst is considered over, with reasonable performance expected from Q3. |
| Onerous Contract Provision | The INR150 crores provision made last quarter has been fully reversed, but a net provision of INR90 crores for CCVL and INR30 crores for Chemplast remains and will be reversed in the current quarter. |
Guidance
- High-cost VCM inventory will be fully consumed by August, after which the company will realize current market spreads.
- The 7,000 tons debottlenecking project for Paste PVC remains on track for commissioning in October '26.
- All R32 refrigerant gas capacities are expected to be online by the end of this fiscal year.
- The Custom Manufactured Chemicals Division has a strong order book for the remaining 9 months of the year.
- Management believes the worst is over and the outlook is reasonably positive, with a turnaround expected from Q3.
Source
Summary written from the transcript filed by Chemplast Sanmar Limited for the call held on 7 Aug 2026; published 18 Aug 2026, 19:42 IST.
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