Gem Aromatics Ltd

Financial Performance

• Q1 FY27 standalone revenue ₹83 crores; consolidated ₹99 crores.
• Standalone gross margin 17.7%; EBITDA margin 10.3%; consolidated gross margin 16.7%; EBITDA margin 3.3%.
• Standalone PAT ₹7.3 crores; consolidated PAT loss ₹7.9 crores.
• Standalone cash PAT ₹8.9 crores; consolidated cash PAT ₹1.3 crores.
• Depreciation ₹9.1 crores consolidated; capex at Dahej ~₹270 crores; ~₹265 crores incurred.

Krystal & Dahej Progress

• Dahej facility advancing commercialization of Krystal products.
• Safranal: commercial production started; revenue contribution expected end of Q2 FY27; meaningful by Q3 FY27.
• Cooling agents (Gemcool 3/5/23) production started; initial orders secured; meaningful Q3 FY27.
• Phenol derivatives: trial production end of Q2 FY27; commercial production targeted Q3 FY27; meaningful Q4 FY27.
• Krystal mix toward non-mint/high-value products; Brazil subsidiary approved to expand Latin America reach.

Q&A Highlights

• Demand remains strong; Western Hemisphere (US/Latin America) ramping; export deal flow expected in Q2/Q3.
• Madagascar floods disrupted clove RM shipments May–Jun; May onward improving; mint harvest May–July; export shipments flowing.
• Eugenol ramp-up impacted early; by year-end expected to be close to target ramp.
• Margins to improve as value-added Krystal products ramp; operating leverage supports mid-term profitability.
• Working capital: Krystal cycle expected to be lower; factoring to reduce debtor days.

Outlook and Guidance

• FY27 described as a ramp-up year; clearer guidance for FY28 as verticals scale.
• Krystal products expected to exceed 50% of overall revenue by FY28.
• Brazil subsidiary to enhance Latin America distribution; capex and commissioning linked to gradual scale-up.

AGM Details

• AGM held in VC/OAVM with start time 11:30 IST.
• Record date noted in filing.

Key Resolutions

• Resolution 1 (Ordinary): Adoption of audited standalone financial statements.
• Resolution 2 (Ordinary): Adoption of audited consolidated financial statements.
• Resolution 3 (Ordinary): Re-appointment by rotation of a director.
• Resolution 4 (Ordinary): Re-appointment by rotation of another director.
• Resolution 5 (Ordinary): Appointment of a director.
• Resolution 6 (Special): Appointment as Whole-Time Director with remuneration terms.
• Resolution 7 (Special): Appointment of Non-Executive Independent Director for five years.
• Resolution 8 (Special): Approval of consultancy fees payable to a Non-Executive Director.
• Resolution 9 (Ordinary): Ratification of remuneration payable to Cost Auditors.
• Resolution 10 (Ordinary): Appointment of Secretarial Auditors.
• Resolution 11 (Special): Remuneration payable to CFO/Whole-Time Director.
• Resolution 12 (Special): Remuneration payable to MD and CEO.
• Resolution 13 (Special): Remuneration payable to another Whole-Time Director.

Voting Results

• Resolution 1: Passed.
• Resolution 2: Passed.
• Resolution 3: Passed.
• Resolution 4: Passed.
• Resolution 5: Passed.
• Resolution 6: Passed.
• Resolution 7: Passed.
• Resolution 8: Passed.
• Resolution 9: Passed.
• Resolution 10: Passed.
• Resolution 11: Passed.
• Resolution 12: Passed.
• Resolution 13: Passed.

Director Changes

• New Whole-Time Director appointed; remuneration terms approved.
• Non-Executive Independent Director appointed for five-year term.
• Directors re-appointments by rotation approved.

Auditor Appointments

• Cost Auditors remuneration ratified.
• Secretarial Auditors appointed.

AGM details

• Held on Aug 19, 2026 at 11:30 IST via VC/OAVM.

