Chembond Q2 revenue rose 54% as pre-tax profit more than doubled

Chembond Material Technologies Limited reported consolidated revenue from operations of Rs 89.1785 crore for the quarter ended September 30, 2026, up 54% from Rs 57.7501 crore a year earlier. Profit before tax rose 143% to Rs 6.9173 crore, while profit for the period was Rs 4.3006 crore after a deferred-tax expense of Rs 1.4785 crore.

How did Chembond perform in Q2?

Chembond increased consolidated revenue, total income and profit before tax in the quarter ended September 30, 2026 compared with both the June 2026 quarter and the year-earlier quarter. Revenue from operations was Rs 89.1785 crore, against Rs 72.4156 crore in Q1 and Rs 57.7501 crore in Q2 of the previous year. Total income reached Rs 88.4592 crore, compared with Rs 76.1811 crore sequentially and Rs 57.8757 crore a year earlier.

Profit before tax was Rs 6.9173 crore, up from Rs 5.8299 crore in Q1 and Rs 2.8476 crore in Q2 of the previous year. Total expenses increased to Rs 81.5419 crore from Rs 55.0281 crore a year earlier, but remained below the Rs 31.4284 crore year-on-year increase in revenue. Cost of materials consumed rose to Rs 54.6477 crore from Rs 33.0375 crore, while employee-benefit expense increased to Rs 11.5143 crore from Rs 8.9493 crore.

Chembond reported profit for the period of Rs 4.3006 crore, compared with Rs 3.8271 crore in the corresponding quarter of 2025, a rise of about 12%. It was below Rs 5.7262 crore in the June 2026 quarter. Basic earnings per share were Rs 3.20 in Q2, against Rs 4.26 in Q1 and Rs 2.85 a year earlier; the results state that per-share figures for interim periods are not annualised.

Why did Chembond's Q2 profit for the period decline from Q1?

Chembond's profit for the period declined from Q1 because deferred tax changed from a credit to an expense and other income moved into a negative amount, despite higher profit before tax. Deferred-tax expense was Rs 1.4785 crore in Q2, compared with a deferred-tax credit of Rs 69.86 lakh in Q1. Current tax also rose to Rs 1.1382 crore from Rs 80.23 lakh.

Other income was negative Rs 71.93 lakh in Q2, compared with positive other income of Rs 3.7655 crore in Q1. That movement meant total income rose by Rs 12.2781 crore sequentially, less than the Rs 16.7629 crore increase in revenue from operations. The segment statement classifies the Q2 other-income amount as unallocable other income.

Chembond also recorded inventory-related cost changes of Rs 97.64 lakh in Q2 after a Rs 95.81 lakh reduction in Q1. Finance costs were Rs 12.96 lakh, up from Rs 6.15 lakh, while depreciation and amortisation rose to Rs 96.08 lakh from Rs 84.86 lakh. Other expenses reached Rs 13.3130 crore, versus Rs 12.5145 crore in Q1, and employee-benefit expense increased by Rs 49.63 lakh.

Which Chembond segments drove Q2 revenue growth?

Chembond's Specialty Chemical segment supplied most of the Q2 revenue increase, with segment revenue of Rs 78.0727 crore for the September 2026 quarter. That compared with Rs 62.0548 crore in Q1 and Rs 47.6758 crore a year earlier. Animal Health revenue was Rs 11.1057 crore, compared with Rs 10.3608 crore sequentially and Rs 10.0743 crore in the prior-year quarter.

Specialty Chemical segment result was Rs 6.2379 crore, up from Rs 1.0088 crore in Q1 and Rs 1.4906 crore a year earlier. Animal Health reported a segment result of Rs 1.3986 crore, compared with Rs 1.0557 crore in Q1 and Rs 1.2314 crore a year earlier. Specialty Chemical therefore accounted for Rs 5.2291 crore of the Rs 5.5722 crore sequential increase in total segment results.

For the half year ended September 30, 2026, Chembond reported consolidated revenue of Rs 161.5941 crore, compared with Rs 115.4251 crore in the prior-year half. Specialty Chemical contributed Rs 140.1275 crore, up from Rs 95.7358 crore, while Animal Health contributed Rs 21.4665 crore against Rs 19.6894 crore. Half-year profit before tax was Rs 12.7472 crore, compared with Rs 8.2129 crore, and profit for the period rose to Rs 10.0269 crore from Rs 7.8173 crore.

What do Chembond's half-year cash flow and balance sheet show?

Chembond had total assets of Rs 235.1000 crore at September 30, 2026, up from Rs 219.4202 crore at March 31, 2026, while total equity increased to Rs 174.4220 crore from Rs 166.9411 crore. Property, plant and equipment increased to Rs 53.5163 crore from Rs 40.1605 crore. Trade receivables rose to Rs 68.9574 crore from Rs 52.9209 crore, while inventories declined to Rs 18.9523 crore from Rs 19.8075 crore.

Cash and cash equivalents were Rs 3.5121 crore at September 30, down from Rs 9.4078 crore at March 31. During the half year, Chembond generated net cash from operating activities of Rs 2.8132 crore and used Rs 7.4210 crore in investing activities. Payments to acquire property, plant and equipment were Rs 6.4073 crore, while purchases of investments were Rs 4.3500 crore and investment-sale proceeds were Rs 2.7154 crore.

Current borrowings rose to Rs 5.7499 crore at September 30 from Rs 4.1570 crore at March 31. Total current liabilities increased to Rs 60.6719 crore from Rs 51.4059 crore, including trade payables other than micro and small enterprises of Rs 33.3293 crore. The consolidated financial results include Chembond Biosciences Limited, Chembond's only subsidiary at September 30, 2026.

How were Chembond's Q2 results reviewed?

Chembond's audit committee and board approved the unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026 at their October 30, 2026 meeting. The meeting began at 10.30 a.m. and concluded at 4.25 p.m., according to the company filing.

The statutory auditor, M/s. Kastury & Talati, conducted a limited review of the consolidated results under Standard on Review Engagements 2410. Its report said nothing had come to its attention that caused it to believe the results had not disclosed the required information or contained a material misstatement. The report also states that a review provides less assurance and is substantially narrower in scope than an audit.

Conclusion

Chembond's Q2 results show sales expansion alongside a larger increase in pre-tax earnings. Consolidated revenue increased 54% year on year to Rs 89.1785 crore and profit before tax rose 143% to Rs 6.9173 crore, with Specialty Chemical providing most of the additional revenue and segment-result increase. Profit for the period nevertheless fell from Q1 because other income declined and the tax position changed.

The filing gives no revenue or profit guidance. The next disclosed results will indicate whether Specialty Chemical can sustain its Q2 segment result of Rs 6.2379 crore, how unallocable other income changes after the negative Rs 71.93 lakh in Q2, and whether receivables of Rs 68.9574 crore and cash of Rs 3.5121 crore shift after half-year capital expenditure of Rs 6.4073 crore.