Gem Aromatics targets ₹1,100 cr revenue by FY28 on Dahej ramp
Management laid out a two-year plan after a sequential Q4 recovery, but gave no guidance for the current year.
— 4 earlier stories on Gem Aromatics Ltd. →What's new
- Gem Aromatics set a FY28 revenue target of ₹1,050-1,100 cr and EBITDA margins of 16-18%.
- Dahej plant, operational since February, can generate up to ₹800 cr annually at peak capacity.
- Cooling agents from Dahej are being positioned as a tariff-free alternative to Chinese imports.
Why this matters
The company is staking a bold two-year target on a plant that only started production three months ago. For a micro-cap, the ₹800 cr peak potential from a single facility is material. The explicit China Plus One pitch for cooling agents is a specific, marketable claim.
What we're watching
- Actual Dahej utilization rates over the next two quarters.
- Whether cooling-agent orders materialize to back up the tariff-arbitrage thesis.
- Formal FY27 guidance, deferred citing geopolitical and raw-material volatility.
The full read
Gem Aromatics has a plan. Two years out, management is targeting ₹1,050-1,100 crore in revenue and 16-18% EBITDA margins. The bet is on Dahej. The greenfield plant started commercial production in February and management said it can eventually do ₹800 crore in annual turnover alone. The flagship products from that plant are cooling agents for oral care and confectionery, which Gem is positioning as a tariff-free alternative to Chinese imports. That's the core pitch: a China Plus One play for a specific ingredient niche. The targets are ambitious for a micro-cap that just switched on a new plant. The open question is execution: whether Dahej can ramp fast enough and whether the cooling-agent orders actually land. Management won't guide for the current year, citing geopolitical and raw-material volatility. That's a prudent hedge, but it leaves investors waiting for the first proof points.
Questions answered
- What is the main growth driver behind Gem Aromatics' FY28 targets?
- The Dahej facility, which began commercial production in February. Management says it can eventually generate up to ₹800 crore in annual turnover, with cooling agents serving as a tariff-free alternative to Chinese imports.
- Why didn't the company give guidance for the current financial year?
- Executives cited geopolitical and raw material volatility as reasons for caution. They deferred formal FY27 guidance during the call.
- How does the Dahej plant fit into the company's overall revenue ambition?
- At peak potential, the single facility could generate ₹800 crore. That would represent most of the ₹1,050-1,100 crore revenue target management set for FY28.
- What are cooling agents, and why are they significant for Gem Aromatics?
- They are ingredients used in oral care and confectionery products. Gem is pitching them as a tariff-free alternative to Chinese imports, making them central to its 'China Plus One' market strategy.
Gem Aromatics Ltd.
Latest quarter · Mar 2026
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All notes on GEMAROMA →- 22 May 2026 · 5:11 PM IST Gem Aromatics targets ₹1,100 cr revenue by FY28 on Dahej ramp
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