Shares of multibagger stock Acutaas Chemicals surged over 13% on Tuesday, October 27, after the specialty chemicals manufacturer reported strong year-on-year growth in its September quarter earnings and raised its full-year FY27 revenue and margin guidance. The stock’s latest rally added to its exceptional long-term performance, with shares delivering a return of nearly 599% over five years.
The company raised its FY27 revenue growth guidance to around 30%, from the earlier estimate of 25%, while increasing its EBITDA margin guidance to 38-40%. Improved revenue visibility and a robust order pipeline supported management’s more optimistic outlook.
Acutaas Chemicals Q2 results: Revenue rises 43%, EBITDA jumps 86%
Acutaas Chemicals reported revenue of ₹437 crore for the September quarter, marking a 42.8% increase from ₹306 crore in the corresponding period last year.
Operating performance improved even faster, with earnings before interest, tax, depreciation and amortisation (EBITDA) climbing 86.3% year-on-year to ₹177 crore from ₹95 crore. EBITDA margin expanded sharply to 40.5%, compared with 31% a year earlier, supported by improved operating leverage and higher gross margins.
The pharmaceutical intermediates business continued to drive growth, while the specialty chemicals segment remained subdued. The company’s contract development and manufacturing organisation (CDMO) operations and core advanced intermediates business also delivered robust growth during the quarter.
Management said weaker performance in specialty chemicals partly offset the momentum in pharmaceutical intermediates. Commodity chemicals revenue declined as the company continued its planned withdrawal from the product category. The BFC business was also affected by a change in ownership of a US customer.
South Korea facility inaugurated ahead of schedule
A key development during the quarter was the early inauguration of Acutaas Chemicals’ manufacturing facility in South Korea. The facility is equipped to manufacture high-purity chemicals used in photoresists, semiconductor packaging materials, etching materials and other semiconductor applications.
The investment positions the company to pursue opportunities in the semiconductor ecosystem, where demand for specialised materials is linked to the expansion of advanced electronics manufacturing.
Acutaas Chemicals serves industries including pharmaceuticals, semiconductors, battery chemicals, personal care, agrochemicals and fine chemicals. Its core capabilities include research-driven development and manufacturing of advanced pharmaceutical intermediates used in regulated and generic active pharmaceutical ingredients, as well as intermediates for new chemical entities.
The company said stronger revenue visibility and its order pipeline had given it confidence to raise FY27 revenue growth guidance from 25% to approximately 30%. It also increased its EBITDA margin guidance to 38-40%, signalling expectations of sustained operating profitability.
Stock trend: Multibagger stock gains 580% in five years
Acutaas Chemicals shares gained as much as 13.35% to ₹3,796 per share. It hit its record high of ₹3,900.00 in intra-day deals today.
The multibagger stock has jumped 16% in 1 month, 13% in 3 months, 52% in 6 months and 119% in the last 1 year.
The stock’s longer-term performance has been even more striking, with a gain of 580% over five years. On a year-to-date basis, the shares have risen by more than 100%.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
