Apcotex Industries (APCOTEXIND) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 volumes increased 11% YoY, but operating revenue declined 4% due to lower prices; operating EBITDA rose 48% YoY to INR 41 crore (margin 12.06%), and PAT reached INR 25 crore (margin 7.51%).

• H1 FY26 volumes grew 18% YoY, with highest-ever export volumes and a 4% increase in operating revenue to INR 713 crore; H1 operating EBITDA grew 34% to INR 79 crore (margin 11.13%), and PAT increased 73% to INR 45 crore.

• Market capitalization stood at INR 20,512.46 Mn as of September 30, 2025; recognized among Forbes Asia's Best Under A Billion 2023.

• Audited financials for Q2 and H1 FY26 confirmed strong profitability and growth, with exceptional gain from sale of old office premises.

• Board approved a ₹210 crore capital expenditure for Valia facility expansion, to be funded through internal accruals and debt.

Financial highlights

• Q2 FY26 operational revenue was INR 3,367 Mn (down 4.1% YoY); EBITDA up 47.6% YoY to INR 406 Mn; net profit up 130% YoY to INR 253 Mn.

• H1 FY26 operational revenue was INR 7,125 Mn (up 3.6% YoY); EBITDA up 33.7% YoY to INR 793 Mn; net profit up 72.5% YoY to INR 445 Mn.

• EBITDA margin improved to 12.06% in Q2 FY26 and 11.13% in H1 FY26.

• Diluted EPS for Q2 FY26 at INR 4.88, up 131.3% YoY; H1 FY26 at INR 8.57, up 72.4% YoY.

• Net cash positive as of September 30, 2025, with debt reduced by INR 53 crore in H1.

Outlook and guidance

• Capacity expansion of INR 210 crore at Valia facility targets 37,000 MT/yr synthetic latex, 14,600 MT/yr nitrile rubber, and 50,000 MT/yr nitrile latex, to be completed in phases by Q1 FY27.

• Expansion aims to meet growing domestic and international demand, with phased commissioning starting June-July 2026.

• Revenue potential from new capacity estimated at INR 550–600 crore; full utilization expected within three years.

• Continued focus on volume growth, margin improvement, and capacity utilization.