Laxmi Organic Industries (LXCHEM) Q3 25/26 earnings summary

Executive summary

• Q3 and 9M FY2026 saw continued challenges in the global chemical industry, with cost optimization, asset shutdowns, and supply chain restructuring prevalent worldwide.

• Demand from packaging, inks, adhesives, and pharmaceuticals remained stable quarter-on-quarter, while agrochemicals were moderate and paints/coatings weak to moderate.

• The company maintained focus on productivity, commercial excellence, execution, cost discipline, and growth projects.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025, were approved and reviewed by the Board and auditors.

• Re-appointment of Dr. Rajiv Banavali as Independent Director for a second term, subject to shareholder approval.

Financial highlights

• Q3FY26 consolidated revenue was INR 7,186.82 million, down 9% year-over-year; standalone revenue was INR 7,068.72 million.

• Q3FY26 consolidated PAT was INR 255.99 million, down from INR 278.15 million YoY; standalone PAT was INR 198.31 million.

• Q3FY26 EBITDA was INR 499 million, down 33% YoY; adjusted EBITDA at INR 14 crore after one-time items.

• One-time gain of INR 407 million from favorable litigation settlement; offset by INR 38 million labor court provision and INR 9 million supply chain redesign cost.

• Employee costs rose to INR 46 crore, reflecting ESOP reversal last year, new headcount, and annual increments.

Outlook and guidance

• Dahej phase two to complete by end of Q4; FY2027 will be the first year of qualification and ramp-up for new specialty products, with further ramp-up in FY2028.

• Acetic acid prices expected to stabilize between $330-$380/MT, with spreads for ethyl acetate improving to $130/MT.

• Specialty margins expected to gradually recover as new capacities ramp up and product mix stabilizes.

• Management remains cautious, monitoring quarter-over-quarter performance due to ongoing industry volatility.

• The company is committed to transparency, compliance, and stakeholder engagement.