Archean Chemical Industries Ltd (ACI)
🎯 Key Takeaways
- Archean Chemical Industries Ltd is in a consolidation and margin recovery phase following a period of operational softness. Despite flat revenue growth and modest profitability, the company is rebuilding margins and operational efficiency, supported by stable promoter holding and institutional investor retention.
- Revenue grew 8.7% QoQ to ₹327 in Q1FY27.
- ⚠️ 1) Limited revenue growth in a capital-intensive chemical sector raises concerns about long-term competitiveness. 2) Low ROE (4.9%) and ROCE (6.8%) re
- Market Cap
- ₹5,952
- P/E Ratio
- 61.1
- P/B Ratio
- 3.08
- ROE
- 5.0%
- ROCE
- 6.8%
- Debt/Equity
- 0.21
- Div Yield
- 0.52%
- Promoter
- 53.4%
📖 The Story
Archean Chemical Industries Ltd is in a consolidation and margin recovery phase following a period of operational softness. Despite flat revenue growth and modest profitability, the company is rebuilding margins and operational efficiency, supported by stable promoter holding and institutional investor retention. The business remains capital-light with low leverage, but returns remain subdued.
📰 What's Happening
In Q1 FY26, ACI reported consolidated revenue of ₹327 crores with an operating profit of ₹44 crores (13.5% margin), up from ₹301 crores revenue and ₹21 crores OP in Q4 FY26. The company approved its unaudited financial results on July 30, 2026, following auditor PKF Sridhar & Santhanam’s limited review confirmation with no material misstatements. At the June 12, 2026 AGM, shareholders approved the re-appointment of the current auditors until 2030 and independent directors for second terms extending to 2031, reflecting governance continuity. Management has not announced new capacity expansions or major capex plans recently, indicating focus on optimizing existing operations.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 233 | 255 | 301 | 327 |
| Operating Profit | 39 | 31 | 21 | 44 |
| OPM % | 16.8% | 12.1% | 6.9% | 13.5% |
| Net Profit | 29 | 24 | 12 | 30 |
| EPS | ₹2.36 | ₹1.92 | ₹1.13 | ₹2.48 |
Revenue has remained relatively flat over the past four quarters, hovering between ₹233 and ₹327 crores, while operating margins have shown improvement from a low of 6.9% in Q4 FY26 to 13.5% in Q1 FY26. Net profit and EPS have followed a similar trend, rising from ₹12 crores (₹1.13 EPS) in Q4 FY26 to ₹30 crores (₹2.48 EPS) in Q1 FY26. This margin expansion appears to be driven by cost control and operational efficiency rather than top-line growth, suggesting a turnaround in profitability despite stagnant sales.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on revenue or margin expectations in the latest filings. However, the board’s approval of Q1 FY26 results and auditor’s limited review confirmation suggest confidence in the accuracy of reported figures. The absence of new strategic announcements implies a focus on sustaining current performance levels without aggressive expansion. Investors should monitor future commentary for indications of demand trends or pricing power in the chemical segment.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 25 | 25 | 25 | 25 |
| Reserves | 1,839 | 1,739 | 1,910 | 1,879 |
| Borrowings | 235 | 152 | 405 | 281 |
| Total Liabilities | 2,389 | 2,158 | 2,665 | 2,443 |
| Fixed Assets | 1,378 | 1,223 | 1,493 | 1,426 |
| Investments | 339 | 418 | 257 | 377 |
| Total Assets | 2,389 | 2,158 | 2,665 | 2,443 |
The balance sheet remains stable with consistent equity of ₹25 crores and reserves growing slightly from ₹1,839 to ₹1,910 crores between March 2025 and March 2026. Borrowings have increased modestly from ₹235 to ₹405 crores, indicating a slight uptick in leverage, though still low relative to equity. Total assets have grown steadily, suggesting capital deployment without significant debt accumulation. The company maintains a strong liquidity position with no immediate refinancing risks visible.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +140 |
| Investing | -293 |
| Financing | +154 |
| Net Cash Flow | +1 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 53.4% | 53.4% | 53.4% | 53.4% |
| FII | 11.2% | 11.1% | 11.1% | 11.0% |
| DII | 25.5% | 25.3% | 25.8% | 24.2% |
| Public | 7.8% | 8.1% | 7.7% | 9.1% |
| # Shareholders | 70,852 | 69,900 | 64,925 | 67,113 |
Promoter holding remains stable at 53.43% over the last four quarters, indicating confidence from management. Institutional investors (FII) have slightly increased their stake from 11.15% to 11.09% (minor fluctuation), while DII holdings have risen from 25.25% to 25.83%, suggesting growing interest from domestic institutional investors. The number of public shareholders has declined slightly, but overall shareholder dispersion remains broad with over 60,000 accounts, supporting retail liquidity.
