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Chemical Stock Hits 5% Upper Circuit After Net Profit Increases 417% in Q4

Alex Smith

Alex Smith

1 hour ago

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Chemical Stock Hits 5% Upper Circuit After Net Profit Increases 417% in Q4

Synopsis: The share of this company surged 5% after reporting a 417 percent YoY rise in Q4 FY26 net profit, supported by strong revenue growth and strategic business expansion.

The share of this company, which specializes in the wholesale trading and distribution of industrial acids, chemicals, and related transportation services across India, gained investor traction after a strong Q4.

With a market capitalization of Rs 495 crore, A-1 Ltd’s shares on Wednesday made a day high of Rs 10.77 per share, hitting 5% upper circuit from its previous day’s close price of 10.26 per share. The share of this company has given a return of 376 percent over the last five years.

Results Overview

  • QoQ View: The revenue from operations grew by 107.7 percent to Rs 145 crore in Q4 FY26 from Rs 69.8 crore in Q3 FY26 (Dec 2025). EBIDT surged by 254.5 percent to Rs 7.09 crore from Rs 2.00 crore in the previous quarter. Net profit also saw a significant increase of 354.2 percent to Rs 4.36 crore from Rs 0.96 crore, leading to an EPS improvement of 350 percent to Rs 0.09 per share from Rs 0.02 in Q3 FY26. 
  • YoY View: Revenue from operations increased by 32.51 percent to Rs 145.27 crore in Q4 FY26 from Rs 109.62 crore in Q4 FY25. EBITDA rose by 191.89 percent to Rs 7.21 crore in Q4 FY26 compared to Rs 2.47 crore in Q4 FY25, while net profit surged by 417.11 percent to Rs 4.36 crore from Rs 0.84 crore reported in the same quarter last year. 
  • Fiscal Year Comparison: Revenue from operations increased by 3.44 percent to Rs 342.91 crore in FY26 from Rs 331.49 crore in FY25. EBITDA rose by 23.07 percent to Rs 12.60 crore in FY26 compared to Rs 10.23 crore in FY25, while net profit grew by 64.12 percent to Rs 5.99 crore from Rs 3.65 crore reported in the previous fiscal year. 

Q4 Business Highlights

  • Debt-Free Fleet Milestone A-1 Limited has achieved a major operational milestone with over 90 percent of its fleet now debt-free. The company aims to fully repay all vehicle-related liabilities by October 2026, creating a completely owned fleet. This transition is expected to strengthen the balance sheet, improve financial flexibility, and support long-term profitability.
  • Fleet Expansion to Support Demand The company is further strengthening its logistics operations by adding 10 multi-axle tankers to its existing fleet. Following this addition, A-1 Limited’s total owned fleet will increase to 71 vehicles. The expansion is expected to improve delivery efficiency, reduce turnaround time, and lower dependence on third-party transport providers.
  • Strategic Orders and Partnerships During the fiscal year, the company secured multiple strategic growth initiatives, including a tri-party concentrated nitric acid supply arrangement for 10,000 metric tonnes with Gujarat Narmada Valley Fertilizers & Chemicals Limited and Solar Industries India Limited. It also received a Rs 127.50 crore industrial urea supply order, strengthening its position in the chemicals business.
  • Expansion Into Electric Mobility A-1 Limited also expanded into the electric mobility segment by increasing its stake in A-1 Sureja Industries to 51 percent. Alongside this, the company completed a 3:1 bonus issue, 10:1 stock split, and increased its authorised share capital, supporting future business expansion and operational growth plans.

Management Commentary

Commenting on the company’s performance, Chairman and Managing Director Harshadkumar Patel stated that A-1 Limited delivered healthy profitability growth during FY26, supported by improved operational efficiencies and higher business volumes. He added that the strong Q4 FY26 performance reflects better execution, expanding market presence, and momentum across its core business segments.

The management further highlighted that A-1 Limited aims to transform into a multi-vertical green enterprise by 2028, combining low-emission chemical operations with clean mobility solutions. The company believes this strategy will strengthen its position as a future-ready ESG-focused mid-cap player with diversified revenue streams and scalable operations.

About the Company

A-1 Limited, formerly known as A-1 Acid Limited, is an Ahmedabad-based company engaged in the trading, distribution, and transportation of industrial acids, chemicals, and allied products across India. Established in 1975, the company serves industries including chemicals, textiles, fertilizers, metals, petrochemicals, and automobiles, while also expanding into sports equipment and electric mobility through its subsidiary A-1 Sureja Industries. 

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