Kronox Lab Sciences Limited Stock Analysis

Revenue growth maintained at 5.26% YoY for Q3 FY2026 (Rs 2,527.40 lakhs vs Rs 2,401.11 lakhs) with nine-month revenue reaching Rs 7,509.37 lakhs, demonstrating demand stability for high purity speciality fine chemicals / Other income surged 38.26% YoY to Rs 113.25 lakhs in Q3 (from Rs 81.90 lakhs) and nearly doubled for nine months to Rs 304.78 lakhs (vs Rs 161.18 lakhs), indicating strong treasury management or ancillary revenue streams / Zero debt position maintained throughout FY2026 with finance costs of only Rs 7.80 lakhs for nine months, ensuring financial flexibility and minimal interest burden / Total comprehensive income for nine months reached Rs 1,979.47 lakhs (up 2.66% YoY from Rs 1,928.13 lakhs), reflecting resilient bottom-line performance despite operational cost pressures / Consistent EPS delivery with Rs 1.79 in Q3 FY2026 (vs Rs 1.77 in Q3 FY2025) and cumulative nine-month EPS of Rs 5.33 (up from Rs 5.20 YoY), maintaining shareholder value / Positive inventory management with inventory reduction contributing Rs 8.22 lakhs in Q3 (vs Rs 6.51 lakhs YoY), indicating efficient working capital deployment

Profit after tax declined 22.73% YoY to Rs 658.90 lakhs in Q3 (from Rs 852.86 lakhs), driven by disproportionate cost increases despite revenue growth of 5.26% / Employee benefit expenses surged 21.89% YoY to Rs 213.88 lakhs in Q3 (from Rs 177.72 lakhs) and increased 64.09% YoY for nine months to Rs 576.29 lakhs, indicating potential wage inflation or headcount expansion not matched by revenue growth / Other expenses increased 25.26% YoY to Rs 324.51 lakhs in Q3 (from Rs 259.08 lakhs) and 12.51% YoY for nine months to Rs 970.80 lakhs, reflecting margin compression from operational cost escalation / Sequential profit decline from Rs 687.63 lakhs in Q2 FY2026 to Rs 658.90 lakhs in Q3, despite similar revenue levels (Rs 2,553.32 lakhs vs Rs 2,527.40 lakhs), suggesting weakening quarterly momentum / Single reportable segment concentration in high purity speciality fine chemicals manufacturing exposes the company to sector-specific demand volatility and commodity price fluctuations / Tax expenses remained elevated at Rs 675.51 lakhs for nine months (comparable to Rs 671.16 lakhs YoY) despite lower profit growth, maintaining effective tax rate around 25.67% and limiting net margin expansion

Q3 FY26 revenue increased to Rs 2,527.40 lakh from Rs 2,401.11 lakh (+5.3% YoY), and 9M FY26 revenue rose to Rs 7,509.37 lakh from Rs 7,406.28 lakh (+1.4% YoY). / Earnings remained positive and slightly higher YoY: Q3 PAT was Rs 658.90 lakh vs Rs 652.86 lakh (+0.9%), and 9M PAT was Rs 1,965.79 lakh vs Rs 1,915.19 lakh (+2.6%). / EPS trend is stable-to-positive, with Q3 EPS at 1.79 vs 1.77 YoY and 9M EPS at 5.33 vs 5.20 YoY. / Despite cost pressures, profitability is still healthy with Q3 PBT of Rs 859.80 lakh and ~34.0% PBT margin on revenue. / Auditor issued an unmodified limited review conclusion and the company reported no exceptional items in the quarter/9M period.

Sequential slowdown is visible: Q3 revenue declined from Rs 2,553.32 lakh in Q2 to Rs 2,527.40 lakh, while Q3 PBT fell from Rs 918.00 lakh to Rs 859.80 lakh and PAT from Rs 687.63 lakh to Rs 658.90 lakh. / Expense intensity increased YoY in Q3, with employee costs up to Rs 213.88 lakh from Rs 177.72 lakh (+20.3%) and other expenses up to Rs 324.51 lakh from Rs 259.08 lakh (+25.3%). / Depreciation rose sharply to Rs 51.99 lakh in Q3 from Rs 35.72 lakh YoY (+45.6%), and finance cost of Rs 3.88 lakh appeared versus nil YoY, pressuring margins. / Other income contributed Rs 113.25 lakh in Q3 (vs Rs 81.90 lakh YoY), and this support is non-operating relative to core revenue. / The report discloses only one operating segment (high purity speciality fine chemicals), indicating concentration risk with limited segment diversification. / No explicit debt, cash flow, liquidity, or capex detail is provided in this filing, limiting visibility on balance-sheet strength and cash conversion.