Chembond PAT down 55% YoY on margin squeeze even as consolidated revenue jumps 31%

Chembond's consolidated (primary) revenue rose 31.1% YoY and 10.7% QoQ to ₹95.77 Cr, continuing the growth run-rate management flagged last quarter. But consolidated PAT fell 54.7% YoY to ₹3.26 Cr (from ₹7.19 Cr) and 65.9% QoQ (from ₹9.55 Cr), with no exceptional items on either side of the comparison — this is an operating margin story, not a one-off. Operating margin (EBITDA/revenue) compressed to 8.7% from 14.6% a year ago and 13.1% last quarter, and net margin fell to 3.4% from 9.8%/10.7%. The driver is clearly cost of materials consumed, which rose to 52.6% of revenue this quarter versus 38.8% YoY and 45.1% QoQ — a jump large enough on its own to explain most of the margin erosion, even as employee costs actually fell as a share of revenue.

Against the prior concall guidance (confident tone, growth expected from volumes with price increases supporting margin recovery), the quarter is split: the revenue/volume growth call was met and then some, but the margin-recovery piece was clearly missed — input costs ran ahead of any pricing action taken. Analyst coverage on this name is thin (single-digit analyst count, no published Q2 FY27 consensus found), so vs-street is unknown rather than a genuine miss/beat call; management has not issued a press release with this result. The quarter's other disclosures — board approval of the results and the appointment of Mamta Shah (promoter group) as a non-executive director — are governance items unrelated to the operating print. Standalone (parent-only) PAT actually rose to ₹3.36 Cr, aided by ₹2.50 Cr of dividend income upstreamed from subsidiaries; that cushions the parent's own P&L but says nothing about the group's underlying cost pressure, which sits entirely in the operating subsidiaries captured in the consolidated numbers.

The stock went into the print at ₹223.05, down 15.7% over the past month of trading.

Consolidated basic EPS ₹1.21 vs ₹2.69 YoY and ₹3.54 QoQ