Camlin Fine Sciences Revenue Rises to 4,915 Million Rupees Despite Quarterly Loss of 281 Million
Key Facts
Camlin Fine Sciences reported revenue of 4,915 million rupees in the second quarter of fiscal 2027, up from 4,503 million in the corresponding period of the previous fiscal year, but operating profit before interest, taxes, depreciation and amortization fell to 22 million rupees from 356 million. The company said its net loss was 281 million rupees, compared with a loss of 19 million a year earlier. The results showed a divergence between sales growth and deteriorating profitability, with the operating margin falling to 0.45% from 7.91%. Management attributed the pressure to liquidity constraints, higher shipping and raw material costs, and weak capacity utilization in the aroma ingredients business. The figures are central to the second-quarter results announced on November 4.
The company said the decline in the margin to 0.45% reflected pressure on converting sales growth into operating profit, after the margin stood at 7.91% in the second quarter of fiscal 2026. The net loss also widened to 281 million rupees from 19 million in the same period a year earlier. The comparison indicates that revenue growth did not offset the impact of higher input and shipping costs and weak production capacity utilization. The results did not include a verified figure for the stock's movement in the November 4 session.
Among the operating drivers, revenue from the aroma ingredients business fell to 472 million rupees in the second quarter of fiscal 2027 from 774 million in the first quarter, a sequential decline of 39.0%. Management said weak capacity utilization in the business contributed to the pressure on performance, alongside liquidity constraints and higher shipping and raw material costs. It added that most raw material prices had doubled since February 2026, while the company had been unable to pass on the full increase to selling prices. A management representative said on the earnings call: "Since February, prices of most raw materials have doubled, and we have not been able to pass them on to selling prices." These pressures explain the widening gap between revenue growth and the decline in operating profit during the quarter.
On financing, the board approved a rights issue of up to 250 crore rupees, with the key terms and record date to be determined later, subject to approvals. The offering is tied to working capital needs and growth funding, at a time when management said liquidity constraints had affected the quarter's performance. Details such as the issue price, entitlement ratio and timing were not finalized in the information announced. The earnings call report said the board approved the maximum amount of the increase, while the detailed terms remain pending. The move makes liquidity availability one of the factors that will shape the recovery path the company expects.
Management expects the fourth quarter of fiscal 2027 to be the first quarter with meaningful liquidity support, with revenue exceeding 6,000 million rupees and an operating profit margin above 10%. It also indicated expected revenue of 600 crore rupees and operating profit exceeding 60 crore in the same quarter, assuming liquidity support is available. It said on the earnings call: "We expect revenue to reach 600 crore rupees, and operating profit to exceed 60 crore in the fourth quarter." The forecast depends on improved liquidity, while a management panelist cited better vanilla volumes as a factor supporting the turnaround. These targets remain contingent on funding availability and an improvement in operating conditions that weighed on second-quarter results.