NOCIL Limited submitted a transcript of its Q2 FY27 earnings conference call held on 14th October 2026, pursuant to Regulation 30 of SEBI LODR Regulations. The call discussed operational and financial performance for the quarter and half year ended 30th September 2026.

Financial Performance Highlights

Q2 FY27 (Consolidated):

  • Net revenue from operations: ₹427 crores, representing 33% year-on-year (YoY) growth and 6% quarter-on-quarter (QoQ) growth
  • EBITDA: ₹36 crores, representing 61% YoY growth but a 20% QoQ degrowth
  • EBITDA margin: 8.4%
  • Profit Before Tax (PBT): ₹28 crores, representing 52% YoY growth but a 24% QoQ degrowth
  • Profit After Tax (PAT): ₹24 crores, representing 98% YoY growth but a 13% QoQ degrowth
  • Volume index (base Q1 FY20=100): 135, representing a 3% YoY decline and 7% QoQ decline

H1 FY27 (Consolidated):

  • Net revenue from operations: ₹830 crores, representing 36% YoY growth
  • EBITDA: ₹81 crores, representing 54% YoY growth
  • EBITDA margin: 9.8%
  • PBT: ₹65 crores, representing 57% YoY growth
  • PAT: ₹52 crores, representing 76% YoY growth

Operational Performance and Market Context

Volume growth for H1 FY27 was 3% supported by sustained demand across key end markets. Domestic volumes registered single-digit growth aided by improved demand following GST 2.0 implementation. Export volumes also recorded single-digit growth reflecting continued traction across international markets.

The Q2 volume decline of 3% YoY and 7% QoQ was attributed to temporary supply side constraints and logistical challenges arising from the geopolitical situation. Management stated these disruptions have been addressed and expect affected volumes to recover in the second half.

The industry faced higher raw material costs with crude oil prices rising during the quarter amid geopolitical tensions. Competitive pressures continued in the market, including the impact of import dumping.

Guidance and Outlook

Management reaffirmed FY27 revenue guidance range of ₹1,400-1,600 crores and expressed confidence in achieving the upper end of this range with EBITDA margins of around 10%. Volume growth guidance of 8-10% for FY27 was maintained, requiring H2 volume index of approximately 160-165.

Management indicated that underlying industry fundamentals remain supportive despite near-term headwinds from weaker monsoon and inflationary pressures, driven by healthy replacement demand, growth in OEM volumes and favorable long-term growth drivers.

Strategic Initiatives and Investments

The brownfield TDQ expansion at Dahej is progressing toward customer approvals, expected over the coming months. The project involves capitalization of approximately ₹220 crores with expected depreciation of ~₹1 crore per month or ~₹3 crores per quarter once operational.

Work on the integrated specialty rubber chemicals project is progressing as planned.

The company is actively exploring opportunities for inorganic growth in the chemical space as part of efforts to build a more cyclically resilient business and utilize its cash reserves.

Capital Expenditure

For FY27 and FY28 combined, the Board has sanctioned ₹130 crores in capex, which will be split between H2 FY27 and H1 FY28. Additional maintenance capex is also anticipated but not considered significant.

Antidumping Duty Impact

Management clarified that the antidumping duty (ADD) on sulfonamides represents only a small portion of their business basket (approximately 60% of business is antioxidants). The benefit from ADD cannot be quantified precisely as import data is not available. Regarding 4ADPA, management noted that even if antidumping duty is imposed, it may not necessarily result in higher prices for PILFLEX-13 as imports would still be outside the antidumping zone.

Working Capital and Inventory

Working capital has improved from ~32% of sales in March 2025 to around 25% currently. Inventory represents approximately 40-60 days of coverage with no significant effect expected in the next quarter.

Cost Structure

Conversion costs increased due to higher utilities costs (coal, gas rates) and sea freight expenses. The company expects operating leverage benefits to accrue in the second half with higher volumes.

The captive power boilers are expected to start contributing benefits in the second half with full utilization coming as volumes increase.

Participant Questions

The Q&A session addressed questions about volume growth sustainability, margin conservatism in guidance, supply chain challenges, competitive environment, antidumping duty impacts, inventory risks, and capex plans.