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Galaxy Surfactants shares hit a 20% upper circuit at Rs 2,505.60 on the BSE on Friday after the home and personal care specialty chemicals maker reported a strong Q1FY27 performance, with record quarterly operational earnings and more than doubling of net profit.

The company reported a consolidated net profit of Rs 165.9 crore for the quarter ended June 30, 2026, up 108.7% from Rs 79.5 crore in the year-ago period. Net profit also surged 165.8% from Rs 62.4 crore in Q4FY26. Revenue from operations rose 38.5% year-on-year to Rs 1,785.2 crore and 35.8% sequentially.

Operating performance set a new milestone for the company. Galaxy Surfactants achieved its highest-ever quarterly EBITDA of Rs 252.5 crore, up 86.9% year-on-year from RS 135.1 crore and rising 107.1% sequentially.

Operating profit margin broadened to 14.1% during the quarter, compared to 10.5% in Q1FY26. Operational efficiency was also evident in its unit economics, as EBITDA per metric tonne jumped to approximately RS 35,458 per MT, compared to RS 20,009 per MT in the same period last year.

The company delivered mid-single-digit year-on-year volume growth overall. India led the recovery, returning to low double-digit growth, while the Rest of the World (ROW) segment maintained mid-single-digit volume expansion. By product vertical, performance surfactants generated Rs 1,178.7 crore in revenue, while speciality care contributed Rs 603.2 crore. Both segments recorded mid-single-digit volume growth year-on-year.

Despite supply chain headwinds and geopolitical developments in West Asia, volumes in the Africa, Middle East, and Turkey (AMET) market declined only in low single digits year-on-year and staged a strong sequential recovery. Management attributed the overall quarterly gains to a better product mix, higher contributions from specialty care products, disciplined pricing actions, and demand recovery among Tier-1 FMCG clients.

Galaxy Surfactants Growth Outlook

Managing Director K. Natarajan highlighted that strategic risk management, supply chain agility, and disciplined commercial decisions allowed the firm to navigate raw material price volatility and global logistics challenges effectively.Also read: Tata Motors PV shares fall 5% after weak Q1 results. What are Morgan Stanley, Nomura, others saying?

Looking ahead, management expressed confidence in its long-term growth trajectory. While remaining watchful of geopolitical developments and their impact on global supply chains, the company sees strong demand in India and recovery in core client segments. Continued international demand for specialty care products is also expected to support growth through FY27.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Shares of Sammaan Capital fell nearly 4% to the day’s low of Rs 155 on the NSE after the company reported a 27% decline in consolidated profit to Rs 243 crore in the first quarter ended June.

According to a filing with the exchange, the company’s consolidated profit declined by 27% to Rs 243 crore in Q1FY27 from Rs 334 crore in the same period a year ago. Total revenue from operations was reported at Rs 1,651 crore in Q1FY27, compared with Rs 2,409 crore in the same period in FY26.

Total income was reported at Rs 1,682 crore. The total disbursement by the company was Rs 3,875 crore across five products to 12,000 new customers, of which 97% were secured loans. The capital adequacy ratio stood at 20.1%.

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Under credit costs, gross recovery stood at Rs 424 crore, while net recovery was Rs 240 crore. The company had total assets under management (AUM) of Rs 56,239 crore, with Residential Housing Finance, including Affordable Housing & Mortgages, accounting for Rs 31,390 crore in AUM.

Nearly Rs 840 crore of Commercial Real Estate loans were disbursed in partnership with one of Asia’s leading Alternate Credit Funds.
“This quarter marks an important milestone for Sammaan Capital as our first quarter as part of the IHC Group. With the capital infusion now in place, a strengthened balance sheet and the backing of a global parent, we believe Sammaan Capital is well positioned to move decisively onto its next phase of growth. Our focus remains on growth-oriented disbursals within clearly defined risk guardrails, ensuring that growth is both calibrated and sustainable,” said Gagan Banga, Managing Director & CEO of Sammaan Capital.“Technology remains at the core of our strategy. Our digital-first approach is creating a platform for all individual and MSME product segments.”

“As we look ahead, our priorities are clear to accelerate growth responsibly, strengthen earnings, progressively reduce our cost of funds, leverage the capabilities of our parent, deepen our technology-led distribution platform and maintain disciplined risk management,” Banga further said.

The company completed $63 million in bond buybacks as part of its efforts to reduce costs and strengthen asset-liability management. Secondary bond yields have also tightened, while its borrower base has diversified to include private banks, foreign banks and domestic institutions.

Looking ahead, the company expects its cost of funds to decline from 10.0% in Q1FY27 to around 9.3% by the end of FY27, with a further reduction to 8.9% in FY28 and 7.8% by FY30. The lower funding costs are expected to improve net interest margins and support profitability as the company expands.

The company aims to achieve disbursements of Rs 30,000 crore in FY27, with Rs 10,000 crore targeted in the first half and Rs 20,000 crore in the second half. Disbursements are expected to rise further to Rs 40,000–50,000 crore in FY28 and Rs 50,000–92,000 crore annually by FY29-30.

Also Read | LG Electronics shares jump 5% after robust Q1 earnings. What are Jefferies, other brokerages saying?

