Gem Aromatics Reports Q3 FY26 Results, Maintains ₹1,050-1,100 Cr Revenue Target
Gem Aromatics reported Q3 FY26 results with standalone revenue of ₹83.90 crores and EBITDA margin of 9.1%, successfully commissioned its Dahej facility representing ₹270 crores investment with 3x capacity expansion, and maintained FY28 revenue guidance of ₹1,050-1,100 crores with 16-18% EBITDA margins despite current market headwinds.
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Gem Aromatics held its Q3 and 9-month FY26 earnings conference call, providing comprehensive updates on financial performance, facility commissioning, and strategic growth initiatives while reaffirming its ambitious revenue targets.
Q3 FY26 Financial Performance
The company reported mixed results for the quarter, with operations impacted by external headwinds but showing signs of margin improvement:
| Metric (Standalone): | Q3 FY26 | Margin (%) |
|---|---|---|
| Revenue from Operations: | ₹83.90 crores | - |
| Gross Profit: | ₹15.40 crores | 18.40% |
| EBITDA: | ₹7.60 crores | 9.10% |
| Net Profit: | ₹4.20 crores | 5.00% |
| Cash PAT: | ₹6.20 crores | - |
| Metric (Consolidated): | Q3 FY26 | Margin (%) |
|---|---|---|
| Revenue from Operations: | ₹78.90 crores | - |
| Gross Profit: | ₹18.20 crores | 23.00% |
| EBITDA: | ₹7.00 crores | 8.90% |
| Net Loss: | ₹5.00 crores | - |
| Cash PAT: | ₹3.70 crores | - |
Nine-Month FY26 Performance
For the nine-month period, the company demonstrated resilience despite challenging market conditions:
| Metric (Standalone): | 9M FY26 | Margin (%) |
|---|---|---|
| Revenue from Operations: | ₹258.70 crores | - |
| Gross Profit: | ₹48.30 crores | 18.70% |
| EBITDA: | ₹24.20 crores | 9.40% |
| Net Profit: | ₹14.88 crores | 5.70% |
| Cash PAT: | ₹19.80 crores | - |
Dahej Facility Commissioning
A significant milestone was achieved with the commissioning of the Greenfield Dahej facility. Commercial production commenced for WS23 and WS03 cooling agents, along with clove and eugenol verticals, effective December 11, 2025. The facility represents a total capital expenditure of approximately ₹270 crores, with around ₹250 crores already incurred and largely capitalized.
| Dahej Facility Details: | Specifications |
|---|---|
| Total Capacity Addition: | ~16,000 MTPA |
| Capacity Expansion: | 3x increase |
| Capital Expenditure: | ₹270 crores |
| Amount Capitalized: | ₹250 crores |
| Peak Revenue Potential: | ₹750-800 crores |
Strategic Growth Initiatives
The company is progressing with its diversification strategy across multiple specialty chemical verticals. Phenol derivatives catalyst preparation is underway, expected to complete by Q4 FY26, with trial production of Anisole, MEHQ, and Guaiacol planned for Q1 FY27. The facility has successfully completed first-stage audits for multiple international compliance standards including FSSC 22000 Version 6, GHP, HACCP, and ISO certifications.
Reaffirmed Financial Targets
Despite current headwinds from tariff-related uncertainties and GST changes affecting customer procurement behavior, Gem Aromatics maintains its ambitious financial projections:
| Financial Target: | FY28 Guidance |
|---|---|
| Revenue Target: | ₹1,050-1,100 crores |
| EBITDA Margins: | 16-18% |
| Dahej Contribution: | ₹650-700 crores |
| Existing Facilities: | ₹400 crores |
Management expressed confidence in achieving these targets through improved product mix, automation benefits, enhanced asset utilization, and geographic expansion, particularly with the India-EU trade deal developments providing additional growth opportunities.
Historical Stock Returns for Gem Aromatics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.59% | -1.32% | +26.14% | -38.86% | -38.86% | -38.86% |
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