Acutaas Chemicals shares rose 13% to a record high of ₹3,797 after reporting a 71.4% jump in quarterly profit. The company also raised its FY27 revenue growth guidance to 30%, driven by its expansion into the semiconductor chemicals market.
Acutaas Chemicals shares reached an all-time high of ₹3,797 on Tuesday, climbing 13% after the company announced strong second-quarter results for the 2027 fiscal year. The positive market reaction follows a significant increase in both revenue and profit, driven by high demand for the company's specialized chemical products.
Strong Earnings and Margin Improvement
For the second quarter, the company reported revenue of ₹436.9 crore, a 42.7% increase compared to the same period last year. Profitability improved at an even faster pace, with net profit rising 71.4% to reach ₹123.1 crore. This performance was supported by better operational efficiency, as the company’s gross margins expanded by 637 basis points to 62.1%. EBITDA also saw a strong gain of 84.6%, totaling ₹176.0 crore.
Management cited robust demand as a key factor behind these results. Confidence in the current order pipeline led the company to raise its revenue growth guidance for the full fiscal year 2027 to approximately 30%, an increase from the previous target of 25%. Additionally, the company now expects its EBITDA margins to stay within a range of 38% to 40%.
Semiconductor Expansion and Outlook
A major part of the company's growth strategy involves its entry into the semiconductor supply chain. Acutaas Chemicals recently began operations at a new manufacturing facility in South Korea ahead of schedule. This plant produces high-purity chemicals such as photoresists and packaging components, which are essential for semiconductor manufacturing.
This move aligns with the broader trend of global companies adopting a China-plus-one strategy, where businesses seek to diversify their supply chains outside of China. Locally, the company is positioning itself to cater to the rising demand from emerging semiconductor projects in India, including the facilities currently being developed by Tata Electronics and Micron.
What Investors Should Monitor
While the company’s pivot toward high-value semiconductor chemicals has driven investor optimism, there are specific factors to keep in mind. The stock has gained 116% year-to-date, suggesting that much of the future growth expectations may already be factored into the current share price. Investors may want to track whether the company can maintain its rapid growth pace as it balances its traditional pharmaceutical intermediate business with the newer, more complex semiconductor chemical segment.
Successful execution of the new Korea facility will be critical, as supplying the semiconductor industry requires meeting strict quality and precision standards. The company’s ability to secure large orders from major semiconductor players and maintain healthy profit margins amidst high capital spending will be important to watch in the coming quarters.