The company plans to expand its product portfolio in phases. Digital personal loans, micro loans against property (LAP) and rural home loans are expected to be launched in H2FY27. Gold loans, two- and three-wheeler financing, and retail e-commerce lending are planned for FY28, followed by expansion into core rural individual loans and consumer durable financing in FY29-30.

In the last one month, the stock was up 1.72%, while in the current calendar year, the stock is down 1.30%. In the last one year, it gained 4.05%, following a jump of 40.25% and 67.78% over the last three years and five years, respectively.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

The White House said in a report on Thursday that more than 40 countries have helped China sidestep US tariffs by routing exports through nations that face lower American import duties.

The countries named include Canada, India, Mexico, Japan and South Korea, which the White House said had helped China evade tens of billions of dollars in tariffs.

White House trade adviser Peter Navarro said it had cost “American jobs and billions in revenue”.

A spokesperson for the Chinese embassy in Washington said in response to BBC queries that “trade wars have no winners” and that it opposes the US’ tariff measures and the use of state power to target China’s companies.

The spokesperson added that “any unilateral actions or agreements concerning transshipped goods must not target or harm the interests of third parties.”

The BBC has contacted the US embassies of Canada, India, Mexico, Japan, South Korea and other trading partners listed in the report for comment.

The report follows a wave of sanctions between the US and China and comes weeks before President Donald Trump will meet Chinese leader Xi Jinping in Washington.

According to government and private sector estimates quoted by the White House, between $30bn (£22.2bn) and roughly $300bn in goods have been moved from countries with higher tariff through those with lower rates.

The process is known as transshipping, which refers to the practice of transferring cargo through another country while en route to a final destination.

The US accused China of “taking advantage” of the practice by moving goods through nations that have lower duties.

China has used third countries as a stopover and has repackaged goods to hide their real origin to obtain lower tariffs, said the White House in its report, describing the process as “fraud cloaked in paperwork”.

“What has changed in today’s Great Transshipment Scam is not merely the speed and scale of this modern form of smuggling, but the breadth, depth, and sophistication of the global Shadow Transshipment Network through which China’s tariff evasion now moves,” the White House wrote.

The US has deployed artificial intelligence (AI) tools to catch transshipment efforts, it added.

The report is expected to add to key sticking points between the sides as Trump and Xi prepare to meet in the US in September.

Despite a pause in most tariffs following talks in May 2025, Washington and Beijing have continued to exchange sanctions, including restrictions on humanoid robots shipped to the US and tighter Chinese curbs on drone exports.

In April 2025, Trump unveiled sweeping levies on dozens of US trading partners based on a long-held belief that tariffs will help boost American jobs and the economy.

Those sanctions have since been struck down by the US Supreme Court, but Trump has repeatedly introduced new tariffs using alternative legal levers to continue his signature policy.

Shares of Honasa Consumer, the parent company of Mamaearth, gained over 4% to Rs 501 on the BSE on Friday after reporting its highest-ever consolidated profit after tax (PAT) of Rs 90 crore, up 116.5% for the first quarter of FY27.

Revenue from operations also hit a record Rs 756 crore, registering a 27% YoY increase from Rs 595 crore in Q1FY26. Earnings before interest, taxes, depreciation and amortisation (EBITDA) surged 140.7% YoY to Rs 110 crore from Rs 46 crore, with EBITDA margin expanding to 14.6% from 7.7% in the same period last year.

Buy, sell or hold Honasa Consumer shares?

Wall Street major Jefferies maintains its Buy rating on Honasa Consumer with a target price of Rs 650, implying 39% upside. The brokerage said Honasa is ‘delivering beat after beat’ earnings. Further it said that FY27 margins are expected to improve by 150-200 bps.

Growth remains the management’s priority, with the company prepared to increase investments as required, while innovation continues to be a key focus. Higher crude oil and packaging costs are expected to weigh on margins in Q2, although product price hikes should offset the impact. The Flipkart policy change will also be reflected in the base from Q2 onwards.

Emkay reiterates its Buy rating on Honasa Consumer while raising the target price by 10% to Rs 550 (14% upside) from Rs 500, based on 50x Jun-28E EPS. It said 1QFY27 results exceeded expectations, driven by strong margins, with revenue growing 27% YoY and coming in 3% above consensus estimates.

The company also entered the fast-growing fragrance category with the launch of its FIKN brand. The brokerage expects growth to remain strong at more than 20% YoY in FY27E, led by low-double-digit growth in Mamaearth and more than 20% growth in The Derma Co.
It expects margins to expand by 330 bps over the next three years, mainly driven by operating leverage, and has raised earnings estimates by 9-13% over the next three years, primarily due to higher margins. Overall, it expects sales and earnings CAGR of 17% and 25%, respectively, during FY26-29E, with strong growth momentum expected to continue, led by a turnaround in the offline channel.

Honasa Consumer Q1 management commentary

Commenting on the results, Varun Alagh, chairman, CEO and co-founder of Honasa Consumer, said the company entered FY27 focused on building on the momentum generated in the second half of FY26. Alagh said Q1 had reinforced that the strategy was working, with growth coming from both core and younger brands.

He added that the company’s Focus Categories grew 35%+, while demand strengthened across General Trade, Modern Trade and eCommerce. According to Alagh, the strategy the company had set out to build was now translating into performance.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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