{"id":177920,"date":"2026-01-27T12:02:37","date_gmt":"2026-01-27T17:02:37","guid":{"rendered":"https:\/\/alphastreet.com\/india\/?p=177920"},"modified":"2026-01-27T12:02:37","modified_gmt":"2026-01-27T17:02:37","slug":"gem-aromatics-slides-as-dahej-depreciation-pushes-q3-loss","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/gem-aromatics-slides-as-dahej-depreciation-pushes-q3-loss\/","title":{"rendered":"Gem Aromatics slides as Dahej depreciation pushes Q3 loss"},"content":{"rendered":"\n

Gem Aromatics Limited (GEMAROMA.NS)<\/strong> shares fell in early trade on Tuesday after the specialty ingredients manufacturer reported a quarterly loss and a sharp drop in nine-month profit, weighed down by higher depreciation charges and subdued demand.<\/p>\n\n\n\n

The stock was issued at \u20b9325 per share at its National Stock Exchange and BSE listing on Aug. 26, 2025. It has since traded well below its offer price and remains far from its 52-week high of \u20b9349.60, compared with a low of \u20b9133.00. The company\u2019s market capitalization stood at about \u20b97.9 billion, according to market data.<\/p>\n\n\n\n

Earnings Pressure From Depreciation<\/h2>\n\n\n\n

For the quarter ended Dec. 31, 2025, Gem Aromatics reported consolidated revenue from operations of \u20b9789.03 million, down from \u20b9968.44 million a year earlier. The company posted a consolidated net loss of \u20b949.94 million, versus a profit of \u20b974.57 million in the year-ago quarter.<\/p>\n\n\n\n

On a standalone basis, the company remained profitable with net profit of \u20b942.08 million, though earnings declined year on year.<\/p>\n\n\n\n

The consolidated loss was largely driven by a non-cash depreciation charge of \u20b987.1 million, following the capitalization of around \u20b92,500 million in capital expenditure related to its new Dahej greenfield facility.<\/p>\n\n\n\n

Margins Contract Amid Weak Volumes<\/h2>\n\n\n\n

Profitability weakened during the quarter. EBITDA margin contracted to 8.9% from 13.5% a year earlier, while gross margin declined to 23.0% from 25.8%, reflecting lower volumes and pricing pressure.<\/p>\n\n\n\n

For the nine months ended December 2025, consolidated revenue declined to \u20b92,560.61 million from \u20b93,017.38 million in the year-ago period. Nine-month consolidated profit fell to \u20b94.11 million, compared with \u20b9257.79 million a year earlier.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Demand Headwinds Persist<\/h2>\n\n\n\n

The company said quarterly revenue was affected by tariff-related uncertainty and GST-related changes, prompting customers to defer procurement and draw down inventories. Management noted a gradual recovery in mint prices and improved customer inquiries toward the end of the quarter, though demand conditions remained cautious.<\/p>\n\n\n\n

Product Mix & Competition<\/h2>\n\n\n\n

Gem Aromatics operates across mint, clove and synthetic aroma chemicals, offering more than 80 products and serving 225 domestic and 44 international customers across 18 countries, including Colgate-Palmolive, Symrise, Dabur and Patanjali.<\/p>\n\n\n\n

The company is expanding into higher-value specialty chemistries, including citral and phenol derivatives, to reduce dependence on mint-linked pricing. Commercial production of WS-23 and WS-03 cooling agents began at the Dahej facility in December, with limited volumes in the quarter.<\/p>\n\n\n\n

Outlook & Coverage<\/h2>\n\n\n\n

Gem Aromatics has outlined a long-term revenue target of \u20b910,500\u201311,000 million by FY28, with expected EBITDA margins of 16\u201318%, driven by capacity ramp-up and product mix changes. There were no analyst upgrades, downgrades or price-target changes following the board meeting held on Jan. 27, 2026, which concluded at 4:05 p.m. local time.<\/p>\n\n\n\n

Bottom Line<\/h2>\n\n\n\n

Gem Aromatics\u2019 near-term earnings remain under pressure from weak demand and higher depreciation, leaving execution at its new Dahej facility key to restoring margins and growth.<\/p>\n","protected":false},"excerpt":{"rendered":"

Gem Aromatics Limited (GEMAROMA.NS) shares fell in early trade on Tuesday after the specialty ingredients manufacturer reported a quarterly loss and a sharp drop in nine-month profit, weighed down by higher depreciation charges and subdued demand. The stock was issued at \u20b9325 per share at its National Stock Exchange and BSE listing on Aug. 26, […]<\/p>\n","protected":false},"author":2393,"featured_media":177919,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5,1941,13974,9825,392,6349],"tags":[10169,9175,9104,9092,14492,1792,14827,10089,8145],"class_list":["post-177920","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","category-stock-analysis","category-ceoinsights","category-earnings-call-highlights","category-earnings","category-transcripts","tag-earnings","tag-earnings-call","tag-earnings-conference","tag-earnings-transcripts","tag-financial-results","tag-financial-services","tag-gem-aromatics","tag-quarterly-earnings","tag-retail"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2026\/01\/GEM-scaled.png","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":177916,"url":"https:\/\/alphastreet.com\/india\/gem-aromatics-faces-near-term-pressure-as-facility-ramps-up\/","url_meta":{"origin":177920,"position":0},"title":"Gem Aromatics Faces Near-Term Pressure as Facility Ramps Up","author":"Staff Correspondant","date":"January 27, 2026","format":false,"excerpt":"Gem Aromatics Limited (GEMAROMA.NS) is a specialty ingredients manufacturer operating across mint, clove, and synthetic aroma chemicals. 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