Gem Aromatics Limited, a leading manufacturer of specialty ingredients, essential oils, and aroma chemicals, has announced its financial results for the second quarter and first half of fiscal year 2026, revealing a mixed performance amidst challenging market conditions.

Q2 FY26 Performance

For the quarter ended September 30, 2025, Gem Aromatics reported:

• Revenue from operations of ₹895.25 crore, down 20.2% year-over-year
• EBITDA of ₹30.00 crore, a significant decrease of 80.2% compared to Q2 FY25
• Net loss of ₹26.00 crore, compared to a profit of ₹97.00 crore in the same quarter last year

H1 FY26 Overview

For the first half of FY26, the company's results were as follows:

• Revenue from operations stood at ₹1,771.58 crore, a 13.5% decline year-over-year
• EBITDA reached ₹179.00 crore, down 39.4% from H1 FY25
• Net profit decreased by 70.5% to ₹54.00 crore

Factors Affecting Performance

The company's performance was impacted by several external factors:

1. U.S. Tariffs: A 50% tariff imposed by the United States led customers to defer orders and consume existing inventories.
2. GST Rate Changes: Revisions in GST rates for natural (5%) and synthetic (18%) products, compared to the previous uniform rate of 12%, caused domestic buyers to reassess their blend requirements and temporarily hold demand.
3. Softer Demand: The company experienced lower demand for Mint and Mint Derivatives, as well as Clove and Clove Derivatives.
4. Raw Material Costs: Higher raw material consumption and lower realizations in the Mint & Mint Derivatives segment affected gross margins.

Positive Developments

Despite the challenges, Gem Aromatics reported some positive developments:

• Strong demand in Phenol derivatives and other natural and synthetic ingredients
• Successful completion of its Initial Public Offering (IPO) on August 26, 2025
• Repayment of ₹97.40 crore of long-term debt and ₹42.60 crore of working capital borrowings, improving the Net Debt to Equity ratio to 0.3x from 0.8x

Dahej Facility Update

The company announced that its wholly-owned subsidiary, Krystal Ingredients Private Limited, has received all necessary approvals to commence operations at its Dahej facility. The plant is expected to be commissioned in November 2025, adding a capacity of 10,829 MTPA across four segments.

Management Commentary

Yash Vipul Parekh, MD & CEO of Gem Aromatics, commented on the results: "The first half of the year was impacted by multiple external headwinds. However, we are optimistic about the second half of FY26 as we prepare to commission our new greenfield facility at Dahej. The introduction of high-value products such as Citral, Phenol derivatives, and Cooling Agents is expected to drive growth, strengthen profitability, and reduce seasonality in our operations."

Outlook

Looking ahead, Gem Aromatics remains focused on innovation, sustainability, and next-generation aroma molecules. The company believes it is well-positioned to deliver its next phase of value creation and build a stronger, scalable, and sustainable business for the future.

Investors and analysts will be closely watching how Gem Aromatics navigates the current market challenges and capitalizes on its new production capabilities in the coming quarters.

Gem Aromatics Limited , a manufacturer and exporter of essential oils and aromatic chemicals, has announced the resignation of Mr. Shrenik Kishorbhai Vora (DIN: 08688950) from his position as Non-Executive Independent Director. The resignation is effective from November 10, 2025, as per the company's regulatory filing.

Resignation Details

Mr. Vora's decision to step down stems from his interest in taking on an enhanced role and greater professional engagement with Gem Aromatics in the future. This potential change in his involvement with the company may affect his independence as defined by the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Points of the Resignation

In his resignation letter, Mr. Vora confirmed that there are no other material reasons for his resignation beyond those mentioned. He expressed gratitude to the Board Members and management teams of Gem Aromatics Limited for their support and cooperation during his tenure.

Company Response

Gem Aromatics Limited has acknowledged Mr. Vora's resignation and is expected to take necessary steps as per regulatory requirements. The company, formerly known as Gem Aromatics Private Limited, is listed with the CIN: L24246MH1997PLC111057.

Implications

The resignation of an Independent Director due to potential future engagement with the company raises questions about the nature of the enhanced role Mr. Vora may take on. While it demonstrates his confidence in the company's future, it also highlights the importance of maintaining the independence of board members as required by regulatory standards.

Investors and stakeholders will likely be keen to see how Gem Aromatics plans to fill this board position and what role Mr. Vora may play in the company's future operations.

As the situation develops, further announcements from Gem Aromatics Limited regarding board composition and any new appointments will be of interest to the market.