Andhra Petrochemicals reported a quarterly profit of Rs 2.42 crore for the period ending September 30, 2026, marking a recovery from the previous quarter. While the half-year remains in a loss of Rs 0.83 crore, the company has appointed Sri M Gopalakrishna as Chairman of the Nomination and Remuneration Committee. Investors should monitor the ongoing land lease dispute with the Visakhapatnam Port Authority, which is currently accounted for under Ind AS 116.
Andhra Petrochemicals Reports Q2 Profit of Rs 2.42 Crore
Revenue for the quarter stood at Rs 117.61 crore, while the half-year net loss was recorded at Rs 0.83 crore.
Reader Takeaway: Q2 operational recovery signals potential turnaround, though the long-standing port land lease dispute remains a lingering pressure point.
What just happened
Andhra Petrochemicals announced its financial results for the quarter and half-year ended September 30, 2026. The company achieved a profit of Rs 2.42 crore for the September quarter, a significant turnaround from the Rs 3.25 crore loss reported in the preceding June quarter. Revenue for the quarter rose sharply to Rs 117.61 crore compared to Rs 14.09 crore in the previous quarter.
Why this matters
The quarterly profit demonstrates an improvement in operational efficiency following a weak start to the fiscal year. Despite the quarterly gains, the company remains in a net loss position of Rs 0.83 crore for the first half of the year due to the performance drag from the June quarter.
Governance Update
The Board of Directors appointed Sri M Gopalakrishna (IAS Retd.) as the Chairman of the Nomination and Remuneration Committee during the board meeting held on November 4, 2026. This follows the resignation of Sri G S V Prasad. Sri P Venkateswara Rao has also been inducted into the committee.
Risks to watch
The company continues to deal with a long-standing land lease dispute with the Visakhapatnam Port Authority (VPA). Following a judgment on November 3, 2025, the company has requested the VPA to issue a tender in accordance with 2015 Land Lease Policy guidelines. Until the lease deed is formally executed, the company is applying provisional accounting standards under Ind AS 116, which introduces ongoing uncertainty regarding long-term land usage costs.
What to track next
Investors should monitor official communications regarding the VPA land lease tender process. The resolution of this legal dispute is critical for the stability of the company’s manufacturing operations.