Hyderabad: Andhra Petrochemicals Ltd. reported a challenging start to FY27, with the company posting a sharp decline in revenue and remaining in the red during the first quarter. Although losses narrowed significantly compared to the same period last year, the weak top-line performance weighed heavily on overall financial results.
The latest quarterly numbers indicate that the company faced a substantial slowdown in business activity, while lower operating losses provided some relief.
Andhra Petrochemicals Q1 FY27 Financial Highlights
The company reported revenue from operations of ₹14.09 crore in Q1 FY27, compared with ₹141.46 crore in the corresponding quarter last year, representing a steep 90.04% year-on-year decline. Revenue also fell 82.23% from the previous quarter, highlighting a significant contraction in operations.
At the operating level, EBITDA stood at a loss of ₹5.21 crore, compared with an EBITDA loss of ₹10.48 crore in Q1 FY26. While the company reduced its operating loss on a year-on-year basis, EBITDA slipped into negative territory from a positive ₹1.05 crore recorded in the previous quarter.
EBITDA Margin Turns Deeply Negative
The company’s EBITDA margin deteriorated to -36.97%, compared with -7.41% in the year-ago quarter and 1.33% in Q4 FY26.
The sharp decline in margin reflects the impact of extremely low revenue, as fixed operating costs had to be absorbed over a much smaller sales base. This resulted in significantly weaker operating efficiency during the quarter.
Losses Narrow Despite Weak Revenue
Profit Before Tax (PBT) stood at a loss of ₹4.75 crore, compared with a loss of ₹9.30 crore in the same quarter last year. However, the company had reported a profit before tax of ₹1.32 crore in the previous quarter.
Similarly, net loss (PAT) narrowed to ₹3.25 crore from ₹8.42 crore a year earlier, reflecting an improvement of nearly 61% year-on-year. On a sequential basis, however, the company slipped back into losses after reporting a profit of ₹1.38 crore in Q4 FY26.
Other Income Provides Partial Support
The company reported other income of ₹6.60 crore, broadly stable compared with ₹6.97 crore in the corresponding quarter last year and ₹6.38 crore in the previous quarter.
The steady contribution from other income helped cushion the impact of weak operating performance, although it was not sufficient to offset the decline in core business revenue.
It is also worth noting that the previous quarter included an exceptional loss of ₹3.08 crore, making the sequential comparison more nuanced.
Outlook
Going forward, investors will closely watch:
- Recovery in production and sales volumes.
- Improvement in revenue from core operations.
- Return to positive EBITDA.
- Raw material and petrochemical market trends.
- Management’s strategy to restore profitability.
A sustained recovery in demand and better capacity utilisation will be critical for Andhra Petrochemicals to improve its financial performance over the coming quarters.
Conclusion
Andhra Petrochemicals reported a difficult Q1 FY27, with revenue falling 90% year-on-year to ₹14.09 crore and the company posting a net loss of ₹3.25 crore. While losses narrowed compared with the previous year, operating performance remained weak as reflected in the negative EBITDA of ₹5.21 crore and EBITDA margin of -36.97%.
The coming quarters will be crucial in determining whether the company can revive revenue, return to operating profitability, and strengthen its overall financial position.
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