Prasol Chemicals Ltd — Q2 FY27 earnings call
Summary generated by AI from the official transcript Prasol Chemicals Ltd filed with BSE on 05 Oct 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
Prasol Chemicals reported Q1 FY27 revenue of Rs 433.6 crore, up 35.7% year-on-year, with EBITDA of Rs 90.3 crore and PAT of Rs 61 crore, aided by inventory gains from rising acetone and petrochemical prices amid geopolitical disruptions. Management said volume growth was in the mid-single digits while margins benefited from a roughly Rs 25 crore positive impact from higher average selling prices. The company outlined a Phase 1 capex of Rs 250-300 crore to expand existing product capacities and gave FY27 guidance of Rs 1,550-1,650 crore revenue and adjusted EBITDA of Rs 240-250 crore, excluding the inventory and forex gains.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue from operations: INR433.6 crores (Q1 FY27)
p. 10
“revenue from operations stood at INR433.6 crores compared to INR319.6 crores in Q1 FY26, a growth of 35.7% year-on-year”
Rahul Shroff, page 10 of the filed PDF · View the filing
Gross margin: 37.9% (Q1 FY27)
p. 11
“Gross margin for the quarter stood at 37.9% compared to 30% in Q1 FY26”
Rahul Shroff, page 11 of the filed PDF · View the filing
EBITDA: INR90.3 crores (Q1 FY27)
p. 11
“EBITDA for the quarter was INR90.3 crores compared to INR40.6 crores in Q1 FY26, a growth of 122.4% year-on-year”
Rahul Shroff, page 11 of the filed PDF · View the filing
EBITDA margin: 20.8% (Q1 FY27)
p. 11
“The EBITDA margin stood at 20.8% against 12.7% in the same quarter last year”
Rahul Shroff, page 11 of the filed PDF · View the filing
Profit after tax: INR61 crores (Q1 FY27)
p. 11
“Profit after tax for the quarter was INR61 crores compared to INR24.3 crores in Q1 FY26, a growth of 151% with a PAT margin of 14.1%”
Rahul Shroff, page 11 of the filed PDF · View the filing
Net worth: INR448.5 crores (as of 31st March 2026)
p. 11
“net worth stood at INR448.5 crores and our gross debt at INR110.1 crores with a net debt-to-equity ratio of 0.19x”
Rahul Shroff, page 11 of the filed PDF · View the filing
Net working capital cycle: 50 days (FY26)
p. 11
“Our net working capital cycle was 50 days at the end of FY26”
Rahul Shroff, page 11 of the filed PDF · View the filing
Exports share of revenue: 27% (Q1 FY27)
p. 11
“Exports accounted for 27% of revenue”
Rahul Shroff, page 11 of the filed PDF · View the filing
Inventory gain impact on gross profit: INR25 crores (Q1 FY27)
p. 11
“there was a sharp increase in average selling price to the tune of INR25 crores positive impact on our gross profit during Q1 FY27”
Rahul Shroff, page 11 of the filed PDF · View the filing
Combined installed capacity: about 98,000 tons per annum
p. 9
“now we have combined installed capacity of about 98,000 tons per annum across our ISO-certified plants, operating on the zero liquid discharge basis”
Gaurang Parikh, page 9 of the filed PDF · View the filing
Mahad plant utilization: improved from about 13% to 44% (FY24 to FY26)
p. 9
“utilization has improved from about 13% in FY24 to 44% in FY26”
Gaurang Parikh, page 9 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.
Revenue — INR1,550 crores to INR1,650 crores · FY27
stated conditionally by Nishith Shah
p. 8
“For '27, we expect to deliver a revenue of INR1,550 crores to INR1,650 crores with an EBITDA of INR240 crores to INR250 crores, excluding price fluctuation due to geopolitical-led supply chain issues and forex gain/losses, if any.”
Nishith Shah, page 8 of the filed PDF · View the filing
EBITDA — INR240 crores to INR250 crores · FY27
stated conditionally by Nishith Shah
p. 8
“For '27, we expect to deliver a revenue of INR1,550 crores to INR1,650 crores with an EBITDA of INR240 crores to INR250 crores, excluding price fluctuation due to geopolitical-led supply chain issues and forex gain/losses, if any.”
