Mangalam Organics revenue up 22% but profit drops 41% on cost pressure
Q1 revenue rose to ₹179.09 crore but net profit fell to ₹7.27 crore as operating costs outpaced sales growth. Auditor switch and AGM dates are routine.
— 3 earlier stories on Mangalam Organics Ltd. →What's new
- Revenue up 22% YoY to ₹179.09 crore, but profit down 41% to ₹7.27 crore.
- Operating cost pressures drove the margin squeeze in the June quarter.
- Board appointed M/s JMT & Associates as statutory auditor for 5 years, replacing M/s NGST & Associates.
Why this matters
Mangalam Organics is a nano-cap chemicals player with a ₹473 crore market cap and thin margins. The 41% profit drop on a 22% revenue rise signals that cost inflation or pricing pressure is eating into earnings. For a company with ROE of 4.3% and debt/equity of 0.91, margin erosion narrows the already limited buffer.
What we're watching
- Whether cost pressures persist into Q2 or if the company can pass on higher costs.
- Any explanation from management on the sharp profit decline in the next concall.
- Sales trajectory: Q1 revenue of ₹179 crore is above the ₹154 crore run-rate in Q4 Mar 2026.
The full read
Mangalam Organics delivered 22% revenue growth to ₹179.09 crore in the June quarter, but profit slid 41% to ₹7.27 crore (a clear sign that costs are running ahead of pricing power). The company's ₹473 crore market cap and 4.3% return on equity leave little room for margin missteps. The board also appointed M/s JMT & Associates as statutory auditor for five years, a routine change as the previous auditor's term expired. The 44th AGM will be held virtually on September 24. The numbers confirm the trend flagged in prior quarters: topline is picking up, but earnings aren't following. For a nano-cap with 0.91 debt/equity, the next question is whether cost pressures ease or the company can pass them through.
Questions answered
- Why did Mangalam Organics' profit fall despite higher revenue?
- Operating costs rose faster than revenue, compressing margins. Net profit dropped 41% to ₹7.27 crore even as sales increased 22% to ₹179.09 crore.
- Is the auditor change significant?
- No. M/s JMT & Associates replaces M/s NGST & Associates, whose second term expires. The five-year appointment is routine and doesn't signal any accounting red flags.
- How does this quarter compare with the prior quarter?
- Revenue jumped from ₹154 crore in Q4 Mar 2026 to ₹179 crore in Q1 Jun 2026, but profit fell from ₹6 crore to ₹7.27 crore, a sequential profit decline of about 40%.
- What is the scale of the company?
- Mangalam Organics has a market cap of ₹473 crore, trailing P/E of 18.4, and ROE of just 4.3%. It is a nano-cap chemicals firm with debt/equity of 0.91.
Mangalam Organics Ltd.
Latest quarter · Mar 2026
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Story so far
All notes on MANORG →- 28 Jul 2026 · 4:57 PM IST Mangalam Organics revenue up 22% but profit drops 41% on cost pressure
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