Gem Aromatics: consol loss widens YoY to ₹7 Cr as Dahej ramp-up costs outpace 16% growth
PAT -172% YoY · revenue +16.17% · margins compressing
₹104 Cr
+16.17% YoY
₹-7.02 Cr
-172% YoY
-6.74%
-3.9pp YoY
₹-1.29
Gem Aromatics' consolidated (primary, since standalone and group results diverge materially) revenue for Q2 FY27 (quarter ended Sep 30, 2026) rose 16.2% YoY to ₹104.0 Cr (₹89.5 Cr) and 5.3% QoQ (₹98.9 Cr in Q1 FY27), driven by the Krystal Ingredients Dahej facility ramp-up. The consolidated net loss widened to ₹7.0 Cr from ₹2.6 Cr a year ago — roughly a three-fold YoY deterioration — though it narrowed from the ₹7.9 Cr loss booked in Q1 FY27. No analyst/street consensus for this specific quarter could be located (a small-cap with thin coverage), so the print is judged against management's own prior guidance rather than a street number.
Q2 FY-2027 vs prior quarters
Operationally the quarter improved: consolidated EBITDA margin expanded to ~7.6% from 3.4% a year ago and 3.3% in Q1 FY27, suggesting the core manufacturing/cost base is scaling better. But PBT still slid to a ₹6.3 Cr loss (from a ₹2.5 Cr loss a year ago) because depreciation (₹9.5 Cr vs ₹3.1 Cr YoY) and finance costs (₹4.7 Cr vs ₹3.5 Cr YoY) — both tied to the Dahej capex buildout — grew faster than the operating improvement. Standalone (parent-only) remained solidly profitable at ₹8.9 Cr PAT on ₹92.4 Cr revenue (EPS ₹1.70), confirming the drag is concentrated in the Krystal subsidiary's ramp-up phase, not the core legacy business.
The stock went into the print at ₹136, down 13.4% over the past month of trading.
FY28: ₹1,050-1,100 Cr consolidated revenue, EBITDA margins 16-18%. FY27: deferred (ramp-up year only); expects Krystal >50% of FY28 revenue. Safranal revenue from Q2 FY27, meaningful Q3+; cooling agents meaningful Q3+ after two major customer approvals; phenol commercial Q3, meaningful Q4 FY27.
— This quarter: met
This tracks with what management flagged on the Q1 FY27 call — FY27 was explicitly called a ramp-up year with no formal revenue/margin guidance, Krystal is expected to exceed 50% of FY28 revenue, and Safranal/cooling-agent/phenol contributions were pushed to "late Q2" and "meaningful from Q3 FY27" — none of which had fully flowed through this quarter's numbers yet, consistent with the still-widening consolidated loss. The board separately approved converting a ₹225.2 Cr intercompany loan into Krystal equity (Sep 22, 2026), which should reduce subsidiary interest costs going forward; the company also changed its inventory costing method from Weighted Average to FIFO prospectively from April 1, 2026 — a disclosed but non-comparable change to prior-period COGS. No standalone management press release was available in the record to cross-check framing beyond the filed results and the auditor's limited-review reports.
W1
Safranal and cooling-agent revenue guided to turn 'meaningful' from Q3 FY27 — confirm contribution shows up in the next print.
W2
Phenol guided for commercial launch Q3 FY27 and meaningful revenue Q4 FY27 — watch for commissioning/ramp update.
W3
FY28 guidance of ₹1,050-1,100 Cr consolidated revenue at 16-18% EBITDA margin vs this quarter's ~₹416 Cr annualized run-rate and ~7.6% margin — track the ramp pace each quarter.
Figures in source are ₹ Million, converted to ₹ Cr (÷10). Consolidated group is in loss while standalone parent is profitable — losses concentrated in Krystal Ingredients' Dahej ramp-up. Consolidated tax expense is positive despite a pretax loss due to deferred-tax timing. Inventory valuation changed from Weighted Average Cost to FIFO prospectively from Apr 1, 2026 (not restated), affecting YoY COGS comparability.