Nishith Shah, page 8 of the filed PDF · View the filing
Revenue scale-up — INR2,800 crores to INR3,000 crores · next 5 years
stated as an aspiration by Nishith Shah
p. 8
“we aspire to scale the business to INR2,800 crores to INR3,000 crores in the next 5 years, supported by capacity expansions, higher value-added offerings”
Nishith Shah, page 8 of the filed PDF · View the filing
Gross margin — 30% to 32%
stated as an aspiration by Gaurang Parikh
p. 9
“we see sustainable gross margins in the range of about 30%, 32% on a normalized basis”
Gaurang Parikh, page 9 of the filed PDF · View the filing
EBITDA margin — 15% to 16% · FY27
stated firmly by Nishith Shah
p. 21
“The end of the year EBITDA margin, we are talking of 15% to 16% in that range.”
Nishith Shah, page 21 of the filed PDF · View the filing
Phase 1 capex — INR250 crores to INR300 crores · next two years
stated firmly by Rahul Shroff
p. 11
“Our Phase 1 expansion of about 250 crores to 300 crores, to be completed over the next two years, will be funded through a mix of internal accruals and potentially some more additional debt, if required.”
Rahul Shroff, page 11 of the filed PDF · View the filing
Phase 1 expansion revenue potential — INR500 to INR550 crores · at peak utilization
stated conditionally by Gaurang Parikh
p. 10
“At peak utilization, the overall Phase 1 investment is expected to generate about INR500 to INR550 crores of revenue.”
Gaurang Parikh, page 10 of the filed PDF · View the filing
Phase 2 capex — INR250 to INR300 crores
stated as an aspiration by Gaurang Parikh
p. 10
“Phase 2 expansion of nearly INR250 to INR300 crores would be targeting new R&D products with better margins.”
Gaurang Parikh, page 10 of the filed PDF · View the filing
Lubricant additive capacity — 50% to 70% increase via debottlenecking · next two to three months
stated firmly by Nishith Shah
p. 12
“we are looking at almost bringing up the existing capacity by 50% to 70% by mere debottlenecking”
Nishith Shah, page 12 of the filed PDF · View the filing
Antibacterial drug plant mechanical completion — by January or so
stated firmly by Nishith Shah
p. 12
“we will complete the mechanical completion somewhere by January or so”
Nishith Shah, page 12 of the filed PDF · View the filing
Mahad plant utilization — 70-plus percent · towards year-end
stated conditionally by Nishith Shah
p. 15
“Towards the year-end, it will go towards 70-plus.”
Nishith Shah, page 15 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 the lubricant capacity will be raised via debottlenecking, the antibacterial product will have mechanical completion around January, and the mining chemical is a multi-year pipeline opportunity.
Answered by Nishith Shah
Asked by Nirav Jimudia: How much of the 60,000 ton Phase 1 capex relates to the mining, antibacterial, and lubricant products, and what is their life cycle and market potential?
p. 12
“we are looking at almost bringing up the existing capacity by 50% to 70% by mere debottlenecking”
Nishith Shah, page 12 of the filed PDF · View the filing
Management said volume alone is not a reliable guide since moving to higher-value derivatives raises revenue without proportional volume growth.
Answered by Nishith Shah
Asked by Nirav Jimudia: Given 33-35% expected topline growth, how much of that is volume growth?
p. 14
“So, volume alone may not be the right guidance given to anyone. It is based on which stage of chemistry are you selling.”
Nishith Shah, page 14 of the filed PDF · View the filing
Management said diversification across geographies offset losses in some regions with gains in others, and exports continued to grow despite disruptions.
Answered by Nishith Shah
Asked by Arjun Khanna: Are clients in Europe and elsewhere impacted by rising freight and energy costs, given the strong outlook?
p. 14
“even in the first quarter, our export has been 27% and growing”
Nishith Shah, page 14 of the filed PDF · View the filing
Management said roughly 10-14 products are in progress at varying stages of completion, with most installed over the next 12-18 months.
Answered by Nishith Shah
Asked by Arjun Khanna: How much of the Phase 1 capex is complete and how will output phasing occur?
p. 15
“all these 10, 12 projects will come across in the next 12 to 18 months from today”
Nishith Shah, page 15 of the filed PDF · View the filing
Management said Mahad had become EBITDA positive and utilization was improving steadily toward 70%.
