Gem Aromatics544491Quarterly results
September quarter and half-year results approved; auditors' review conclusion unmodified
Board approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026, with the auditors' Limited Review Report.
By ScoutQuest · · 3 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 1,039.99 | 895.25 | +16.2% | 988.50 | +5.2% |
| Total income | 1,041.32 | 905.07 | +15.1% | 990.11 | +5.2% |
| Profit before tax | (62.75) | (25.18) | −149% | (85.43) | +26.5% |
| Profit after tax | (70.15) | (25.79) | −172% | (78.74) | +10.9% |
| Total comprehensive income | (69.48) | (22.34) | −211% | (81.36) | +14.6% |
| Basic EPS | (1.29) | (0.04) | — | (1.56) | +17.3% |
- Total income YoY
- +15.1%
- Period
- Sep-26
Auditor's review
Conclusion: Unmodified
- Emphasis of matter: change in inventory valuation policy from Weighted Average Cost to FIFO w.e.f. April 1, 2026, applied prospectively as retrospective application is impracticable (Note 5).
Notes to the results
- Inventory valuation changed from Weighted Average Cost to FIFO, applied prospectively from the beginning of the year; prior periods not restated and impact not ascertainable.
- Standalone note: loan to subsidiary Krystal Ingredients incl. accrued interest aggregating Rs 2,252.10 million converted into 47,204 equity shares at Rs 47,710 per share.
What the board decided
The board of Gem Aromatics met on October 31, 2026 from 3:16 p.m. to 3:46 p.m. and approved the unaudited financial results, both standalone and consolidated, for the quarter and half year ended September 30, 2026. The statutory auditors, Chhajed & Doshi, issued a Limited Review Report on both sets of results, and the board took it on record. The results are also being made available on the company's website and the stock exchange websites.
Auditors' review conclusion
- The conclusion is unmodified: nothing came to the auditors' attention that caused them to believe the statements were materially misstated or did not disclose what is required.
- The auditors drew attention to a change in accounting policy. Inventory valuation has moved from the Weighted Average Cost method to First-In, First-Out (FIFO) with effect from April 1, 2026.
- The change has been applied prospectively from the beginning of the current financial year, with the company concluding that retrospective application was impracticable; comparative figures for earlier periods were not restated.
- A limited review gives moderate assurance and is not an audit opinion.
Standalone results (amounts in Rs million)
- 'Revenue from operations' for the quarter ended September 30, 2026 was 923.80.
- 'Profit for the period' was 89.03, compared with 41.11 in the same quarter a year earlier.
- For the half year ended September 30, 2026, 'Profit for the period' was 161.55.
- This is the standalone view of the parent company alone.
Consolidated results (amounts in Rs million)
- 'Revenue from operations' for the quarter was 1,039.99.
- 'Profit for the period' for the quarter was a loss of 70.15.
- For the half year, 'Profit for the period' was a loss of 148.89.
- The consolidated numbers include two subsidiaries: Gem Aromatics LLC and Krystal Ingredients Private Limited.
Loan in a subsidiary converted into shares
- The board, by a resolution dated September 22, 2026, approved an investment in Krystal Ingredients Private Limited by way of conversion of the outstanding loan, including interest accrued thereon, into equity shares.
- The outstanding loan including accrued interest, aggregating Rs 2,252.10 million, was converted into 47,204 equity shares of Krystal.
- In simple terms, money the group had lent is now share capital of the subsidiary rather than a loan to be repaid in cash.
How a retail reader can read this
- The standalone business was profitable in the quarter and in the half year, and quarterly 'Profit for the period' at 89.03 was higher than the 41.11 of the same quarter last year, even though standalone 'Revenue from operations' for the quarter was below the year-earlier level.
- At the consolidated level the group reported losses for both the quarter (70.15) and the half year (148.89), which is a different picture from the standalone entity. The gap between the two views comes from the subsidiaries.
- Because the inventory valuation method changed this year and earlier periods were not restated, this year's cost and profit figures are built on a different basis from last year's; period-to-period comparison deserves that caveat.
- The company operates in a single segment: manufacturing and sale of specialty ingredients, including essential oils, aroma chemicals and value-added derivatives, so the results reflect one business line rather than mixed segments.
Points to keep in mind
- The auditors' note on the accounting policy change is an emphasis of matter, not a qualification; the conclusion itself is unmodified.
- The conversion of the Krystal loan into equity changes how that exposure sits in the books (loan versus investment) rather than bringing fresh cash into the group.
- The standalone entity and the group reported opposite outcomes for the quarter, so both sets of numbers matter when judging performance.
₹89.03 Mn×2.17
2025₹41.11 Mn2026₹89.03 Mn
₹1,039.99 MnConsolidated Revenue from operations, quarter ended Sep 30, (Rs million
Revenue from operations, quarter988.50 (Rs million)
Standalone Profit for the period, quarter ended Sep 30, (Rs million₹41.11 Mn
Also from Gem Aromatics
Gem Aromatics Q2FY27: consolidated revenue up 16.2% to Rs 104.0 Cr, but Dahej depreciation keeps consolidated PAT at a Rs (7.0) Cr loss
31 Oct 2026
Gem Aromatics Q2 FY27: Krystal Ingredients starts cooling agent shipments; consolidated gross margin widens to 25.4%
31 Oct 2026
Board meeting on 31 October 2026 to approve September quarter results
27 Oct 2026
More numbers
- Standalone Revenue from operations, quarter ended Sep 30, 2026 (Rs million)923.80
- Standalone Profit for the period, quarter ended Sep 30, 2026 (Rs million)89.03
- Standalone Profit for the period, quarter ended Sep 30, 2025 (Rs million)41.11
- Standalone Profit for the period, half year ended Sep 30, 2026 (Rs million)161.55
- Consolidated Profit for the period, half year ended Sep 30, 2026 (Rs million, loss)(148.89)
- Outstanding loan including accrued interest converted into Krystal shares (Rs million)2,252.10
- Total income, latest quarter1,041.32 (Rs million)
- Total income, year-ago quarter905.07 (Rs million)
- Total income, previous quarter990.11 (Rs million)
- Total comprehensive income, latest quarter(69.48) (Rs million)
- Total comprehensive income, year-ago quarter(22.34) (Rs million)
- Total comprehensive income, previous quarter(81.36) (Rs million)
- Profit after tax, latest quarter(70.15) (Rs million)
- Profit after tax, year-ago quarter(25.79) (Rs million)
- Profit after tax, previous quarter(78.74) (Rs million)
- Revenue from operations, latest quarter1,039.99 (Rs million)
- Revenue from operations, year-ago quarter895.25 (Rs million)
- Revenue from operations, previous quarter988.50 (Rs million)
- Profit before tax, latest quarter(62.75) (Rs million)
- Profit before tax, year-ago quarter(25.18) (Rs million)
- Profit before tax, previous quarter(85.43) (Rs million)
Source: BSE · 31 Oct 2026
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