Chemkart India reported a strong H1 FY27, with consolidated revenue rising 99% to Rs 205.87 crore and net profit climbing 122% to Rs 22.56 crore. While the distribution business shows robust momentum, the company faces short-term pressure on operating cash flow due to increased working capital requirements as it builds out its greenfield manufacturing facility in JNPA SEZ.
Chemkart India H1 FY27 Revenue Doubles to Rs 205.87 Crore
Consolidated revenue stood at Rs 205.87 crore; Consolidated PAT reached Rs 22.56 crore.
Reader Takeaway: Strong core distribution growth offsets temporary cash flow pressure from ongoing greenfield manufacturing project development.
What just happened
Chemkart India Ltd has posted stellar financial results for the half-year ended September 30, 2026. The company saw its consolidated revenue from operations nearly double to Rs 205.87 crore compared to Rs 103.23 crore in the same period last year. Profit after tax (PAT) more than doubled, rising 122.2% to Rs 22.56 crore. The company is successfully scaling its core ingredient distribution business while simultaneously funding a strategic move into manufacturing.
Why this matters
This performance confirms that Chemkart's core distribution model is generating significant cash and scale. However, the company is transitioning toward a manufacturing and CDMO platform, with a major greenfield facility currently under construction in the JNPA SEZ. Investors are watching this transition closely as it shifts the business profile from a pure-play distributor to a producer.
Manufacturing Facility Update
The JNPA SEZ project, managed by subsidiary Easy Raw Material Private Limited, remains the core focus of the company's capital expenditure. Construction is ongoing, with structural work up to the third floor and warehouse steel erection underway. The company employs 55 personnel on-site and maintains a 2027 target for commissioning the facility.
Risks to watch
Growth has come with a trade-off in liquidity. Consolidated operating cash flow was negative Rs 18.70 crore for the half-year, driven by higher trade receivables and inventory buildup. Management has acknowledged this and stated a focus on improving cash conversion. Additionally, the JNPA SEZ project carries typical execution risks, including equipment delivery delays and regulatory approvals.
IPO Proceeds Utilization
As of September 30, 2026, the company has utilized Rs 39.48 crore of its IPO proceeds. Of the allocation for the JNPA SEZ manufacturing facility, Rs 9.68 crore has been spent, leaving Rs 24.99 crore available for future construction milestones. Borrowing repayments and corporate expenses have been fully settled using the allocated funds.