Galaxy Surfact.

Galaxy Surfactants reported stable consolidated volumes in Q3 FY26 on a year-on-year basis. EBITDA before exceptional item^📎s increased by 13% YoY to INR 124 crores, up from INR 110 crores in Q3 FY25. Consequently, EBITDA per metric ton improved by 15% to INR 20,156 compared to INR 17,527 in the previous year. However, the Performance Surfactants portfolio experienced a high single-digit decline, offset by high single-digit volume growth in the Specialty segment. YTD 9-month EBITDA remained flat at INR 376 crores versus INR 375 crores in the prior year.

A significant positive development was the reduction of reciprocal tariffs on Indian exports to the United States from 50% to 18%. This move is expected to restore competitiveness, create a more level playing field, and help rebuild traction in the U.S. market. The company anticipates this positive impact to start reflecting from late Q4 FY26 and into Q1 FY27, accelerating penetration in high-value specialty opportunities and unlocking new avenues for growth.

India's volume grew mid-single digit YoY in Q3 FY26, with Performance Surfactants de-growing by approximately 4% due to reformulation pressures, while the Specialty business delivered over 35% volume growth. The AMET region faced significant challenges, recording a double-digit YoY decline in high teens due to market share losses and competitive intensity. However, the Rest of the World segment performed well, with mid-single digit volume growth, balancing the portfolio and supporting the overall performance.

As part of its Strategy 2030, Galaxy launched 5 new second-generation products in the GalSORB and SunBliss ranges in November, designed for high photostability, strong efficacy, and broad-spectrum UV protection. These products have received favorable responses and are expected to be commercialized from Q4 FY26. The company also refreshed its brand identity in January 2026, reinforcing its focus on long-term partnerships, responsible innovation, and sustainable value creation, positioning itself as a future-ready partner.

Fatty alcohol prices remained buoyant at high levels since last year, keeping reformulation risk elevated, although a brief softening was observed in November. Management expects fatty alcohol prices to start correcting from May onwards, which could alleviate reformulation pressures. On the demand side, India's performance volumes are expected to increase incrementally, and the specialty segment is projected to continue double-digit volume growth. AMET recovery is a high priority, with significant volume traction expected from Q4 FY26.

The company noted a shift in customer mix, with increased engagement and growth from Tier 2, Tier 3, and D2C customers, which helped mitigate the impact of reformulation by a key Tier 1 customer. This diversification is a stated strategic agenda, enabling the company to maintain growth despite challenges with larger accounts. Management emphasized its ability to serve all segments effectively, adapting to market configurations and ensuring resilience in its business model across various customer sizes and geographies.