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By Dalal Street Investment Journal (DSIJ)
A-1 Limited shares hit the 5% upper circuit after the company reported strong Q4FY26 earnings. Net profit surged 417% YoY to ₹4.36 crore, while revenue from operations rose 32.5% to ₹145.27 crore. The company also highlighted strategic developments including fleet expansion, major supply agreements, and entry into electric mobility.
A-1 Limited hit the upper circuit and reached a mark of ₹10.77, the share price rose 5%, thus performing better than the benchmark indices that gained 0.80%. The trading volume of A-1 Limited amounted to 51.3 lakhs, while its average trading volume stood at 31.1 lakhs in the last 30 days, owing to investors' keen interest after the declaration of company's Q4FY26 earnings.
A-1 Limited, which was earlier called A-1 Acid Limited, has shown a consolidated profit after tax of ₹4.36 crore for Q4 FY26, showing an increase of 417% compared to ₹0.84 crore in Q4 FY25.
Revenue from operations for Q4FY26 came in at ₹145.27 crore, up 32.5% YoY from ₹109.62 crore in Q4FY25. On a sequential basis, revenue more than doubled, rising 108.1% QoQ from ₹69.81 crore in Q3FY26. That's a significant jump from one quarter to the next and clearly shows much stronger business activity in the March quarter compared to the December quarter.
Total income for Q4FY26 stood at ₹145.39 crore against ₹109.67 crore in Q4FY25 and ₹69.98 crore in Q3FY26, broadly in line with the revenue trajectory.
On the expenses side, total expenses for the quarter came in at ₹139.58 crore, up 28.7% YoY from ₹108.49 crore in Q4FY25. Because revenue grew faster than expenses, the operating gap widened and that's exactly where the profit story came from. Purchase of stock-in-trade, the single largest cost item, was ₹132.72 crore in Q4FY26 compared to ₹101.45 crore in Q4FY25 YoY and ₹61.30 crore in Q3FY26 QoQ, both movements tracking the revenue trend closely.
Transport expenses came in at ₹4.60 crore for the quarter, slightly up from ₹3.97 crore in Q4FY25 YoY. One line worth flagging is finance costs, which rose to ₹0.64 crore in Q4FY26 from ₹0.38 crore in Q4FY25; roughly a 68% jump YoY. In absolute terms it remains a small number, but it is moving in the wrong direction and worth watching in subsequent quarters.
The profit numbers are what make this quarter stand out. Profit before tax (PBT) for Q4FY26 came in at ₹5.81 crore, up from ₹1.18 crore in Q4FY25, a near fourfold jump of around 392% YoY. On a sequential basis, PBT rose from ₹1.29 crore in Q3FY26, a surge of approximately 350% QoQ.
Tax expenses for the quarter were ₹1.45 crore in Q4FY26, compared to ₹0.33 crore in Q4FY25. The tax bill was higher, but that was entirely expected given the much larger pre-tax profit base.
After taxes, PAT for Q4FY26 landed at ₹4.36 crore; up 417% YoY from ₹0.84 crore in Q4FY25 and up 354% QoQ from ₹0.96 crore in Q3FY26. Other comprehensive income contributed an additional ₹0.13 crore in Q4FY26, taking total comprehensive income to ₹4.49 crore for the quarter.
The full year numbers tell a slightly different story. Revenue from operations for FY26 stood at ₹342.91 crore, compared to ₹331.49 crore in FY25, a 3.4% increase on an annual basis. That is a modest rise, suggesting the business ran at a relatively subdued pace through much of the year before Q4 pulled the numbers up.
Total income for FY26 was ₹343.36 crore against ₹331.98 crore in FY25. Total expenses for the full year came in at ₹335.29 crore, up just 2.5% on an annual basis from ₹326.98 crore in FY25, growing meaningfully slower than revenue, which helped profitability expand.
One particularly positive cost development was transport expenses. On an annual basis, transport costs fell to ₹17.06 crore in FY26 from ₹21.40 crore in FY25, a decline of over 20%. That kind of reduction in a recurring cost line adds up over a full year.
PBT for FY26 was ₹8.07 crore against ₹4.99 crore in FY25, up 61.7% on an annual basis. Tax expenses for the full year were ₹2.08 crore versus ₹1.34 crore in FY25.
PAT for FY26 came in at ₹5.99 crore, up 64.1% on an annual basis from ₹3.65 crore in FY25. Total comprehensive income for the full year was ₹6.11 crore compared to ₹3.64 crore in FY25, a growth of nearly 68%. The fact that profitability grew at a pace almost twenty times faster than revenue on an annual basis points clearly to better cost management and operating leverage kicking in across the year.
Debt-Free Fleet Milestone: The organization has achieved a critical milestone whereby more than 90% of its fleet is debt free. It is on schedule to clear all vehicle debts and achieve the objective of having 100% owned and debt free vehicles by October 2026. This helps in lowering financial costs and improving profit ratios.
Fleet Expansion: Following its growth plan, A-1 Limited plans to introduce an additional 10 multi-axle tankers into its current vehicle fleet, which will take the company’s total number of vehicles to 71. This increase in the number of vehicles should lower dependency on external transporters and enhance logistics efficiency.
Strategic Business Wins: During FY26, the company strengthened its growth pipeline through a tri-party 10,000 MT concentrated nitric acid supply arrangement with GNFC and Solar Industries India Ltd, and secured a ₹127.50 crore industrial urea supply order — both significant revenue visibility drivers for the coming year.
Electric Mobility Expansion: The company approved an increase in its partnership interest/shareholding in A-1 Sureja Industries from 45% to 51%, resulting in a subsidiary status valued at ₹100 crore, which is the official debut of A-1 Limited in the electric mobility space.
Corporate Actions: During FY26, the company completed a 3:1 bonus issue, a 10:1 stock split, and an increase in authorised share capital to support future growth initiatives.
Commenting on the performance, Mr. Harshadkumar Patel, Chairman and Managing Director of A-1 Limited, said: "We are pleased with our performance during FY26, where the Company delivered healthy growth in profitability supported by improved operational efficiencies and higher business volumes. The strong performance during Q4 FY26 reflects the momentum across our core business segments, supported by better execution, stronger business volumes and continued expansion across key markets. We remain focused on building a scalable and diversified business model while creating long-term value for all stakeholders."
SEBI Registered Research Analyst (INH000006396).
Founded in 1986, Dalal Street Investment Journal (DSIJ) brings decades of experience in India’s equity markets. DSIJ's research combines fundamental analysis with price action, guided by disciplined risk management and capital preservation. They follow a structured, data-driven approach designed to help investors and traders make informed decisions beyond short-term market noise.
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