Galaxy Surfactants (GALAXYSURF) Q3 24/25 earnings summary

Executive summary

• Q3 was impacted by weak festive demand, excess inventory, and lower government spending in India, resulting in a low single-digit volume decline, while demand momentum remained strong in Europe, Asia-Pacific, and the Americas.

• Demand deterioration began in November, with both rural and urban spending subdued; improvement is expected from Q1 FY26 as liquidity and tax incentives support consumption.

• Rest of the world (ROW) showed strong performance, with 9% volume growth in Q3 and 20% YTD, mainly driven by masstige specialties.

• Fatty alcohol prices nearly doubled year-over-year, significantly impacting input costs and margins.

• New product Galseer DermaGreen, a premium, green shower oil ingredient, is receiving strong customer response and is expected to be a high-margin growth driver.

Financial highlights

• Total consolidated revenue for 9MFY25 was ₹3,096.8 crore, up 7.6% year-over-year; Q3FY25 consolidated revenue grew 10.4% YoY to ₹1,045.7 crore.

• EBITDA for 9MFY25 stood at ₹375.4 crore, a 0.9% increase YoY; PAT for 9MFY25 was ₹229.0 crore, up 2.3% YoY.

• Q3 YoY volume growth: India -7%, AMET -1.5%, ROW +9.5%; overall Q3 volumes declined 1% YoY.

• EBITDA per metric ton for the quarter was INR 17,500; Q3FY25 EBITDA margin declined to 10.5% from 12.6% in Q3FY24.

• Full-year FY25 expected to end at 4% volume growth and EBITDA per metric ton between INR 19,500–20,000.

Outlook and guidance

• Volume growth guidance of 6%-8% and EBITDA per metric ton guidance of INR 20,500–21,500 maintained for the next two years; no structural change seen.

• Q4 is expected to remain muted with EBITDA/MT and volume growth below the guided range; recovery anticipated from Q1 FY26 as demand and liquidity improve.

• CapEx guidance remains at INR 150 crore annually, focused on specialty ingredients and operational efficiency.