Archean Chemical Industries LimitedQ2 FY27 Results & Financial Update
Archean Chemical Industries Limited: Q2 FY27 consolidated results and company financials – revenue ₹297.36 Cr, PAT ₹31.33 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Archean Chemical Industries price & chart
Quarter overview
Quarterly earnings analysis
Archean Chemical Industries reported consolidated revenue from operations of INR 297.36 crore for the second quarter of fiscal year 2027, reflecting a sequential contraction of 9.12 percent compared to INR 327.20 crore registered in the preceding first quarter of FY27.
Despite the top-line moderation from the previous quarter, consolidated profit after tax expanded sequentially by 3.22 percent to INR 31.33 crore from INR 30.35 crore in Q1 FY27, assisted by tighter cost allocations and variations in inventory adjustments.
Total consolidated income for the quarter stood at INR 301.61 crore, moving down from INR 332.81 crore reported in the June 2026 quarter, while profit before tax advanced sequentially by 3.41 percent to INR 45.73 crore.
Consolidated basic and diluted earnings per share for the quarter settled at INR 2.60 each, compared with INR 2.48 recorded in the immediate previous quarter.
The group's operational cost structure for the quarter featured raw material consumption of INR 44.12 crore and an inventory change benefit of INR 21.60 crore, alongside employee benefit expenses of INR 19.41 crore and depreciation and amortisation charges of INR 23.86 crore.
Finance costs for the consolidated entity stood at INR 4.87 crore during the quarter, while tax expenses for the period totalled INR 14.40 crore, leading to an effective quarterly tax rate computation based on current and deferred tax provisions.
The consolidated balance sheet reflects total assets of INR 2,827.46 crore as of September 30, 2026, supported by total equity of INR 196.33 crore attributable to owners of the company and non-controlling interests of negative INR 25.00 crore.
01 · Business model
What does Archean Chemical Industries do?
Archean Chemical Industries Limited is primarily engaged in the manufacture of marine chemicals, operating its main production facilities in the state of Gujarat.
The company's commercial portfolio centres on specialty chemical derivatives produced from marine sources, serving specialized industrial applications globally and domestically.
The consolidated group structure includes several active subsidiaries and step-down entities, namely Acume Chemicals Private Limited, Idealis Chemicals Private Limited, Idealis Mudchemie Private Limited, Neun Infra Private Limited, and SiCSem Private Limited, spanning downstream chemical derivative operations and advanced material ventures.
The group's Chief Operating Decision Maker, represented by the Board of Directors, reviews the operating results on an enterprise-wide basis, resulting in a single reportable operating segment under Ind AS 108.
02 · Historical context
What shaped the business before this quarter
The holding company originally entered into a Memorandum of Understanding with the Government of Gujarat on August 10, 2010, for a land lease that expired on July 31, 2018, with a renewal application submitted in December 2017.
A reverse merger scheme involving Idealis Chemicals Private Limited with its subsidiary Idealis Mudchemie Private Limited under section 233 of the Companies Act, 2013, has been under regulatory progression.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹297.36 Cr | ₹327.20 Cr |
| Total income | ₹301.61 Cr | ₹332.81 Cr |
| Profit before tax | ₹45.73 Cr | ₹44.22 Cr |
| Profit after tax | ₹31.33 Cr | ₹30.35 Cr |
| EPS | ₹2.60 | ₹2.48 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Revenue is generated predominantly through the production and distribution of specialty marine chemicals from the manufacturing hub located in Gujarat.
Total income encompasses contributions from active subsidiaries engaged in downstream specialty chemical derivatives and allied industrial segments.
What drove margins
Cost of materials consumed was recorded at INR 44.12 crore for the quarter, offset by a negative inventory movement of finished goods and work-in-progress amounting to INR 21.60 crore.
Other expenses accounted for INR 185.23 crore during the quarter, reflecting general operational overheads, manufacturing costs, and administrative expenses across the consolidated entities.