⚖️ Peer Comparison — Chemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| PIDILITIND | 1.53 L Cr | 57.6 | 33.4% | — | 0.01 |
| SRF | 73,810 | 34.1 | 15.6% | — | 0.36 |
| LINDEINDIA | 52,814 | 96.7 | 17.5% | — | 0.00 |
| FLUOROCHEM | 48,774 | 79.7 | 9.6% | — | 0.34 |
| NAVINFLUOR | 43,256 | 54.7 | 22.2% | — | 0.31 |
| GODREJIND | 36,153 | 30.8 | 9.2% | — | 4.57 |
| HSCL | 33,807 | 42.0 | 20.7% | — | 0.16 |
| AETHER | 23,029 | 97.7 | 13.8% | — | 0.08 |
| DEEPAKNTR | 21,155 | 27.0 | 15.3% | — | 0.26 |
| CASTROLIND | 19,891 | 18.7 | 76.2% | — | 0.00 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Limited revenue growth in a capital-intensive chemical sector raises concerns about long-term competitiveness. 2) Low ROE (4.9%) and ROCE (6.8%) reflect underutilization of capital, which may persist without margin improvement or scale. 3) High promoter pledging is not observed, but the lack of new capacity investment could hinder future growth if demand recovers. 4) Auditor’s limited review does not guarantee full audit validation, introducing potential for material adjustments in future audits.
📋 Recent Filings
- Announcement2026-09-24Archean Chemical Industries announced that its trading window will close on October 1, 2026, to accommodate the release of un-audited quarterly and ha…
- Announcement2026-08-07Archean Chemical Industries reported strong Q1 FY27 growth with standalone revenue up 14% YoY to INR3,321 million and consolidated PAT more than doubl…
- Announcement2026-08-03Archean Chemical Industries announced that the audio recording of its earnings conference call for the quarter ended June 30, 2026, held on August 3, …
- Announcement2026-08-01Archean Chemical Industries Limited presented its Q1FY27 investor presentation highlighting 11% YoY revenue growth to Rs. 3,328 million driven by brom…
- 🟡 Board Meeting2026-07-30Archean Chemical Industries approved its unaudited standalone and consolidated financial results for Q1 FY26, including a standalone profit after tax …
- Announcement2026-07-28Archean Chemical Industries announced that its earnings call to discuss Q1 FY27 results will be held on Monday, August 3, 2026 at 11:00 AM IST, with M…
- Announcement2026-07-16Archean Chemical Industries clarified that recent trading volume spikes on NSE and BSE are purely market-driven with no undisclosed price-sensitive in…
- share transfer2026-07-06Archean Chemical Industries announced receipt of a SEBI-mandated compliance certificate from its share transfer agent MUFG Intime India for the quarte…
- Announcement2026-07-01Archean Chemical Industries Limited announced it received a penalty order of Rs. 34.24 lakh from the Deputy Commissioner of Income Tax for the assessm…
- 🟡 concall transcript2026-06-30Archean Chemical Industries reported strong Q1 FY27 growth with revenue up 14% YoY to INR3,321 million and EBITDA margin expanding to 25.3%, driven by…
🧠 Analyst's Read
Archean Chemical is navigating a quiet phase of operational stabilization with improving margins but no clear catalyst for revenue acceleration. Investors should watch for signs of demand recovery in specialty chemicals or management’s strategy for scaling operations beyond current levels.
Based on filing content and financial data. Not a recommendation.
Read the full analysis
Quarterly trends, balance sheet, cash flow, peer comparison, and AI insights — sign up free to unlock.
Sign Up Free — Unlock Full Analysis2 free AI queries per day.
Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
📡 Get AI alerts when ACI files new disclosures
Track ACI filings, board meetings, and corporate actions. Free email alerts at 5 PM.
Track ACI — FreeFree account · 2 AI queries/day