Resolutions and approvals

• Item 1: Ordinary resolution to adopt standalone financial statements for the financial year ended March 31, 2026.
• Item 2: Ordinary resolution to adopt consolidated financial statements for the year ended March 31, 2026.
• Item 3: Ordinary resolution for re-appointment of Kaksha Vipul Parekh, retiring by rotation.
• Item 4: Ordinary resolution for re-appointment of Yash Parekh, retiring by rotation.
• Item 5: Ordinary resolution to appoint a director.
• Item 6: Special resolution approving appointment of Dinesh Vasu Thekkepanakkal as Whole-Time Director and remuneration.
• Item 7: Special resolution appointing Nandan Narula as Independent Director for five years.
• Item 8: Special resolution approving consultancy fees payable to Shrenik Kishorbhai Vora as Non-Executive Director.
• Item 9: Ordinary resolution ratifying remuneration payable to Y.R. Doshi & Associates as Cost Auditors for FY 2026-27.
• Item 10: Ordinary resolution appointing N.L. Bhatia & Associates as Secretarial Auditors.
• Item 11: Special resolution approving remuneration to Kaksha Vipul Parekh as WTD and CFO for balance of term.
• Item 12: Special resolution approving remuneration to Yash Parekh as MD & CEO for balance of term.
• Item 13: Special resolution approving remuneration to Vipul Parekh as WTD for balance of term.

Voting outcome

• All resolutions passed with the requisite majority.

Director changes

• Kaksha Vipul Parekh reappointed as Director (retiring by rotation).
• Yash Parekh reappointed as Director (retiring by rotation).
• Dinesh Vasu Thekkepanakkal appointed Whole-Time Director; remuneration approved.
• Nandan Narula appointed Independent Director for five years.

Auditors and secretarial

• Cost Auditors remuneration ratified for FY 2026-27.
• Secretarial Auditors appointed: N.L. Bhatia & Associates.

Standalone results

• Standalone revenue from operations: Rs 83.0 Cr in Q1FY27, up 8.6% YoY.
• Standalone gross profit Rs 14.7 Cr; gross margin 17.7%.
• Standalone EBITDA Rs 8.5 Cr; EBITDA margin 10.3%.
• Standalone PAT Rs 7.3 Cr; PAT margin 8.7%.
• Standalone cash PAT Rs 8.9 Cr.
• Standalone EPS Rs 1.4.

Consolidated results

• Consolidated revenue Rs 98.9 Cr in Q1FY27; up 12.8% YoY.
• Consolidated gross profit Rs 16.5 Cr; gross margin 16.7%.
• Consolidated EBITDA Rs 3.3 Cr; EBITDA margin 3.3%.
• Consolidated PAT Rs -7.9 Cr; PAT margin -8.0%.
• Consolidated EPS Rs -1.6.
• Consolidated cash PAT Rs 1.3 Cr.

Strategic and operational developments

• Brazil subsidiary approved for incorporation to distribute essential oils, aroma chemicals.
• Krystal Cooling Agents orders secured; initial orders for GEM Cool 03, 05, 23.
• Safranal: approvals progressing; revenue contribution expected end of Q2FY27.
• Phenol Derivatives: trial production end Q2FY27; commercial Q3FY27; revenue from Q4FY27.
• Clove Madagascar floods impacted raw material prices; situation normalising.
• Dahej facility capitalization increased depreciation; capex around Rs 265 Cr.
• International expansion: Brazil subsidiary expected to enhance distribution in Latin America.
• Management focus on scaling Krystal Dahej facility and expanding global presence.

Business Overview

• Specialty ingredients company focused on mint, clove derivatives, phenols, and Krystal Ingredients.
• Strategic expansion via Dahej facility, Brazil subsidiary, and advanced chemistry platforms.

Operational Highlights

• Q1FY27 standalone revenue ₹83.0 Cr, up 9% YoY.
• Consolidated revenue ₹98.9 Cr, up 12.8% YoY.
• Dahej capex capitalization increased depreciation by ₹9.1 Cr.
• Brazil subsidiary approved for distribution across Latin America.
• Krystal Ingredients launched cooling agents; Safranal and phenol derivatives trials ongoing.
• New Krystal products GEM Cool 03/05/23 and Safranal; production milestones planned Q2–Q3FY27.
• Expanded Dahej capacity supports higher-value product mix.
• International expansion: Brazil subsidiary to enhance distribution in Latin America.

