Sadhana Nitro Chem Limited reported a narrowed standalone net loss of ₹40 lakh for the quarter ended June 30, 2026 (Q1FY27), compared to a net loss of ₹170 lakh in Q1FY26. The improvement was driven by better cost management and reduced finance costs, despite a slight decline in revenue from operations to ₹2,618 lakh from ₹2,810 lakh in the prior year period. Consolidated net loss widened slightly to ₹55 lakh from ₹212 lakh in the corresponding quarter last year, primarily due to the inclusion of its wholly-owned subsidiary, Anuchem B.V.B.A, Belgium.

The Board of Directors, meeting on August 07, 2026, under Regulation 30 of the SEBI (LODR) Regulations, 2015, approved the unaudited standalone and consolidated financial results. Statutory Auditors Jayesh Dadia & Associates LLP issued an unmodified review report on the financial statements, confirming compliance with Ind AS 34 and SEBI Listing Regulations.

Financial Performance Highlights

The company’s primary segment remains the manufacturing of chemical intermediates, heavy organic chemicals, and performance chemicals. A secondary segment involving wireless network equipment contributed less than 10% of total revenue, profits, and assets, thus requiring no separate disclosure under Ind AS 108.

Standalone profit before tax was ₹6 lakh, up from a loss of ₹182 lakh in Q1FY26. Deferred tax expenses were ₹46 lakh, impacting the bottom line. In the consolidated books, profit before tax was a loss of ₹9 lakh, compared to a loss of ₹224 lakh in the previous year.

Preferential Allotment Approved

The Board approved the allotment of 6,75,00,000 fully paid-up equity shares with a face value of Re. 1/- each at an issue price of ₹2.06 per share (including a premium of ₹1.06). This preferential issue increases the paid-up equity share capital from ₹296,46,94,385 to ₹303,21,94,385. The allotted shares rank pari passu with existing equity shares.

What the Numbers Show

The narrowing of the standalone net loss from ₹170 lakh to ₹40 lakh indicates improved operational efficiency despite a slight dip in revenue from operations. The significant reduction in finance costs—from ₹401 lakh in Q1FY26 to ₹316 lakh in Q1FY27—contributed positively to the pre-tax position. However, the consolidated result reflects the ongoing losses from its Belgian subsidiary, Anuchem B.V.B.A, which reported a revenue of ₹561.84 lakh and a net loss before tax of ₹12.00 lakh for the quarter.

Sadhana Nitrochem reported its Q1 consolidated financial results, showing a notable improvement in net loss on a year-on-year basis, even as revenue witnessed a decline compared to the same period last year. The company's bottom line showed meaningful recovery, with losses narrowing sharply from the prior-year quarter.

Q1 Financial Performance

The company posted a consolidated net loss of 4M rupees in Q1, compared to a net loss of 17M rupees in the corresponding quarter of the previous year, reflecting a significant reduction in losses on a year-on-year basis. On the revenue front, Sadhana Nitrochem recorded 262M rupees for the quarter, down from 281M rupees in the same period last year.

The key financial metrics for the quarter are summarised below:

Key Highlights

• Net loss narrowed to 4M rupees from 17M rupees on a year-on-year basis, indicating an improvement in profitability.
• Revenue declined to 262M rupees from 281M rupees in the year-ago quarter.
• The improvement in net loss came despite a contraction in topline performance during the quarter.

The Q1 results reflect a mixed performance for Sadhana Nitrochem — while revenue contracted year-on-year, the company made measurable progress in reducing its net losses during the period.