Vahh Chemicals H1 profit rises 81% to Rs 3.62 crore year on year

Vahh Chemicals Limited reported consolidated profit after tax of Rs 3.62 crore for the half year ended 30 September 2026, up 81% from Rs 2.00 crore a year earlier. Revenue from operations increased 56.50% to Rs 25.86 crore, while its nutraceutical business contributed Rs 89.71 lakh of profit after tax.

How did Vahh Chemicals perform in H1 September 2026?

Vahh Chemicals increased consolidated profit before tax to Rs 4.84 crore in H1 September 2026 from Rs 2.74 crore in H1 September 2025, while profit after tax rose to Rs 3.62 crore from Rs 2.00 crore. The year-on-year increase in profit after tax was 80.71%, after current tax expense rose to Rs 1.22 crore from Rs 74.11 lakh.

Revenue from operations reached Rs 25.86 crore, compared with Rs 16.52 crore in H1 September 2025, and total revenue including other income was Rs 25.87 crore. Revenue was below Rs 26.63 crore reported in H2 March 2026, but profit after tax exceeded the immediately preceding half year's Rs 3.09 crore.

Vahh Chemicals reported non-annualised basic earnings per equity share of Rs 4.28 for H1 September 2026, against Rs 3.11 in H1 September 2025. Paid-up share capital stood at Rs 8.31 crore at 30 September 2026, compared with Rs 6.06 crore at both 31 March 2026 and 30 September 2025, following the equity issue during the period.

Which businesses contributed to Vahh Chemicals' earnings?

Vahh Chemicals' chemicals operation was the larger business contributor, generating revenue of Rs 19.48 crore and profit after tax of Rs 2.72 crore in H1 September 2026. In H1 September 2025, chemicals revenue was Rs 10.40 crore and profit after tax was Rs 1.46 crore.

The nutraceutical operation, conducted through subsidiary HSHS Nutraceuticals Limited, reported revenue of Rs 6.38 crore and profit after tax of Rs 89.71 lakh in H1 September 2026. This compared with revenue of Rs 6.12 crore and profit after tax of Rs 54.55 lakh in H1 September 2025; segment profit before tax increased to Rs 1.23 crore from Rs 74.73 lakh.

Chemicals revenue increased 87.27% year on year, compared with a 4.25% increase for nutraceutical revenue. The nutraceutical operation's profit after tax increased 64.45%, and its Rs 89.71 lakh contribution represented 24.77% of Vahh Chemicals' consolidated profit after tax for H1 September 2026.

What changed in Vahh Chemicals' costs and profitability?

Vahh Chemicals' total expenses rose to Rs 21.03 crore in H1 September 2026 from Rs 13.78 crore a year earlier, an increase of 52.63% that was below the 56.50% growth in operating revenue. Cost of materials consumed rose to Rs 20.55 crore from Rs 15.76 crore, while employee benefit expense increased to Rs 1.26 crore from Rs 90.48 lakh.

The change in finished-goods inventories was negative Rs 2.09 crore in H1 September 2026, compared with negative Rs 4.15 crore a year earlier. Finance costs declined to Rs 55.25 lakh from Rs 65.10 lakh, while other expenses rose to Rs 75.80 lakh from Rs 60.06 lakh and depreciation and amortisation expense was Rs 74,000.

Vahh Chemicals reported no exceptional or extraordinary items in either H1 September 2026 or H1 September 2025. The increase in profit before tax to Rs 4.84 crore therefore occurred without exceptional-item income or expense, while the latest period recorded no deferred-tax charge.

What do Vahh Chemicals' balance sheet and cash flows show?

Vahh Chemicals' consolidated total assets were Rs 55.36 crore at 30 September 2026, up from Rs 43.87 crore at 31 March 2026. External liabilities declined to Rs 24.29 crore from Rs 28.29 crore, and cash and cash equivalents increased to Rs 1.19 crore from Rs 65.46 lakh.

The group used Rs 6.31 crore in operating activities during H1 September 2026, whereas the cash-flow statement reported Rs 3.70 crore used in operating activities for the year ended 31 March 2026. The latest half-year movement included a Rs 8.17 crore increase in trade receivables and a Rs 2.62 crore increase in inventories, partly offset by a Rs 39.77 lakh increase in trade payables.

Financing activities generated Rs 6.86 crore in H1 September 2026, including Rs 13.45 crore of proceeds from the issue of shares. This was partly offset by a Rs 4.60 crore reduction in short-term borrowings, Rs 55.25 lakh of interest paid and Rs 1.59 crore of initial public offer expenses paid, resulting in a net Rs 53.93 lakh increase in cash and cash equivalents.

How has Vahh Chemicals used its IPO proceeds?

Vahh Chemicals raised gross initial public offer proceeds of Rs 13.45 crore in June 2026 through an issue of 22,42,000 equity shares with a face value of Rs 10 each at an issue price of Rs 60 per share. By 30 September 2026, it had used Rs 10.89 crore of gross proceeds and retained Rs 2.56 crore for the objects specified in its prospectus dated 27 May 2026.

The company used Rs 5.83 crore for incremental working capital against an allocation of Rs 5.84 crore, and Rs 1.24 crore for loan repayment against Rs 1.84 crore allocated. It had spent none of the Rs 1.93 crore earmarked for a new manufacturing facility in Surat by 30 September 2026, while Rs 2.00 crore was used for general corporate purposes.

Vahh Chemicals reported no deviation or variation in the use of issue proceeds for the half year ended 30 September 2026. The Rs 2.56 crore of unutilised gross proceeds was represented by the unutilised drawing balance in its cash-credit facility and balances in bank current accounts, and remained available for the original issue objects.

Conclusion

Vahh Chemicals delivered higher H1 September 2026 consolidated profit after tax as operating revenue increased to Rs 25.86 crore and both reported businesses contributed to earnings. The chemicals operation supplied Rs 2.72 crore of profit after tax, while the nutraceutical operation added Rs 89.71 lakh, against consolidated profit after tax of Rs 3.62 crore.

The next disclosed execution point is utilisation of the Rs 2.56 crore in unutilised gross initial public offer proceeds, including Rs 1.93 crore allocated to the new Surat manufacturing facility and Rs 60.16 lakh allocated to loan repayment. Vahh Chemicals' board approved the H1 results on 31 October 2026, and its statutory auditors completed a limited review.