DMCC Speciality Chemicals Q2FY27 Profit Declines Amidst Commodity Cycle

DMCC Speciality Chemicals reported its financial performance for Q2FY27, highlighting a challenging quarter due to elevated sulphur prices. Revenue from operations stood at ₹272.88 Cr, while EBITDA declined significantly to ₹11.62 Cr from ₹34.43 Cr in the previous year. Profit After Taxes was ₹3.23 Cr, a substantial drop from ₹20.40 Cr. The company attributed the decline to the unfavorable commodity cycle and a divergence between sulphur and sulphuric acid prices, leading to demand destruction and sales below cost of production. Consequently, plants operated below optimum capacity. Borrowings increased due to higher working capital needs and subsidized government loans. The speciality chemicals business, particularly in the Boron segment and exports, showed good progress. The company is ramping up production as sulphur prices have cooled off since mid-October. The macro environment remains uncertain, but the company is confident in future performance once operating conditions stabilize.