Andhra Petrochemicals turns profitable in Q4FY26
Andhra Petrochemicals returned to profitability in Q4FY26 with a net profit of ₹1.38 crore, compared to a net loss of ₹15.25 crore in the prior year. This turnaround occurred despite a 44.7% drop in revenue from operations to ₹793.16 crore, driven by improved operational metrics and positive EBITDA of ₹1.32 crore. However, the company reported a net loss of ₹15.67 crore for the full financial year FY26, narrowing from a loss of ₹18.13 crore in FY25. The results were impacted by plant shutdowns and raw material supply disruptions, alongside a ₹3.08 crore provision for FPPCA charges.
*this image is generated using AI for illustrative purposes only.
Andhra Petrochemicals has returned to profitability in the quarter ended March 31, 2026, reporting a net profit of ₹1.38 crore against a net loss of ₹15.25 crore in the corresponding quarter of the previous year. This turnaround was achieved despite a significant decline in revenue from operations, which fell to ₹793.16 crore from ₹1,434.52 crore year-on-year. The company's Board of Directors approved the audited financial results for the year ended March 31, 2026, at a meeting held on May 27, 2026.
Financial Performance
The company's operating performance improved markedly, with EBITDA turning positive to ₹1.32 crore compared to a loss of ₹15.94 crore in the same quarter last year. The EBITDA margin for the quarter stood at 1.33%. Total income for the quarter stood at ₹856.96 crore, down from ₹1,500.44 crore in the prior year. The full year, however, remained in the red, with a net loss of ₹15.67 crore for FY26 compared to a loss of ₹18.13 crore in FY25.
Operational Challenges and Provisions
The financial results were impacted by specific operational challenges and regulatory provisions. The plant experienced shutdowns due to maintenance and a supply disruption of the key raw material Propylene by Hindustan Petroleum Corporation Ltd. (HPCL). Additionally, the company made a provision of ₹3.08 crore towards Fuel & Power Purchase Cost Adjustment (FPPCA) charges for the financial years 2022-2023 and 2023-2024, following orders from the Andhra Pradesh Electricity Regulatory Commission (APERC). The company has challenged these orders before the Appellate Tribunal for Electricity (APTEL).
Key Financial Metrics
The following table summarizes the key financial metrics for Q4FY26 compared to the corresponding quarter of the previous year:
| Metric | Q4FY26 (₹ in lakhs) | Q4FY25 (₹ in lakhs) |
|---|---|---|
| Revenue from operations | 7931.59 | 14345.17 |
| Total Income | 8569.56 | 15004.44 |
| Total Expenses | 8437.46 | 16598.90 |
| Net Profit / (Loss) | 137.56 | (1525.40) |
| EBITDA | 132.10 | (1594.46) |
The auditors, M/s C V Ramana Rao & Co., issued an unmodified opinion on the financial results. The 42nd Annual General Meeting of the company is scheduled for September 23, 2026.
Historical Stock Returns for Andhra Petrochemicals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.53% | +6.84% | +6.70% | -19.67% | -28.17% | -46.41% |
What measures is Andhra Petrochemicals taking to diversify its raw material supply chain to prevent future disruptions like the HPCL shortage?
How will the legal challenge against the APERC orders impact the company's cash flow and financial provisions in the upcoming fiscal year?
Can the cost-cutting measures that drove the Q4 turnaround be sustained to achieve full-year profitability in FY27?
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