A-1 Limited net profit surges 429% in Q1FY26 led by acids segment
A-1 Limited posted a standalone net profit of ₹316.44 lakh in Q1FY26, up 429% YoY, as revenue more than doubled to ₹17,501.28 lakh. The Acids and Chemicals segment drove this growth, contributing significantly to total sales despite proportional increases in expenses and finance costs.
*this image is generated using AI for illustrative purposes only.
A-1 Limited reported a standalone net profit of ₹316.44 lakh for the quarter ended June 30, 2026, marking a significant 429% year-on-year increase from ₹59.78 lakh in Q1FY25. The Ahmedabad-based chemical manufacturer saw revenue from operations more than double to ₹17,501.28 lakh from ₹6,469.30 lakh in the corresponding period last year, signaling robust demand in its core acids and chemicals business. This performance underscores the company's operational leverage as it scales production and sales in the current fiscal year, with earnings per share rising to ₹0.07 from ₹0.01 previously.
The Board of Directors approved the unaudited standalone and consolidated financial results on July 28, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were subjected to a limited review by M/s. Sorab S. Engineer & Co., the Statutory Auditor of the Company, who issued an unmodified conclusion. The Audit Committee also reviewed and recommended the results for Board approval.
Financial Performance Highlights
The company’s top-line growth was primarily fueled by its Acids and Chemicals segment, which contributed ₹17,195.46 lakh to total sales. The Sports Equipments segment added ₹317.67 lakh. While revenue surged, total expenses rose proportionally to ₹17,082.96 lakh from ₹6,394.90 lakh in Q1FY25, largely due to higher purchase of stock-in-trade (₹16,069.67 lakh vs ₹5,667.01 lakh). Finance costs increased to ₹97.77 lakh from ₹42.43 lakh, reflecting higher borrowing or interest rates.
| Particulars | Q1FY26 (₹ Lakh) | Q1FY25 (₹ Lakh) | Change |
|---|---|---|---|
| Revenue from Operations | 17,501.28 | 6,469.30 | 170.5% |
| Total Income | 17,513.13 | 6,478.52 | 170.3% |
| Total Expenses | 17,082.96 | 6,394.90 | 167.1% |
| Profit Before Tax | 430.17 | 83.62 | 414.4% |
| Tax Expense | 113.73 | 23.84 | 377.0% |
| Net Profit After Tax | 316.44 | 59.78 | 429.3% |
Earnings per share (basic and diluted) stood at ₹0.07, up from ₹0.01 in the previous year. The consolidated results mirrored the standalone figures, with net profit after tax at ₹316.44 lakh. The group includes one associate entity, A-1 Sureja Industries, which contributed a share of profit of ₹1.07 lakh.
Segment-wise Analysis
The Acids and Chemicals segment remains the primary profit driver, reporting segment results before interest and finance cost of ₹514.86 lakh, compared to ₹126.05 lakh in Q1FY25. The Sports Equipments segment reported modest results of ₹13.08 lakh. Total segment assets grew to ₹11,560.93 lakh from ₹6,432.70 lakh year-ago, indicating increased working capital requirements or inventory buildup to support higher sales volumes.
What the Numbers Show
The disproportionate rise in profit relative to revenue highlights improved operating efficiency or favorable product mix. While finance costs nearly doubled, the company maintained profitability due to significant volume growth. The inclusion of the Sports Equipments segment, though small, diversifies revenue streams. Investors should monitor whether this volume growth is sustainable and if margins can expand further as fixed costs are absorbed by higher sales.
Capital Structure Updates
During the quarter ended December 31, 2025, the Board approved a bonus issue of 3:1 equity shares and a stock split reducing face value from ₹10 to ₹1 per share. The record date for the split was January 08, 2026. These actions have been accounted for in the restated earnings per share figures. The paid-up equity share capital stands at ₹4,600.00 lakh.
Historical Stock Returns for A1
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.21% | -5.78% | -16.58% | -81.47% | -71.35% | +9.24% |
Will A-1 Limited be able to sustain its current operating leverage and profit margins as input costs for raw materials fluctuate in the coming quarters?
How does the significant increase in stock-in-trade purchases impact the company's working capital efficiency and inventory turnover ratios?
What is the strategic roadmap for the Sports Equipments segment, and can it evolve from a minor contributor to a meaningful revenue driver?
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