Skip to content

    NOCIL Q1 FY27 earnings call

    NOCIL
    Chemicals·4 Aug 2026
    Management Summary

    NOCIL Limited reported a strong Q1 FY27 with revenue up 20% YoY to ₹403 crores and EBITDA up 48% YoY to ₹45 crores, driven by volume growth and improved realizations. Margins expanded significantly, and anti-dumping duties were approved for key products. However, the company faced temporary QoQ volume declines due to supply constraints and geopolitical uncertainties, impacting the non-tyre segment.

    Highlights

    8

    • Revenue from operations of ₹403 crores, up 20% YoY, driven by growing volumes and increased selling prices.

    • Healthy 9% YoY volume growth, with double-digit domestic growth and single-digit export growth.

    • Operating EBITDA of ₹45 crores, up 48% YoY and 115% QoQ.

    • EBITDA margins at 11.2%, expanding 210 bps YoY and 480 bps QoQ.

    • Profit after tax (PAT) of ₹28 crores, up 61% YoY and 63% QoQ.

    • Anti-dumping duty on Sulphonamides (CBS and NS) approved by Central Government on June 20, 2026.

    • DGTR issued a positive final recommendation for anti-dumping duty on Pilflex 13 in June 2026.

    • Trial production at the new ₹130 crore TDQ plant in Dahej is progressing well, with sample initiations to customers.

    Concerns

    5

    • Moderate 3% QoQ volume decline due to temporary supply-side constraints (utilities, logistics) and geopolitical situation.

    • Temporary demand contraction in the non-tyre segment due to lower production, sharp increase in input costs, and labor shortage.

    • Global markets continue to experience geopolitical uncertainties, supply chain disruptions, and a competitive pricing landscape.

    • Increased import volumes and falling realizations in the antioxidant segment were noted by an analyst, though management did not see significant change in import numbers.

    • Uncertainty on raw material pricing and availability due to geopolitical situation.

    Key financials

    Single quarter

    08 metrics
    1. 01Revenue from Operations₹403 Cr+20%YoY
    2. 02Sales Volume Index145 index
    3. 03Volume Growth YoY9%
    4. 04Volume Growth QoQ-3%
    5. 05Operating EBITDA₹45 Cr+48%YoY

    Capital allocation

    1
    medium confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    FY27 Revenue
    ₹1,400 to ₹1,600 crores
    		Medium
    Profitability
    FY27 EBITDA Margin
    10%
    		Medium
    Volume
    FY27 Volume Growth
    Around 10%
    		Medium
    New Product Commercialization
    TDQ Plant Revenue Contribution
    Start trickling in Quarter 4, more into going into Quarter 1 of next year
    		Medium
    Product Mix
    Top line covered by ADD (excluding TDQ)
    25% to 30%
    		High
    Product Mix
    Specialty Segment Contribution to Top Line
    Increase by 5% to 10%
    		Medium
    Export Mix
    Export Mix Target
    40% to 45%
    		Medium

    What to watch in Q2 FY27

    5

    Recovery of deferred volumes

    coming quarters
    CurrentModerate 3% QoQ volume decline due to deferred orders
    TargetRecovery of deferred volumes in coming quarters

    Why it matters

    Crucial for overall volume growth and meeting annual targets, especially after Q1 QoQ decline.

    We continue to work closely with our suppliers and logistics partners to normalize supplies and execute the pending orders, and we remain confident of recovering the deferred volumes in the coming quarters⏳.

    Risks & concerns

    5
    RiskSeverity

    Geopolitical uncertainties, supply chain disruptions, competitive pricing

    Global markets continue to experience geopolitical uncertainties, supply chain disruptions and a competitive pricing landscape. — Management acknowledged

    medium

    Temporary supply-side constraints and logistical challenges

    Moderate 3% QoQ volume decline due to temporary supply-side constraints related to utilities and logistical challenges arising from the ongoing geopolitical situation. — Management acknowledged

    medium

    Temporary demand contraction in non-tyre segment

    Temporary demand contraction in the non-tyre segment due to lower production on account of a sharp increase in input costs and shortage of labor. — Management acknowledged

