KANORIA CHEMICALS & INDUSTRIES LTD. Q1 FY27 Results

Kanoria Chemicals & Industries reported consolidated Q1 FY27 (quarter ended 30 June 2026) revenue from operations of ₹460.37 Cr and net profit of ₹26.36 Cr (EPS ₹6.03), against a loss of ₹13.78 Cr (EPS -₹1.79) in the year-ago quarter — a clean YoY turnaround; standalone PAT was near-identical at ₹26.37 Cr (EPS ₹6.03), so basis divergence is negligible here. No street consensus or brokerage preview specific to this quarter could be located, and the company has no formal prior guidance on record, so vs-street and vs-guidance both read unknown rather than assumed.

Two base effects sit under the headline and need adjusting for. First, the year-ago comparatives on our records (revenue ₹453.78 Cr, loss ₹13.78 Cr) still carried APAG Holding AG, the Swiss subsidiary the company lost control of on 31 July 2025, which this filing now retrospectively shows as discontinued operations for that quarter (₹253.18 Cr of income, a ₹13.23 Cr post-tax loss). Stripping that out, the comparable continuing-operations base was ₹201.38 Cr revenue and a ₹0.55 Cr loss — so this quarter's ₹460.37 Cr and ₹26.36 Cr represent roughly 129% like-for-like revenue growth and a genuine swing to profit on the retained Chemicals-plus-Textile business, not the ~1% the raw headline-to-headline comparison would imply. Second, sequentially, PBT more than doubled to ₹35.24 Cr from ₹17.00 Cr in Q4 FY26, yet reported PAT fell 16.6% QoQ (₹26.36 Cr vs ₹31.62 Cr) purely because Q4 FY26 carried a one-off ~₹18.44 Cr deferred-tax credit; this quarter's ₹8.88 Cr tax charge is a normal ~25% effective rate on PBT.

For context: revenue is at a 6-quarter high.

Operating margin (revenue less operating opex, excluding finance costs/depreciation/other income) was 9.78% this quarter versus 8.90% in Q4 FY26 and 3.61% a year ago — the YoY jump is mostly the APAG exit (a low-margin, loss-making business) rather than a genuine step-up: on a like-for-like continuing-ops basis, year-ago OPM was already close to 9.0%, so underlying margin is roughly flat to mildly better. Net margin's apparent QoQ dip to 5.65% of total income from 10.15% is the tax base-effect above, not operating deterioration. By segment, Chemicals (the standalone business) contributed ₹429.99 Cr revenue and ₹35.25 Cr PBT; Textile — the Ethiopia-based Kanoria Africa Textiles subsidiary — added ₹30.38 Cr revenue and swung to a ₹2.59 Cr segment profit from a ₹3.49 Cr loss a year ago. A sharp rise in Purchase of Stock-in-Trade (₹141.53 Cr this quarter vs ₹6.05 Cr a year ago, alongside Cost of Materials Consumed up to ₹234.54 Cr from ₹136.10 Cr) is the visible driver of the topline jump, pointing to expanded trading/distribution volumes; the filing carries no management commentary or press release explaining this shift, so the driver is inferred from the expense lines, not stated by the company.