Chembond Chemicals Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Chembond Chemicals Ltd filed with BSE on 27 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Chembond Chemicals reported consolidated revenue of Rs. 326.15 crore for FY26, up 12% year on year, with EBITDA of Rs. 51 crore and PBT of Rs. 45 crore. Management said the second half of the year was significantly stronger than the first half, with H2 revenue of Rs. 188 crore up 35% over H1, driven by growth across water technologies, construction chemicals and distribution. Management also described rising input costs from metals such as zinc and molybdenum following a war, which they said had begun pressuring margins in the current financial year.
Numbers mentioned
Consolidated revenue: Rs. 326.15 crores (FY26)
p. 9
“Consolidated revenue for financial year 2026 at Rs. 326.15 crores.”
Nirmal Shah, page 9 of the filed PDF · View the filing
Consolidated H2 revenue: Rs. 188 crores (H2 FY26)
p. 8
“The second half of this year, our consolidated revenue was at Rs. 188 crores.”
Nirmal Shah, page 8 of the filed PDF · View the filing
EBITDA: Rs.51 crores (FY26)
p. 9
“EBITDA for the full financial year is at Rs.51 crores, up 7% over prior.”
Nirmal Shah, page 9 of the filed PDF · View the filing
Consolidated PBT: Rs. 45 crores (FY26)
p. 9
“Consolidated PBT is at Rs. 45 crores, 7% improvement over prior.”
Nirmal Shah, page 9 of the filed PDF · View the filing
Operating EBITDA: Rs.46.3 crores (FY26)
p. 10
“revenue at Rs.326 crores, operating EBITDA at Rs.46.3 crores.”
Prachi Mahadik, page 10 of the filed PDF · View the filing
Profit after tax: Rs. 34 crores (FY26)
p. 10
“and profit after tax at Rs. 34 crores, so higher than earlier two years.”
Prachi Mahadik, page 10 of the filed PDF · View the filing
EBITDA margin: 14% of sales (FY26)
p. 10
“EBITDA is 14% of sales and profit after tax is 10% of sales.”
Prachi Mahadik, page 10 of the filed PDF · View the filing
Q4 FY26 revenue: Rs. 101.4 crores (Q4 FY26)
p. 8
“quarter four financial year 26, the revenue is highest Rs. 101.4 crores.”
Prachi Mahadik, page 8 of the filed PDF · View the filing
Q4 FY26 EBITDA: Rs. 15.7 crores (Q4 FY26)
p. 9
“So quarter four financial year 26, EBITDA is Rs. 15.7 crores and PBT is Rs.14 crores.”
Nirmal V. Shah –, page 9 of the filed PDF · View the filing
Water business H2 revenue: Rs. 162 crores (H2 FY26)
p. 6
“So Rs. 162 crores in second half year and volume growth from 9905 in terms of metric tons, it has grown to 4813 metric tons.”
Prachi Mahadik, page 6 of the filed PDF · View the filing
Construction chemicals H2 revenue: Rs. 13 crores (H2 FY26)
p. 6
“Coming to numbers on construction chemicals, so first half year was Rs. 11 crores and second half we were at Rs. 13 crores.”
Prachi Mahadik, page 6 of the filed PDF · View the filing
Distribution business revenue: Rs. 21 crores (FY26)
p. 7
“So Chembond distribution contributed to Rs. 21 crores in terms of revenue.”
Prachi Mahadik, page 7 of the filed PDF · View the filing
Construction chemicals days sales outstanding: 88 days (as on 31st March 2026)
p. 6
“our day sales outstanding for construction chemicals is around 88 days as on 31st of March 2026”
Prachi Mahadik, page 6 of the filed PDF · View the filing
Distribution days sales outstanding: 80 days (as on 31st March 2026)
p. 7
“here also we are maintaining a tight credit policy with days sales outstanding at 80 days, roughly as on 31st of March 2026”
Prachi Mahadik, page 7 of the filed PDF · View the filing
Water segment share of revenue: 87% (FY26)
p. 9
“Water continues to be our largest segment 87 comprising 87% of the pie.”
Nirmal V. Shah –, page 9 of the filed PDF · View the filing
Public sector share of water business: 28 to 30%
p. 16
“So in the water business, roughly about 28 to 30% is public sector driven.”
Nirmal Shah, page 16 of the filed PDF · View the filing
Employee cost as percentage of top line: 18%
p. 18
“a lot of our cost, if you look at about almost 18% of our top line is into employee cost as opposed to, you know, 14% or something like that in the other businesses.”
Nirmal Shah, page 18 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Quarterly revenue run-rate — Rs 100 crore plus per quarter · next four quarters
stated conditionally by Nirmal Shah
p. 11
“Simple answer, yes, it's possible, but some seasonality comes into this business.”
Nirmal Shah, page 11 of the filed PDF · View the filing
EBITDA margin impact from input costs — about a 3% impact on margins · immediate month
stated firmly by Nirmal Shah
p. 11
“But in the immediate month, we saw about a 3% impact on our margins due to these haywire costs.”
Nirmal Shah, page 11 of the filed PDF · View the filing
Water business share of total revenue — 80% and then 70% of the total pie
stated as an aspiration by Nirmal Shah
p. 12
“I'd be very happy if water comes down to 80 and then 70% of the total pie with the pie expanding more rapidly with the other businesses.”
