Synopsis:
Archean Chemical shares fell 5.24 percent after Q1FY26 results showed a 15.6 percent QoQ drop in revenue and a 25.9 percent fall in profit.
A specialty chemical stock slipped sharply in Tuesday’s trade after reporting a sequential decline in revenue, operating margins, and net profit for the June quarter. While year-on-year revenue growth was healthy, pressure on profitability and concerns around valuation weighed on investor sentiment. The stock is also under watch as Goldman Sachs India holds a stake of 2.46 percent.
The stock in focus is Archean Chemical Industries Ltd, with a market capitalization of Rs 7,912 crore. The stock opened at Rs 637.75 and touched an intraday low of Rs 630, compared to its previous close of Rs 664.90, falling by 5.24 percent during the session.
What’s the News?
Quarter-on-Quarter (Q1FY26 vs Q4FY25): Revenue from operations declined 15.6 percent from Rs 346 crore to Rs 292 crore. Operating profit dropped by 11.4 percent from Rs 88 crore to Rs 78 crore. Profit before tax fell 22.7 percent from Rs 75 crore to Rs 58 crore, while net profit declined 25.9 percent to Rs 40 crore from Rs 54 crore.
Year-on-Year (Q1FY26 vs Q1FY25): Revenue grew 37.1 percent from Rs 213 crore to Rs 292 crore. Operating profit increased by 9.9 percent from Rs 71 crore to Rs 78 crore. Profit before tax declined 4.9 percent from Rs 61 crore to Rs 58 crore, while net profit fell 11.1 percent from Rs 45 crore to Rs 40 crore.
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Financial Snapshot
From a valuation standpoint, the stock is trading at a price-to-earnings ratio of 41.6, which is higher than the industry average of 34.3, indicating that the stock remains overvalued relative to its peers. Return on capital employed stood at 12.8 percent, while ROE and ROA were 9.80 percent and 7.86 percent, respectively, reflecting decent capital efficiency metrics.
Shareholding Pattern
Foreign institutional interest in the company remains strong, with Goldman Sachs India holding a 2.46 percent stake. FII holdings in the company increased from 10.93 percent in March 2025 to 11.05 percent in June 2025. DII holdings also rose from 23.17 percent to 24.69 percent over the same period. Promoter holding remained unchanged.
About the Company
Archean Chemical Industries is a leading Indian specialty marine chemical manufacturer focused on bromine, industrial salt, and sulphate of potash. It was India’s largest exporter of bromine and industrial salt in FY21, catering to both domestic and global markets across sectors like pharmaceuticals, energy, and agriculture.
Written By Manan Gangwar
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