DMCC Speciality Chemicals profit falls 44% as sales double

DMCC Speciality Chemicals Limited reported consolidated net profit of Rs 3.2276 crore for the quarter ended 30 September 2026, down 43.9% from Rs 5.7508 crore a year earlier, although net sales more than doubled to Rs 272.8756 crore. Raw-material consumption increased to Rs 235.8621 crore and finance costs rose to Rs 3.8266 crore.

Why did DMCC Speciality Chemicals’ September-quarter profit fall?

DMCC Speciality Chemicals’ profit fell because the increase in expenses exceeded the increase in income in the quarter ended 30 September 2026. Consolidated total income from operations rose to Rs 273.0878 crore from Rs 126.3353 crore in the year-earlier quarter, while total expenses increased to Rs 269.1038 crore from Rs 118.0513 crore. Profit before tax therefore declined to Rs 3.984 crore from Rs 8.2841 crore.

Raw-material consumption was the largest change in the consolidated cost base, rising to Rs 235.8621 crore from Rs 85.5777 crore in the quarter ended 30 September 2025. Finance costs increased to Rs 3.8266 crore from Rs 1.9066 crore, while power, fuel and water charges rose to Rs 4.9376 crore from Rs 3.29 crore. DMCC Speciality Chemicals reports one operating segment, manufacturing and sale of chemicals, and does not provide product-level sales or cost detail.

How did DMCC Speciality Chemicals compare with the June quarter?

DMCC Speciality Chemicals’ September-quarter net profit was below the Rs 20.4044 crore reported for the quarter ended 30 June 2026. Net sales rose by Rs 19.8698 crore sequentially to Rs 272.8756 crore, but total expenses rose by Rs 43.0047 crore to Rs 269.1038 crore. Profit before tax consequently fell from Rs 27.2106 crore in the June quarter to Rs 3.984 crore in the September quarter.

Raw-material consumption increased by Rs 38.2625 crore from Rs 197.5996 crore in the June quarter. The benefit from inventory changes narrowed, with a reduction in expense of Rs 2.9297 crore in the September quarter compared with Rs 5.7474 crore in June. Other expenses rose to Rs 11.4923 crore from Rs 10.3755 crore, while finance costs increased from Rs 3.4907 crore to Rs 3.8266 crore.

DMCC Speciality Chemicals recorded a total tax expense of Rs 0.7564 crore in the September quarter, compared with Rs 6.8062 crore in the preceding quarter. Basic and diluted earnings per share, or EPS, were Rs 1.29 for the September quarter, versus Rs 8.18 in June and Rs 2.31 a year earlier. The company states that quarterly EPS is not annualised.

What do DMCC Speciality Chemicals’ half-year results show?

DMCC Speciality Chemicals’ consolidated net profit increased to Rs 23.632 crore in the half year ended 30 September 2026 from Rs 13.506 crore in the corresponding prior-year period. The six-month result included Rs 20.4044 crore of net profit in the June quarter and Rs 3.2276 crore in the September quarter, showing that the first-quarter result accounted for most of the half-year profit.

Net sales for the six months rose to Rs 525.8814 crore from Rs 253.0741 crore a year earlier. Raw-material consumption increased to Rs 433.4617 crore from Rs 163.8661 crore, while total expenses rose to Rs 495.2029 crore from Rs 234.4389 crore. Profit before tax nevertheless increased to Rs 31.1946 crore from Rs 19.3138 crore over the same periods.

Finance costs for the half year were Rs 7.3173 crore, compared with Rs 3.9326 crore a year earlier. Depreciation and amortisation declined to Rs 7.5379 crore from Rs 8.3124 crore, and repairs to machinery and buildings decreased to Rs 8.8145 crore from Rs 11.2937 crore. These lower costs partly offset increases in raw materials, power and finance costs.

What changed in DMCC Speciality Chemicals’ cash flow and balance sheet?

DMCC Speciality Chemicals generated consolidated net cash inflow from operating activities of Rs 4.226 crore in the half year ended 30 September 2026, compared with Rs 17.4182 crore a year earlier. Cash generated from operations decreased to Rs 9.046 crore from Rs 20.2975 crore as working-capital changes used Rs 37.0159 crore, compared with an outflow of Rs 11.6758 crore in the previous corresponding period.

Trade receivables increased by Rs 49.7547 crore during the six-month period, according to the consolidated cash-flow statement. Consolidated trade receivables stood at Rs 145.5348 crore at 30 September 2026, compared with Rs 95.9425 crore at 31 March 2026, while inventories rose to Rs 96.3054 crore from Rs 91.8937 crore over the same dates.

Consolidated short-term borrowings were Rs 66.5234 crore at 30 September 2026, up from Rs 49.6717 crore at 31 March 2026. Long-term borrowings increased to Rs 41.3611 crore from Rs 36.8736 crore. Cash and cash equivalents were Rs 2.9426 crore at the half-year end, compared with Rs 2.1628 crore at the start of the financial year.

Were DMCC Speciality Chemicals’ results audited?

DMCC Speciality Chemicals’ consolidated results for the quarter and half year ended 30 September 2026 were unaudited and subject to a limited review by Rahul Gautam Divan & Associates. The review report, dated 30 October 2026, stated that nothing had come to the auditor’s attention indicating that the results had failed to make required disclosures or contained a material misstatement. A limited review is narrower in scope than an audit and does not provide an audit opinion.

DMCC Speciality Chemicals’ consolidated accounts include its subsidiary, DMCC (Europe) GMBH. The subsidiary contributed revenue of Rs 3.45 lakh and net profit after tax of Rs 1.51 lakh for the September 2026 quarter; its interim financial results were neither audited nor reviewed. The auditor said those results were not material to the parent including its subsidiary and did not modify its conclusion on that matter.

DMCC Speciality Chemicals said its board reviewed and approved the unaudited standalone and consolidated results on 30 October 2026. The filing was prepared under Indian Accounting Standard 34, Interim Financial Reporting, and records no exceptional items for the September 2026 quarter, the June 2026 quarter or the September 2025 quarter.

Conclusion

DMCC Speciality Chemicals’ September-quarter figures show that sales growth did not translate into higher earnings. Consolidated net sales increased by 116.5% year on year to Rs 272.8756 crore, but raw-material consumption rose by Rs 150.2844 crore and finance costs doubled, leaving net profit 43.9% lower at Rs 3.2276 crore. The sequential comparison also shows expenses rising faster than sales after the June quarter.

The filing discloses no earnings target, operating plan or scheduled corporate event for the next reporting period. The next results will provide the disclosed basis to assess whether raw-material consumption, finance costs, trade receivables of Rs 145.5348 crore and short-term borrowings of Rs 66.5234 crore change after 30 September 2026.