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Gem Aromatics Q3FY26: Dahej Plant Commissioned; Targets Rs 1,100 Cr Revenue by FY28
Gem Aromatics reported a consolidated revenue of Rs 78.9 Cr for Q3FY26, a 19% YoY decline attributed to tariff uncertainties and GST-related changes. The company achieved a major milestone by commissioning its greenfield Dahej facility on December 11, 2025, with a total capex of Rs 270 Cr. While consolidated PAT showed a loss of Rs 5 Cr due to a high non-cash depreciation charge of Rs 8.7 Cr post-capitalization, standalone EBITDA margins improved to 9.1%. Management has provided a strong long-term guidance, targeting revenues of Rs 1,050-1,100 Cr and EBITDA margins of 16-18% by FY28.
Key Highlights
Commissioned greenfield Dahej plant with 10,829 MTPA capacity on Dec 11, 2025.
Consolidated revenue declined 19% YoY to Rs 78.9 Cr, while standalone EBITDA margin rose to 9.1%.
Reported consolidated loss of Rs 5 Cr driven by Rs 8.7 Cr in non-cash depreciation from new facility.
Management targets aggressive growth to Rs 1,050 - 1,100 Cr revenue by FY28.
Diversifying into high-value cooling agents and phenol derivatives to reduce dependency on mint products.
💼 Action for Investors
Investors should focus on the capacity utilization and ramp-up of the Dahej facility in Q4FY26 as the primary growth driver. While the current bottom line is impacted by depreciation, the transition toward high-margin specialty chemicals and the FY28 guidance suggest significant long-term potential.
Gem Aromatics Q3 Results: Consolidated PAT Slips to Loss of ₹5 Cr on High Capex Depreciation
Gem Aromatics reported a consolidated net loss of ₹5.0 crore for Q3 FY26, a sharp decline from a ₹7.5 crore profit YoY, primarily due to ₹8.7 crore in depreciation following the capitalization of its new Dahej facility. Consolidated revenue fell 18.5% YoY to ₹78.9 crore, impacted by external headwinds like GST changes and tariff uncertainties that led to customer inventory optimization. Despite the short-term bottom-line pressure, the company successfully commenced commercial production at its ₹270 crore Dahej plant in December 2025. Management has issued a long-term guidance targeting revenue of ₹1,050-1,100 crore by FY28.
Key Highlights
Consolidated Q3 revenue declined 18.5% YoY to ₹78.9 crore, while 9MFY26 PAT plummeted to ₹0.4 crore from ₹25.8 crore YoY.
Reported a consolidated net loss of ₹5.0 crore in Q3 FY26, heavily impacted by ₹8.7 crore in non-cash depreciation charges.
Capitalized ₹250 crore of the total ₹270 crore capex for the Dahej facility, which will increase total capacity to approximately 16,000 MTPA.
Commenced commercial production of cooling agents (WS-23, WS-03) and clove derivatives at the Dahej plant on December 11, 2025.
Management targets FY28 revenue of ₹1,050-1,100 crore with EBITDA margins of 16-18% as asset utilization improves.
💼 Action for Investors
The current net loss is primarily an accounting impact from high depreciation of a major new facility; investors should monitor the ramp-up in capacity utilization at Dahej. The long-term investment case depends on the company's successful transition into high-value specialty chemicals and meeting its ambitious FY28 revenue targets.