Gem Aromatics Limited has released its investor presentation for the quarter ended December 31, 2025 (Q3FY26). The presentation details the company's performance review, highlighting significant operational milestones and strategic advancements. A key development is the commissioning of WS 23 & WS 03 cooling agents, along with Clove Oil and Eugenol, at its greenfield Dahej plant. This facility, with a total capital expenditure of approximately ₹270 crore (of which ~₹250 crore has been incurred and largely capitalized), is designed to international standards and has completed initial audits for various quality certifications including FSSC 22000 Version 6. The company reported improved gross and EBITDA margins, attributed to a gradual recovery in mint prices and better customer blending alignment. While revenues were impacted by external factors like tariff uncertainty and GST-related changes, non-mint products, particularly clove and its derivatives, showed continued growth. Looking ahead, Gem Aromatics is advancing its product pipeline with completed pilot trials for Citral derivatives (Safranal and Damascones). Catalyst preparation for Phenol derivatives is underway, with trial production expected from Q1FY27. These initiatives aim to reduce dependence on Mint and Mint derivatives. The company has set a revenue target of ₹1,050-1,100 crore by FY28, with a projected EBITDA margin of 16-18%. The Dahej plant, with a total production capacity of 10,829 MTPA across four segments, is expected to contribute significantly from Q4FY26 onwards, supporting higher utilization and improved revenue and margin visibility. Financially, for Q3FY26, standalone net revenue was ₹83.9 crore, with a PAT of ₹4.2 crore. Consolidated net revenue stood at ₹78.9 crore, with a PAT of -₹5.0 crore, impacted by higher depreciation of ₹8.7 crore post-capitalization of the Dahej facility's capex.
