Ashish Kacholia backed stock falls 4% after reporting weak Q1 result

Synopsis:
Yasho Industries posted its highest-ever quarterly revenue at Rs. 198.64 crore in Q1FY26, supported by strong industrial demand and 33 percent volume growth. However, profitability declined sequentially due to pricing pressure. Despite global trade uncertainties, the company gained market share and expects over 40 percent growth in FY26, says CEO Parag Jhaveri.

A specialty chemicals stock backed by ace investor Ashish Kacholia remained under pressure despite reporting record revenue for the June quarter. While year-on-year growth looked strong across key metrics, the stock remained subdued amid softening profitability and concerns around short-term global demand volatility.

Yasho Industries Ltd, with a market capitalization of Rs. 2,340 crore, opened at Rs. 1,930 and fell to an intraday low of Rs. 1,900, slipping 3.54 percent from the previous close of Rs. 1,969.60. The stock’s muted reaction also comes as Ashish Kacholia trimmed his stake from 3.94 percent in March 2025 to 3.86 percent in June 2025.

What’s the News?

Quarter-on-quarter, the company’s revenue rose 7.5 percent to Rs. 198.64 crore in Q1FY26 from Rs. 184.81 crore in Q4FY25. Operating profit, however, declined 4 percent to Rs. 33.49 crore from Rs. 34.88 crore.

Profit before tax slipped 28.4 percent from Rs. 8.03 crore to Rs. 5.75 crore, while net profit fell 27.6 percent to Rs. 3.64 crore from Rs. 5.03 crore in the previous quarter. The PAT margin contracted from 3 percent to 2 percent, and EBITDA margin narrowed from 19.15 percent to 17.02 percent.

Year-on-year, revenue rose 13.9 percent from Rs. 174.46 crore in Q1FY25 to Rs. 198.64 crore. Operating profit jumped 43.5 percent from Rs. 23.34 crore to Rs. 33.49 crore. The company reported a turnaround in profitability, with profit before tax improving from a loss of Rs. 2.04 crore to a profit of Rs. 5.75 crore and net profit rising from a loss of Rs. 2.46 crore to a profit of Rs. 3.64 crore. PAT margin improved from negative 1 percent to 2 percent, while EBITDA margin expanded from 13.62 percent to 17.02 percent.

Comments from Management

Commenting on the results, Mr. Parag Jhaveri, Managing Director & CEO, said, “The global chemical industry continues to remain volatile. We continue to face pressure on selling prices due to the current global uncertainty.

We are confident to achieve > 40 percent growth in FY26. Our state-of-the-art R&D Laboratory is expected to commence from October-2025. We continue to generate sustainable value for our stakeholders.”

Also Read: NBFC stock hits 5% upper circuit after announcing Q1 results

Operational Highlights

The company recorded its highest-ever quarterly revenue at Rs. 198 crore, driven by a 33 percent year-on-year volume increase. Industrial chemicals contributed 87 percent of total revenue, up from 83 percent a year ago, while the share of consumer chemicals declined to 13 percent. International business remained a key contributor, accounting for 67 percent of total revenue versus 61 percent last year. 

Yasho noted that delays in order finalizations, particularly in the automotive-linked industrial segment, were due to uncertainty in global trade policies. Despite this, demand remained stable and the company continued to gain market share.

The Pakhajan plant operated at over 50 percent utilization. A total of Rs. 30 crore has been spent so far towards the FY26 capex plan, including a new R&D laboratory set to be operational by October 2025.

About the Company

Yasho Industries Ltd is a specialty chemical manufacturer with over 30 years of industry experience. It caters to a wide variety of sectors through its four manufacturing units located in Vapi and Pakhajan. The company exports more than 65 percent of its production and maintains a strong global customer base across over 50 countries. It is ISO 9001:2015 and FSSC 22000 certified.

Written By Manan Gangwar 

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