NGL Fine Chem Limited delivered a strong financial turnaround in the first quarter of FY27, reporting a net profit of ₹18.40 crore, a significant improvement from the ₹13.49 crore profit in Q4FY26 and a sharp contrast to the ₹4.5 crore loss recorded in the corresponding quarter of the previous fiscal year. The company’s revenue from operations grew 33.57% year-on-year to ₹139.16 crore, though it declined slightly by 6.75% quarter-on-quarter from ₹149.23 crore. This performance underscores the sustained demand momentum across its animal health product segments, as noted by Managing Director Rahul Nachane.

Financial Performance

The company’s operational efficiency improved notably, with EBITDA rising 8.76% quarter-on-quarter to ₹23.29 crore and surging 112.21% year-on-year. Consequently, the EBITDA margin expanded by 239 basis points to 16.73% in Q1FY27, compared to 14.35% in Q4FY26. Total income for the quarter stood at ₹146.59 crore, driven by operating revenue and other income, which increased 202.05% quarter-on-quarter to ₹7.43 crore.

Finance costs remained controlled at ₹0.99 crore, down slightly from ₹1.01 crore in the previous quarter. Depreciation and amortisation expenses increased to ₹5.25 crore from ₹5.05 crore. Profit before tax jumped 37.41% quarter-on-quarter to ₹24.48 crore.

What the Numbers Show

A critical driver of the profitability surge was non-operational income. The company recorded a ₹2.5 crore forex gain in Q1FY27, reversing the ₹4.5 crore mark-to-market forex provision that weighed on Q4FY26 results. Additionally, management highlighted that part of the margin improvement is attributable to inventory gains arising from price increases during the period. With other income contributing significantly to total income, investors should note that these mark-to-market movements are volatile and may not recur at similar magnitudes.

Balance Sheet and Cash Flow

As of FY26, NGL Fine Chem’s total equity and liabilities stood at ₹545.50 crore, with shareholders’ fund increasing to ₹329.23 crore from ₹282.43 crore in FY25. Long-term borrowings rose to ₹56.40 crore from ₹25.34 crore, reflecting ongoing capital expenditure. Trade receivables increased substantially to ₹130.88 crore from ₹82.84 crore in FY25, while inventories grew to ₹70.28 crore. Cash and bank balances remained stable at ₹5.11 crore.

Cash flow from operating activities improved to ₹43.32 crore in FY26 from ₹32.36 crore in FY25. However, cash flow from investing activities remained negative at (₹70.59 crore), primarily due to capex outlays. Net cash flow for FY26 was ₹2.27 crore.

Strategic Outlook

Management confirmed that the Phase II expansion project remains on schedule, with commissioning expected during the current quarter. The total project cost and scope remain unchanged, with commercial production slated to commence in H2FY27. This incremental capacity aims to support growth plans and address emerging opportunities in existing and new markets.

Segment-wise, Animal API continued to dominate revenue mix, accounting for 95% of sales in Q1FY27, consistent with Q4FY26. Geographically, Asia remained the largest market at 40% share, followed by Rest of World at 30% and India at 20%.

NGL Fine-Chem Limited reported a significant surge in profitability for the first quarter of FY26, driven by robust top-line growth and improved operating leverage. The company’s standalone net profit after tax jumped 115% year-on-year to ₹1,645.13 lakh, compared to ₹764.41 lakh in the corresponding quarter of FY25. On a consolidated basis, net profit rose 99% to ₹1,839.72 lakh from ₹924.06 lakh in Q1FY25.

Financial Performance

Revenue from operations expanded sharply across both reporting lines. Standalone total income from operations grew 34% YoY to ₹14,406.99 lakh, up from ₹10,741.15 lakh in Q1FY25. Consolidated revenue increased 32% to ₹14,659.09 lakh, compared to ₹11,053.89 lakh in the prior year period.

The improvement in the bottom line outpaced revenue growth, indicating operational efficiency gains. Standalone pre-tax profit (before exceptional items) more than doubled to ₹2,174.51 lakh from ₹971.47 lakh. Consolidated pre-tax profit similarly rose 106% to ₹2,447.68 lakh.

What the Numbers Show

The divergence between revenue growth and profit growth highlights strong margin expansion. While standalone revenue grew 34%, standalone net profit before tax grew 124%. This suggests that operating margins widened significantly during the quarter, allowing the company to convert a larger proportion of incremental sales into profit. The tax rate remained relatively stable, with effective tax impacting the bottom line consistently with prior periods.

Shareholder Returns and Capital Structure

Earnings per share (EPS) reflected the profit surge. Standalone basic EPS rose to ₹26.63 from ₹12.37 in the same quarter last year. Consolidated basic EPS increased to ₹29.78 from ₹14.96.

Paid-up equity share capital remained unchanged at ₹308.90 lakh. Reserves as shown in the audited balance sheet of the previous year stood at ₹31,684.77 lakh on a standalone basis and ₹32,614.89 lakh on a consolidated basis.

Corporate Governance

The unaudited financial results for the quarter ended June 30, 2026 were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on August 12, 2026. The statutory auditors carried out a limited review of the statement. The full format of the financial results is available on the company’s website and stock exchange portals.