Answered by Nishith Shah
Asked by Arjun Khanna: How is Mahad's profitability and utilization trending as the year progresses?
p. 15
“the company, from 12% utilization, has moved towards the 60%-plus utilization”
Nishith Shah, page 15 of the filed PDF · View the filing
Management clarified that the guidance figure excludes the inventory and forex gains.
Answered by Nishith Shah
Asked by Aksh Vashishth: Does the FY27 EBITDA guidance include the Rs 25 crore inventory gain from Q1?
p. 17
“No, no. It is excluding that. If you clearly read, I have written the adjusted EBITDA, because we want to give very clear guidance to our investors to understand that INR25 crores and the forex gain is not because of our making.”
Nishith Shah, page 17 of the filed PDF · View the filing
Management said the guidance is conservative due to geopolitical uncertainty but still represents strong growth over last year.
Answered by Nishith Shah
Asked by Gaurav Shukla: Given Q1 EBITDA of Rs 90 crore, is the FY27 EBITDA guidance of Rs 240-250 crore too conservative?
p. 20
“we have considered that almost the second quarter is almost close to over as we discuss.”
Nishith Shah, page 20 of the filed PDF · View the filing
Management said the inventory build was routine seasonal stocking ahead of the new fiscal year, not speculation on raw material prices.
Answered by Nishith Shah
Asked by Gaurav Shukla: Was the Q1 inventory build strategic or for another reason?
p. 21
“We do not speculate in raw material, period. We buy raw materials based on our calculation, based on our need.”
Nishith Shah, page 21 of the filed PDF · View the filing
Management said only about 15-20% of pipeline products typically become commercial, with a mix of forward integration and entirely new chemistry from waste streams.
Answered by Nishith Shah
Asked by Divesh Chainani: What is the nature of the roughly 40 new products in the R&D pipeline, and will they require additional capex?
p. 22
“Normally, we are talking in the range about 15% to 20% that get converted into commercialized product down the line in terms of a decent return for your investments.”
Nishith Shah, page 22 of the filed PDF · View the filing
Management said the new chemistry will use the already purchased land bank, with some products at an advanced stage awaiting environmental clearance.
Answered by Nishith Shah
Asked by Divesh Chainani: Will the newer chemistry products require additional land beyond the existing Mahad and Khopoli land banks?
p. 22
“The newer chemistry that we are considering now will be using the land bank that we have already purchased as of today, the land which is available with us.”
Nishith Shah, page 22 of the filed PDF · View the filing
Risks flagged
Geopolitical conflict in West Asia and disruptions in the Strait of Hormuz led to sharp increases in crude oil and petrochemical prices and freight costs.
p. 9
“the conflict in West Asia and disruptions in the Strait of Hormuz resulted in the sharp increase in the crude oil and petrochemical prices, higher freight costs and greater uncertainty around the trade policies also”
Gaurang Parikh, page 9 of the filed PDF · View the filing
A portion of the quarter's margin expansion was not structural, driven by inventory gains that may not repeat.
p. 9
“while a portion of the margin expansion during the quarter was not structural, the underlying business performance remained healthy”
Gaurang Parikh, page 9 of the filed PDF · View the filing
Exports to African and Middle Eastern countries have been affected by the regional conflict.
p. 14
“some of our shipment say going towards the African countries or going through the Middle East countries, that definitely is affected”
Nishith Shah, page 14 of the filed PDF · View the filing
Rising utility costs in Europe have caused chemical industry closures and consolidation there.
p. 7
“The cost of utility has gone haywire, and there's no coming back. Many chemical industries there have started closing some of the divisions.”
Nishith Shah, page 7 of the filed PDF · View the filing
Uncertainty around the geopolitical situation limits visibility on future margins and guidance.
p. 21
“we don't have any clarity on the geopolitical situation. So, it's better to be conservative on what you can achieve considering the thing.”
Nishith Shah, page 21 of the filed PDF · View the filing
Additional freight costs and duties have arisen on exports to the US amid trade disruptions.
p. 14
“We are still exporting to US, for example, in spite of the additional freight costs and some of the duties which have come into place.”
Nishith Shah, page 14 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.
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More Q2 FY27 earnings calls, in alphabetical order