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Tatva Chintan Pharma Chem Ltd
NSE: TATVA BSE: 543321 INE0GK401011 Commodities Energy 🔎 Screen
₹3,748 Cr
Market Cap
72.7
P/E
PEG
7.2%
ROCE
5.5%
ROE
0.15
D/E
19.3%
OPM
-12.4%
% from 52W High
93
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
Shareholding
About

Tatva Chintan Pharma Chem Limited was incorporated in 1996 and it is a manufacturer of a diverse portfolio of structure Directing Agents, Phase Transfer Catalysts, electrolyte salts for batteries, and Pharmaceutical and Agrochemical Intermediates and other Speciality chemicals

✓ Strengths 3
  • Company is expected to give good quarter
  • Company has been maintaining a healthy dividend payout of 22.5%
  • Company's working capital requirements have reduced from 133 days to 92.0 days
! Concerns 4
  • Stock is trading at 4.86 times its book value
  • The company has delivered a poor sales growth of 11.0% over past five years.
  • Company has a low return on equity of 3.68% over last 3 years.
  • Promoter holding has decreased over last 3 years: -7.15%
Key Ratios Snapshot
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Strong beat: Revenue soared 43% YoY and EBITDA margin expanded 400 bps to 19%, driven by robust SDA and PASC demand quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹167.1 Cr
+43% YoY (₹116.9 Cr in Q1FY26)
EBITDA Margin
19.0%
Up from 15.0% in Q1FY26, +400 bps YoY
PAT
₹16.0 Cr
+140% YoY (₹6.7 Cr in Q1FY26), PAT margin 9.6%
EPS
₹6.83
Up from ₹2.84 in Q1FY26; FY26 RoE at 7.2%
What Went Right
  • Revenue surged 43% YoY to ₹167.1 Cr, with SDA (34% of revenue) at ₹57.8 Cr and PASC (35%) at ₹58.4 Cr
  • EBITDA (excl. other income) jumped 86% YoY to ₹32.3 Cr; margin improved 400 bps to 19%
  • PAT climbed 140% YoY to ₹16.0 Cr, with PAT margin expanding to 9.6% from 5.7%
  • EPS rose to ₹6.83 from ₹2.84, reflecting the sharp earnings turnaround
What to Watch
  • Cash & equivalents declined to ₹8.8 Cr (Mar'26) from ₹14.1 Cr (Mar'25), despite higher profits
  • Short-term borrowings ballooned to ₹115.4 Cr (Mar'26) from ₹36.4 Cr (Mar'25), raising debt dependency
  • PAT margin at 9.6% remains modest, indicating still-low net profitability
  • Return on equity (FY26) was only 7.2%, suggesting weak capital efficiency despite the earnings recovery
  • Revenue growth QoQ (Q4FY26 → Q1FY27) was a moderate 25%, implying sequential momentum needs monitoring
Investor Lens
Tatva Chintan delivered a strong operational beat in Q1FY27, with revenue (+43% YoY) and EBITDA margin (19%) well above prior levels. The company benefits from its niche specialty chemical positions in SDA for zeolites and PASC intermediates, riding the China+1 shift and green chemistry demand. However, the balance sheet shows strain: cash dropped to ₹8.8 Cr and short-term debt leaped to ₹115.4 Cr, while RoE languishes at 7.2%. The improved profitability is encouraging but must translate into stronger cash generation and deleveraging. Next quarter, watch free cash flow, debt repayment plans, and whether EBITDA margin can hold above 18%.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Revenue jumps 43% YoY, PAT soars 129% – strong execution.
Revenue
Revenue surged to ₹167 Cr, up 42.7% YoY and 24.6% QoQ, indicating robust demand momentum across quarters.
Profitability
Net profit more than doubled to ₹16 Cr (up 128.6% YoY, 60% QoQ) with EPS climbing to ₹6.83 from ₹2.84 a year ago. Tax rate held at 24%.
Margins
Operating profit margin improved to 19% from 15% YoY, reflecting better cost control, but slipped from 21% in the prior quarter – sequential margin compression warrants monitoring.
Cash Flow
No cash flow data provided in the release.
Balance Sheet
Balance sheet remains healthy with a low debt-to-equity ratio of 0.15, indicating minimal leverage.
Key Risks
Despite strong growth, OPM contracted QoQ; high PE of 79.29 and low ROCE of 7.14% and ROE of 5.53% suggest elevated valuation relative to returns.
Outlook
Continued strong revenue growth provides a positive trajectory, but sustaining margins and improving capital efficiency will be key to long-term performance.
Generated by AI · Jun 2026 results · Not investment advice
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