Shree Pushkar Chemicals Shares Plummet 5% As Net Profit Declines 28% QoQ; Company Announces ₹2.1 Dividend 

Synopsis: Shree Pushkar Chemicals & Fertilisers Ltd reported a mixed Q4 FY26 performance as revenue remained largely stable while profitability declined on both yearly and sequential bases. The company faced pressure on margins during the quarter due to higher costs and softer operational performance. 

Shree Pushkar Chemicals & Fertilisers Ltd is engaged in the manufacturing of specialty chemicals, dyes intermediates, fertilizers, and soil conditioners. The company caters to multiple industries including textiles, agriculture, personal care, and industrial chemicals. 

India’s specialty chemicals sector continues to witness long-term growth driven by rising domestic demand, global supply chain diversification, and increasing exports. Government support under chemical manufacturing and industrial development initiatives is also expected to support future growth opportunities for the sector. 

Shree Pushkar Chemicals currently has a market capitalization of around Rs. 1,207 crore, with the stock trading near Rs. 367 down by 5% compared to its previous close of Rs. 385. The company has a stock P/E ratio of 17.2 and offers a dividend yield of 0.55%. 

The company maintains healthy return ratios with ROCE at 13% and ROE at 12.2%, reflecting stable operational efficiency. The stock has also delivered strong long-term movement, gaining nearly 35% from its 52-week low despite recent market volatility. 

Q4 FY26 Financial Performance Analysis 

Shree Pushkar Chemicals reported revenue of Rs. 218 crore in Q4 FY26, marginally lower by 0.5% YoY compared to Rs. 219 crore posted in Q4 FY25. On a sequential basis, revenue declined by 12.4% QoQ from Rs. 249 crore reported in Q3 FY26, indicating softer demand during the quarter. 

Operating profit stood at Rs. 22 crore during Q4 FY26, down 12% YoY from Rs. 25 crore reported in the corresponding quarter last year. Sequentially, operating profit remained flat compared to Rs. 22 crore in Q3 FY26. Operating profit margin came in at 10% during the quarter against 11% in Q4 FY25. 

Profit before tax declined to Rs. 17 crore in Q4 FY26, registering a fall of 15% YoY from Rs. 20 crore reported in Q4 FY25. On a QoQ basis, PBT also slipped 15% compared to Rs. 20 crore posted in Q3 FY26 due to weaker operational performance and margin pressure. 

Net profit for the quarter came at Rs. 13 crore, down 23.5% YoY compared to Rs. 17 crore reported in Q4 FY25. Sequentially, net profit also declined by 27.8% QoQ from Rs. 18 crore posted in the December quarter, reflecting the impact of lower profitability and higher tax expenses. 

The Board of Directors recommended a final dividend of Rs. 2.10 per equity share having a face value of Rs. 10 each for FY26. The dividend payout remains subject to shareholder approval at the upcoming Annual General Meeting (AGM). 

Industry Outlook 

India’s specialty chemicals industry continues to remain a major growth driver within the manufacturing sector. India is currently the sixth-largest chemical producer globally and the third-largest in Asia, contributing nearly 7% to the country’s GDP. According to industry estimates, India’s chemicals and petrochemicals demand is expected to nearly triple and touch US$1 trillion by 2040, supported by strong domestic consumption and export opportunities. 

The sector is also benefiting from rising investments and government support. FDI inflows into the chemicals sector crossed US$23.4 billion between April 2000 and June 2025. In Union Budget FY26, the government allocated Rs. 1.62 lakh crore to the Ministry of Chemicals and Fertilisers, while multiple PLI schemes and petrochemical investment projects are expected to accelerate long-term industry growth and manufacturing expansion. 

Shree Pushkar Chemicals reported a subdued Q4 FY26 performance with pressure on profitability despite relatively stable revenue performance. Declines in operating profit and net profit reflected weaker margins and softer quarterly momentum. The announcement of a Rs. 2.10 dividend also highlights management’s confidence in the company’s long-term fundamentals and shareholder-focused approach. 

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