AMAL Ltd delivered a mixed performance in its third quarter results, demonstrating strong revenue growth alongside significant declines in profitability and operational efficiency. The company's financial metrics present contrasting trends that reflect operational expansion coupled with substantial margin pressures during the reporting period.

Financial Performance Overview

The company's Q3 consolidated results show divergent performance across key financial indicators:

Revenue Growth Analysis

AMAL Ltd achieved substantial revenue expansion during Q3, with consolidated revenue reaching ₹62.60 crores compared to ₹45.80 crores in the same quarter of the previous year. This represents a robust year-on-year growth of 36.68%, indicating strong demand for the company's products and services. The significant revenue increase demonstrates the company's ability to expand its market presence and capture greater business volumes during the quarter.

EBITDA and Margin Performance

The company's operational efficiency faced significant challenges during Q3, with EBITDA declining substantially to ₹8.10 crores from ₹20.40 crores in the corresponding quarter of the previous year. This represents a sharp decrease of 60.29% year-on-year. More concerning is the dramatic compression in EBITDA margin, which fell from 44.6% to 12.9%, marking a decline of 31.7 percentage points. This substantial margin erosion indicates increased operational costs or pricing pressures that significantly impacted the company's operational profitability.

Profitability Challenges

Despite the impressive revenue growth, AMAL Ltd faced considerable pressure on its bottom line during Q3. Consolidated net profit declined sharply to ₹5.00 crores from ₹16.50 crores in the corresponding quarter of the previous year, marking a substantial decrease of 69.70%. This significant profit contraction, combined with the EBITDA margin compression, suggests that the company experienced substantial cost inflation or other operational challenges that more than offset the benefits of revenue growth.

Performance Summary

The Q3 results present a challenging picture for AMAL Ltd, combining strong top-line performance with significant operational and profitability pressures. While the company successfully expanded its revenue base by over one-third year-on-year, the substantial declines in EBITDA and net profit, along with severe margin compression, highlight operational efficiency concerns that require immediate management attention.

Amal Ltd , a leading manufacturer of bulk chemicals, has announced its financial results for the second quarter and first half of the fiscal year 2025-26, showcasing significant growth in both standalone and consolidated operations.

Standalone Performance

For the quarter ended September 30, 2025, Amal Ltd reported a substantial increase in its standalone revenue from operations, which rose to ₹1,857.74 crore, marking a 63.7% growth compared to ₹1,135.23 crore in the same quarter of the previous year. However, the net profit after tax for Q2 FY26 stood at ₹109.16 crore, lower than the ₹176.40 crore reported in Q2 FY25.

Consolidated Results

On a consolidated basis, the company's performance was even more impressive. The quarterly revenue from operations surged to ₹5,400.48 crore, up from ₹3,005.94 crore in the corresponding quarter last year, representing a remarkable 79.7% year-over-year growth. The consolidated net profit for Q2 FY26 increased to ₹605.83 crore from ₹552.73 crore in Q2 FY25.

Half-Yearly Performance

For the first half of FY26, Amal Ltd's standalone revenue reached ₹3,287.79 crore, compared to ₹1,822.35 crore in H1 FY25, showing a strong growth of 80.4%. The consolidated revenue for H1 FY26 stood at ₹10,131.02 crore, up from ₹5,056.47 crore in the same period last year, marking a substantial 100.4% increase.

Financial Highlights

Here's a summary of the key financial metrics for Q2 FY26:

Management Commentary

Rajeev Kumar, Managing Director of Amal Ltd, stated, "Our Q2 results reflect the company's strong market position and operational efficiency. The significant growth in both standalone and consolidated revenues demonstrates our ability to capitalize on market opportunities and meet the growing demand for our products."

Operational Update

The company noted that it had undertaken a planned annual maintenance shutdown during the first quarter (Q1) of FY26. As a result, the performance in Q2 FY26 and Q2 FY25 is not directly comparable with that of Q1 FY26.

Amal Ltd continues to operate in the single segment of bulk chemicals manufacturing. The company's board of directors approved these results at their meeting held on October 15, 2025.

The robust financial performance of Amal Ltd in Q2 FY26 underscores its strong market position in the bulk chemicals sector and its ability to drive growth despite challenging market conditions.