What’s new

• Net profit fell 32.5% to ₹2.72 crore for FY26 while revenue stayed flat at ₹56.56 crore.
• Operating costs surged, driven by higher raw-material prices and increased depreciation.
• ₹23 crore of the ₹25.24 crore IPO proceeds have been spent; ₹2.25 crore remains for a new plant.

Why it matters

Flat revenue with a profit collapse signals a margin problem, not a demand one. The rise in depreciation suggests the recent capex is not yet generating returns. With ₹2.25 crore left from the IPO, the funding for the new facility is thin.

What we’re watching

• Whether raw-material costs stabilize or keep compressing margins in FY27.
• The timeline and funding needs for the new manufacturing facility.
• If top-line growth returns, or if the company is stuck in a low-margin cycle.

The full read

Technichem Organics closed FY26 with a 32.5% drop in net profit to ₹2.72 crore, even though annual revenue held steady at ₹56.56 crore. The culprit is cost pressure. Higher raw-material prices and increased depreciation from recent asset additions have crushed margins. The company has now spent ₹23 crore of its ₹25.24 crore IPO proceeds, leaving ₹2.25 crore to complete a new manufacturing facility. That is a tight runway. The board signed off on the audited results with an unmodified opinion on May 29. The core problem is clear: revenue isn't growing, and costs are. Until the new plant is operational and generating returns, depreciation will keep dragging on the bottom line.

Primary source: BSE · NSE