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Earnings Call Transcript

Archean Chemical Industries Earnings Call Transcript: Key Takeaways

Archean Chemical reported Q1 FY27 consolidated revenue of INR 3,328.1M, up 10.7% YoY. Standalone margins improved to 25.3%, with bromine derivatives business turning EBITDA positive for the first time.

Highlights
Revenue growth10.7% YoY consolidated
MarginsMargins expanded to 25.3% from 21.8% sequentially
Demand visibilityFirm demand in flame retardants and oilfield chemicals
Management confidenceHigh on bromine volume recovery and pricing sustainability

Growth

Bromine segment revenue grew 58% YoY on 4,175 tons; SOP revenue hit INR 113M vs INR 35M full year FY26.

Outlook

Targeting 20,000-25,000 tons bromine run rate; USD 249M Semicon capex with 60-65% spend in FY27.

Risks

High logistics costs due to road construction, increased sea freight, and fuel price volatility impacted salt profitability.

Last quarter's promises, checked

Delivered

  • Guided 20,000-21,000t bromine run rate → delivered 4,175t in Q1 (= BEAT on run-rate path)
  • Guided SOP plant trials & production ramp → delivered INR 113M revenue vs INR 35M FY26 (= BEAT)
  • Guided bromine price renegotiations → delivered sustained higher pricing vs China spot (= BEAT)

Partly delivered

  • Guided logistics headwind resolution by Q3 → current call reports ongoing high costs (= PARTIAL)
  • Guided Gujarat plant production readiness → still awaiting state approvals (= PARTIAL)

Missed

  • Guided 4.5M tons salt shipments → delivered 4.2M tons FY26 (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: ACI. Summary written with AI assistance from the document.

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Archean Chemical Industries Ltd: key numbers

Share price
₹482.55
Market cap
₹5,957 Cr
Revenue (annual)
₹1,081 Cr
Net profit (annual)
₹106.9 Cr
P/E (TTM)
61.5×Sector 37.5×
Promoter holding
53.43%+0.00% QoQ
FII holding
11.00%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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