Dai-Ichi Karkaria Ltd (526821)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Dai-Ichi Karkaria's revenue was ₹57.8 Cr (+46.6% year on year, +40.2% on the previous quarter), and net profit ₹2.9 Cr; the operating margin was 10.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹57.8 | +46.6% | +40.2% |
| Operating profit | ₹6.0 | +368.0% | +780.9% |
| Net profit | ₹2.9 | — | — |
| EPS (₹) | 3.93 | — | — |
| Operating margin | 10.4% | — | — |
📢 Recent Corporate Announcements
Dai-Ichi Karkaria has received an order under Section 270A of the Income-tax Act, 1961, imposing a penalty of ₹15,17,876 for Assessment Year 2024-25. The penalty pertains to ₹90,93,440 treated as under-reported income, which reduced the loss claimed by the company. The company clarified that it had already filed a revision application under Section 264 on July 16, 2026, against the original assessment order, and intends to file an appeal before the Commissioner of Income Tax (Appeals). Relative to its ₹234 Cr market cap and ₹180 Cr TTM revenue, the financial impact is minimal.
- Penalty imposed: ₹15,17,876 under Section 270A of the Income-tax Act, 1961.
- Alleged under-reported income: ₹90,93,440 for Assessment Year 2024-25.
- Section 264 revision application previously filed on July 16, 2026, against the assessment order.
- Penalty order received via email on September 19, 2026.
Dai-Ichi Karkaria reported a strong start to FY2026-27 with Q1 revenue of Rs 57.84 crore, marking a 47% increase YoY and 40% QoQ. This quarterly performance is significant as it represents approximately 36% of the total TTM revenue (Rs 161 Cr) in just one quarter. The company successfully commissioned a new ethylene oxide reactor at its Dahej facility and added oilfield production capacity during the period. While the Oilfield segment remains the primary driver contributing over 50% of revenue, the company is focusing on commercializing this expanded capacity to drive profitable growth.
- Reported Q1 FY27 revenue of Rs 57.84 crore, a 47% growth over the corresponding previous year quarter.
- Oilfield Chemicals segment contributed more than 50% of the total quarterly revenue.
- Successfully commissioned an additional ethylene oxide reactor at the Dahej facility during Q1.
- Quarterly revenue of Rs 57.84 crore represents ~36% of the total FY26 annual revenue of Rs 161 crore.
- Home & Personal Care segment showed strong growth driven by increased export demand.
Dai-Ichi Karkaria reported a robust Q1 FY27 with consolidated revenue reaching Rs 57.84 Cr, a 46.6% increase over Q1 FY26 (Rs 39.45 Cr). The company achieved a consolidated net profit of Rs 2.93 Cr, a significant recovery from the marginal profit of Rs 0.02 Cr in the same quarter last year and a TTM loss of Rs 1 Cr. Standalone performance was notably stronger with a PAT of Rs 6.09 Cr, though consolidated results were impacted by subsidiary performance. This single quarter's revenue represents approximately 36% of the total TTM revenue, indicating a sharp acceleration in business scale.
- Consolidated Revenue from operations grew 46.6% YoY to Rs 57.84 Cr from Rs 39.45 Cr.
- Consolidated Net Profit surged to Rs 2.93 Cr compared to just Rs 0.02 Cr in Q1 FY26.
- Standalone Net Profit stood at Rs 6.09 Cr, reflecting strong core operations despite consolidated drag.
- Quarterly Consolidated EPS improved to Rs 3.93, surpassing the full-year FY26 EPS of Rs -0.99.
- Cost of materials consumed rose to Rs 40.30 Cr, representing 69.6% of revenue, up from Rs 31.75 Cr YoY.
Dai-Ichi Karkaria reported a strong start to FY27 with consolidated revenue from operations rising 46.6% YoY to Rs 57.84 Cr. The company achieved a consolidated net profit of Rs 2.93 Cr, a significant turnaround from a marginal profit of Rs 0.02 Cr in Q1 FY26 and a full-year loss in FY26. Standalone performance was notably stronger with a net profit of Rs 6.09 Cr, though this was aided by higher other income of Rs 5.51 Cr. The quarterly revenue represents approximately 36% of the total TTM revenue, indicating a sharp acceleration in business activity.
