Laffans Petrochemicals Reports Q2 Loss and Key Executive Resignation

Laffans Petrochemicals Limited , a company engaged in trading chemicals and commodities, has reported a significant loss for the quarter ended September 30, 2025, along with the resignation of a key executive. The company's financial performance and organizational changes were disclosed in its recent regulatory filings.

Financial Performance

Laffans Petrochemicals experienced a challenging quarter, with its financial results showing a stark contrast to the previous year:

The company reported a net loss of Rs 431.17 lacs for the quarter ended September 30, 2025, compared to a profit of Rs 112.05 lacs in the same quarter last year. This represents a significant downturn in the company's profitability.

Revenue from operations declined sharply to Rs 177.74 lacs from Rs 457.78 lacs year-over-year, indicating a substantial decrease in business activity. The total income for the quarter turned negative at Rs 205.95 lacs, primarily due to negative other income of Rs 383.69 lacs.

For the half-year period, despite the poor quarterly performance, the company managed to post a profit of Rs 210.64 lacs. However, this is still considerably lower than the Rs 648.30 lacs profit reported in the previous year's corresponding period.

The company's earnings per share (EPS) for the quarter turned negative at Rs 5.39, compared to a positive Rs 1.40 in the same quarter last year.

Executive Resignation

Adding to the company's challenges, Ms. Vaishali Narendra Rathod has resigned from her position as Company Secretary and Compliance Officer. The resignation, citing pre-occupation as the reason, is effective from the close of business hours on November 11, 2025.

The Board of Directors approved the unaudited financial results and accepted Ms. Rathod's resignation during their meeting held on November 11, 2025. The company will need to fill this key position to ensure continued compliance with regulatory requirements.

Balance Sheet and Cash Flow

Despite the quarterly loss, Laffans Petrochemicals' balance sheet as of September 30, 2025, shows a total asset value of Rs 6,961.34 lacs, with a strong equity position of Rs 6,572.47 lacs. The company's cash and cash equivalents stood at Rs 3.23 lacs, a slight improvement from Rs 0.25 lacs at the beginning of the half-year.

Outlook

The significant drop in revenue and the swing to a loss position in Q2 2025 may raise concerns among investors about the company's operational performance and market conditions in the chemicals and commodities trading sector. The company's ability to reverse this trend in the coming quarters will be crucial for its financial health and investor confidence.

The resignation of the Company Secretary and Compliance Officer adds an additional challenge, as the company will need to ensure a smooth transition and maintain its regulatory compliance standards.

Investors and stakeholders will likely be watching closely for any strategic initiatives or management commentary on plans to address the revenue decline and return to profitability in the upcoming quarters.