This article first appeared on GuruFocus .
-
Operating Revenue (Q3 FY26):INR332 crores, a decline of 7% year on year.
-
Volume Growth (Q3 FY26):10% year on year increase.
-
Operating EBITDA (Q3 FY26):INR44 crores, a 61% increase year on year.
-
EBITDA Margin (Q3 FY26):13.12%.
-
Profit After Tax (Q3 FY26):INR22 crores, up 91% year on year.
-
PAT Margin (Q3 FY26):6.7%.
-
Exceptional Item (Q3 FY26):One-time provision of INR4.8 crores due to New Wage Code notification.
-
Net Cash Position (as of Dec 31, 2025):Company remains net cash positive.
-
Interim Dividend:INR2.50 per equity share.
-
Sales Volume Growth (9M FY26):15% year on year increase.
-
Export Volume Growth (9M FY26):21% year on year increase.
-
Operating Revenue (9M FY26):INR1,044 crores, stable year on year.
-
Operating EBITDA (9M FY26):INR123 crores, a 42% increase year on year.
-
EBITDA Margin (9M FY26):11.75%.
-
Profit After Tax (9M FY26):INR67 crores, up 79% year on year.
-
PAT Margin (9M FY26):6.39%.
-
Debt Reduction (9M FY26):Reduced by INR94 crores.
-
Warning! GuruFocus has detected 1 Warning Sign with BOM:523694.
-
Is BOM:523694 fairly valued? Test your thesis with our free DCF calculator.
Release Date: January 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Apcotex Industries Ltd ( BOM:523694 ) reported a significant increase in operating EBITDA for the quarter, rising by 61% year-on-year to INR44 crores, driven by higher volumes, improved margins, and operational efficiency.
-
The company achieved its highest ever sales volumes for the nine-month period, with a 15% year-on-year increase, and highest ever export volumes, up 21% year-on-year.
-
Profit after tax for the quarter increased by 91% year-on-year to INR22 crores, reflecting strong profitability and operational efficiency.
-
The company remains net cash positive as of December 31, 2025, demonstrating sustained financial discipline and good cash generation.
-
Apcotex Industries Ltd ( BOM:523694 ) received the CII Award for Top 100 Most Innovative Companies, reaffirming its commitment to innovation and technology development.
Negative Points
-
Despite a 10% increase in total volumes, operating revenue for the quarter declined by 7% year-on-year due to a fall in raw material and finished goods prices.
-
The company faced challenges with raw material pricing due to a drop in prices, impacting profitability.
-
There is uncertainty regarding the imposition of antidumping duties by the Finance Ministry, which could affect the company's expansion plans for NBR.
-
The paper segment and construction chemicals faced challenges, with muted margins and increased competition affecting growth.
-
Globally, there is an overcapacity in Nitrile Latex, particularly from China, which could impact future margins and capacity utilization.
Q & A Highlights
Q: How did Apcotex Industries manage to improve EBITDA despite falling raw material prices affecting other companies in the sector? A: Abhiraj Choksey, Executive Vice Chairman and Managing Director, explained that despite challenges, the company managed well by holding up prices and taking advantage of the drop in raw materials. This led to improved operating EBITDA, which was better than the last several quarters.
Q: What segments contributed to the EBITDA growth this quarter? A: Abhiraj Choksey noted that Nitrile Latex saw a turnaround, although not at pre-COVID levels. The paper segment also improved, and the rubber segment saw better margins due to full capacity utilization. Improved customer and product mix, along with cost-saving measures, contributed to the EBITDA growth.
Q: Is there potential for further improvement in margins if demand in struggling segments like paper and construction returns? A: Abhiraj Choksey stated that as volumes increase, margins could improve further. The company aims for sustainable EBITDA margins between 12% to 16% and will endeavor to do better than the current quarter's 13%.
Q: What is the status of the antidumping duty and its impact on expansion plans? A: Abhiraj Choksey mentioned that while the antidumping duty has not been notified by the Finance Ministry, the company continues with its expansion plans. They have found a cost-effective way to expand NBR volumes by 80%-90% with a lower CapEx than initially planned.
Q: How is the wind energy investment performing financially? A: Abhiraj Choksey clarified that the investment in wind energy is ongoing, with credits expected to start early next year. The investment is about INR3.5 crore, and the company should start receiving benefits soon.
Q: What is the outlook for different industries supplied by Apcotex, such as paper and Nitrile Latex? A: Abhiraj Choksey noted that while the paper industry faces challenges, Latex margins have improved. Construction is booming, but carpet, textiles, and tire industries have seen degrowth. The glove industry continues to grow, benefiting from US duties on Chinese gloves.
Q: What are the plans for future capacity expansion, particularly for Nitrile Latex? A: Abhiraj Choksey stated that while there is overcapacity globally, the company has space for future expansion. If market conditions improve, they could expand capacity by 50%-60% within 9-10 months once a decision is made.
Q: How does Apcotex plan to manage raw material price volatility and ensure raw material security? A: Abhiraj Choksey explained that while backward integration is not feasible, there is sufficient import capacity for raw materials. The company manages price volatility by passing on costs and focusing on maintaining healthy ROCE.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
