Chamanlal Setia Exports Announces strong Q3 results; Check the details

Synopsis: Rice exporter company’s share rallied 17 percent after Q3FY26 profit surged 90 percent QoQ, driven by robust export volumes, margin expansion, and improved operating leverage.

The shares of this company, which is engaged in the business of milling and processing basmati rice. The company has been involved in export operations and recognised as an export house by the Ministry of Commerce, in focus after strong Q3 results.

With a market capitalization of Rs 1,572 crore, Chamanlal Setia Exports Ltd’s share on Friday made a day high of Rs 320 per share, up by 16.4 percent from its previous day’s close price of Rs 274.85 per share. The shares of this company trade at an undervalued PE of 15.6x, lower compared to the industry PE of 24.5x.

Results highlights

Quarter-on-Quarter: The revenue from operations grew by 57.9 percent to Rs 431 crore in Q3 FY26 from Rs 273 crore in Q2 FY26. EBIDT increased by 110.3 percent to Rs 51.1 crore in Q3 FY26 from Rs 24.3 crore in Q2 FY26. This was accompanied by a net profit that grew by 89.9 percent to Rs 35.9 crore in Q3 FY26 from Rs 18.9 crore in Q2 FY26.

Year-on-Year: The revenue from operations grew by 9 percent to Rs 431 crore in Q3 FY26 from Rs 395 crore in Q3 FY25. EBIDT grew by 29 percent to Rs 51.1 crore in Q3 FY26 from Rs 39.5 crore in Q3 FY25. This was accompanied by a net profit growth of 24 percent to Rs 35.9 crore in Q3 FY26 from Rs 29.0 crore in Q3 FY25, resulting in an EPS growth of 24 percent to Rs 7.23 per share in Q3 FY26.

Business Highlights

Margin Expansion Driven by Operating Leverage: The company reported EBITDA of Rs. 51.1 crore in Q3FY26, with margins strengthening to 11.9 percent. PAT margin improved to 8.3 percent, supported by calibrated price increases of 10 to 20 percent and improved EBITDA realization of around Rs. 10 per kg, reflecting enhanced operating leverage and better cost absorption.

Export Momentum and U.S. Tailwinds: Export volumes accelerated sharply to 48,965 MT during Q3FY26, driven by global inventory stocking and active participation in international trade exhibitions. Additionally, the reduction in U.S. import tariffs from 25 percent to 18 percent enhances pricing competitiveness, supporting improved demand visibility and sustained export-led revenue growth.

Operational Discipline and Financial Strength: The company maintained an EBIT margin of around 10 percent and a net profit margin of around 7 percent, underscoring stable profitability. A lean working capital cycle of 188 days reflects efficient cash management, stronger liquidity positioning, and operational resilience compared to industry peers amid evolving market dynamics.

Chaman Lal Setia Exports Limited (CLSE) was incorporated in Amritsar, Punjab, in 1994 by Mr Chaman Lal Setia and his sons. The company is engaged in the business of milling and processing basmati rice. The company has been involved in export operations since 1982 and was recognised as an export house by the Ministry of Commerce in 1989; at present, the company is a ‘Star Export House’.

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