Meghmani Organics Limited (MOL), a fully integrated diversified chemical company, has delivered a strong improvement in profitability for the first quarter of FY27, even as subdued demand and global macroeconomic uncertainties weighed on revenue growth.
The company reported a 42% year-on-year rise in net profit to Rs. 57.6 crore in Q1 FY27, compared with Rs. 40.5 crore in the corresponding quarter last year. EBITDA increased 16% YoY to Rs. 93.7 crore, driven by improved price realisation and a favourable product mix.
Revenue from operations stood at Rs. 522.9 crore, declining 12% YoY from Rs. 592.6 crore in Q1 FY26, as softer demand impacted customer offtake across key export markets. However, sequential performance improved significantly, with revenue rising 15% compared with Rs. 456.6 crore in Q4 FY26.
EBITDA margin expanded sharply to 17.9%, compared with 13.6% in Q1 FY26, while net profit margin improved to 11% from 6.8% a year ago.
The Crop Protection segment remained the key growth contributor, accounting for nearly 75% of MOL’s Q1 FY27 revenue. The segment recorded revenue of Rs. 391.6 crore and EBITDA of Rs. 77.8 crore, with an EBITDA margin of 19.9%. Capacity utilisation stood at 63%.
The Pigments business contributed around 25% of overall revenue, generating Rs. 131.3 crore in revenue and Rs. 15.9 crore in EBITDA. The segment reported an EBITDA margin of 12.1%, with capacity utilisation at 39%.
Ankit Patel, Chairman & Managing Director, said: "During the quarter, we faced challenging demand environment due to continued macroeconomic uncertainties impacting customer offtake across key export markets. Consequently, this affected our capacity utilisation and revenue for the quarter. Despite of these headwinds, we delivered a healthy improvement in profitability, on back of better price realisation and favourable product mix.
"Our Crop Nutrition segment contributed positively to both topline and bottom line. We expect this growth momentum to continue over the coming quarters and further strengthen with the positive contribution from our newly introduced nano fertiliser products namely Nano DAP, Nano NPK, and Nano Zinc.
"In Titanium Dioxide (TiO2), operations continue to remain suspended due to commercial unviability arising from elevated raw material costs and weaker price realisations following the withdrawal of anti-dumping duty (ADD).”
Meghmani Organics said its Crop Nutrition segment continued to support overall growth, with the company expecting further momentum from its recently launched nano fertiliser portfolio, including Nano DAP, Nano NPK, and Nano Zinc.
