Acutaas Chemicals reported a strong Q2 FY27 with revenue rising 42.7% YoY to Rs 436.9 crore. Net profit grew 71.4% to Rs 123.1 crore, supported by a 914 bps margin expansion. The company raised its FY27 revenue growth guidance to 30% and is aggressively scaling its CDMO, battery, and semiconductor chemical businesses.
Acutaas Chemicals Q2 Profit Climbs 71% on Strong CDMO Growth
Revenue reached Rs 436.9 crore, up 42.7% YoY; Net Profit rose to Rs 123.1 crore, up 71.4% YoY.
Reader Takeaway: Robust CDMO performance and margin expansion drive earnings, though legacy product phase-outs continue to weigh on segment revenue.
What just happened
Acutaas Chemicals delivered a strong performance for the second quarter of fiscal year 2027. The company's revenue grew by 42.7% to Rs 436.9 crore, while EBITDA surged 84.6% to Rs 176 crore. A significant highlight was the 914 bps expansion in EBITDA margins, which reached 40.3% due to a more favorable product mix and improved operational efficiency.
Why this matters
The company is successfully pivoting from a pharmaceutical-focused entity to a multi-application chemical business. Its CDMO (Contract Development and Manufacturing Organization) business is outperforming, with management expecting to hit a Rs 1,000 crore revenue target one year ahead of schedule. Additionally, the company has officially commenced commercial revenue in its battery chemicals segment and inaugurated a semiconductor plant in South Korea.
Guidance and Outlook
Confidence remains high, with management revising its FY27 revenue growth guidance upward from 25% to approximately 30%. The EBITDA margin guidance for the full year has also been raised to the 38%-40% range, reflecting stronger-than-anticipated profitability.
Risks to watch
Despite the growth, the specialty chemicals segment saw a 20% decline in revenue this quarter. This is attributed to the deliberate phase-out of legacy commodity products, a process expected to continue for another 12-18 months. Furthermore, the semiconductor chemical business is still in the qualification phase, and success remains dependent on timely customer approvals. Management also cited ongoing geopolitical and supply chain risks as areas requiring constant oversight.
Context metrics
In H1 FY27, the company recorded total revenue of Rs 766.6 crore, representing a 49.3% YoY increase, and a net profit of Rs 198.1 crore, up 71% YoY.