Panama Petrochem reported a 5.6% year-on-year decline in net profit to ₹46 crore in Q3, compared with ₹49 crore in the same quarter last year. According to reports from CNBC TV18, the fall in bottom line was driven by margin contraction amid a higher cost base. The company's EBITDA declined 3.8% YoY to ₹60.6 crore, compared with ₹61 crore in the corresponding quarter last year, with EBITDA margin narrowing to 7.8% from 8.7% year-on-year. However, recent quarterly results show an even steeper decline, with net profit falling 13.55% quarter-on-quarter and 5.55% year-on-year to ₹45.81 crore, as reported by MarketsMOJO. The operating margin also contracted significantly to 7.82% from 8.88% in the previous quarter, marking the lowest operating margin in seven quarters.
Despite profitability challenges, Panama Petrochem demonstrated resilience in revenue generation. As reported by CNBC TV18, revenue from operations rose 6.5% YoY to ₹775 crore, up from ₹728 crore a year ago. The growth was supported by stable demand across product segments and continued execution momentum during the quarter. For the nine months ended December, the company's revenue from operations grew 6.9% YoY to ₹2,241.5 crore, compared with ₹2,097.7 crore a year ago. Recent quarterly data shows this trend continuing with net sales reaching ₹775.05 crore, reflecting a marginal sequential growth of 0.24% from the previous quarter and a year-on-year increase of 6.47%, marking the highest quarterly revenue achieved by the company.
According to the company's financial disclosure, total expenses for the quarter stood at ₹720.2 crore, broadly in line with last year. The cost structure included cost of materials consumed at ₹574.7 crore and purchases of stock-in-trade at ₹96.9 crore. Inventory movement remained favourable with a reduction of ₹15.9 crore during the quarter. Employee benefit expenses were ₹9.1 crore, finance costs stood at ₹2.4 crore, and depreciation and amortisation expense was ₹3.4 crore. Historical data shows that raw material costs have escalated significantly from ₹809.03 crore in March 2020 to ₹2,206.73 crore in March 2025, outpacing the company's pricing power and contributing to margin pressure.
As reported by CNBC TV18, shares of Panama Petrochem were trading 3.8% below at ₹294.6 on the NSE at 13:45 IST. The quarter reflected stable topline growth but pressure on margins, as higher costs offset revenue gains, keeping profitability under check despite healthy operational activity. Recent market performance shows the stock has reacted negatively to these results, trading down 3.55% as of February 10, 2026, and is down 15.16% over the past year. The stock has also declined to a fresh 52-week low of ₹236 on 11 February 2026, marking significant underperformance amid investor concerns about the company's ability to maintain profitability amid rising cost pressures. MarketsMOJO has rated the stock 'Sell' with this rating last updated on January 19, 2026, reflecting ongoing concerns about operational challenges.