- Consolidated revenue from operations grew 46.6% YoY to Rs 57.84 Cr from Rs 39.45 Cr.
- Consolidated net profit turned around to Rs 2.93 Cr from Rs 0.02 Cr in the year-ago quarter.
- Standalone EPS for the quarter stood at Rs 8.18, compared to Rs 2.94 in Q1 FY26.
- Cost of materials consumed increased to Rs 40.30 Cr, up from Rs 31.75 Cr YoY, reflecting higher volumes.
- Share of profit from Joint Ventures contributed Rs 0.89 Cr to the consolidated bottom line.
Dai-Ichi Karkaria Ltd has scheduled a board meeting on August 13, 2026, to approve its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. This follows a weak FY26 where the company reported a net loss of ₹1.0 Cr compared to a profit of ₹9.0 Cr in FY25. Investors will be monitoring for a recovery in operating margins, which stood at a low 2.1% on a TTM basis. The trading window for designated persons has been closed since July 1, 2026, and will reopen 48 hours after the results are published.
- Board meeting date set for August 13, 2026, to review Q1 FY27 performance.
- Trading window for insiders closed from July 1, 2026, until 48 hours post-announcement.
- Company reported a marginal net profit of ₹0.09 Cr in the previous quarter (March 2026).
- TTM revenue stands at ₹161 Cr against a market capitalization of ₹232 Cr.
- Operating profit margin (OPM) remains thin at 2.1% as per latest TTM data.
Dai-Ichi Karkaria has scheduled its 66th Annual General Meeting (AGM) for August 27, 2026, to be held via video conferencing. The company has released its Annual Report for FY 2025-26, providing details on a year where revenue reached Rs 161 crore but resulted in a net loss of Rs 1.0 crore. This specific filing is a regulatory communication to shareholders who have not registered their email addresses, ensuring they have access to the report and AGM notice. Investors should note the significant margin compression from FY25 (8% OPM) to FY26 (2% OPM) detailed in the report.
- 66th Annual General Meeting (AGM) to be held on August 27, 2026, at 11:30 a.m. IST
- Annual Report for FY 2025-26 released, covering a period with Rs 161 crore in revenue
- Cut-off date for identifying shareholders for this physical communication was July 24, 2026
- Company reported a net loss of Rs 1.0 crore for FY26, a sharp decline from the Rs 9.0 crore profit in FY25
- Operating Profit Margin (OPM) for FY26 stood at 2.0%, down from 8.0% in the previous year
Dai-Ichi Karkaria has scheduled its 66th AGM for August 27, 2026, following a fiscal year (FY26) where revenue declined to Rs 161 Cr from Rs 181 Cr, resulting in a net loss of Rs 1 Cr. Despite the loss, the board has recommended a dividend of Rs 1.50 per share (15% of face value). The company highlighted the commissioning of a new ethoxylation (EO) reactor at Dahej and a new Agrochemical Application Laboratory to drive future growth. Management is targeting a 15-20% growth rate by improving capacity utilization and expanding in the oilfield and agrochemical segments.
- Recommended a dividend of Rs 1.50 per equity share (15% of face value) for FY 2025-26
- Commissioned a new EO reactor at the Dahej facility to enhance manufacturing flexibility and capacity
- Reported FY26 revenue of Rs 161 Cr, a decline from Rs 181 Cr in FY25
- Established a dedicated Agrochemical Application Laboratory to accelerate product commercialization
- Maintained a safe working environment with zero fatalities and zero lost time incidents in FY26
Dai-Ichi Karkaria has released its FY2025-26 Annual Report, recommending a dividend of Rs 1.50 per share (15%). Despite a challenging year with a net loss of Rs 1.0 Cr on revenue of Rs 161 Cr, the company completed a key expansion of its ethoxylation capacity via a new EO reactor at Dahej. Additionally, a new Agrochemical Application Laboratory was commissioned to accelerate product development. Ms. Meher Vakil Taff has transitioned to the role of CEO & Managing Director effective April 1, 2026.
