DMCC Speciality Chemicals reported a strong financial performance for the first quarter of FY27, with revenue, EBITDA and profit after tax registering significant year-on-year growth, aided by higher sulphur and sulfuric acid prices.
Revenue from operations rose to Rs. 253.01 crore in Q1FY27, compared with Rs. 177.64 crore in the corresponding quarter last year. Total income increased to Rs. 253.31 crore from Rs. 177.80 crore.
The sharpest improvement came at the operating profit level. EBITDA, including other income, surged 92.78% to Rs. 34.43 crore, compared with Rs. 17.86 crore a year earlier. The EBITDA margin consequently expanded to 13.59%, from 10.05% in Q1FY26.
Profitability at the bottom line jumped even more sharply. Profit before tax and exceptional items rose 151.68% to Rs. 27.21 crore, against Rs. 10.81 crore in the year-ago quarter.
Profit after tax surged 166.58% to Rs. 20.40 crore, compared with Rs. 7.65 crore in Q1FY26.
The strong earnings performance came despite a 36.85% increase in total operating expenses, which stood at Rs. 218.88 crore, compared with Rs. 159.94 crore in Q1FY26. Interest costs rose 3.62% to Rs. 3.49 crore, while depreciation and amortisation increased marginally to Rs. 3.73 crore.
The company, however, has cautioned that the exceptional rise in profitability should be viewed in the context of elevated sulphur and sulfuric acid prices. A meaningful portion of the reported earnings reflects inventory gains, which could reverse if commodity prices moderate.
Bimal Goculdas, Managing Director and CEO, said: “The revenue and profitability grew sharply during the quarter, driven principally by a significant escalation in sulphur and sulfuric acid prices. A meaningful portion of the reported profitability reflects inventory gains. These gains will reverse as prices moderate, and profits will normalise.
"I would urge shareholders to read these numbers with that lens. The pricing environment also stretched our working capital. Receivables and inventory balances have grown materially. We are managing this through short-term borrowings and remain disciplined in our approach.”
Goculdas also highlighted the company’s operational resilience amid severe disruption to global sulphur supplies, with around 50% of global sulphur trade transiting the Strait of Hormuz.
“What I am genuinely proud of is our operational conduct. With approximately 50% of global sulphur trade transiting the Strait of Hormuz, the disruption to supply has been severe. Despite this, both our Dahej and Roha facilities operated without interruption. We passed on cost increases fully, without losing volumes. In a period where reliability matters most, we stood out as a credible supplier. I believe this has strengthened our customer relationships meaningfully.”
The company said its Boron business also showed improvement during the quarter, with demand, pricing and supply conditions strengthening and the segment meeting its quarterly targets.
“On the Boron front, I am pleased to report that demand, pricing, and supply have all improved. The segment met its quarterly targets. In speciality chemicals, exports to Latin America, China, and Japan are compensating for the subdued European market. Geographic diversification continues to progress.”
Despite the strong headline performance, DMCC said the quarter should not be viewed as a reliable indicator of future earnings, as the current pricing environment has contributed to exceptional gains.
“These results, while optically strong, are not a reflection of what is to come. We continue to work on making the Company structurally stronger. Once the operating environment stabilises, I am confident we will deliver performance that is more sustainable and more representative of DMCC's true potential.”
