Gem Aromatics profit falls 97% in FY26; directors waive pay
Consolidated net profit plunged to ₹1.4 crore from ₹53.4 crore as revenue shrank 27%. All three executive directors gave up their salaries.
— 4 earlier stories on Gem Aromatics Ltd. →What's new
- Consolidated net profit collapsed 97% to ₹1.4 crore in FY26 from ₹53.4 crore.
- Revenue fell 27% to ₹366.5 crore; standalone profit declined 53% to ₹26.7 crore.
- All three executive directors waived their remuneration for the year.
Why this matters
The near-total profit wipeout happened after a capacity expansion, meaning new assets are generating losses instead of returns. Higher raw-material and finance costs swamped a 27% revenue drop. The executive directors waiving their salaries is a rare public concession that the year was a disaster.
What we're watching
- Whether the new capacity can drive volume growth to offset cost pressures in FY27.
- If the expanded board changes operational strategy.
- The gap between standalone and consolidated results in coming quarters.
The full read
Gem Aromatics' consolidated net profit fell to ₹1.4 crore in FY26 from ₹53.4 crore. That is a 97% collapse. Revenue shrank 27% to ₹366.5 crore from ₹504 crore. Standalone profit declined 53% to ₹26.7 crore. The company blamed higher raw-material costs, increased finance charges, and depreciation linked to a recent capacity expansion. All three executive directors (Vipul Parekh, Kaksha Parekh, and Yash Parekh) waived their remuneration for the year. The board also appointed Dinesh Vasu Thekkepanakkal as whole-time director and Nandan Narula as independent director. For a micro-cap, the profit collapse is severe. The new capacity must drive volumes quickly to reverse this trend. It hasn't yet.
Questions answered
- How big was the profit drop for Gem Aromatics?
- Consolidated net profit fell to ₹1.4 crore from ₹53.4 crore, a 97% decline. Standalone profit fell 53% to ₹26.7 crore.
- What caused the earnings collapse?
- The company cited higher raw-material costs, increased finance charges, and depreciation from a recent capacity expansion. Revenue also fell 27%.
- Why did the directors waive their pay?
- The filing does not state a reason, but the waiver applies to all three executive directors for the full year and coincides with a 97% profit drop.
- What new appointments did the board approve?
- The board appointed Dinesh Vasu Thekkepanakkal as whole-time director and Nandan Narula as independent director alongside the results.
Gem Aromatics Ltd.
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All notes on GEMAROMA →- 21 May 2026 · 6:38 PM IST Gem Aromatics profit falls 97% in FY26; directors waive pay
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