Paushak Limited reported a 57% year-on-year increase in net profit for the quarter ended September 30, 2026 (Q2FY27), reaching ₹1,351 lakh compared to ₹861 lakh in the corresponding period last year. The speciality chemicals manufacturer also witnessed robust top-line growth, with revenue from operations rising 52% YoY to ₹8,932 lakh.

The company’s Board of Directors approved these unaudited financial results during a meeting held on October 16, 2026. The results were reviewed by statutory auditors CNK & Associates LLP and recommended by the Audit Committee prior to board approval.

Quarterly Financial Performance

The following table highlights the key financial metrics for Q2FY27 against the previous quarter and the same quarter in the previous fiscal year:

Note: Figures are in lakhs. Previous period EPS has been restated to reflect share sub-division and bonus allotment.

What the Numbers Show

A significant divergence is visible between the quarter-on-quarter trends of revenue and profitability. While revenue from operations grew 6.9% QoQ (from ₹8,355 lakh to ₹8,932 lakh), the net profit declined 10.5% QoQ (from ₹1,510 lakh to ₹1,351 lakh). This suggests margin compression in the second quarter despite higher sales volumes. Specifically, the effective tax rate appears to have impacted the bottom line, as current tax expenses rose to ₹274 lakh in Q2FY27 from ₹249 lakh in Q1FY27, while deferred tax liabilities also increased.

However, on a year-on-year basis, operational efficiency improved markedly. EBITDA surged 78.4% to ₹264 lakh from ₹148 lakh in Q2FY26, expanding the EBITDA margin by 433 basis points to 29.51% from 25.18%. This indicates that while tax burdens weighed on net profit sequentially, core operating profitability strengthened significantly compared to the previous year.

Additionally, the balance sheet indicates a substantial build-up in working capital. Trade receivables surged to ₹7,718 lakh as of September 30, 2026, up from ₹5,486 lakh as of March 31, 2026. This 40.7% increase in receivables outpaced the half-yearly revenue growth, potentially signaling extended collection cycles or aggressive sales terms to drive the observed top-line expansion.

Half-Year Performance

For the six months ended September 30, 2026 (H1FY27), Paushak recorded:

• Revenue from operations: ₹17,287 lakh (up 50.8% YoY from ₹11,466 lakh)
• Net Profit: ₹2,862 lakh (up 38.6% YoY from ₹2,065 lakh)
• EBITDA Margin: Improved due to operating leverage, with Q2 margin reaching 29.51%.

The company operates in a single reportable segment, Speciality Chemicals. The results have been prepared in accordance with Indian Accounting Standards (Ind AS) and reviewed under Regulation 33 of SEBI (LODR) Regulations, 2015.

Paushak Limited reported a significant improvement in its financial performance for the first quarter of FY27, with net profit after tax (PAT) rising 25.5% year-on-year to ₹1,510 lakh. The growth was primarily fueled by a sharp 49.5% increase in revenue from operations, which climbed to ₹8,355 lakh in the quarter ended June 30, 2026, compared to ₹5,588 lakh in the corresponding period last year. EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) also expanded to ₹257M from ₹178M in the same period last year, reflecting strong operational scaling despite a marginal compression in EBITDA margin.

The Board of Directors approved the unaudited financial results during a meeting held on July 30, 2026. The figures were reviewed by the Audit Committee and subjected to a limited review by the company's statutory auditors, CNK & Associates LLP, in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were prepared under Indian Accounting Standard 34 (Ind AS 34) and other generally accepted accounting principles in India.

Financial Performance Highlights

Revenue from operations surged to ₹8,355 lakh in Q1FY27, up from ₹5,588 lakh in Q1FY26. This substantial growth outpaced the increase in operating expenses, leading to an expansion in absolute profitability metrics. Profit before tax (PBT) grew 21.7% to ₹1,902 lakh, while PAT increased to ₹1,510 lakh from ₹1,203 lakh in the prior year's quarter. Earnings per share (EPS) rose to ₹6.13, up from ₹4.88 in Q1FY26. The following table summarises the key financial metrics for the quarter:

Other income stood at ₹315 lakh, while total income expanded to ₹8,669 lakh due to the revenue surge. Cost of materials consumed rose sharply to ₹2,899 lakh from ₹1,086 lakh, reflecting higher production volumes. Employee benefits expense remained relatively stable at ₹966 lakh, while finance costs increased to ₹136 lakh from ₹4 lakh.

Operational Profitability and Margin Trends

On the operational profitability front, EBITDA grew to ₹257M from ₹178M year-on-year, underscoring the company's ability to scale absolute earnings alongside revenue. However, the EBITDA margin contracted marginally to 30.70% from 31.74% in the corresponding period last year, indicating that operating cost inflation — particularly in materials consumed — slightly outpaced revenue growth on a percentage basis. While revenue jumped nearly 50%, total expenses rose by 60.6%, driven largely by a 167.4% increase in cost of materials consumed. This suggests that input cost pressures or changes in product mix may be impacting gross margins despite the volume-driven top-line growth. Nevertheless, the company successfully translated higher volumes into stronger absolute profits, demonstrating effective operational scaling. The restatement of previous quarter EPS figures to account for share sub-division and bonus allotments ensures comparability, aligning with Ind AS 33 requirements.