Chellarams Plc FY2026: a profit that rests on one-offs
The Group returned to profit, but the recovery is largely non-operational, the parent company deteriorated, and liquidity remains under pressure. Recommendation: SELL at ₦13.20.
5 Oct 2026 · 1 min read
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Chellarams Plc returned to Group-level profitability in FY2026 (year ended 31 March 2026), recording a profit before tax of ₦657.5m against a loss of ₦2.57bn in FY2025. However, the recovery is largely non-operational: it was driven by a ₦907.5m FX gain reversal and a ₦713.5m investment property reclassification gain. The standalone parent company deteriorated, recording a net loss of ₦172.9m against a profit of ₦63.8m in FY2025.
Key figures
- Group revenue: ₦25.98bn, up 12.5%
- Group profit before tax: ₦657.5m (FY2025: loss of ₦2.57bn)
- Group profit after tax: ₦281.9m
- Group basic EPS: 28 kobo, a P/E of about 47x at ₦13.20
- Group borrowings: ₦4.9bn, down from ₦7.1bn
- Net current liabilities (Group): ₦8.86bn
- Dividend: nil
Recommendation: SELL
At about 47x earnings inflated by one-off gains and 3.7x book on a thin equity base, the valuation does not reflect the underlying risk profile. The Industrial Chemicals segment, the Group’s largest revenue line, remains loss-making, and cash balances fell sharply. Reduce or exit positions at current levels.
Source: Chellarams Plc FY2026 audited financial statements; DSU Research.
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