- Recommended a dividend of Rs 1.50 per equity share (15%) for FY 2025-26
- Commissioned a new EO reactor at the Dahej facility to expand ethoxylation capacity
- Established a dedicated Agrochemical Application Laboratory to support formulation development
- Reported FY26 revenue of Rs 161.0 Cr with a net loss of Rs 1.0 Cr
- Maintained a safety record of zero fatalities and zero lost time incidents across all sites
Dai-Ichi Karkaria has issued a detailed communication regarding the Tax Deduction at Source (TDS) for its recommended dividend of ₹1.50 per share for FY 2025-26. The dividend is subject to approval at the 66th Annual General Meeting (AGM) scheduled for August 27, 2026. Shareholders must submit tax-related documents by August 19, 2026, to avail of lower or nil tax rates. Resident individuals with a valid PAN will be subject to 10% TDS if their dividend exceeds ₹10,000, while those without a valid or Aadhaar-linked PAN will face a higher 20% deduction.
- Dividend of ₹1.50 per equity share (Face Value ₹10) recommended for FY 2025-26.
- 66th Annual General Meeting (AGM) scheduled for Thursday, August 27, 2026.
- Deadline for submitting tax exemption documents (Form 15G/15H/10F) is August 19, 2026.
- Standard TDS rate of 10% for resident shareholders with valid PAN; 20% for invalid/unlinked PAN.
- Resident individuals exempt from TDS if total dividend income in FY 2026-27 does not exceed ₹10,000.
Dai-Ichi Karkaria has announced the schedule for its 66th Annual General Meeting (AGM) and the associated dividend payout. The company has fixed August 20, 2026, as the record date to determine eligibility for a final dividend of Rs 1.50 per share (15% of face value). If approved by shareholders at the AGM on August 27, 2026, the dividend will be paid within seven days. This follows the initial board recommendation made on May 8, 2026.
- Final dividend of Rs 1.50 per equity share of Rs 10 each (15% payout)
- Record date for dividend entitlement fixed as August 20, 2026
- 66th Annual General Meeting scheduled for August 27, 2026, via video conferencing
- Dividend payment to be processed within 7 days of shareholder approval at the AGM
- E-voting period set from August 24 to August 26, 2026
Financial Performance
Revenue Growth by Segment
Total standalone revenue from operations grew by 37.85% YoY, reaching INR 181.38 Cr in FY25 compared to INR 131.58 Cr in FY24. Q1 FY26 revenue stood at INR 39.45 Cr, a 16% increase over Q1 FY25. Growth was driven by higher volumes and price realizations in specialty chemicals across oilfield, textile, and paint segments.
Geographic Revenue Split
While specific regional percentages are not disclosed, the company reported that a major order from the overseas market significantly contributed to the healthy sales and margins in Q4 FY25, indicating a strategic focus on export growth.
Profitability Margins
Operating margins improved significantly from 6.32% in FY24 to 9.73% in FY25. Standalone Profit After Tax (PAT) for FY25 was INR 6.18 Cr, down from INR 15.97 Cr in FY24 (which included exceptional items). Q1 FY26 PAT improved to INR 2.19 Cr from a loss in the previous year's corresponding quarter.
EBITDA Margin
EBITDA (PBDIT) grew by 50.64% YoY to INR 18.92 Cr in FY25 from INR 12.56 Cr in FY24. The EBITDA margin improved to approximately 10.43% in FY25 from 9.54% in FY24, reflecting better capacity utilization and higher contribution from high-margin products.
Capital Expenditure
The company invested in reactor installations, bulk storage facilities for raw materials, and finished goods in FY25 to optimize batch sizes. However, no major debt-funded capex is planned for the medium term as the company focuses on utilizing existing capacity.
Credit Rating & Borrowing
Ratings were upgraded in July 2025 to 'CRISIL BBB-/Stable/CRISIL A3' from 'CRISIL BB+/Stable/CRISIL A4+'. The interest coverage ratio was healthy at 12.21 times in FY25. Total bank loan facilities were reduced to INR 25 Cr from INR 51 Cr.
Operational Drivers
Raw Materials
The primary raw materials are crude oil derivatives, which are susceptible to global commodity price fluctuations. These represent a significant portion of the cost structure, though specific percentage breakdowns per material are not disclosed.
Import Sources
Not specifically disclosed, though the company's technical collaboration is with Dai-ichi Kogyo Seiyaku, Japan, and it operates plants in Dahej and Kurkumbh, Maharashtra.
