Chemkart Reports 8.75% Revenue Decline in H1 FY26 Amid Industry-Wide Price Corrections

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:

Metric	H1 FY26	H1 FY25	YoY Change
Revenue	₹103.23	₹113.13	-8.75%
EBITDA	₹14.16	₹20.23	-30.02%
EBITDA Margin	13.71%	17.88%	-417 bps
PAT	₹10.15	₹15.64	-35.07%
PAT Margin	9.84%	13.82%	-398 bps

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:

Operational efficiency improvements
Supply-chain optimization
Product mix enhancement
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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.35%	-8.35%	-8.73%	-23.68%	-23.68%	-23.68%

Chemkart , a leading player in the nutraceutical raw materials and functional ingredients sector, has reported a strong financial performance for the half year ended September 30, 2025. The company, which recently completed its Initial Public Offering (IPO), has shown significant growth in revenue and profitability.

Financial Highlights

Particulars	H1 FY26 (Rs. in lakhs)	H2 FY25 (Rs. in lakhs)	YoY Growth
Revenue from Operations	10,322.56	9,015.24	14.5%
Profit Before Tax	1,380.83	1,188.28	16.2%
Profit After Tax	1,015.26	889.57	14.1%
EPS (Annualized)	16.26	-	-

Chemkart reported a consolidated revenue from operations of Rs. 10,322.56 lakhs for the half year ended September 30, 2025, representing a robust growth of 14.5% compared to Rs. 9,015.24 lakhs in the previous half year. The company's profit after tax stood at Rs. 1,015.26 lakhs, up from Rs. 889.57 lakhs in the prior period, marking a 14.1% increase.

Successful IPO and Strengthened Financial Position

During the period, Chemkart successfully completed its Initial Public Offering, raising Rs. 6,448 lakhs through a fresh issue of 26,00,000 equity shares at Rs. 248 per share. The company's shares were listed on the SME Platform of BSE on July 10, 2025.

The IPO has significantly strengthened Chemkart's financial position:

Post-IPO net worth increased to Rs. 12,022.41 lakhs
Cash and cash equivalents rose to Rs. 4,374.58 lakhs from Rs. 283.13 lakhs

Utilization of IPO Proceeds

The company has outlined the following utilization of IPO proceeds:

Purpose	Amount Allocated (Rs. in lakhs)	Amount Utilized (Rs. in lakhs)	Balance (Rs. in lakhs)
Setting up a new manufacturing facility	3,468.33	50.00	3,418.33
Repayment of borrowings	2,000.00	2,000.00	-
General Corporate Purposes & IPO Expenses	979.66	979.66	-

Operational Highlights

Chemkart operates through two wholly-owned subsidiaries:

Easy Raw Materials Private Limited (ERMPL): Currently developing a manufacturing facility at JNPA SEZ, Navi Mumbai, focused on finished formulations.
Vinstar Biotech Private Limited (VBPL): Engaged in custom formulation and contract development.

The ERMPL facility at JNPA SEZ is progressing well, with foundation and piling works underway. This project is expected to enable in-house formulation, packaging, and export operations, aligning with the company's IPO objectives.

Management Commentary

Mr. Ankit Shailesh Mehta, Chairman and Managing Director of Chemkart, stated, "We are pleased with our performance in the first half of FY26. The successful IPO has provided us with the resources to accelerate our growth plans, particularly in expanding our manufacturing capabilities. Our focus remains on establishing Chemkart as a fully integrated, export-driven nutraceutical enterprise by FY 2026-27, with scalable manufacturing, strong R&D integration, and consistent shareholder value creation."

Future Outlook

Chemkart is positioning itself as a B2B nutraceutical solutions platform, integrating sourcing, manufacturing, and formulation capabilities. The company's strategic focus areas include:

Advancing ERMPL's SEZ facility construction
Expanding VBPL's R&D and branded products
Enhancing global partnerships and export growth

With a strong financial foundation and clear strategic direction, Chemkart appears well-positioned for continued growth in the nutraceutical and functional ingredients market.