Alkyl Amines Q1FY27: PAT +91% YoY, revenue +30%, margins expand to 25.3%
PAT +91.4% YoY · revenue +30.2% · margins expanding
₹528.01 Cr
+30.2% YoY
₹94.63 Cr
+91.4% YoY
17.61%
+5.6pp YoY
₹18.5
Alkyl Amines' standalone revenue for Q1 FY27 came in at ₹528.01 Cr, up 30.2% YoY from ₹405.53 Cr and up 36.5% QoQ from ₹386.91 Cr. Standalone PAT of ₹94.63 Cr rose 91.4% YoY (₹49.44 Cr) and 108.6% QoQ (₹45.37 Cr), with basic EPS of ₹18.50 for the quarter versus ₹9.67 a year ago. The company reports only standalone numbers — it has no subsidiary, associate or joint-venture entity for the quarter, per note 5 of the filing, so there is no consolidated figure to reconcile against.
Q1 FY-2027 vs prior quarters
Reported EBITDA margin (OPM) jumped to 25.3% from 18.9% a year ago and 18.3% last quarter, but the bulk of that expansion traces to one working-capital line: 'changes in inventories of finished goods and WIP' swung to a ₹48.04 Cr build this quarter, against a ₹23.37 Cr drawdown in Q4 FY26 and a ₹1.53 Cr drawdown a year ago — swings of roughly ₹71 Cr and ₹50 Cr respectively that mechanically lower recognised cost of goods sold. Normalising that swing back to flat cuts implied OPM to roughly 16%, below the 18-19% seen in the comparison quarters. Consistent with that, cost of materials consumed actually rose to 59.9% of revenue this quarter versus 53.8% a year ago and 48.1% last quarter — the raw-material cost ratio worsened even as the headline margin expanded. Management's prior (Q4 FY26) guidance had flagged 'cautious optimism that margins have bottomed out' on the back of passing through higher input costs; the reported margin did expand, but the underlying materials-cost trend suggests that pass-through has not yet shown up cleanly, and part of this quarter's margin story would reverse if the inventory build is drawn down next quarter.
The stock went into the print at ₹1,941.2, up 7.9% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters; revenue is at a 6-quarter high.
What the summary numbers don't show
Effective tax rate ~24.1% (₹30.04 Cr tax on ₹124.67 Cr PBT), broadly in line with recent quarters
Management projects 5% to 10% volume growth for the upcoming year, with top-line revenue expected to be significantly higher due to elevated product prices. They express cautious optimism that margins have bottomed out and will see improvement, driven by passing on higher raw material costs. Capex will be limited to co
— This quarter: beat
No consensus estimate for this specific quarter surfaced in a web search, so the print cannot be graded against a street number. Peer Balaji Amines separately reported a 114% YoY PAT jump for the same quarter, suggesting a sector-wide raw-material tailwind rather than one specific to Alkyl Amines. On June 3, 2026 the company issued a clarification on a volume surge in its stock ahead of results, and today's board meeting also approved a succession plan: Yogesh Kothari moves to Executive Chairman, Kirat Patel and Suneet Kothari are elevated to Joint Managing Director, and Rakesh Goyal is re-designated Executive Director – Operations, all effective October 1, 2026 and subject to shareholder approval by postal ballot. No management press release accompanied the filing and no fresh FY27 guidance was given beyond what was stated last quarter (5-10% volume growth, capex capped near ₹80-90 Cr); the inventory drawdown pace and materials-cost ratio in Q2 FY27 are the cleanest checks on whether this quarter's margin expansion holds.
W1
Whether the ₹48.04 Cr inventory build reverses in Q2 FY27 — a drawdown would push recognised COGS higher and pull OPM back toward the 18-19% band seen through FY26
W2
Materials cost ratio (59.9% of revenue this quarter vs 53.8% YoY) — needs to come down for management's Q4 FY26 claim that 'margins have bottomed out' to hold on a like-for-like basis
W3
Progress on the ~₹80-90 Cr capex program flagged in the prior concall (completing existing projects) with new investments still on hold per that guidance
Ammonia Recovery to Drive Q1 Print—Watch for Margin Normalization
With ammonia supply constraints easing since April, Alkyl Amines enters Q1 FY27 from a position of operational recovery. The quarter will test whether restored production translates to volume growth and margin recovery—or if pricing pressure remains. Markets are pricing in a bounce: stock up 49.5% YTD and trading above the 50-day. Today's board meeting sets the expectations bar.
What to Expect
Alkyl Amines enters Q1 FY27 with two distinct momentum drivers: ammonia supply normalisation AND the commercialization of a new specialty chemical product at its Kurkumbh facility. For two quarters, ammonia supply disruptions constrained production and margins. The company signalled production resumption in April 2026 as supply improved. Equally important, a ₹120 Cr capex project nearing completion is expected to launch in Q1—a high-margin specialty chemical for dyes, pigments, and electronics with no domestic competitors (pure import substitute). This positions Q1 not just as a recovery quarter, but as the inflection point for a new earnings cycle. Key metrics: (1) revenue growth—a function of restored capacity utilisation plus early ramp of the specialty product, (2) EBITDA margin expansion—guided by ammonia cost relief + specialty product mix uplift, (3) pharma segment momentum—a 50–60% revenue contributor buoyed by GLP-1 peptide demand. FY27 consensus expects revenue +13.3% and profit +28.8%, with management guiding 5–10% volume growth. Q1 will be modest—the specialty product just commercializing—but directionally positive. By Q2, the contribution becomes material.
