Chemkart India Limited , a B2B supplier of raw ingredients for nutritional, sports, and health supplements, has reported no deviation in the utilization of its Initial Public Offering (IPO) proceeds for the half-year ended September 30, 2025. The company, which raised Rs. 64.48 crores through its IPO on July 9, 2025, has adhered to its stated objectives for fund allocation.

Fund Utilization Breakdown

According to the company's integrated disclosures under SEBI regulations:

Chemkart has fully utilized the funds allocated for debt repayment and general corporate purposes, while the manufacturing facility capex is in its early stages.

Financial Performance H1 FY26

Chemkart India's financial results for the first half of FY2025-26 reveal a mixed performance:

The company experienced a decline in revenue and profitability compared to the same period last year. However, there was a sequential improvement from H2 FY25, with revenue increasing by 14.50% and PAT by 14.13%.

Management Commentary

Ankit Shailesh Mehta, Chairman & Managing Director of Chemkart India, attributed the year-on-year decline to an industry-wide correction in product prices, particularly in the performance nutrition segment. He stated, "While overall quantity sold increased, revenue was impacted by the drop in average selling prices."

Mehta also highlighted that volumes of certain amino acids, including Glycine, declined due to reduced offtake from a key customer exporting to the U.S., where temporary tariff measures affected demand. However, he noted that the Glycine business has resumed from October, supported by a strong order book for the second half.

Future Outlook

The company remains optimistic about its future performance. With prices stabilizing toward the end of the half year and the reversal of pricing pressure, Chemkart expects stronger growth in the second half. The management is focusing on operational efficiency, supply-chain optimization, and product mix improvement to accelerate growth momentum.

Monitoring and Compliance

Brickworks Rating Limited serves as the monitoring agency for the fund utilization. The company, being listed on the BSE SME Platform, is exempt from disclosing related party transactions as per SEBI regulations.

As Chemkart India Limited navigates through market challenges and progresses with its expansion plans, investors will be keenly watching how effectively the company utilizes its IPO proceeds and improves its financial performance in the coming quarters.

Chemkart , a leading B2B supplier of raw ingredients for nutritional, sports, and health supplements, has reported a consolidated revenue of ₹103.23 crores for the first half of fiscal year 2026, marking an 8.75% decline from ₹113.13 crores in the same period last year. The company attributed this decrease to industry-wide price corrections in key ingredients, particularly Creatine Monohydrate, despite higher sales volumes.

Financial Performance

The company's financial results for H1 FY26 reflect the challenges faced by the nutraceutical industry:

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell by 30.02% to ₹14.16 crores, with margins dropping to 13.71% from 17.88% in the previous year. Profit After Tax (PAT) decreased by 35.07% to ₹10.15 crores.

Market Challenges and Volume Growth

Ankit Shailesh Mehta, Chairman & Managing Director of Chemkart, explained, "Our performance was impacted by an industry-wide correction in product prices, which led to a year-on-year decline in revenue despite higher sales volumes." He noted that the market-driven price decrease in key ingredients, particularly in the performance nutrition segment, resulted in lower realizations.

The company reported significant volume growth in some products, with Creatine Monohydrate (200 Mesh) volumes increasing by approximately 175 MT. However, the positive impact of this growth was offset by lower prices.

Temporary Setbacks in Amino Acid Segment

Chemkart also faced challenges in its amino acid segment. Volumes of certain amino acids, including Glycine, declined by about 522 MT due to reduced offtake from a key customer exporting Glycine Salt to the U.S., where temporary tariff measures affected demand. The company reported that this impact was felt between May and September 2025, but operations have since resumed in October, supported by a strong order book for the second half.

Future Outlook and Strategic Initiatives

Despite the current challenges, Chemkart remains optimistic about its future prospects. The company is constructing a greenfield manufacturing facility at JNPT SEZ through its subsidiary, Easy Raw Materials Private Limited. This facility is designed for CDMO (Contract Development and Manufacturing Organization) operations, with civil work currently underway.

Mr. Mehta expressed confidence in the company's outlook, stating, "With prices stabilizing toward the end of the half year, we recorded sequential improvement in revenue and maintained stable operating margins. The reversal of pricing pressure and normalization of export-linked demand are expected to drive stronger growth in the second half."

The company is focusing on several strategic initiatives to drive growth:

1. Operational efficiency improvements
2. Supply-chain optimization
3. Product mix enhancement
4. Launch of new ingredients in the second half of FY26

Conclusion

While Chemkart faces short-term challenges due to industry-wide price corrections and temporary market disruptions, the company's management remains focused on long-term growth strategies. The ongoing construction of the JNPT SEZ facility and the expected normalization of market conditions provide a positive outlook for the company's future performance.

Investors and stakeholders will be closely watching how Chemkart navigates these market challenges and capitalizes on the anticipated recovery in the second half of the fiscal year.