Gem Aromatics reports sequential revenue growth in Q4FY26
Gem Aromatics Limited reported a sequential recovery in Q4FY26 with standalone revenue rising 34% to INR112 crores and consolidated revenue increasing 40% to INR110 crores. Improved margins led to a consolidated PAT of INR1 crore against a loss in the previous quarter. Commercial production commenced at the Dahej facility, though phenol-based derivative production is delayed due to raw material costs. The company targets FY28 consolidated turnover of INR1,100 crores.
*this image is generated using AI for illustrative purposes only.
Gem Aromatics Limited reported a sequential recovery in its financial performance for the quarter ended March 31, 2026 (Q4FY26), driven by improved volumes and price realization. The company released the transcript of its earnings conference call held on May 22, 2026, detailing the operational and financial highlights for the quarter and full year.
Financial Performance
Revenue from operations for the quarter stood at INR112 crores on a stand-alone basis, compared to INR84 crores in Q3FY26, registering a sequential growth of 34%. Consolidated revenue stood at INR110 crores as compared to INR79 crores in the previous quarter, reflecting a sequential growth of 40%. This improvement was supported by better traction across non-mint products, particularly clove and its derivatives.
| Metric | Stand-alone (Q4FY26) | Consolidated (Q4FY26) | Sequential Growth |
|---|---|---|---|
| Revenue from Operations | INR112 crores | INR110 crores | 34% (Stand-alone) / 40% (Consolidated) |
| Gross Profit | INR26 crores | INR34 crores | 70% |
| EBITDA | INR15 crores | INR16 crores | 98% (Stand-alone) / 124% (Consolidated) |
| Reported PAT | INR12 crores | INR1 crore | 182% (Stand-alone) |
Gross profit margins improved sequentially to 23.4% on a stand-alone basis and 30.5% on a consolidated basis. EBITDA margins improved to 13.4% on a standalone basis and 14.2% on a consolidated basis. The company reported a consolidated PAT of INR1 crore compared to a loss of INR5 crores in the previous quarter.
Operational Highlights
Management attributed the recovery to better clarity on U.S.A. tariffs and improving trade conditions. A key highlight was the progress at the Dahej greenfield facility under Krystal Ingredients Private Limited, where commercial production of Gemcool 5 and Safranal commenced on February 26, 2026. The company successfully completed a key global quality and compliance audit for the facility.
However, profitability was impacted by higher depreciation following the capitalization of a substantial portion of capex for the Dahej project. Out of the total planned capex of approximately INR270 crores, nearly INR260 crores has been incurred and capitalized. The plant remains production-ready for phenol-based derivatives, but production timelines have been impacted due to elevated raw material prices and availability issues caused by geopolitical developments.
Outlook
Looking ahead, the company provided guidance for FY28, targeting a consolidated turnover of INR1,100 crores and EBITDA margins in the range of 16% to 18%. Management stated that FY27 guidance would be provided later, citing geopolitical uncertainties and the need to monitor the ramp-up of the new facility. The focus remains on improving utilization levels, operational efficiencies, and product mix optimization.
Historical Stock Returns for Gem Aromatics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.32% | +5.43% | +6.52% | +32.87% | -37.35% | -37.35% |
When will the company provide specific guidance for FY27 given the current geopolitical uncertainties?
What strategies will be employed to mitigate raw material price volatility and availability issues for the phenol-based derivatives?
How does the company plan to achieve the targeted FY28 EBITDA margins of 16-18% amidst ongoing depreciation costs from the Dahej facility?
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