Privi Speciality Chemicals , a leading manufacturer of aroma and specialty chemicals, has reported robust financial results for the first quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

The company reported a consolidated revenue of Rs. 568.00 crores for Q1 FY2026, marking a 22% year-over-year increase. EBITDA saw an impressive growth of 45%, reaching Rs. 141.00 crores, with margins expanding to 24.80% from 20.80% in the previous year. Profit after tax nearly doubled to Rs. 61.00 crores, up from Rs. 32.00 crores in the same quarter last year.

Export Performance and Capacity Utilization

Exports continued to be a strong contributor, accounting for approximately 70% of the company's revenues. Privi Speciality Chemicals reported optimal capacity utilization across all its products, indicating strong demand and operational efficiency.

Strategic Initiatives and Future Outlook

The company is pursuing a merger of Privi Fine Sciences and Privi Biotechnologies with Privi Speciality Chemicals, aimed at simplifying the corporate structure and unlocking synergies.

Mahesh Babani, Chairman & Managing Director, stated, "We are confident of making this into a Rs. 5,000 crore company together. That means Rs. 3,500-4,000 crore will be from Privi and about Rs. 1,000 to 1,200 crore will come from Privi Fine Science."

The management maintains its guidance of 20% annual growth and has set a target of achieving Rs. 5,000.00 crore in revenue and Rs. 1,000.00 crore in EBITDA within the next 3-5 years. To support this growth, the company has outlined a Rs. 1,100.00 crore capex plan over the next 2-3 years.

Product Development and Sustainability

Privi Speciality Chemicals is focusing on developing several super specialty aroma chemicals, which are currently at lab and pilot levels. The company serves the top 15 global customers in the fragrance and flavor industry and expects limited impact from US tariffs as US exports represent only 7% of its revenue.

Notably, the company has earned a platinum rating from EcoVadis, placing it in the top 1% globally for ESG performance. This achievement underscores Privi's commitment to sustainability and ethical business practices.

Expansion and New Products

The company is expanding its production capabilities, with the expansion expected to be completed by March 2026. Privi is also working on innovative products such as cyclopentanol, which will be produced from renewable sources and has applications in aroma chemicals, pharmaceuticals, and the electronic chip industry.

In conclusion, Privi Speciality Chemicals' strong Q1 FY2026 results, coupled with its strategic initiatives and focus on sustainability, position the company well for continued growth in the specialty chemicals sector. The management's confidence in achieving ambitious revenue and EBITDA targets reflects the company's strong market position and growth potential in the coming years.

Privi Speciality Chemicals Limited (PSCL) has reported strong financial results for the first quarter, demonstrating significant growth across key metrics and reinforcing its position in the specialty aroma chemicals sector.

Financial Highlights

PSCL delivered impressive standalone revenue growth of 29.6% year-over-year, reaching Rs 566.40 crore. The company's consolidated revenue also showed robust growth, increasing by 21.7% to Rs 558.80 crore. Profitability saw a substantial boost, with standalone Profit After Tax (PAT) surging by 113.3% to Rs 68.70 crore, while consolidated PAT rose by 97.1% to Rs 61.90 crore.

The company's EBITDA margins improved significantly, reaching 25.2% on a standalone basis and 24.8% on a consolidated basis. This performance contributed to enhanced returns, with Return on Capital Employed (ROCE) increasing by 500 basis points and Return on Equity (ROE) rising by 670 basis points.

Operational Performance and Growth Drivers

PSCL reported strong demand across all product categories, with healthy growth in both domestic and global markets. The company's flagship and specialty products were the primary drivers of revenue growth. Management highlighted that the partly completed capacity expansion (Phase 1) is expected to start contributing from Q2, with full completion anticipated in Q4, setting the stage for further growth.

Sustainability Recognition

In a significant achievement, Privi Speciality Chemicals received the Platinum rating from EcoVadis, placing it among the top 1% of companies globally for Environmental, Social, and Governance (ESG) performance. This recognition underscores the company's commitment to sustainability and responsible business practices. PSCL emphasized that approximately 70% of its raw materials are sourced from renewable sources, further solidifying its position as a leader in sustainable chemical manufacturing.

Strategic Initiatives

The company announced a proposed scheme of amalgamation to merge Privi Fine Sciences Limited and Privi Biotechnology Private Limited with the parent company, Privi Speciality Chemicals Limited. This strategic move aims to unlock synergies, enhance operational efficiency, and create a more integrated structure to support scalable growth and innovation.

Management Commentary

Mr. Mahesh Babani, Chairman and Managing Director of Privi Speciality Chemicals, commented on the results: "We are pleased to begin on a steady note, with continued momentum across our key products. This quarter marks the beginning of a transformative phase for Privi, as we lay the foundation for a more integrated, resilient, and future-ready organization."

Outlook

With robust demand across product categories, ongoing capacity expansions, and a strong focus on sustainability and operational excellence, Privi Speciality Chemicals appears well-positioned for continued growth. The company's strategic initiatives, including the proposed amalgamation and focus on green chemistry, are expected to drive long-term value creation for stakeholders.

As PSCL continues to strengthen its position in the global aroma chemicals market, investors and industry observers will be watching closely to see how these initiatives translate into sustained financial performance and market leadership in the coming quarters.