Laxmi Organic Industries (LXCHEM) investor relations material

Executive summary

• The company faced a challenging global chemical industry environment with overcapacity, cost optimization, and subdued spreads, impacting profitability and revenue, especially in the Specialties segment.

• Specialty business (ketene and diketene) grew at 18%-20% CAGR since 2017, now holding 8%-9% market share in diketene derivatives.

• New capacity in ketene/diketene and fluorine segments ramping up, with major contracts signed, including Hitachi Energy for SF6 replacement gas.

• Dahej facility Phase I is operational, Phase II is underway and targeted for completion by end of FY2026, with full ramp-up expected in FY2027.

• Board approved unaudited financial results for Q2 and H1 FY26, re-appointed an Independent Director, and reallocated QIP funds to the Dahej Project.

Financial highlights

• Q2 FY26 consolidated revenue was INR 6,997.45 million, down 9% year-over-year; H1 FY26 revenue was INR 13,926.75 million, down 6%.

• Adjusted EBITDA for Q2 FY26 fell 47% to INR 394 million; EBITDA margin dropped to 5.3%-5.6%.

• PAT for Q2 FY26 declined to INR 108.63 million, down 61% year-over-year; H1 FY26 PAT was INR 321.42 million.

• Gross margin for Q2 FY26 was 33.1%, up from 30.8% in Q1 but down from 35.8% last year.

• Cash flow from operations was robust at INR 1,508.76 million for H1 FY26.

Outlook and guidance

• Deferred specialty deliveries are expected to materialize in H2 FY26.

• No change to FY2026 fluorochemical revenue outlook, targeting INR 80 crore.

• Specialty margins are expected to recover as new Dahej capacity ramps up and alternative products replace phased-out intermediates.

• Dahej facility Phase II completion and operationalization is a key priority, with QIP funds reallocated to support this.