Epigral Limited reported a standalone net profit of ₹99.18 crore for the quarter ended June 30, 2026, marking a 38% decline from ₹160.41 crore in the corresponding period of FY25. The drop in profitability stems from increased cost of materials consumed and the absence of a significant one-time tax benefit recorded in the prior year, even as revenue from operations grew 16% to ₹705.36 crore. Consolidated net profit stood at ₹99.74 crore, compared to ₹160.69 crore in Q1FY25. EBITDA for the quarter came in at ₹1.8B versus ₹1.6B in the year-ago period, while EBITDA margin contracted to 25.39% from 27% YoY.

The Board of Directors approved the unaudited financial results on July 27, 2026, pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. M/s. S R B C & CO LLP, the statutory auditors, issued a limited review report on the figures. The results were prepared in accordance with Ind AS 34 "Interim Financial Reporting" under Section 133 of the Companies Act, 2013.

Financial Performance

Revenue from operations rose to ₹705.36 crore in Q1FY26 from ₹606.54 crore in Q1FY25. However, total expenses increased to ₹576.28 crore from ₹508.06 crore during the same period. The cost of materials consumed surged to ₹430.18 crore from ₹318.19 crore, reflecting higher input costs in the Chloro Alkali & Derivatives segment. Finance costs decreased significantly to ₹7.22 crore from ₹23.37 crore, providing some relief to the bottom line.

The profit before tax rose 25% to ₹133.18 crore from ₹106.73 crore. However, the tax expense for Q1FY26 was ₹34.00 crore, compared to a net tax credit of ₹53.68 crore in Q1FY25. The prior year's credit included a one-time deferred tax credit of ₹80.87 crores arising from the remeasurement of deferred tax liabilities after the company opted for the reduced tax rate under Section 115BAA of the Income-tax Act, 1961.

What the Numbers Show

The divergence between the 25% rise in pre-tax profits and the 38% fall in net profit highlights the impact of non-recurring items on Epigral's bottom line. Excluding the one-time deferred tax credit of ₹80.87 crores recognized in Q1FY25, the underlying tax burden has normalized. The current quarter's effective tax rate is approximately 25.5%, aligning with the standard corporate tax regime, whereas the prior year benefited from a massive accounting adjustment. The contraction in EBITDA margin to 25.39% from 27% further reflects the pressure from higher input costs, even as EBITDA in absolute terms improved. This suggests that while operational profitability is expanding due to revenue growth outpacing expense increases, headline net profit comparisons are distorted by the prior year's exceptional tax credit.

Strategic Developments

Epigral incorporated a wholly owned subsidiary, Epigral Advanced Material Limited, on July 07, 2026, aimed at manufacturing chemicals. Additionally, the company continues its investment in renewable energy through Pro-Zeal Green Power Ten Private Limited, where it holds a 26% equity stake and has invested ₹2.13 crores in optionally convertible debentures. The associated wind-solar hybrid power plant in Gujarat is expected to commence operations in the near future.

Epigral Limited will host a conference call on July 27, 2026, at 5:00 PM IST to discuss its financial performance for the first quarter of FY27. The announcement was made in reference to Regulation 30 and Para A of Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The call provides an opportunity for investors and analysts to gain insights directly from the company's leadership regarding the quarterly results.

The discussion will be led by Epigral Limited 's senior management team. Participants include Maulik Patel, Chairman and Managing Director; Kaushal Soparkar, Executive Director; Rakesh Agrawal, Chief Financial Officer; and Milind Kotecha, Investor Relations and Strategy. The session is being coordinated by Emkay Global Financial Services Ltd.

Conference Call Details

The event is scheduled for Monday, July 27, 2026. Participants are advised to pre-register to avoid wait times and use the Express Join feature with DiamondPass™. The access details are outlined below:

International toll-free numbers have been arranged for various regions including the USA, UK, Singapore, Australia, and Japan, among others. For specific regional numbers, investors should refer to the official invitation. Further inquiries can be directed to Sabri Hazarika at Emkay Global Financial Services Ltd.