Diamines Posts Strong Revenue Growth But Profitability Remains Elusive
The chemicals maker saw revenue jump 17.5% YoY and 54.7% sequentially, yet profit remained barely positive after a string of quarterly losses.
Diamines & Chemicals reported a sharp rise in Q1 FY27 revenue, but profit was only marginally positive. The company's net profit margin, while improved, remains thin.
Diamines & Chemicals delivered a quarter of sharply contrasting fortunes. While revenue surged to its highest level in over a year, profit remained only marginally positive, highlighting the ongoing challenge of translating top-line momentum into bottom-line strength.
The company's revenue for Q1 FY27 (Quarter ended June 2026) reached ₹14.37 crore, a solid 17.5% increase from the same quarter last year and a robust 54.7% jump from the previous quarter. This marks the strongest quarterly sales figure since Q1 FY26. However, profit came in at just ₹0.27 crore. This represents a significant improvement from the losses of the past four quarters, but the net profit margin remains thin at 1.9%.
A look at the recent quarterly performance shows the scale of the turnaround in profitability, albeit from a low base.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 14.37YoY +17% | 9.29 | 12.23 |
| Profit (₹ Cr) | 0.27YoY +111% | -2.09 | -2.39 |
| Net Profit Margin (%) | 1.9YoY +110% | -22.5 | -19.5 |
Key Points
- The trailing-twelve-month (TTM) figures underscore the recent struggles, with a cumulative loss of ₹8.45 crore on revenue of ₹40.6 crore, resulting in a TTM net profit margin of -20.8%.
- The company maintains a strong balance sheet with zero debt and a high current ratio of 7.36.
- Despite the recent profit, the stock trades at a significant premium to its industry, with a P/E of 112.3 compared to the industry average of 39.4.
The key question for Diamines is whether the latest quarter's slim profit marks the beginning of a sustained recovery or merely a pause in a longer period of margin pressure.
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· DIAMINESQ
(BSE)
ISIN: INE591D01014
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