Debt-Free Small-Cap Chemical Stock Jumps 10% After Company Approves Rs 12 Crore Capacity Expansion; Q1 FY27 Revenue Rises 104% YoY
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Amal Ltd approved a capital expenditure plan to expand Sulphur Dioxide (SO₂) production capacity from 45 TPD to 105 TPD and reported strong Q1 FY27 earnings growth
✨ Key Takeaways
On Monday, Indian equity benchmarks traded lower, with the benchmark Nifty 50 index declining 156.00 points, or 0.64 per cent, to close at 24,178.30. Despite the weak market sentiment, Amal share price jumped 9.69 per cent to Rs 825.00 after the company announced a Rs 12 crore capital expenditure plan to expand its Sulphur Dioxide (SO₂) production capacity and reported strong quarterly earnings.
Amal Ltd Board Approves Rs 12 Crore Capacity Expansion
The board of directors approved a capital expenditure proposal to expand the company's Sulphur Dioxide (SO₂) production capacity from 45 tonnes per day (TPD) to 105 TPD, implying an additional capacity of 60 TPD. The expansion project is expected to be completed within two years with an estimated investment of approximately Rs 12 crore, funded through a combination of internal accruals and debt. The company said the expansion forms part of its strategic growth plan.
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Amal Ltd Q1 FY27 Financial Performance
On a consolidated basis, revenue from operations more than doubled, increasing 104.06 per cent YoY to Rs 96.54 crore from Rs 47.31 crore in Q1 FY26. Profit before Tax rose 117.62 per cent YoY to Rs 20.87 crore from Rs 9.59 crore, while PAT surged 77.98 per cent YoY to Rs 16.73 crore from Rs 9.40 crore.
The company also recognised other income of Rs 5.61 crore in its wholly owned subsidiary towards the State Goods and Services Tax incentive under the Gujarat Industrial Policy 2015.
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About Amal
Amal Ltd is a specialty chemical manufacturer engaged in the production of bulk chemicals. The company operates in a single business segment and supplies products used across various industrial applications.
The company is part of the Lalbhai Group and continues to focus on capacity expansion and operational efficiency to support future growth while strengthening its presence in the chemical manufacturing sector.
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Disclaimer: The article is for informational purposes only and not investment advice.