Gem Aromatics Limited announced its un-audited financial results for the quarter and nine months ended December 31, 2025. For the third quarter of FY26, the company reported standalone revenue from operations of ₹83.9 crore, a decrease from ₹89.1 crore in Q3FY25. Gross profit stood at ₹15.4 crore, with a gross margin of 18.4%. EBITDA was ₹7.6 crore, and Profit After Tax (PAT) was ₹4.2 crore, resulting in a PAT margin of 5.0%. Earnings Per Share (EPS) was ₹0.8. On a consolidated basis, revenue from operations for Q3FY26 was ₹78.9 crore, down from ₹96.8 crore in the same period last year. Gross profit was ₹18.2 crore, and EBITDA was ₹7.0 crore. The company reported a consolidated PAT of -₹5.0 crore, with an EPS of -₹1.04. This was impacted by higher depreciation of ₹8.7 crore following the capitalization of a significant portion of the capex for the Dahej facility. The company highlighted that revenue during Q3FY26 and 9MFY26 was impacted by external headwinds such as tariff-related uncertainty and GST-related changes, leading customers to defer procurement. However, conditions improved during Q3FY26 with better order inquiries and a gradual recovery in mint prices. Non-mint products like clove and its derivatives also showed growth. Revenue is expected to improve as external headwinds ease and the Dahej capacity ramps up. Gross and EBITDA margins showed improvement, supported by better mint prices and customer blending requirements. The Dahej greenfield manufacturing facility, a key part of the long-term growth strategy, commenced commercial production of WS-23 and WS-03 cooling agents, along with Clove Oil and Eugenol, on December 11, 2025. The plant has completed first-stage audits for several international certifications, including FSSC 22000 Version 6. The total capital expenditure for the Dahej facility is approximately ₹270 crore, with about ₹250 crore already incurred and largely capitalized. This facility will increase the company’s total capacity to approximately 16,000 MTPA. Diversification remains a core strategy, with a focus on reducing dependence on mint and mint derivatives. Pilot trials for Safranal and Damascones have been completed, and catalyst preparation for phenol derivatives is underway, expected to be completed by the end of Q4FY26. The company is targeting Anisole, MEHQ, and Guaiacol for trial and commercial production from Q1FY27. Commenting on the results, Mr. Yash Vipul Parekh, MD & CEO, stated that the commissioning of products at the Dahej plant marks an important operational milestone. He noted the improvement in gross and EBITDA margins and reiterated that revenues were impacted by external headwinds. Looking ahead, the company is targeting revenue of ₹1,050 - 1,100 crore by FY28, with EBITDA margins of 16-18%.
