Synopsis:
Tatva Chintan shares surged 20% to a 52-week high after Q1FY26 results showed strong growth in revenue and profits. EBITDA margin expanded to 14.8%, and PAT margin improved to 5.7%.
Shares of a specialty chemicals company hit the 20 percent upper circuit after it reported a sharp improvement in its June quarter earnings. The company posted strong growth in revenue and profits, driven by better margins and a favourable product mix. Investor sentiment turned positive, sending the stock to a new 52-week high.
The company in focus is Tatva Chintan Pharma Chem Ltd, which has a market cap of Rs. 2,807 crore. The stock opened at Rs. 1,065 and touched an intraday high of Rs. 1,218.50, compared to its previous close of Rs. 1,015.45. This reflects a 20 percent gain, triggering the upper circuit limit and marking its highest level in the past year.
What’s the news?
Quarter-on-Quarter Performance, compared to Q4FY25, revenue from operations rose by 8.3 percent from Rs. 107.86 crore in Q4FY25 to Rs. 116.86 crore in Q1FY26. Operating profit jumped 93.3 percent from Rs. 8.96 crore to Rs. 17.32 crore. Profit before tax increased by 348.3 percent, rising from Rs. 2.03 crore to Rs. 9.10 crore.
Net profit came in at Rs. 6.65 crore, up 545.6 percent from Rs. 1.03 crore in the previous quarter. Operating profit margin stood at 14.82% during the quarter and increased from 8.31% in the previous quarter.
Year-on-Year Performance, compared to the same quarter last year, revenue from operations grew by 10.8 percent from Rs. 105.46 crore to Rs. 116.86 crore. Operating profit rose 37.4 percent from Rs. 12.61 crore to Rs. 17.32 crore.
Profit before tax was up 33.8 percent from Rs. 6.80 crore to Rs. 9.10 crore. Net profit increased by 27.6 percent, from Rs. 5.21 crore in Q1FY25 to Rs. 6.65 crore this quarter.
The company reported a steady improvement in profitability ratios during Q1FY26. PAT margin rose to 5.7 percent, compared to 4.9 percent in Q1FY25 and 1 percent in Q4FY25.
EBITDA margin also improved to 14.8 percent in Q1FY26, up from 12 percent in Q1FY25 and 8.3 percent in Q4FY25, indicating stronger cost control and operational efficiency. Earnings per share (EPS) stood at Rs. 2.84 during the same period.
Operational Highlights
In Q1FY26, the SDA segment contributed 33.7 percent to operating revenue, up from 31.3 percent in FY25. The share of PTC declined to 27.6 percent from 32.8 percent.
PASC saw a higher contribution at 37 percent, compared to 33.6 percent last year. Electrolyte salts fell to 1 percent from 1.6 percent, while the Others segment remained unchanged at 0.7 percent.
About the Company
Tatva Chintan Pharma Chem Limited, incorporated in 1996, manufactures specialty chemicals including Structure Directing Agents, Phase Transfer Catalysts, electrolyte salts, and intermediates for the pharma, agrochemical, and other industries.
It exports to over 25 countries, including the USA, China, Germany, Japan, South Africa, and the UK. The company operates through subsidiaries in the US and Europe and maintains warehousing facilities in Amsterdam and Savannah to support global operations.
Written By Manan Gangwar
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