According to the latest unaudited financial results approved by the Board of Directors on August 12, 2026, Chemiesynth (Vapi) reported a net loss of ₹58.37 lakh for the quarter ended June 30, 2026, compared to a net loss of ₹45.63 lakh in the corresponding quarter of FY25. The company's revenue from operations grew 5.6% year-on-year to ₹419.69 lakh from ₹397.46 lakh recorded in Q1 FY26, demonstrating modest top-line growth despite operational challenges. The results were subjected to a limited review by statutory auditors Manoj Shah & Co., who issued an unqualified report.
As reported in the latest financial results, the company's total income stood at ₹421.55 lakh, representing a 6.1% year-on-year increase from ₹397.46 lakh in Q1 FY26. However, total expenses reached ₹479.92 lakh, resulting in a pre-tax loss of ₹58.37 lakh compared to a pre-tax loss of ₹60.36 lakh in the previous quarter. The revenue growth was achieved despite the company reporting a net loss, indicating operational challenges that offset the positive revenue momentum.
According to the detailed expense breakdown, key expense drivers included cost of materials consumed at ₹192.34 lakh and other expenses at ₹235.87 lakh. Employee benefits expense remained stable at ₹75.43 lakh, while finance costs increased slightly to ₹28.11 lakh from ₹25.09 lakh in the prior year quarter. The divergence between revenue growth (+5.6%) and expense growth (+8.3%) highlights significant margin compression in Q1 FY26, with high fixed costs like employee benefits and depreciation contributing to the widened loss despite sequential revenue improvement from Q4 FY26 levels.
In a strategic move to strengthen its capital base, the Board approved increasing the authorized share capital from ₹3.25 crore to ₹18.25 crore, involving an increase in equity shares and introduction of preference shares. This proposal requires shareholder approval via a Special Resolution at the ensuing Annual General Meeting (AGM) scheduled for September 30, 2026. Additionally, the Board approved the issuance of unlisted Non-Convertible Cumulative Redeemable Preference Shares (NCRPS) on a private placement basis, with the company raising ₹15 crore through NCRPS to bolster liquidity without immediately diluting existing equity holders, though it will incur cumulative dividend obligations.
