Ducol H1 revenue up 18% as margin expands, acquisition costs rise

Ducol Organics & Colours Ltd. grew standalone H1 FY27 revenue 18.29% to Rs 48.71 crore and expanded its earnings before interest, tax, depreciation and amortisation (EBITDA) margin by 460 basis points to 13.76%, but Rs 1.79 crore of acquisition-related finance costs limited the increase in profit after tax (PAT) to 26.39%.

How did Ducol’s standalone business perform in H1 FY27?

Ducol’s standalone business increased revenue faster than expenditure in H1 FY27. Revenue from operations rose to Rs 48.71 crore from Rs 41.18 crore in H1 FY26, while total expenditure increased 12.30% to Rs 42.01 crore from Rs 37.41 crore. EBITDA increased 77.74% to Rs 6.70 crore from Rs 3.77 crore.

Ducol’s H1 FY27 EBITDA margin reached 13.76%, compared with 9.16% in H1 FY26, producing the reported 460-basis-point improvement. Raw-material cost rose to Rs 31.10 crore from Rs 27.04 crore and employee cost increased to Rs 4.63 crore from Rs 4.07 crore, while other expenses were broadly unchanged at Rs 6.29 crore versus Rs 6.30 crore.

Ducol’s first-half revenue of Rs 48.71 crore also exceeded the Rs 42.78 crore reported in standalone H2 FY26, while EBITDA of Rs 6.70 crore was above Rs 6.37 crore. However, the H1 FY27 EBITDA margin of 13.76% was below the 14.90% recorded in H2 FY26 because H1 expenditure was Rs 42.01 crore against Rs 36.41 crore in the preceding half.

Why did acquisition borrowings affect Ducol’s H1 FY27 profit?

Acquisition-related borrowings added Rs 1.79 crore of finance costs in H1 FY27, according to Ducol. The standalone statement includes Rs 1.15 crore of finance cost for the Bitumag Industries acquisition and Rs 0.64 crore for the Xchem Industries acquisition, in addition to Rs 0.97 crore of other finance cost. These charges were recorded below EBITDA and therefore did not change the reported 13.76% EBITDA margin.

Ducol’s standalone profit before tax more than doubled to Rs 2.99 crore from Rs 1.43 crore, an increase of 109.70%, but PAT rose 26.39% to Rs 2.15 crore from Rs 1.70 crore. Tax was Rs 0.84 crore in H1 FY27 compared with a tax credit of Rs 0.27 crore in H1 FY26, while other income declined to Rs 0.52 crore from Rs 1.35 crore.

Depreciation was Rs 1.43 crore in H1 FY27, marginally above Rs 1.41 crore a year earlier, and the gain or loss for fair value through profit or loss was Rs 0.04 crore against Rs 0.01 crore. Management said margins are expected to improve as acquisition debt is repaid, linking the stated outlook to the Rs 1.79 crore of acquisition-related finance costs.

How do Ducol’s consolidated results compare with standalone results?

Ducol reported consolidated H1 FY27 revenue of Rs 112.26 crore and PAT of Rs 6.47 crore, compared with standalone revenue of Rs 48.71 crore and PAT of Rs 2.15 crore. Consolidated EBITDA was Rs 12.79 crore, compared with standalone EBITDA of Rs 6.70 crore.

Ducol’s consolidated EBITDA margin was 11.39%, below the 13.76% standalone margin, while consolidated PAT margin was 5.77% compared with standalone PAT margin of 4.41%. Consolidated profit before tax was Rs 8.83 crore and consolidated tax was Rs 2.36 crore, resulting in the Rs 6.47 crore PAT figure.

Bitumag reported H1 FY27 revenue of Rs 32.64 crore and PAT of Rs 2.30 crore, after FY26 revenue of Rs 52.10 crore and PAT of Rs 3.20 crore. Xchem reported H1 FY27 revenue of Rs 31.84 crore and PAT of Rs 2.03 crore, following FY26 revenue of Rs 72.20 crore and PAT of Rs 6.90 crore; the half-year and full-year periods are not like-for-like comparisons.

Ducol’s presentation also shows revenue from operations of Rs 75.41 crore in FY24, Rs 77.35 crore in FY25, Rs 136.07 crore in FY26 and Rs 112.26 crore in H1 FY27. The corresponding PAT series is Rs 4.82 crore, Rs 4.62 crore, Rs 7.25 crore and Rs 6.47 crore, respectively; the presentation marks the FY26 figures as consolidated.

What changed in Ducol’s consolidated balance sheet by September 2026?

Ducol’s consolidated balance sheet expanded to Rs 254.62 crore as of September 2026 from Rs 169.58 crore as of March 2026. The comparison includes a reporting-perimeter change: March 2026 included Ducol and Bitumag, while September 2026 included Ducol, Bitumag and Xchem. The changes therefore do not solely represent movements within an unchanged group.

Ducol’s long-term borrowing increased to Rs 40.21 crore from Rs 23.11 crore, and short-term borrowings rose to Rs 20.06 crore from Rs 18.27 crore. Goodwill increased to Rs 87.55 crore from Rs 23.10 crore, while trade payables rose to Rs 45.72 crore from Rs 24.33 crore.

Current assets were Rs 88.88 crore in September 2026 compared with Rs 78.43 crore in March 2026, including inventories of Rs 38.82 crore against Rs 27.76 crore. Cash and cash equivalents declined to Rs 1.99 crore from Rs 19.18 crore, while shareholders’ funds increased to Rs 133.85 crore from Rs 97.33 crore.

Conclusion

Ducol’s H1 FY27 results distinguish between improvement in the standalone operating business and the profit effects of acquisitions. Standalone revenue rose 18.29%, EBITDA increased 77.74%, and EBITDA margin expanded 460 basis points, while consolidated revenue reached Rs 112.26 crore after including Bitumag and Xchem. PAT growth of 26.39% trailed EBITDA growth as finance costs, tax and lower other income affected profit.

The disclosed item to watch is repayment of acquisition debt, because management said margins are expected to improve as that debt is repaid. Later consolidated statements will also show whether the expanded group perimeter remains comparable, alongside September 2026 long-term borrowing of Rs 40.21 crore, short-term borrowings of Rs 20.06 crore and goodwill of Rs 87.55 crore.