Andhra Petrochemicals Ltd. Q1 FY27 Results

Net loss of ₹3.25 crore; Revenue from operations at ₹14.09 crore.

Reader Takeaway: Operations paralyzed by input supply issues and land lease disputes.

What just happened

Andhra Petrochemicals Ltd. reported a net loss of ₹3.25 crore for the quarter ended June 2026. Revenue from operations stood at ₹14.09 crore.

The company's plant remained shut during the quarter, continuing from March 17, 2026. This was due to the non-supply of Propylene by its sole supplier, Hindustan Petroleum Corporation Ltd. (HPCL), attributed to government orders related to geopolitical constraints.

Management decided to extend the shutdown until August 4, 2026, even after supply availability improved in May 2026, stating that HPCL's offered raw material prices were not economically viable.

Why this matters

These results highlight severe operational distress and significant financial losses stemming from external supply chain disruptions and pricing issues with its sole raw material supplier. The company's vulnerability to single-vendor dependency and input cost volatility is now evident, directly impacting its profitability and operational continuity.

The backstory

Andhra Petrochemicals has faced ongoing challenges related to raw material sourcing and pricing. The reliance on HPCL for Propylene has been a persistent issue, exacerbated by geopolitical events impacting supply. Additionally, the company is entangled in a land lease dispute with the Visakhapatnam Port Authority (VPA).

What changes now

The company is expected to restart operations after August 4, 2026, contingent on securing economically viable raw material supplies. The ongoing litigation with VPA for land lease renewal also requires resolution for long-term operational stability.

Risks to watch

• Single Supplier Dependency: The company's operations are critically dependent on HPCL for Propylene. Any disruption or unfavorable pricing from HPCL poses a significant risk.
• Geopolitical Sensitivity: International conflicts can directly impact the company's supply chain, as seen with the recent disruption.
• Land Lease Uncertainty: The unresolved land lease dispute with VPA creates uncertainty regarding the long-term security of the plant site.

Peer comparison

Information on specific peers and their current financial performance or operational status is not available in the filing.

Context metrics (time-bound)

• Revenue from operations: ₹14.09 crore in Q1 FY27, down from ₹79.32 crore in Q4 FY26 and ₹141.46 crore in Q1 FY26.
• Net Loss: ₹3.25 crore in Q1 FY27, compared to a profit of ₹1.38 crore in Q4 FY26 and a loss of ₹8.42 crore in Q1 FY26.
• EPS (Basic): (₹0.38) in Q1 FY27, versus ₹0.17 in Q4 FY26 and (₹0.99) in Q1 FY26.
• Plant Shutdown: Continued through Q1 FY27, with a planned restart after August 4, 2026.

What to track next

Investors should monitor the company's ability to restart operations after August 4, 2026, the finalization of raw material prices with HPCL, and developments in the land lease dispute with the Visakhapatnam Port Authority.