SPIC Q1 Revenue Jumps 45% Sequentially, But Profitability Remains Under Pressure
Southern Petrochemical's revenue surged quarter-on-quarter, yet profit fell year-on-year as net margins narrowed.
SPIC reported strong sequential revenue growth of 45.3% for Q1 FY27, but profit declined 9.8% year-on-year. The net profit margin contracted, highlighting ongoing cost pressures.
Southern Petrochemical Industries Corporation (SPIC) delivered a quarter of contrasting fortunes. While revenue jumped significantly from the previous quarter, profitability continued to face headwinds compared to the same period last year.
The company's revenue for Q1 FY27 (Quarter ended June 2026) reached ₹848.81 crore, a robust 45.3% increase from the ₹584.15 crore reported in Q4 FY26. However, compared to Q1 FY26, revenue growth was a more modest 8.7%. Profit for the quarter stood at ₹60.18 crore, more than doubling sequentially (up 104.1%) but declining 9.8% year-on-year. This divergence highlights a squeeze on net profit margins, which fell to 7.1% from 8.5% a year ago.
A look at the last five quarters shows the volatility in SPIC's performance, with revenue and profit fluctuating significantly.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period Ended | June 2026 | March 2026 | June 2025 |
| Revenue (₹ Cr) | 848.81YoY +8.7% | 584.15 | 780.63 |
| Profit (₹ Cr) | 60.18YoY -9.8% | 29.49 | 66.71 |
| Net Profit Margin (%) | 7.1YoY -16% | 5.0 | 8.5 |
The trailing twelve-month (TTM) net profit margin stands at 6.8%, suggesting the latest quarter's margin is slightly above the recent average but well below the peak seen a year ago.
Key Points
- The stock has declined nearly 20% over the past year, trading at a price-to-earnings (P/E) ratio of 10.6, a significant discount to the industry average of 23.9.
- The company maintains a solid balance sheet with a debt-to-equity ratio of 0.6 and a respectable return on equity (ROE) of 13.71%.
The sequential recovery in profit is encouraging, but the persistent year-on-year margin compression indicates that restoring full profitability remains SPIC's key challenge for the coming quarters.
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· SPIC
(BSE)
ISIN: INE147A01011
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