Andhra Petrochemicals Q3FY26 Results: Loss Narrows Despite Revenue Decline
Andhra Petrochemicals announced Q3FY26 results showing reduced quarterly losses but significant revenue decline due to plant shutdown and market challenges. While quarterly net loss improved to ₹1077.28 lakhs from ₹1515.46 lakhs, nine-month losses increased substantially to ₹1704.50 lakhs despite higher revenue.
*this image is generated using AI for illustrative purposes only.
Andhra Petrochemicals reported its unaudited financial results for the quarter and nine months ended 31st December 2025, showing mixed performance with reduced quarterly losses but increased nine-month losses. The company's operations were significantly impacted by plant shutdown for maintenance and challenging market conditions.
Quarterly Financial Performance
The company's financial performance for Q3FY26 showed improvement in loss reduction compared to the previous year:
| Metric: | Q3FY26 | Q3FY25 | Change |
|---|---|---|---|
| Revenue from Operations: | ₹6738.68 lakhs | ₹12452.89 lakhs | -45.9% |
| Total Income: | ₹7329.37 lakhs | ₹13142.94 lakhs | -44.2% |
| Net Loss: | ₹1077.28 lakhs | ₹1515.46 lakhs | -28.9% |
| Basic EPS: | ₹(1.27) | ₹(1.78) | Improved |
Despite the significant revenue decline, the company managed to reduce its net loss by 28.9% compared to the corresponding quarter of the previous year.
Nine Months Performance Analysis
The nine months performance presented a contrasting picture with increased losses despite higher revenue:
| Parameter: | 9M FY26 | 9M FY25 | Variance |
|---|---|---|---|
| Revenue from Operations: | ₹37648.69 lakhs | ₹35843.58 lakhs | +5.0% |
| Total Income: | ₹39543.68 lakhs | ₹37960.03 lakhs | +4.2% |
| Net Loss: | ₹1704.50 lakhs | ₹287.66 lakhs | +492.5% |
| Basic EPS: | ₹(2.01) | ₹(0.34) | Deteriorated |
Operational Challenges and Plant Shutdown
The company faced significant operational challenges during the quarter. The plant was shut down from 29th October 2025 for maintenance works relating to preventive and essential repairs, which were completed on 27th January 2026. However, due to decreased sales prices, increased input costs, and a huge gap between demand and supply, the Board and Management decided to continue the shutdown until 3rd February 2026, with operations resuming on 4th February 2026.
Cost Structure Analysis
The company's expense structure for Q3FY26 revealed several key components:
| Expense Category: | Q3FY26 (₹ lakhs) | Q3FY25 (₹ lakhs) |
|---|---|---|
| Cost of Materials Consumed: | 3602.92 | 10117.92 |
| Changes in Inventories: | 2442.76 | 1693.55 |
| Employee Benefits: | 732.78 | 685.40 |
| Power and Fuel: | 627.05 | 1240.14 |
| Finance Costs: | 218.57 | 219.76 |
| Total Expenses: | 8505.18 | 15096.22 |
Legal Developments
The company continues to address the land lease renewal matter with Visakhapatnam Port Authority (VPA). Following the Hon'ble High Court of Andhra Pradesh judgment delivered on 3rd November 2025, the company has addressed a letter to VPA for issuing a tender as per Land Lease Policy guidelines 2015. Pending execution of the lease deed, the company has provisionally considered its bid amount for accounting of leases in accordance with Ind AS 116.
Board Approval and Compliance
The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 4th February 2026. The statutory auditors conducted a limited review of the financial results, confirming compliance with applicable accounting standards and regulatory requirements. The company maintains a paid-up equity share capital of ₹8497.16 lakhs with face value of ₹10 per share.
Historical Stock Returns for Andhra Petrochemicals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +6.78% | +9.04% | -7.66% | -8.90% | -29.19% | -6.60% |
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