    medium

    Raw material price volatility and availability

    There is continued uncertainty definitely on the front of raw materials. Pricing keeps moving up and down depending on geopolitical situation. — Management acknowledged

    medium

    Impact of Chinese players adjusting yuan prices downwards

    Analyst questioned if Chinese players adjusting yuan prices downwards was a reason for no significant impact from INR depreciation, management agreed this is right. — Analyst acknowledged

    medium

    Q&A highlights

    8

    “So, like I mentioned in my speech, while there could be a bit of small adjustments in the EBITDA, overall, for the year with the combination of the volume growth also kind of kicking in as well as operating leverages, we expect to hover around 10% of EBITDA. Yes, that is our expectation.”

    Analyst questioned if the high Q1 EBITDA run rate was sustainable given supply challenges and potential low-cost RMC benefit; management clarified overall FY expectation and identified one-off costs.

    asked by Nirav, Anvil Wealth

    3 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    NOCIL Limited commenced FY27 with a robust performance, reporting revenue from operations of ₹403 crores, an impressive 20% year-on-year growth. This was primarily fueled by a healthy 9% YoY volume growth and increased selling prices due to higher raw material costs. Operating EBITDA surged by 48% YoY to ₹45 crores, leading to an EBITDA margin of 11.2%, which expanded by 210 basis points YoY. Profit after tax (PAT) also saw significant growth, rising 61% YoY to ₹28 crores.

    02

    Operational Challenges and Market Dynamics

    Despite strong YoY growth, the company experienced a moderate 3% sequential decline in volumes for Q1 FY27. This was attributed to temporary supply-side constraints, including utilities and logistical challenges stemming from the ongoing geopolitical situation, which led to deferred order commitments. The non-tyre segment also saw temporary demand contraction due to increased input costs and labor shortages. Management acknowledged the persistent geopolitical uncertainties, supply chain disruption🌐s, and competitive pricing landscape in global markets.

    03

    Anti-Dumping Duty Developments

    Significant progress was made on anti-dumping duties (ADDs) during the quarter. The Central Government approved the imposition of ADD on Sulphonamides (CBS and NS) on June 20, 2026. Furthermore, the Director General of Trade Remedies (DGTR) issued a positive final recommendation for ADD on Pilflex 13 in June 2026, with its implementation now awaiting approval from the Government of India. Management expressed optimism for the PX13 approval by the end of September, noting that 25-30% of the company's top line (excluding TDQ) would be covered by ADDs.

    04

    Tyre Industry and International Markets

    The domestic tyre industry demonstrated healthy demand, supported by strong replacement demand and OEM offtake, further boosted by GST 2.0 implementation and infrastructure activities. While some near-term moderation is expected due to seasonal factors, the underlying fundamentals remain strong. In international tyre markets, overall volumes saw a minor dip in H1 FY27 due to lower OEM volumes, but the replacement market remained positive. NOCIL aims to increase its export mix from the current 33% to 40-45% directionally.

    05

    TDQ Plant Progress and Future Outlook

    The new ₹130 crore TDQ plant in Dahej is progressing well, with trial production underway and samples being initiated to customers. Management anticipates revenues from the TDQ plant to start trickling in during Q4 FY27, with more substantial contributions expected in Q1 FY28 as customer approvals and commercial supplies ramp up. The company expects FY27 revenue to be in the range of ₹1,400 to ₹1,600 crores, with an EBITDA margin of 10%, and overall volume growth of around 10% for the full year.

    06

    Cost Structure and Margin Drivers

    Q1 FY27 saw an increase in conversion costs, attributed to higher freight rates due to the Middle East war crisis, increased CSR commitments, challenges in utilities (gas prices and availability), and some one-off📎 maintenance issues. Management expects these one-off📎 expenses to stabilize and normalize in coming quarters. The EBITDA margin expansion in Q1 was driven by a combination of volume growth, product mix, better price realization in the domestic market for accelerators, and operating leverage.

    This is an AI-generated summary of a publicly available earnings call transcript.