~₹390–410 Cr
FY26 was ₹1,568 Cr annualized; Q1 typically mid-range; 5% growth on recovered volumes
18–19%
Q4 FY26 was 18.3%; ammonia relief + specialty product mix should lift modestly; FY27 guided to moderate improvement
4–7%
Management targets 5–10% for FY27; Q1 likely on lower end due to specialty product ramp starting
Early contribution
New Kurkumbh facility commercializing in Q1; peak potential ~₹180 Cr annually; Q1 will be first partial month only
Strong print: Q1 revenue at or above ₹410 Cr with EBITDA margin holding 18%+, signalling retained pricing power and volume recovery. Early traction on the new specialty product (even if just 1–2 weeks of sales in Q1) proves manufacturing readiness and customer offtake. EPS beats consensus (₹13–15 vs guidance if specialty product is ahead of expectations). Management raises FY27 profit guidance to reflect specialty product ramp momentum—this would be a re-rating catalyst (+8–12% stock upside). Weak print: Revenue below ₹390 Cr despite restored capacity (demand destruction during the disruption larger than feared), or EBITDA margin below 17% (pricing pressure from Chinese competition or customer deleveraging). Specialty product delays or production hiccups would also disappoint. Either scenario signals that the recovery is slower than expected and the earnings acceleration (consensus +28.8% for FY27) may miss—triggering a 5–8% sell-off given the current momentum pricing.
Is the Company on Track?
The company has not published formal FY27 guidance, so there is no stated target to benchmark. However, the FY26 print (approved May 5, 2026) with a ₹10 dividend (500% payout) signals management confidence in cash generation and normalisation. At ₹1812.5 today (2026-08-03), the stock trades at a premium to FY26 closing valuations, reflecting market belief in the ammonia recovery thesis. If Q1 disappoints—flat revenues, margin misses, or weak guidance—the stock could correct 8–12% given the momentum run. Conversely, a beat on volume + margin recovery could trigger a re-rating toward the 52-week high (₹2005.6), especially if management signals FY27 guidance north of FY26 profit levels.
What the Street Expects
Since Last Quarter
Filings & Corporate Actions (June–July 2026):
Jun 3–May 15, 2026
Exchange queried sharp volume spike; company disclosed full SEBI compliance, no undisclosed material event. *Routine*, no red flag.
Volume Surge Clarification
Jun 9, 2026
AGM scheduled July 3, 2026 (held via VC). BRSR report submitted per SEBI norms. *Routine corporate governance.*
46th AGM Notice & FY26 Annual Report
Jun 24, 2026
Window closed for designated persons & connected parties for results approval (standard pre-announcement lockup). *Expected protocol.*
Trading Window Closure
May 28, 2026
June 26, 2026 set as record date for ₹10 FY26 final dividend (500% payout). *Positive signal on cash generation.*
Dividend Record Date
Apr 24, 2026
Gradual resumption of ammonia-based product production as supply constraints eased. *The pivotal positive catalyst for Q1.*
Ammonia Production Resumption Announced
Ownership & Capital Flows: FII ownership edged up to 3.45% (vs 3.25% in Q1 FY26), DII flat at 3.01%, promoter stable at 72.05%. No promoter selling or pledging activity flagged. No large block deals post-AGM. Reading: Steady, quiet ownership structure—foreign institutional confidence is modest but building. No insider selling pressure; promoter commitment remains strong.
The Setup
1 · Margin recovery—the acid test
Does OPM expand past 15% as ammonia costs normalise? If yes, a beat. If margins are still compressed (below 13%), it signals pricing power loss or cost recovery lag. This is the hinge for the year's earnings momentum.
2 · Volume growth vs demand destruction
Did the company gain or lose share during the supply crunch? Revenue growth >8% YoY would signal customers stuck around; flat or negative growth suggests they found alternatives. Listen to the commentary on order book quality and Q2 run-rate.
3 · FY27 guidance & tone
Management will signal whether recovery is cyclical (back to FY26 levels) or structural (FY27 beats FY26). A confident tone + guidance for double-digit earnings growth would re-rate the stock up 5–8%; cautious tone or muted guidance could trigger a 5–10% sell-off despite the beat.
Alkyl Amines enters Q1 FY27 as a recovery story—ammonia supply normalisation is the catalyst, the April production restart is the event, and today's board meeting is the test. The stock has priced in optimism (up 49.5% YTD, trading at a 10% premium to FY26 valuations). Q1 will confirm whether that optimism is grounded in earnings recovery or just sentiment. Expect management to highlight production ramp-up and order book stability; scrutinise the margin profile and FY27 guidance for the real story. If ammonia costs stay benign and pricing holds, this is a ₹2100+ print. If not, the rally stalls. Result is live 2026-08-04; watch the commentary for clues on execution risk.