Chembond Specialty Chemicals lifts Q2 segment profit to Rs 6.2379 crore

Chembond Material Technologies Limited reported a Specialty Chemicals segment result of Rs 6.2379 crore for the quarter ended 30 September 2026, compared with Rs 1.4906 crore a year earlier. The Rs 4.7473 crore increase accounted for most of the Rs 4.9146 crore rise in the group’s combined segment results.

How did Chembond’s segments perform in the September 2026 quarter?

Chembond’s Specialty Chemicals segment led both revenue and segment-result growth in the quarter ended 30 September 2026. Specialty Chemicals revenue rose to Rs 78.0727 crore from Rs 47.6758 crore in the quarter ended 30 September 2025, while its segment result increased to Rs 6.2379 crore from Rs 1.4906 crore.

Animal Health also recorded year-on-year growth, although from a smaller base. Revenue rose to Rs 11.1057 crore from Rs 10.0743 crore, and segment result increased to Rs 1.3986 crore from Rs 1.2314 crore. Consolidated net turnover consequently reached Rs 89.1785 crore, up from Rs 57.7501 crore.

The reported figures are consolidated and unaudited, and include Chembond Biosciences Limited, Chembond’s only subsidiary as at 30 September 2026. The company identifies Specialty Chemicals and Animal Health as its two reportable operating segments under Indian Accounting Standard 108, or Ind AS 108.

Why did Specialty Chemicals drive Chembond’s profit improvement?

Specialty Chemicals drove the improvement because its Rs 4.7473 crore year-on-year increase in segment result was far larger than Animal Health’s Rs 0.1672 crore increase. Total segment results rose by Rs 4.9146 crore to Rs 7.6366 crore in the September 2026 quarter, so Specialty Chemicals provided the overwhelming part of that expansion.

The movement in revenue followed the same pattern. Specialty Chemicals added Rs 30.3969 crore of revenue year on year, compared with Animal Health’s Rs 1.0314 crore increase. This took Specialty Chemicals to about Rs 78.0727 crore of Chembond’s Rs 89.1785 crore consolidated net turnover for the quarter.

Consolidated profit before tax rose to Rs 6.9173 crore from Rs 2.8476 crore, an increase of Rs 4.0697 crore that was smaller than the rise in total segment results. The difference reflected unallocable other income moving to a loss of Rs 0.7193 crore in the September 2026 quarter from income of Rs 12.56 lakh a year earlier.

The filing does not provide a product, customer, volume or pricing breakdown for the Rs 4.7473 crore increase in Specialty Chemicals segment result. It therefore supports the segment-level attribution, but does not identify which Specialty Chemicals products or contracts produced the quarter’s change.

How did Specialty Chemicals compare with Animal Health sequentially?

Specialty Chemicals’ contribution increased sharply from the preceding quarter ended 30 June 2026. Its segment result rose from Rs 1.0088 crore in the June 2026 quarter to Rs 6.2379 crore in the September 2026 quarter, while revenue increased from Rs 62.0548 crore to Rs 78.0727 crore.

Animal Health also improved sequentially, but by a smaller absolute amount. Its segment result rose by Rs 34.29 lakh to Rs 1.3986 crore from Rs 1.0557 crore, and revenue rose by Rs 0.7449 crore to Rs 11.1057 crore from Rs 10.3608 crore.

Chembond’s total segment results were Rs 2.0644 crore in the June 2026 quarter and Rs 7.6366 crore in the September quarter. However, profit before tax increased by only Rs 1.0874 crore quarter on quarter, to Rs 6.9173 crore from Rs 5.8299 crore, as unallocable other income changed from Rs 3.7655 crore of income to a Rs 0.7193 crore loss.

The sequential result also differs from the bottom-line movement. Consolidated profit for the period was Rs 4.3006 crore in the September quarter, below Rs 5.7262 crore in the June quarter, despite the higher profit before tax, as deferred tax moved to an expense of Rs 1.4785 crore from a credit of Rs 69.86 lakh.

What did Chembond report for the September half year?

For the half year ended 30 September 2026, Specialty Chemicals revenue rose to Rs 140.1275 crore from Rs 95.7358 crore in the prior-year half, and its segment result increased to Rs 7.2467 crore from Rs 3.3835 crore. Animal Health revenue reached Rs 21.4665 crore from Rs 19.6894 crore, while its result rose to Rs 2.4543 crore from Rs 2.0524 crore.

Total segment results for the half year were Rs 9.7010 crore, compared with Rs 5.4358 crore a year earlier. Consolidated profit before tax increased to Rs 12.7472 crore from Rs 8.2129 crore, while consolidated profit for the period rose to Rs 10.0269 crore from Rs 7.8173 crore.

Revenue from operations for the group was Rs 161.5941 crore in the six months to 30 September 2026, versus Rs 115.4251 crore in the comparative period. Cost of materials consumed increased to Rs 101.5143 crore from Rs 66.1606 crore, and employee benefit expense rose to Rs 22.5323 crore from Rs 18.1876 crore.

The half-year figures include Rs 3 lakh of employee stock-option compensation in the cash-flow statement. Chembond said options granted under its ESOP 2025 scheme vest over specified periods, subject to performance conditions set out in that scheme.

What do Chembond’s assets, liabilities and cash flows show?

Specialty Chemicals held segment assets of Rs 220.8127 crore as at 30 September 2026, compared with Rs 202.2092 crore at 31 March 2026. Animal Health assets declined to Rs 14.2873 crore from Rs 17.2111 crore, while consolidated assets rose to Rs 235.1000 crore from Rs 219.4202 crore.

Specialty Chemicals segment liabilities increased to Rs 50.1455 crore at 30 September 2026 from Rs 41.9236 crore at 31 March 2026. Animal Health liabilities were Rs 10.5264 crore, marginally below Rs 10.5555 crore at the March 2026 year-end, taking total liabilities to Rs 60.6718 crore from Rs 52.4791 crore.

Trade receivables on the consolidated balance sheet rose to Rs 68.9574 crore at 30 September 2026 from Rs 52.9209 crore at 31 March 2026. Cash and cash equivalents fell to Rs 3.5121 crore from Rs 9.4078 crore, while current borrowings increased to Rs 5.7499 crore from Rs 4.1570 crore.

For the half year, net cash from operating activities was Rs 2.8132 crore and net cash used in investing activities was Rs 7.4210 crore. Investing cash flow included Rs 6.4073 crore spent on property, plant and equipment, while cash used in financing activities was Rs 1.2879 crore, including Rs 2.6897 crore of dividend payments.

Conclusion

Chembond’s September 2026 quarter was led by Specialty Chemicals, whose Rs 6.2379 crore segment result was Rs 4.7473 crore above the prior-year quarter. Animal Health contributed higher revenue and a Rs 1.3986 crore segment result, but the scale of Specialty Chemicals explains the rise in total segment results to Rs 7.6366 crore and profit before tax to Rs 6.9173 crore.

The next reported periods will show whether Specialty Chemicals can sustain revenue of Rs 78.0727 crore and its higher segment result while receivables are managed. The filing shows trade receivables of Rs 68.9574 crore at 30 September 2026, Rs 16.0365 crore above the March 2026 balance, alongside Rs 6.4073 crore of half-year spending on property, plant and equipment.