Kanoria Chemicals swings to ₹26.4 Cr consolidated profit in Q1 FY27 from year-ago loss
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.
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.
The results were approved at an 11 August 2026 board meeting alongside the notice for the company's 66th AGM (scheduled 2 September 2026) and follow the insider-trading window closure from 22 June 2026 — routine governance items with no direct bearing on the print. Going into Q2 FY27, the markers worth tracking are whether the elevated stock-in-trade volumes persist as a genuine new revenue stream or reverse, whether the tax rate holds near this quarter's ~25% effective level now that the Q4 FY26 deferred-tax credit has rolled off, and whether the Textile segment's return to profitability is sustained.
