NOCIL (NOCIL) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw a 4% sequential growth in sales volumes despite global volatility, U.S. tariffs, GST 2.0 rollout in India, and intensified dumping from international producers.

• Largest rubber chemicals manufacturer in India with over four decades of expertise and global recognition for technical capabilities.

• Focus on sustainable growth, green chemistry, and responsible care, with significant investments in R&D and environmental initiatives.

• Strong export strategy and China+1 positioning to reduce reliance on Chinese market and expand global presence.

• Management remains optimistic about long-term growth, focusing on operational efficiencies, cost optimization, and strategic customer engagement.

Financial highlights

• Q2 FY26 revenue was INR 321 crore, down from INR 336 crore in Q1 FY26, mainly due to softer price realization and competitive import pricing.

• H1 FY26 revenue was INR 657 crore versus INR 735 crore in H1 FY25.

• Q2 FY26 operating EBITDA was INR 22 crore (7% margin), down from INR 31 crore in Q1 FY26.

• Q2FY26 net profit at ₹12 Cr, down 28% sequentially; H1FY26 net profit at ₹29 Cr, down 58% year-over-year.

• Operating cash flow improved due to better working capital efficiency.

Outlook and guidance

• Domestic volume growth expected to remain robust, with potential for incremental market share gains.

• Export volumes likely to remain choppy in the near term but positive medium-term trajectory anticipated.

• Dahej brownfield expansion underway with ₹250 Cr capex to enhance production capabilities and meet strong demand.

• Conversion cost reduction initiatives underway, with benefits expected from Q4 FY26.

• New product launches underway, with commercial sales expected before FY26 year-end.