Synopsis:
Chemical company’s shares hit a 10% lower circuit in today’s trading session after announcing Q2 results.
A small-cap company that manufactures bulk chemicals and their downstream products is in the spotlight today after posting Q2FY26 results. Read the article below for detailed insights into its performance.
With a market capitalization of Rs. 1,084.89 crore, the shares of Amal Limited were trading at Rs. 877.55, hitting a 10 percent lower circuit from its previous closing price of Rs. 975.05.
Q2FY26 Results
Amal Limited reported Rs. 54 crore in revenue for the second quarter of FY26, an 80 percent increase over the Rs. 30 crore for the same period in FY25. It increased by 14.14 percent as compared to Rs. 47.31 crore in Q1 FY26.
The company’s EBITDA for Q2 FY26 stood at Rs. 8.6 crore, down by 26.05 percent from Rs. 11.63 crore in Q1 FY26, and declined by 11.88 percent from Rs. 9.34 crore in Q2 FY25.
The consolidated net profit for the second quarter of FY26 was Rs. 6.06 crore, which was 35.53 percent lower than the Rs. 9.40 crore reported in the previous quarter but increased by 9.58 percent from Rs. 5.53 in Q2 FY25. Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 4.90 in Q2 FY26 from Rs. 4.47 in Q1 FY26.
The company’s revenue showed strong growth both YoY and QoQ, rising 80 percent from Q2 FY25 and 14.1 percent from Q1 FY26, while EBITDA declined in both comparisons, falling 11.9 percent YoY and 26 percent QoQ, reflecting margin pressures despite higher sales.
Also read: Stock under ₹100 skyrockets 16% after receiving ₹115 Cr order to supply low-voltage cables
About the company
Amal Ltd, headquartered in Valsad and incorporated in 1974, manufactures and markets bulk chemicals in India, including sulphuric acid, oleum, sulphur dioxide, and sulphur trioxide, serving industries such as dyestuff, fertilizers, personal care, petrochemicals, pharmaceuticals, textiles, electroplating, breweries, and food processing. The company was formerly known as Amal Products Limited and renamed Amal Ltd in 2003.
A return on equity (ROE) of about 35 percent and a return on capital employed (ROCE) of about 36.3 percent demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 28.4x which is higher as compared to its industry P/E 33.8x.
Written By Akshay Sanghavi
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Chemical stock hits 10% lower circuit after announcing weak Q2 results appeared first on Trade Brains.