Khaitan Chemicals and Fertilizers Reports ₹1,091.36 Lakh Net Profit in Q1 FY27

Agrochemical and nutrient manufacturer Khaitan Chemicals and Fertilizers Limited has announced its unaudited financial results for the first quarter of the fiscal year 2026-27, ended June 30, 2026. The company recorded strong sequential profit growth alongside an optimization of its structural inventory cycles.

Income Trajectory and Sequential Rebound

During the April-to-June quarter of 2026, Khaitan Chemicals generated total income of ₹22,162.20 lakh. This represents a solid 14.52% sequential expansion compared to the ₹19,352.71 lakh recorded in the preceding quarter ended March 31, 2026. The top-line performance was driven primarily by its core revenue from operations, which stood at ₹22,093.77 lakh, up from ₹19,297.45 lakh in Q4 FY26. Other income for the quarter contributed ₹68.43 lakh. On a year-on-year basis, revenue was slightly lower than the ₹23,431.79 lakh achieved in the corresponding prior-year period.

Expenditure Analysis and Inventory Optimizations

The company's total expenditure for Q1 FY27 came in at ₹20,843.32 lakh. The manufacturing framework experienced shifts in its cost structure, characterized by an increase in the raw material consumption grid and balancing inventory adjustments:

Material Inputs: Cost of raw materials consumed stood at ₹20,129.58 lakh, compared to ₹12,169.48 lakh in the trailing quarter.

Inventory Interventions: The company managed structural cost pressures through an inventory buildup of finished goods, work-in-progress, and stock-in-trade, leading to a credit adjustment of ₹(5,085.99) lakh.

Operational Overhead: Employee benefits expenses normalized at ₹709.05 lakh, down from ₹755.69 lakh in the preceding quarter. Outward transportation costs were reduced to ₹1,026.99 lakh from ₹1,147.65 lakh in Q4 FY26, while other operational expenses stood at ₹2,956.04 lakh.

Capital and Finance Costs: Finance charges and depreciation costs remained stable, coming in at ₹820.16 lakh and ₹287.49 lakh, respectively.

Profit Rebound and Core Earnings Metrics

Driven by sequential revenue growth, the company's profit before tax from continuing operations surged to ₹1,318.88 lakh, tracking a strong 58.76% sequential increase over the ₹830.71 lakh recorded in the March quarter.

After accounting for a deferred tax charge of ₹227.23 lakh and nominal tax adjustments for earlier years, Khaitan Chemicals closed the quarter with a net profit of ₹1,091.36 lakh from continuing operations. This bottom-line performance marks a substantial doubling of net income compared to the ₹542.38 lakh earned in the trailing quarter.

Total comprehensive income for the quarter settled at ₹957.18 lakh, after accounting for a net loss of ₹134.18 lakh under other comprehensive income, influenced primarily by cash flow hedge adjustments.

On a paid-up equity share capital base of ₹969.89 lakh (consisting of shares with a face value of ₹1 each), the basic and diluted earnings per share (EPS) for continuing operations improved sequentially to ₹1.13, up from ₹0.56 in the preceding quarter.

Shares of Khaitan Chemicals & Fertilizers Limited was last trading in BSE at Rs. 52.19 as compared to the previous close of Rs. 51.87. The total number of shares traded during the day was 8290 in over 101 trades.

The stock hit an intraday high of Rs. 53.00 and intraday low of 51.05. The net turnover during the day was Rs. 433372.00.

Source : Equity Bulls

Keywords

KhaitanChemicalsandFertilizers INE745B01028 Q1FY27 Q1FY2027 ResultUpdate