Prasol H1 FY27 EBITDA more than doubled, margin at 17.5%

Prasol Chemicals Limited reported H1 FY27 EBITDA of Rs 148.0 crore, up 106.6% year on year, as revenue rose 37.1% to Rs 846.2 crore and EBITDA margin reached 17.5%. Prasol said geopolitical-led supply-chain disruption increased average selling prices and added Rs 25 crore to gross profit in Q1 FY27.

How did Prasol perform in H1 FY27?

Prasol delivered profit growth ahead of revenue growth in H1 FY27, with profit after tax rising 138.9% year on year to Rs 99.0 crore from Rs 41.4 crore. Revenue from operations increased by Rs 229.0 crore to Rs 846.2 crore, while EBITDA increased by Rs 76.4 crore to Rs 148.0 crore from H1 FY26.

Margins increased across the profit and loss statement in H1 FY27. Gross margin rose to 34.1% from 29.0% in H1 FY26, EBITDA margin increased by 5.9 percentage points to 17.5% from 11.6%, and profit after tax margin reached 11.7% from 6.7%.

Prasol’s cost of goods sold increased 27.1% to Rs 557.4 crore in H1 FY27 from Rs 438.4 crore, below the 37.1% revenue increase. Gross profit consequently rose 61.5% to Rs 288.8 crore, while employee benefit expenses increased to Rs 27.7 crore from Rs 21.3 crore and other expenses rose to Rs 113.0 crore from Rs 85.8 crore.

Why did Prasol’s H1 FY27 margin expand?

Prasol attributed part of the H1 FY27 margin expansion to higher average selling prices arising from geopolitical-led supply-chain issues, which added Rs 25 crore to gross profit in Q1 FY27. Foreign-currency fluctuations made a further positive contribution of Rs 92 lakh in Q1 FY27, according to the presentation.

Prasol said the Q1 pricing and currency effects had normalised in Q2 FY27. The reported H1 EBITDA of Rs 148.0 crore and 17.5% margin therefore include these Q1 effects, while management’s FY27 EBITDA guidance excludes the effect of geopolitical supply-chain price changes and foreign-exchange gains or losses.

The chairman also cited better realisations and an improving product mix for revenue growth in H1 FY27. Demand across acetone-based and phosphorus-based products remained healthy in Q2 FY27, although Prasol said raw-material prices continued to rise and it progressively increased product prices through customer discussions.

Prasol’s H1 FY27 gross margin of 34.1% also exceeded 30.7% in FY26, 28.5% in FY25 and 26.1% in FY24. The company associated the longer-term progression with added secondary and tertiary derivative capacity, products including ZDDP, IPH and PPS, and its cogeneration facility added in 2019.

What did Prasol report for Q2 FY27?

Prasol reported its highest quarterly revenue in Q2 FY27 at Rs 412.6 crore, up 38.6% year on year from Rs 297.6 crore. Q2 EBITDA increased 86.1% to Rs 57.7 crore, while profit after tax rose 122.2% to Rs 37.9 crore.

Q2 FY27 EBITDA margin was 14.0%, compared with 10.4% in Q2 FY26, an increase of 4.6 percentage points. It was below the H1 FY27 margin of 17.5%, consistent with Prasol’s disclosure that the Rs 25 crore gross-profit benefit from supply-chain-led selling prices was recorded in Q1 and had normalised in Q2.

Q2 gross margin increased to 30.1% from 27.9% a year earlier as gross profit rose 49.8% to Rs 124.3 crore. Cost of goods sold increased to Rs 288.3 crore from Rs 214.7 crore, while other expenses rose to Rs 52.1 crore from Rs 41.2 crore and employee benefit expenses rose to Rs 14.5 crore from Rs 10.7 crore.

The chairman said higher freight costs and limited vessel availability during the Middle East crisis delayed some export shipments in Q2 FY27. Prasol also said it diversified its raw-material sourcing base during the quarter, alongside its stated sales growth despite geopolitical headwinds.

What is Prasol targeting for FY27?

Prasol’s chairman said the company remains on track for FY27 revenue of Rs 1,550 crore to Rs 1,650 crore and EBITDA of Rs 240 crore to Rs 250 crore. These are management targets, not reported results, and the EBITDA range excludes geopolitical supply-chain price effects and foreign-exchange gains or losses.

Reported H1 FY27 revenue of Rs 846.2 crore equals 51.3% to 54.6% of the revenue-guidance range, while reported EBITDA of Rs 148.0 crore equals 59.2% to 61.7% of the EBITDA range. Those comparisons use the reported first-half figures and do not adjust for the Rs 25 crore Q1 pricing effect or the Rs 92 lakh foreign-currency effect.

Prasol said capacity expansion at both locations was on schedule in Q2 FY27, and its capital-expenditure programme and new-product pipeline were progressing as planned. The company identified efficiency, cost reduction and better yields for selected products as operational priorities.

Capital work-in-progress was Rs 70.2 crore in September 2026, compared with Rs 47.1 crore in March 2026. Property, plant and equipment stood at Rs 314.3 crore versus Rs 311.0 crore, while total equity increased to Rs 617.4 crore from Rs 448.5 crore.

Conclusion

Prasol’s H1 FY27 results show that a 37.1% increase in revenue was accompanied by larger gains in gross profit, EBITDA and profit after tax. EBITDA more than doubled to Rs 148.0 crore and margin reached 17.5%, with the reported first-half outcome reflecting product mix and pricing actions as well as the disclosed Rs 25 crore Q1 gross-profit effect.

The next results will indicate how much of the 17.5% H1 FY27 margin persists after Prasol said the Q1 pricing effects normalised in Q2. Management’s FY27 targets of Rs 1,550 crore to Rs 1,650 crore in revenue and Rs 240 crore to Rs 250 crore in EBITDA, together with on-schedule expansion at both locations, remain the disclosed milestones to watch.