Privi Speciality Chemicals has delivered a strong performance in the second quarter of FY27, posting a 24.61% year-on-year jump in profit after tax (PAT) to Rs 117.03 crore, backed by robust revenue growth, improved operating margins and manufacturing efficiencies.

 

The Mumbai-based speciality chemicals manufacturer reported a 13.90% increase in total income to Rs 773.16 crore for the quarter ended September 30, 2026. EBITDA climbed 16.66% to Rs 212.49 crore, outpacing revenue growth, while EBITDA margin expanded 65 basis points to 27.48%.

 

The numbers underline the company's ability to sustain profitable growth despite challenging global headwinds, supported by demand across domestic and international markets, operational efficiencies and its backward-integrated manufacturing model.

 

The growth momentum was even stronger during the first half of FY27. Total income rose 16.7% year-on-year to Rs 1,454.59 crore, while EBITDA increased 17.6% to Rs 379.96 crore. PAT attributable to the company surged 29.1% to Rs 201.23 crore. Earnings per share for Q2 stood at Rs 29.96, compared with Rs 24.04 in the year-ago quarter.

 

Beyond its earnings growth, Privi continued to strengthen its balance sheet. Net debt-to-EBITDA improved 32.1% year-on-year to 1.07x, while return on capital employed (ROCE) stood at 24.30% and return on equity (ROE) at 26.34% as of September 30, 2026.

 

Net cash generated from operating activities reached Rs 360.26 crore during H1 FY27, highlighting the company's strong cash-generation capabilities even as it pursues expansion and growth investments.

 

Privi's manufacturing strength remains central to its growth strategy. The company operates seven manufacturing facilities with an installed capacity of 48,000 MTPA. Its backward integration, including in-house developed CST processing capabilities, gives it greater control over critical raw materials, improves manufacturing efficiency and supports margin stability.

 

With its expansion plans progressing as scheduled, Privi is positioning itself for another phase of growth. The ongoing projects are expected to be ready for commercial operations in the second half of 2028.

 

The company is also accelerating its product diversification strategy, with Maltol and Ethyl Maltol, Renewable Cyclopentanone and Furfural among the products in its development pipeline. It is also targeting the launch of more than 10 high-end speciality products, alongside over 40 products under PRIGIV, its joint venture with Givaudan.

 

The proposed amalgamation of Privi Fine Sciences Private Limited and Privi Biotechnologies Private Limited with the company is another strategic move aimed at strengthening its core business while adding capabilities in green chemistry and biotechnology.

 

These initiatives are expected to expand Privi's addressable market, strengthen its product portfolio and deepen customer relationships.

 

Privi remains firmly focused on its ambitious 5K:1K vision — achieving revenue of Rs 5,000 crore and EBITDA of more than Rs 1,000 crore by FY29-30.

 

Commenting on the performance, Mahesh Babani, Chairman & Managing Director, said, "Q2 FY27 has extended the momentum we built in the first quarter. This reflects the resilience of our business model, the strength of our backward-integrated manufacturing processes and our disciplined focus on operational efficiency. 

 

"Our balance sheet continues to strengthen, with improving return ratios and lower leverage, giving us the flexibility to invest in our next phase of growth. Our expansion projects are progressing as planned, and our pipeline of new products will expand our addressable market and deepen our customer partnerships. We remain confident of achieving our 5K:1K vision and creating sustainable long-term value for all our stakeholders."

 

With double-digit growth across revenue and profitability, improving margins, stronger cash flows and a pipeline of expansion projects and new products, Privi enters the second half of FY27 with its long-term growth ambitions firmly in focus.