Acutaas Chemicals (ACUTAAS) Q2 24/25 earnings summary

Executive summary

• Revenue grew 43.2% year-over-year in Q2 FY 2025, driven by strong performance in pharmaceutical intermediates, specialty chemicals, and a ramp-up in CDMO business.

• FY 2025 revenue growth guidance was raised from 25% to 30% due to robust order pipeline and demand for core molecules.

• PMDA Japan granted GMP compliance to the shipping facility, supporting sales to regulated markets and enhancing international credibility.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY2025 were approved with a clean limited review report from statutory auditors.

• Demand revival is underway but at a slower pace, with pricing pressure persisting in several chemical subsegments.

Financial highlights

• Q2 FY 2025 revenue: INR 246.7 crore (Rs. 2,467 mn), up 43.2% YoY; H1 FY 2025 revenue: INR 423.4 crore (Rs. 4,234 mn), up 29.8% YoY.

• Q2 FY 2025 EBITDA: INR 48.9 crore (Rs. 489 mn), up 97.2% YoY; EBITDA margin at 19.8%.

• Q2 FY 2025 PAT: INR 37.6 crore (Rs. 375 mn), up 155% YoY; PAT margin at 15.2%.

• Export revenue contributed 76% in Q2 FY 2025; domestic business at 24%.

• Standalone and consolidated H1 FY 2025 net profit: INR 37.39 crore and INR 37.29 crore, respectively.

Outlook and guidance

• Revenue growth guidance for FY 2025 raised to 30% based on strong order pipeline and demand recovery.

• Management expects 25%-30% CAGR in top-line growth through 2035, supported by a strong product pipeline and CDMO projects.

• EBITDA margin targeted to reach 21% in the near term, with aspirations to achieve 25%-30% over the next three years.

• Proceeds from preferential issue and QIP are earmarked for capital expenditure, debt repayment, and general corporate purposes, with significant unutilized funds held in fixed deposits.