Chemical Stock Hits 20% Upper Circuit After Reporting 780% QoQ Increase in Net Profit

Synopsis: Shares of Amal Ltd hit the 20% upper circuit after the company reported strong Q1FY27 results. Revenue rose 27.5% QoQ to ₹96.53 crore, while net profit surged 780% QoQ to ₹16.72 crore. The sharp sequential earnings growth and improved profitability fueled strong investor buying interest.

The shares of the Micro-cap company, which specializes in the manufacturing and marketing of bulk chemicals and their derivatives,  are in focus as they have rallied 20 percent in the day’s trade following its Q1 results.

With a market capitalization of Rs. 929.86 crores in the day’s trade, the shares of Amal Ltd hit a 20 percent upper circuit, making a high of Rs. 752.15 per share compared to its previous closing price of Rs. 626.80 per share.

What happened

Amal Ltd, engaged in the manufacturing and marketing of bulk chemicals and their derivatives are in focus following their Q1 results as follows. Its Revenue from Operations increased by 104.1 percent YoY from Rs. 47.30 Crores in Q1FY26 to Rs. 96.53 Crores in Q1FY27, and increased by 27.5 percent QoQ from Rs. 75.73 Crores in Q4FY26 to Rs. 96.53 Crores in Q1FY27.

Its net profit increased by 77.9 percent YoY from Rs. 9.40 Crores in Q1FY26 to Rs. 16.72 Crores in Q1FY27, and increased by 780.0 percent QoQ from Rs. 1.90 Crores in Q4FY26 to Rs. 16.72 Crores in Q1FY27. The earnings per share (EPS) for the quarterly period stood at Rs. 13.53, compared to Rs. 7.61 in the previous year’s quarter. 

The company maintains strong profitability, with a Return on Capital Employed (ROCE) of 26.0% and a Return on Equity (ROE) of 20.4%, reflecting efficient utilization of capital and the ability to generate healthy returns for shareholders. Additionally, its debt-to-equity ratio of 0.00 indicates a debt-free balance sheet, providing financial stability and reducing interest-related risks.

From a valuation perspective, the company has a PEG ratio of 0.77, suggesting that the stock is reasonably valued relative to its earnings growth potential. Furthermore, the company has delivered a healthy profit CAGR of 20.5% over the last five years, highlighting its consistent earnings growth and strong operational performance over the long term.

Company Overveiw & Others

Amal Ltd, originally promoted by the Piramal Group in 1974–75, is a manufacturer of bulk chemicals and downstream chemical products. The company is now controlled by Atul Ltd through Atul Finserv Ltd and owns the wholly owned subsidiary Amal Speciality Chemicals Ltd.

It focuses on maintaining efficient manufacturing processes while meeting environmental and quality standards. With a long-standing presence in India’s industrial sector, the company continues to support domestic industries through the supply of essential chemical products and by emphasizing operational reliability and sustainable business practices.

The company’s key products include sulphuric acid, oleum, sulphur dioxide, and sulphur trioxide. These chemicals are widely used across industries such as dyestuffs, textiles, fertilizers, pharmaceuticals, petrochemicals, personal care, and electroplating, serving as essential raw materials for a variety of industrial processes.

Amal’s primary manufacturing facility is located in Ankleshwar, Gujarat, with an installed capacity of 140 tonnes per day of sulphuric acid and downstream products. Its subsidiary, Amal Speciality Chemicals Ltd (ASCL), operates an additional facility with a capacity of 300 tonnes per day. 

The company’s facilities are strategically located near Atul Ltd’s aromatic chemicals plant, enabling backward integration and ensuring a reliable supply of key chemical inputs for Atul’s operations. This integration supports operational efficiency while strengthening Amal’s role within the broader Atul Group value chain.

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