Depreciation and amortisation expenses remained stable at INR 23.86 crore, while finance costs stood at INR 4.87 crore for the consolidated quarter.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
The company operates within a single reportable business segment, which is the manufacture of specialty chemicals, as reviewed by the Chief Operating Decision Maker under Ind AS 108.
Geography and market mix
The entire primary manufacturing facility of the holding company is situated on leased land located within the state of Gujarat.
06 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Management has determined the useful lives of property, plant, and equipment and right-of-use assets based on the expectation of obtaining the renewal of the Gujarat land lease where the entire production facility is situated.
07 · Strategy & new businesses
How the company is trying to change its growth mix
SiCSem Private Limited entered into a Fiscal Support Agreement with the India Semiconductor Mission and the Government of Odisha in May 2026, making it eligible for fiscal support of up to 75 percent of eligible capital expenditure subject to agreement terms.
08 · Pressure points & risks
What is not going smoothly
Consolidated revenue from operations declined by 9.12 percent sequentially from INR 327.20 crore in Q1 FY27 to INR 297.36 crore in Q2 FY27.
09 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
For the half year ended September 30, 2026, the standalone entity generated net cash of INR 141.90 crore from operating activities, following operating profit before working capital changes of INR 150.64 crore.
The consolidated statement of cash flows for the half year ended September 30, 2026, reported net cash from operating activities at INR 117.32 crore.
Consolidated cash flows from investing activities for the half year showed a net outflow of INR 124.70 crore, driven by capital expenditure and investments, while financing activities delivered a net inflow of INR 14.37 crore.
Capital allocation & funding
As of September 30, 2026, consolidated non-current borrowings stood at INR 187.97 crore, while current borrowings were recorded at INR 295.92 crore.
10 · Beyond the numbers
What changed beyond the numbers
Statutory Auditors Review Conclusion
Statutory auditors PKF Sridhar & Santhanam LLP issued an unmodified review conclusion on both the standalone and consolidated financial results for the quarter and half year ended September 30, 2026.
Land Lease Status and Security Deposits
The company continues to make annual lease rental payments in accordance with GoG circulars while awaiting formal lease renewal, backed by refundable security NSC deposits of INR 94.97 lakhs held with the Government of Gujarat.
11 · Previous-quarter changes
What changed since the previous quarter
While revenue from operations decreased sequentially by 9.12 percent from INR 327.20 crore in Q1 FY27 to INR 297.36 crore in Q2 FY27, net profit expanded by 3.22 percent over the same period due to operational cost adjustments.
12 · Key Q&A
The quarter, answered directly
What does Archean Chemical Industries do?
Archean Chemical Industries Limited is primarily engaged in the manufacture of marine chemicals, operating its main production facilities in the state of Gujarat.
What is the clearest takeaway from Q2 FY27?
Archean Chemical Industries reported consolidated revenue from operations of INR 297.36 crore for the second quarter of fiscal year 2027, reflecting a sequential contraction of 9.12 percent compared to INR 327.20 crore registered in the preceding first quarter of FY27.
What drove revenue or demand?
Revenue is generated predominantly through the production and distribution of specialty marine chemicals from the manufacturing hub located in Gujarat.
What mattered most for margins or profitability?
Cost of materials consumed was recorded at INR 44.12 crore for the quarter, offset by a negative inventory movement of finished goods and work-in-progress amounting to INR 21.60 crore.
What changed operationally beyond the headline numbers?
Management has determined the useful lives of property, plant, and equipment and right-of-use assets based on the expectation of obtaining the renewal of the Gujarat land lease where the entire production facility is situated.
What are the main pressure points disclosed for the quarter?
Consolidated revenue from operations declined by 9.12 percent sequentially from INR 327.20 crore in Q1 FY27 to INR 297.36 crore in Q2 FY27.
13 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Formal renewal execution of the land lease agreement with the Government of Gujarat for the primary manufacturing site.
- 02
Commercial progress and capital expenditure deployment of the semiconductor-related venture under SiCSem Private Limited backed by the India Semiconductor Mission.
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