Nirmal Shah, page 12 of the filed PDF · View the filing
Company revenue target — 1000 crore · within four years
stated as an aspiration by Nirmal Shah
p. 18
“So 1000 crore is, yes, it is an aspiratory number. We are trying to ensure that we have plans in place to get to that number.”
Nirmal Shah, page 18 of the filed PDF · View the filing
Construction chemicals volume growth — around 15 to 20% of volume growth · quarter one of this year
stated conditionally by Nirmal Shah
p. 17
“Coming to quarter one of this year, we foresee around 15 to 20% of volume growth in construction chemicals.”
Nirmal Shah, page 17 of the filed PDF · View the filing
Water chemicals volume growth — roughly around 10%
stated conditionally by Nirmal Shah
p. 17
“Water chemicals, it would be roughly around 10%.”
Nirmal Shah, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said it is possible but seasonality affects quarter one, and on a year-over-year basis they expect improvement.
Answered by Nirmal Shah
Asked by Nasser Investments: Will the current quarter's revenue trend of crossing Rs 100 crore continue for the next four quarters?
p. 11
“Simple answer, yes, it's possible, but some seasonality comes into this business.”
Nirmal Shah, page 11 of the filed PDF · View the filing
CFO explained it was a fair value accounting adjustment due to net gain/loss differential on investments.
Answered by Prachi Mahadik
Asked by Nasser Investments: Why is other income negative this quarter?
p. 11
“It's an accounting adjustment, so that is on account of net gain and net loss differential.”
Prachi Mahadik, page 11 of the filed PDF · View the filing
Management said the immediate impact was about 3% on margins, and while some prices have softened, many remain elevated at 120-140% of prior levels.
Answered by Nirmal Shah
Asked by Nasser Investments: How much will EBITDA margins be impacted by input costs, and could they recover if chemical prices ease?
p. 11
“we have a list of 15 A group items which are all above 120%”
Nirmal Shah, page 11 of the filed PDF · View the filing
Management said private sector customers have granted temporary price increases for three months, while public sector customers have refused to amend contract terms.
Answered by Nirmal Shah
Asked by Himanshu Upadhyay: Can Chembond raise prices under force majeure with clients given fixed-price contracts?
p. 14
“So private sector, private sector, we've been quite successful and we've approached this that this is a temporary phenomenon. So we need at least a temporary price increase.”
Nirmal Shah, page 14 of the filed PDF · View the filing
Management attributed growth primarily to new customer addition and volume growth rather than price increases.
Answered by Nirmal Shah
Asked by Himanshu Upadhyay: What drove strong performance in the water chemicals business in FY26?
p. 15
“So new client addition is the primary driver and hence you see the increase in volumes.”
Nirmal Shah, page 15 of the filed PDF · View the filing
Management said the 1000 crore figure is aspirational rather than a firm commitment, with growth to come from geographic expansion, organic growth, and scaling construction chemicals and cleaning and hygiene; on margins, management said the business is a people business with higher employee costs and disputed the premise about competitor Vasu Chemicals' margins.
Answered by Nirmal Shah
Asked by Lala: How does the company plan to reach its aspirational Rs 1000 crore revenue target, and can the water business match construction chemicals' PBT margin?
p. 18
“So 1000 crore is, yes, it is an aspiratory number. We are trying to ensure that we have plans in place to get to that number. It's not something that we are saying we will get to.”
Nirmal Shah, page 18 of the filed PDF · View the filing
Management said customers trust Chembond for product performance and service and prefer it over multinational and other Indian suppliers.
Answered by Nirmal Shah
Asked by Anuj Sharma: What is Chembond's competitive positioning in the water treatment segment?
p. 19
“Okay, so our position is that the customers trust Chembond for its product performance and the service that we deliver.”
Nirmal Shah, page 19 of the filed PDF · View the filing
Management described a Malaysia JV that was converted to a wholly owned business, growth in Thailand, and exit from Nigeria due to credit terms, saying they will pursue selective partnerships slowly.
Answered by Nirmal Shah
Asked by Himanshu Upadhyay: What is the company's approach to international expansion, organic versus inorganic?
p. 21
“We are not in any rush to get into any rash decisions. We'll keep doing things slowly but steadily.”
Nirmal Shah, page 21 of the filed PDF · View the filing
Risks flagged
Rising input costs from metals such as zinc and molybdenum, intensified after a war, pressuring margins
p. 10
“Material costs started increasing from March, end of Feb, March. A lot of volatility in metals before that.”
Nirmal Shah, page 10 of the filed PDF · View the filing
Public sector customers refusing to accept force majeure or amend fixed-price contract terms
p. 10
“About 30 percent of our total business in the water business comes from public sector units, and none of them had accepted a force majeure until the government just declared it two weeks ago.”
Nirmal Shah, page 10 of the filed PDF · View the filing
Prolonged monsoon impacting construction and distribution businesses in H1
p. 9
“It started in May and ended around October that took out 2 & 2.5 full months of sales for a lot of projects most of the construction activity was impacted.”
Nirmal Shah, page 9 of the filed PDF · View the filing
Uncertainty and volatility in the current cost environment requiring contingency planning
p. 10
“We are prepared with certain contingent actions in case this situation prolongs beyond another month.”
Nirmal Shah, page 10 of the filed PDF · View the filing
Exit from Nigeria due to credit and payment collection risk
p. 20
“We discontinued that because the customer did not want to operate with LC terms and wanted open credit.”
Nirmal Shah, page 20 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.