Khaitan Chemicals Q1: standalone PAT halves YoY to ₹10.9 Cr as fertiliser margins compress

Khaitan Chemicals & Fertilizers posted standalone Q1 FY27 (quarter ended June 30, 2026) net profit of ₹10.91 Cr on revenue of ₹220.94 Cr. Against the year-ago quarter the print is clearly weaker: revenue slipped ~5.7% YoY (from ₹234.32 Cr) while PAT fell ~49% YoY (from ₹21.41 Cr of continuing-operations profit), so the bottom line dropped roughly nine times faster than the top line. Net margin compressed to 4.9% from 9.1% a year earlier, and operating margin eased to ~10.7% from 13.5% — the squeeze sits almost entirely on raw-material cost, which jumped to ₹201.30 Cr from ₹150.40 Cr YoY and outpaced the modest revenue decline. The segment split explains the mix: the Fertilizers business shrank sharply (segment revenue ₹111.64 Cr vs ₹186.61 Cr YoY, segment profit ₹3.15 Cr vs ₹13.59 Cr), only partly offset by Chemicals & Speciality Chemicals, which grew (revenue ₹109.98 Cr vs ₹68.26 Cr, profit ₹18.24 Cr vs ₹15.91 Cr). Finance costs were roughly flat at ₹8.20 Cr. The headline QoQ optics look spectacular — revenue +14.5% and PAT up from a depressed ₹1.26 Cr in Q4 FY26 — but Q1 is the kharif-season peak for a fertiliser business, so the sequential jump is largely seasonality and should not be read as momentum. On expectations: this is a micro-cap with no brokerage consensus or analyst previews on record, and management issues no formal guidance or outlook, so there is nothing to beat or miss against. The result was approved alongside two board actions the same day — the board revoked its earlier (May 14, 2026) proposal to delete the Common Seal provisions from the Articles — and follows a ₹0.05/share dividend with a July 14 record date and a ₹1.2 lakh coal-transport penalty in the quarter, none of which is financially material to the print. The auditor issued an unmodified limited-review conclusion.