Chaman Metallics H1 profit reaches Rs 11.9159 crore after losses

Chaman Metallics Limited returned to profit in H1 FY27, reporting Rs 11.9159 crore of profit after tax after losses in both FY26 halves, while EBITDA reached a disclosed record Rs 47.5669 crore, up 298.39% year on year, on revenue from operations of Rs 376.5788 crore.

What drove Chaman Metallics' H1 FY27 turnaround?

Chaman Metallics reported profit before tax of Rs 15.9185 crore in H1 FY27 after depreciation of Rs 10.9255 crore and finance cost of Rs 20.8839 crore. This compared with a profit-before-tax loss of Rs 3.1835 crore in H1 FY26 and a Rs 2.0324 crore loss in H2 FY26. Tax expense of Rs 4.0026 crore left H1 FY27 profit after tax at Rs 11.9159 crore.

Chaman Metallics had recorded a Rs 2.5519 crore loss in H1 FY26 and a Rs 1.6223 crore loss in H2 FY26. Its FY26 loss after tax was Rs 4.1743 crore, compared with profits of Rs 9.99 crore in FY25, Rs 12.99 crore in FY24 and Rs 16.99 crore in FY23. Earnings per share were Rs 4.94 in H1 FY27, against negative Rs 1.06 in H1 FY26 and negative Rs 0.67 in H2 FY26.

The presentation describes H1 FY27 as a move from an expansion phase to an execution phase and calls the Rs 11.9159 crore half-year profit its highest disclosed profit after tax. Its annual financial chart shows EBITDA rising from Rs 15 crore in FY25 to Rs 40 crore in FY26, before reaching Rs 47.5669 crore in H1 FY27. The presentation labels the FY26 and H1 FY27 financial trajectory as post-capacity-expansion performance.

How did Chaman Metallics' revenue and EBITDA change?

Chaman Metallics increased H1 FY27 revenue from operations by 91.63% year on year to Rs 376.5788 crore, while EBITDA, or earnings before interest, tax, depreciation and amortisation, rose 298.39% to Rs 47.5669 crore. Revenue from operations was Rs 196.5175 crore and EBITDA was Rs 11.9397 crore in H1 FY26, meaning EBITDA increased faster than revenue over the year-earlier period.

Sequentially, Chaman Metallics reported revenue growth of 9.23% from H2 FY26, when revenue from operations stood at Rs 344.7478 crore. EBITDA grew 69.75% from Rs 28.0218 crore in H2 FY26 to Rs 47.5669 crore in H1 FY27. Operating expenses rose from Rs 316.7260 crore in H2 FY26 to Rs 329.0119 crore in H1 FY27, while the increase in revenue was larger at Rs 31.8310 crore.

The Rs 376.5788 crore H1 FY27 revenue figure was below FY26 revenue from operations of Rs 541.2653 crore, which covered a full 12 months. The presentation's annual chart shows revenue of Rs 228 crore in FY23, Rs 189 crore in FY24 and Rs 172 crore in FY25 before the Rs 541 crore FY26 figure. EBITDA on that chart was Rs 27 crore in FY23, Rs 20 crore in FY24, Rs 15 crore in FY25 and Rs 40 crore in FY26.

How did captive power affect Chaman Metallics' costs?

Chaman Metallics says its 30-megawatt captive power plant was fully commissioned in FY26 and met 99.9% of plant power requirements. The plant uses atmospheric fluidised bed combustion, or AFBC, and waste-heat-based generation. Management identifies the commissioning as the mechanism that unlocks a cost advantage and margin expansion.

The presentation gives the captive plant's effective electricity cost as Rs 3.54 per unit, compared with Rs 8.44 per unit for grid power. The stated difference is Rs 4.90 per unit. Chaman Metallics does not provide a separate power-cost line item or quantify the contribution of the plant to the Rs 35.6272 crore year-on-year increase in H1 FY27 EBITDA.

The timing of the commissioning coincides with higher reported EBITDA after the expansion period. EBITDA was Rs 15 crore in FY25, Rs 39.9614 crore in FY26 and Rs 47.5669 crore in H1 FY27. The income statement also shows operating expenses rising from Rs 184.5778 crore in H1 FY26 to Rs 329.0119 crore in H1 FY27, without a product-level or power-cost reconciliation.

Did Chaman Metallics' returns improve after expansion?

Chaman Metallics reported return on capital employed, or ROCE, of 7.65% in H1 FY26-27, compared with 5.78% in FY25-26. Return on equity, or ROE, was 11.12% in H1 FY26-27, compared with negative 4.38% in FY25-26. The H1 FY27 return figures accompanied profit after tax of Rs 11.9159 crore after the Rs 4.1743 crore FY26 loss.

The H1 FY26-27 measures remained below the earlier levels shown in the presentation, including ROCE of 25.78% and ROE of 22.24% in FY22-23. ROCE was 7.67% in FY23-24 and 3.27% in FY24-25, while ROE was 13.97% and 9.83%, respectively. The presentation identifies FY24 through FY26 as an expansion phase and H1 FY27 as an execution phase.

Fixed assets, including capital work in progress, stood at Rs 451.1507 crore on September 30, 2026, compared with Rs 440.9402 crore on March 31, 2026. Borrowings were Rs 481.4071 crore on September 30, 2026, versus Rs 440.4581 crore at March 31, 2026. These reported balance-sheet figures provide context for H1 FY27 finance cost of Rs 20.8839 crore.

Conclusion

Chaman Metallics' H1 FY27 result marked a return to profitability after losses in both FY26 halves, with revenue from operations rising 91.63% year on year to Rs 376.5788 crore and EBITDA rising 298.39% to Rs 47.5669 crore. The fully commissioned 30-megawatt captive power plant, with a stated effective cost of Rs 3.54 per unit against Rs 8.44 per unit for grid supply, is the operating mechanism management links to margin expansion.

The next disclosed matter to watch is the board-approved Rs 100 crore rights issue, for which pricing and other terms remain to be decided by the board. Management proposes using the proceeds to repay borrowings and expects finance-cost savings of Rs 6 crore to Rs 9 crore; borrowings were Rs 481.4071 crore as of September 30, 2026.