Chembond Q1: consol PAT Rs 5.7 Cr up 44% YoY on tax credit, operating profit slips
PAT +43.5% YoY · revenue +25.6% · margins compressing
₹72.42 Cr
+25.6% YoY
₹5.73 Cr
+43.5% YoY
7.52%
+0.9pp YoY
₹4.26
Chembond Material Technologies (formerly Chembond Chemicals) posted consolidated Q1 FY27 revenue of Rs 72.42 Cr, up 25.6% YoY (from Rs 57.68 Cr) but essentially flat QoQ (+0.9% vs Rs 71.75 Cr). Reported net profit of Rs 5.73 Cr is up 43.5% YoY and 64% QoQ, and net margin widened to 7.9% from 6.6% a year ago — but the headline overstates the operational picture.
Q1 FY-2027 vs prior quarters
The profit growth is not operating-led. Consolidated profit before tax rose only 8.7% YoY (Rs 5.83 Cr vs Rs 5.37 Cr), and segment-level operating results (PBIT before unallocables) actually fell ~24% to Rs 2.06 Cr from Rs 2.71 Cr, with the Specialty Chemical segment's result nearly halving to Rs 1.01 Cr from Rs 1.89 Cr even as its revenue grew. The gap between PBT (+9%) and PAT (+44%) is a deferred-tax credit of Rs 0.70 Cr that pushed the effective tax rate to ~1.8% from ~25.6% a year ago; other income of Rs 3.77 Cr (vs Rs 2.65 Cr) also propped up PBT. Adjusting the tax rate back to a normalised ~25%, underlying PAT growth is roughly +9%, not +44% — the print is steady, not strong. Operating margin compressed YoY.
The stock went into the print at ₹180.5, up 10.7% 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.
Standalone tells the same story more starkly: revenue Rs 62.97 Cr (+28.7% YoY) but standalone PBT was flat at Rs 4.55 Cr (vs Rs 4.57 Cr), with reported PAT up 42% to Rs 4.50 Cr again on a low tax charge. The Animal Health segment was the operational bright spot, with its result up to Rs 1.06 Cr from Rs 0.82 Cr. The company gives no formal guidance and has no analyst coverage on record, so there is no street consensus or management outlook to measure this against; results were approved 17 July 2026 alongside an ESOP grant of 50,738 options and follow the recent name change to Chembond Material Technologies.
What to watch
W1
Whether the Specialty Chemical segment result (Rs 1.01 Cr this quarter, down from Rs 1.89 Cr YoY) recovers — the operating weakness sits here
W2
Sustainability of the low effective tax rate; a normalised ~25% rate would cut reported PAT growth to single digits
W3
Reliance on other income (Rs 3.77 Cr) vs operating profit to drive PBT in coming quarters
Digitally-generated PDF, in Rs Lakhs (converted to Cr). No exceptional item in current quarter (prior quarters had gratuity adjustments). PAT flattered by near-zero effective tax (~1.8%) from a Rs 69.86L deferred-tax credit and by high other income; consolidated PBT only +8.7% YoY vs PAT +43.5%. Segment operating results (PBIT) fell to Rs 2.06 Cr from Rs 2.71 Cr YoY. Records show FY26 EPS 2.50 for year-ago vs PDF 2.97 (minor, our field is EPS not restated).