Prasol Chemicals LimitedChemicalsPRASOLCHEM
Q1 FY27 concall · earnings callPrasol Chemicals Limited
Q1 FY27 was exceptionally strong on inventory gains from West Asia-led acetone price rises, while underlying mid-single-digit volume growth remained healthy and management guided for INR1,550 crores to INR1,650 crores revenue in FY27 with normalization of margins ahead.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from operations - Q1 FY27 | ₹433.6 Cr | a growth of 35.7% YoY | |
| Gross margin - Q1 FY27 | 37.9% | compared to 30% in Q1 FY26 | |
| EBITDA - Q1 FY27 | ₹90.3 Cr | a growth of 122.4% YoY | |
| EBITDA margin - Q1 FY27 | 20.8% | against 12.7% in the same quarter last year | |
| Profit after tax - Q1 FY27 | ₹61 Cr | a growth of 151% |
TL;DR
- Revenue from operations was INR433.6 crores, up 35.7% year-on-year on steady volumes, better mix and higher realizations, with exports at 27% of revenue.
- Gross margin was 37.9% including INR25 crores positive impact from sharp rise in average selling price; EBITDA was INR90.3 crores at 20.8% margin and PAT was INR61 crores at 14.1% margin.
- Khopoli at 78,800 tons ran at optimum utilization in FY26 while Mahad at 19,900 tons improved to 44% in FY26 and is now sustainably profitable.
- IPO listed on 16th September 2026 raising gross proceeds of INR80 crores, with INR60 crores used to repay borrowings and INR16.4 crores for general corporate purposes.
- Phase 1 capex of INR250 crores to INR300 crores on existing products plus Phase 2 of nearly INR250 to INR300 crores on R&D products underpins 5-year aspiration of INR2,800 crores to INR3,000 crores revenue.
Said on the call
“diversification is humility applied to uncertainty.”
From the Q&A
| Topic | What management said |
|---|---|
| Phase 1 capex and new products | Management said lubricant capacity can rise 50%-plus by debottlenecking agitators with results in two to three months, antibacterial drug mechanical completion is expected by January followed by 60 to 90 days of trials with initial volumes of more than 100 tons a month, while mining chemicals are in early approval stages and should pick up in two to three years. |
| Acetone sourcing and storage | Management said INR25 crores is set aside for floating-roof acetone storage at Khopoli to handle bulk buying and future domestic acetone availability, and does not speculate on raw material pricing. |
| Guidance and Q1 inventory gain | Management confirmed FY27 EBITDA guidance of INR240 crores to INR250 crores excludes the INR25 crores inventory gain and forex gain in Q1, and expects full-year EBITDA margin of 15% to 16% as pricing normalizes. |
| Mahad plant utilization | Management said Mahad utilization improved from about 13% in FY24 to 44% in FY26 and is now at 60%-plus and both EBITDA positive and PBT positive, targeting 70-plus by year-end, with additional 20 acres bought for expansion. |
| R&D pipeline | Management said about 15% to 20% of the 40 products in the R&D pipeline typically get commercialized, and 13 new products were commercialized over the last 3 years across lubricants, agro, mining, home and personal care and pharma. |
Guidance
- For '27, expect to deliver a revenue of INR1,550 crores to INR1,650 crores with an EBITDA of INR240 crores to INR250 crores, excluding price fluctuation due to geopolitical-led supply chain issues and forex gain/losses, if any
- Aspire to scale the business to INR2,800 crores to INR3,000 crores in the next 5 years, supported by capacity expansions and higher value-added offerings
- See sustainable gross margins in the range of about 30%, 32% on a normalized basis
- End of year EBITDA margin in the range of 15% to 16%
- Phase 1 expansion of about 250 crores to 300 crores to be completed over the next two years, expected to generate about INR500 to INR550 crores of revenue at peak utilization
Source
Summary written from the transcript filed by Prasol Chemicals Limited for the call held on 29 Sept 2026; published 5 Oct 2026, 17:46 IST.
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