Key Suppliers
The company procures goods from Indian Oxides and Chemicals Private Limited (IOCL), with a shareholder-approved limit of up to INR 50 Cr for FY25.
Capacity Expansion
Current capacity is not disclosed in MT, but the company achieved its highest annual and quarterly production volumes in history during FY25 due to strategic upgrades in reactor installations and process optimizations.
Raw Material Costs
Raw material costs are linked to crude oil prices. The company mitigates volatility by focusing on value-added products with better pricing power and procuring materials based on specific orders received.
Manufacturing Efficiency
Efficiency improved through strategic upgrades to production infrastructure and reactor installations, leading to improved capacity utilization across all manufacturing locations in FY25.
Strategic Growth
Expected Growth Rate
15-20%
Growth Strategy
Growth will be achieved through deepening customer relationships, investing in innovation for customer-driven solutions, and maximizing capacity utilization at the Dahej and Kurkumbh plants. The company is targeting net cash accruals above INR 22 Cr for further rating upgrades.
Products & Services
Specialty surfactants, high-performance polymers, flocculants for paper, sugar and mining, textile auxiliaries, rayon additives, sizing chemicals, and oilfield chemicals.
Brand Portfolio
Dai-ichi Karkaria.
New Products/Services
The company is focusing on developing new customer-driven solutions and innovative specialty surfactants to meet future market needs, though specific revenue contribution % for new launches is not disclosed.
Market Expansion
The company is targeting growth in the oilfield segment and expanding its presence in overseas markets, as evidenced by the major international order received in Q4 FY25.
Strategic Alliances
Maintains a 50:50 Joint Venture with CTI Chemicals Asia Pacific Pte. Ltd. in ChampionX Dai-ichi India Private Limited (CXDI).
External Factors
Industry Trends
The specialty chemicals industry is shifting toward sustainable and innovative high-performance surfactants. Dai-ichi is positioning itself through R&D focused on clean chemical synthesis and hazardous chemical reduction.
Competitive Landscape
Operates in a competitive specialty chemicals market catering to diversified industries including agrochemicals, construction, and home care.
Competitive Moat
The company's moat is built on its long-standing technical collaboration with Dai-ichi Kogyo Seiyaku (Japan) since 1963 and its entrenched position in the oilfield chemicals segment, which requires high technical expertise.
Macro Economic Sensitivity
Highly sensitive to global crude oil prices and industrial demand in sectors like textiles, paints, and oil exploration.
Consumer Behavior
Increasing demand for customized chemical solutions and sustainable manufacturing processes is driving the company's R&D focus.
Geopolitical Risks
Susceptibility to international trade dynamics given the reliance on overseas orders for margin expansion.
Regulatory & Governance
Industry Regulations
Complies with statutory requirements for chemical manufacturing; maintains ISO 9001 certification. The company was not mandated to spend on CSR in FY25 due to average net losses in the preceding three financial years.
Environmental Compliance
The company emphasizes sustainability and clean processes in R&D, though specific ESG compliance costs are not disclosed.
Taxation Policy Impact
The company received an Income Tax Assessment Order on January 7, 2026, giving effect to an ITAT order dated June 30, 2025. Specific tax rate % not disclosed.
Legal Contingencies
The company received an assessment order u/s 254 r.w.s. 143(3) of the Income Tax Act 1961 from the Deputy Commissioner of Income Tax, Mumbai, in January 2026.
Risk Analysis
Key Uncertainties
Volatility in crude oil prices (high impact on margins), fluctuations in foreign exchange rates, and the modest scale of operations (INR 180 Cr) which limits economies of scale.
Geographic Concentration Risk
Manufacturing is concentrated in Maharashtra (Kurkumbh) and Gujarat (Dahej).
Third Party Dependencies
Significant reliance on Indian Oxides and Chemicals Private Limited for raw material procurement (up to INR 50 Cr limit).
Technology Obsolescence Risk
The company mitigates technology risk through its technical collaboration with Japanese partners and continuous R&D in polymer and surfactant innovation.
Credit & Counterparty Risk
Receivables quality is supported by faster customer collections noted in Q1 FY26; liquidity is categorized as 'Adequate' by CRISIL with bank limit utilization at 70%.
