Panama Petrochem Q3 profit slips 6% YoY

Panama Petrochem reported a muted performance in the December quarter, with profitability coming under pressure.

The company’s net profit declined 5.6% year-on-year to ₹46 crore in Q3, compared with ₹49 crore in the same quarter last year. The fall in bottom line was driven by margin contraction amid a higher cost base.

Revenue from operations rose 6.5% YoY to ₹775 crore, up from ₹728 crore a year ago, supported by stable demand across product segments and continued execution momentum during the quarter.

EBITDA declined 3.8% YoY to ₹60.6 crore, compared with ₹61 crore in the corresponding quarter last year. As a result, EBITDA margin narrowed to 7.8% from 8.7% YoY, reflecting elevated operating expenses and limited operating leverage.

On the cost front, total expenses for the quarter stood at ₹720.2 crore, broadly in line with last year. Cost of materials consumed was ₹574.7 crore, while purchases of stock-in-trade came in at ₹96.9 crore. Inventory movement remained favourable, with a reduction of ₹15.9 crore during the quarter.

Employee benefit expenses were ₹9.1 crore, finance costs stood at ₹2.4 crore, and depreciation and amortisation expense was ₹3.4 crore. Other expenses for the quarter were ₹49.7 crore.

Overall, the quarter reflected stable topline growth but pressure on margins, as higher costs offset revenue gains, keeping profitability under check despite healthy operational activity.

Panama Petrochem Ltd (PANAMAPET) is an Indian specialty‑petrochemical manufacturer that makes and sells chemicals derived from crude‑oil/ base‑oil feedstock to industrial customers. The company runs plants in India and the UAE and exports to the Middle East, Africa, and other regions.

For the nine months ended December, Panama Petrochem’s revenue from operations grew 6.9% YoY to ₹2,241.5 crore, compared with ₹2,097.7 crore a year ago. Net profit remained largely flat at ₹141.4 crore, versus ₹142.8 crore YoY.

Shares of were trading 3.8% below at ₹294.6 on the NSE at 13:45 IST.