Chemplast Sanmar Q2 pre-tax loss narrows to Rs 8.51 crore

Chemplast Sanmar Limited reported a consolidated pre-tax loss of Rs 8.51 crore for the quarter ended 30 September 2026, narrowing from Rs 62.19 crore a year earlier as revenue from operations rose 28% to Rs 1,323.21 crore. The after-tax loss narrowed to Rs 5.45 crore from Rs 51.04 crore.

How did Chemplast Sanmar perform in the September 2026 quarter?

Chemplast Sanmar reported a Rs 8.51 crore loss before tax in the quarter ended 30 September 2026, compared with losses of Rs 62.19 crore in the year-earlier quarter and Rs 232.26 crore in the quarter ended 30 June 2026. Revenue from operations increased by Rs 290.01 crore year-on-year and by Rs 198.55 crore sequentially to Rs 1,323.21 crore.

Total income was Rs 1,326.85 crore, up from Rs 1,040.19 crore in the quarter ended 30 September 2025, while total expenses rose to Rs 1,335.36 crore from Rs 1,102.38 crore. Other income declined to Rs 3.64 crore from Rs 6.99 crore a year earlier, meaning the narrower pre-tax loss occurred despite a Rs 3.35 crore decline in other income.

The after-tax loss was lower than the pre-tax loss because Chemplast Sanmar recorded a deferred-tax credit of Rs 3.06 crore for the September 2026 quarter. The deferred-tax credit was Rs 11.15 crore in the year-earlier quarter and Rs 56.68 crore in the preceding quarter. Basic and diluted loss per share was Rs 0.34, against Rs 3.21 a year earlier and Rs 11.10 in the June 2026 quarter.

For the half year ended 30 September 2026, the pre-tax loss widened to Rs 240.77 crore from Rs 148.60 crore in the corresponding prior-year period. Half-year revenue from operations nevertheless rose to Rs 2,447.87 crore from Rs 2,133.10 crore, while the after-tax loss increased to Rs 181.03 crore from Rs 115.29 crore because of the larger first-quarter loss.

Which Chemplast Sanmar segments changed during the quarter?

Chemplast Sanmar's specialities segment recorded a loss of Rs 15.64 crore in the September 2026 quarter, while the commodity segment reported profit of Rs 6.64 crore. In the June 2026 quarter, the specialities segment had reported a Rs 65.57 crore loss and the commodity segment a Rs 166.40 crore loss, showing a substantial sequential movement in both segments.

Segment revenue increased in both businesses from a year earlier. Specialities revenue rose to Rs 622.14 crore from Rs 558.12 crore, while commodity revenue increased to Rs 724.84 crore from Rs 542.01 crore. Before eliminating inter-segment revenue of Rs 23.77 crore, combined segment revenue was Rs 1,346.98 crore.

Commodity chemicals accounted for Rs 182.83 crore of the Rs 290.01 crore year-on-year increase in segment revenue, while specialities contributed Rs 64.02 crore. Chemplast Sanmar identifies its operating segments by the nature of products and says the board evaluates performance and allocates resources across speciality chemicals and commodity chemicals under Indian Accounting Standard 108, Operating Segments.

A minor fire temporarily disrupted the ethylene dichloride, or EDC, manufacturing plant at Chemplast Sanmar's Karaikal facility in Puducherry during the quarter. The plant restarted on 25 September 2026 after corrective and restoration measures. Chemplast Sanmar recorded accounting adjustments for damaged assets, while the insurance survey and loss assessment remained in progress and no insurance recovery was recognised by 30 September 2026.

What changed in Chemplast Sanmar's balance sheet?

Chemplast Sanmar's total assets were Rs 6,280.06 crore at 30 September 2026, compared with Rs 6,315.23 crore at 31 March 2026. Total equity declined to Rs 1,573.70 crore from Rs 1,754.63 crore, a reduction of Rs 180.93 crore that corresponded closely with the Rs 181.03 crore half-year after-tax loss.

Total borrowings declined to Rs 1,748.44 crore at 30 September from Rs 1,951.84 crore at the March year-end. Non-current borrowings fell to Rs 1,006.93 crore from Rs 1,104.95 crore, and current borrowings declined to Rs 741.51 crore from Rs 846.89 crore. Cash and cash equivalents were almost unchanged at Rs 430.44 crore, compared with Rs 430.39 crore at 31 March.

Working-capital balances moved in different directions during the six months. Inventories increased to Rs 617.22 crore from Rs 601.68 crore, while trade receivables fell to Rs 81.61 crore from Rs 92.22 crore. Trade payables to creditors other than micro and small enterprises rose to Rs 2,151.94 crore from Rs 1,624.91 crore, and provisions fell to Rs 9.43 crore from Rs 121.22 crore.

Derivative assets fell to Rs 3.51 crore at 30 September from Rs 87.24 crore at 31 March. In the cash-flow statement, Chemplast Sanmar recorded a Rs 83.73 crore adverse difference in the fair value of derivative instruments for the half year, compared with a Rs 54.74 crore gain in the corresponding prior-year period. It also recorded an unrealised foreign-exchange gain of Rs 67.14 crore, compared with an unrealised loss of Rs 50.09 crore a year earlier.

How did cash flow support Chemplast Sanmar's half-year position?

Chemplast Sanmar generated net cash from operating activities of Rs 458.31 crore in the half year ended 30 September 2026, compared with Rs 126.43 crore in the corresponding prior-year period. Cash generated from operations was Rs 461.45 crore despite the Rs 240.77 crore pre-tax loss, with trade and other payables contributing Rs 460.33 crore.

Operating profit before working-capital changes was Rs 13.70 crore, down from Rs 56.37 crore a year earlier. Depreciation and amortisation expense was Rs 116.15 crore and finance costs were Rs 127.49 crore. Inventories used Rs 15.54 crore of cash, whereas trade and other receivables provided Rs 2.96 crore.

Investing activities used Rs 143.91 crore, broadly in line with Rs 142.00 crore in the prior-year half. Purchases of property, plant and equipment were Rs 146.66 crore, lower than Rs 201.11 crore in the corresponding period. Interest received was Rs 5.81 crore, compared with Rs 14.01 crore a year earlier.

Financing activities used Rs 314.35 crore, compared with Rs 86.82 crore in the previous corresponding period. Chemplast Sanmar repaid Rs 246.87 crore of long-term borrowings and Rs 1,624.57 crore of short-term borrowings, while receiving Rs 110.01 crore of long-term borrowing proceeds and Rs 1,566.90 crore of short-term borrowing proceeds. The combined flows resulted in a Rs 0.05 crore increase in cash and cash equivalents to Rs 430.44 crore.

Conclusion

Chemplast Sanmar's September 2026 quarter combined 28% year-on-year revenue growth with a pre-tax loss of Rs 8.51 crore, compared with Rs 62.19 crore a year earlier and Rs 232.26 crore in the preceding quarter. Commodity chemicals returned to a Rs 6.64 crore segment profit, while specialities remained loss-making at Rs 15.64 crore, and the half-year result remained affected by the first-quarter loss.

The next disclosed unresolved matter is the insurance survey and loss assessment following the Karaikal EDC-plant fire, because no claim recovery had been recognised by 30 September 2026. Chemplast Sanmar's subsequent results will also show whether the Rs 460.33 crore increase in trade and other payables that supported half-year operating cash flow is sustained as current borrowings declined to Rs 741.51 crore.