Financial Performance

• Standalone gross margin 17.7% and EBITDA margin 10.3%; PAT ₹7.3 Cr.
• Consolidated gross margin 16.7% and EBITDA margin 3.3%; PAT −₹7.9 Cr.
• Standalone cash PAT ₹8.9 Cr, up 11% YoY.
• Consolidated cash PAT ₹1.3 Cr.
• Seasonally softer quarter; Madagascar floods raised raw material costs.
• Profitability affected by higher depreciation post Dahej capex capitalization.

Capital Structure & Liquidity

• Dahej capex funded via internal accruals and debt for Krystal Ingredients unit.
• No explicit debt/equity actions disclosed; liquidity implied by cash balances.

Strategic Priorities & Outlook

• Scale Krystal Ingredients' Dahej facility; broaden product capabilities; expand global markets.
• Focus on high-value specialty molecules with process innovation and green chemistry.
• Brazil subsidiary to drive Latin American growth; continued international expansion.

Risks & Mitigation

• Clove business affected by Madagascar floods; normalization expected.
• Higher depreciation due to Dahej capex; margins to improve with utilization.
• Execution risk in Krystal expansion; management focus on disciplined execution.

Governance & Leadership

• Promoters and directors named; no leadership changes announced.
• Strategic investors and customers include doTERRA and Dabur.

Meeting Details

• Conference call on Friday, August 14, 2026 at 4:00 p.m. IST.
• Type: group conference call with investors and analysts; mode: virtual.
• Event organized by Gem Aromatics Limited.
• Management participants: MD & CEO; WTD, Chairperson & CFO; Non-executive Director.
• Purpose: discuss unaudited Q1 2026 results (quarter ended June 30, 2026).

Meeting Details

• Date: August 13, 2026; time and venue not disclosed.

Key Agenda Items

• Stand-alone and consolidated unaudited financial results for quarter ended June 30, 2026 to be considered.

Other Notes

• Trading window closed from July 1, 2026 until 48 hours after results declaration.

AGM Details

• AGM date/time and mode: August 19, 2026 at 11:30 AM IST via VC/OAVM.
• Record date/cut-off for attendance and e-voting: August 12, 2026.
• Deemed venue for the meeting: Registered Office of the Company.

Resolutions Proposed

• Ordinary: Adoption of standalone financial statements for the year ended March 31, 2026.
• Ordinary: Adoption of consolidated financial statements for the year ended March 31, 2026.
• Ordinary: Re-appointment of Kaksha Vipul Parekh as Director.
• Ordinary: Re-appointment of Yash Parekh as Director.
• Ordinary: Appointment of Dinesh Vasu Thekkepanakkal as Director.
• Special: Appointment of Dinesh Vasu Thekkepanakkal as Whole-Time Director with remuneration terms.
• Special: Independent director Nandan Narula appointed for five-year term.
• Special: Consultancy fees up to Rs 25 lakh annually to Shrenik Vora.
• Ordinary: Ratification of Cost Auditors remuneration for FY 2026-27.
• Ordinary: Appointment of Secretarial Auditors for 2026-31; remuneration Rs 1,65,000.
• Special: Remuneration to Kaksha Vipul Parekh for balance term up to Rs 3 million per annum.
• Special: Remuneration to Yash Parekh for balance term up to Rs 10 million per annum.
• Special: Remuneration to Vipul Parekh for balance term up to Rs 3 million per annum.

Voting Results

• Voting results not disclosed in this filing.

Dividend

• No dividend proposed or declared.

Director Changes

• Dinesh Vasu Thekkepanakkal appointed Additional (Whole-Time) Director; five-year term.
• Nandan Narula appointed Independent Director for five-year term (May 21, 2026–May 20, 2031).
• Kaksha Vipul Parekh re-appointed as Director; CFO remuneration terms per notice.
• Yash Parekh re-appointed as Managing Director and CEO; balance term.
• Vipul Parekh re-appointed as Whole-Time Director.

Auditor Appointments

• Cost Auditors M/s Y.R. Doshi & Associates remuneration ratified for 2026-27.
• Secretarial Auditors M/s N.L. Bhatia & Associates appointed for 2026-31; remuneration Rs 1,65,000.

Related Party Transactions

• Approval for consultancy with Shrenik Kishorbhai Vora up to Rs 25 lakh per annum.

Other Approvals

• Remuneration for balance terms of Kaksha Parekh, Yash Parekh, and Vipul Parekh approved.