Punjab Chemicals revenue rises 28% as consolidated profit falls 27%

Punjab Chemicals and Crop Protection Limited reported 28.0% year-on-year consolidated revenue growth to ₹326.70 crore in Q2 FY27, while consolidated net profit fell 27.4% to ₹13.46 crore. The company has also made the audio recording of its November 4, 2026 Q2 and first-half FY27 earnings call available on its website, improving shareholder access to management commentary.

What did Punjab Chemicals report for Q2 FY27?

Punjab Chemicals reported consolidated revenue from operations of ₹326.70 crore for the quarter ended September 30, 2026, compared with ₹255.16 crore in Q2 FY26. Revenue was 5.9% lower sequentially than ₹347.24 crore reported in Q1 FY27. Total income for the latest quarter stood at ₹329.09 crore.

Consolidated profit after tax was ₹13.46 crore, down from ₹18.54 crore a year earlier and ₹22.07 crore in the preceding quarter. Basic earnings per share were ₹10.98, compared with ₹15.12 in Q2 FY26 and ₹18.00 in Q1 FY27. A separate quarterly-results summary cited revenue of ₹326.51 crore and net profit of ₹13.89 crore, while the consolidated financial data showed revenue of ₹326.70 crore and PAT of ₹13.46 crore.

Why did Punjab Chemicals' profit margin decline?

Punjab Chemicals' profit was affected by higher material costs and finance costs relative to revenue growth. Cost of materials consumed rose to ₹202.75 crore, or 62.1% of revenue, from ₹141.57 crore, or 55.5% of revenue, in the year-earlier quarter. This increase in the material-cost share put pressure on the gross-margin line despite higher sales.

The reported EBITDA margin was 9.05%, compared with 10.28% in Q2 FY26 and 11.75% in Q1 FY27. Finance costs increased 50% year-on-year to ₹5.67 crore. The company reported net profit margin of 4.12% for Q2 FY27, compared with 7.27% a year earlier and 6.34% in the immediately preceding quarter. Its reported quarterly financial table showed net profit margin at 4.09%.

What do borrowings and receivables show about operations?

Punjab Chemicals reported a significant rise in borrowings by the end of the first half. Current borrowings stood at ₹212.79 crore, up from ₹104.95 crore at the end of FY26. Non-current borrowings increased to ₹71.75 crore from ₹37.42 crore over the same period. The higher debt balance was accompanied by the increase in finance costs during the quarter.

Trade receivables rose to ₹453.92 crore from ₹203.50 crore at FY26-end. The increase in receivables contributed to negative operating cash flow of ₹99.40 crore in H1 FY27, compared with positive operating cash flow of ₹82.96 crore in H1 FY26. These figures indicate that a larger amount of reported sales remained outstanding for collection at the period end.

What did Punjab Chemicals disclose about its earnings call?

Punjab Chemicals said the audio recording of its Q2 and H1 FY27 earnings call, held on November 4, 2026, is available on its website. The post-results conference call had been scheduled for 2:30 p.m. IST and was intended to discuss the Q2 FY27 financial results with senior management, including the Managing Director and Chief Financial Officer.

The disclosure does not announce any operational change, new project, capital-allocation decision or revised financial target. Its immediate relevance is improved access to management commentary for shareholders and other stakeholders who could not attend the live call. The company also issued investor-presentation updates on November 4 covering Q2 and H1 FY27 financial information.

How does Q2 FY27 compare with Punjab Chemicals' stated growth plans?

Punjab Chemicals had previously maintained revenue-growth guidance of about 15% to 20% year-on-year for FY27, with management referring to revenue of around ₹1,200 crore. Management had also said that an EBITDA margin of 16% to 18% was a longer-term target, rather than a specific FY27 margin commitment.

Q2 revenue growth of 28.0% year-on-year was above that stated annual growth range, but the quarter's EBITDA margin of 9.05% remained below the longer-term margin target. The company had reported ₹574.7 crore of revenue from operations in H1 FY26. The supplied disclosures do not provide a comparable H1 FY27 revenue total, so a like-for-like first-half revenue comparison cannot be calculated from the available information.

Conclusion

Punjab Chemicals delivered higher consolidated revenue in Q2 FY27 but lower profit as material costs took a larger share of sales and finance costs increased. The rise in receivables, negative H1 operating cash flow and higher borrowings provide further context for the quarter's weaker profitability and lower margins.

Investors can monitor management's commentary in the newly available November 4 earnings-call recording, particularly for updates on collection trends, borrowing levels, material-cost pressure and the company's stated FY27 revenue-growth plan. The disclosed long-term EBITDA-margin target of 16% to 18% remains a reference point, while the company has not presented it as a specific FY27 commitment.