NOCIL Limited — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

NOCIL reported a mixed Q3 FY26, with domestic volumes showing high single-digit growth, contributing to a stable quarterly revenue of Rs. 316 crores and an improved operating EBITDA of Rs. 27 crores. However, international markets faced headwinds from seasonal effects and U.S. tariffs, leading to lower price realizations and a sequential decline in PBT and PAT. The company is progressing with its TDQ antioxidant expansion and expects significant volume and margin improvements in the coming years, supported by antidumping measures and new product introductions.

Highlights

  • Domestic volumes witnessed high single-digit growth in Q3 FY26.

  • Expected FY26 volume growth of 3-4% despite H1 FY26 degrowth of -5%.

  • Q3 FY26 operating EBITDA increased to Rs. 27 crores from Rs. 22 crores in Q2 FY26, representing a 22.7% QoQ growth.

  • Q3 FY26 EBITDA margin stood at 8.5%.

  • TDQ antioxidant investment at Dahej is ahead of schedule, with production trials planned for H1 CY26.

  • NOCIL received the CII Industry Academia Partnership Award 2025 in the diamond category.

  • New products are expected to contribute 10-12% of current volumes.

  • Management expects an annual EBITDA margin improvement of 150 basis points plus or minus over the next 2-4 years.

Concerns

  • International markets dampened due to seasonal effects and U.S. tariff issues.

  • Lower price realizations influenced by competitive pricing pressures, including dumping from imports.

  • PBT for Q3 FY26 decreased to Rs. 13 crores from Rs. 19 crores in Q2 FY26, a 31.6% QoQ decline.

  • Profit after tax for Q3 FY26 decreased to Rs. 9 crores from Rs. 12 crores in Q2 FY26, a 25% QoQ decline.

  • Antidumping investigations faced administrative delays, pushing conclusions to the next 1.5-2 months.

Key financials

2 periods

Headline

  • Revenue
    ₹316 Cr
    QoQ -1.6%
  • Operating EBITDA
    ₹27 Cr
    QoQ +22.7%
  • EBITDA Margin
    8.5%
  • PBT
    ₹13 Cr
    QoQ -31.6%
  • PAT
    ₹9 Cr
    QoQ -25%

9M

  • FY26 Revenue
    ₹973 Cr
    YoY -7.6%
  • FY26 Operating EBITDA
    ₹80 Cr
    YoY -22.3%
  • FY26 EBITDA Margin
    8.2%
  • FY26 PBT
    ₹55 Cr
    YoY -37.5%
  • FY26 PAT
    ₹39 Cr
    YoY -52.4%

What they filed

Q1 FY27: revenue up 19.9%, net profit up 64.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue363 318 340 336 321 −12%316 −1%330 −3%403 +20%
EBITDA38 24 34 31 22 −42%27 +13%21 −38%45 +45%
Net profit42 13 21 17 12 −71%9 −31%17 −19%28 +65%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

medium confidence
  • Capex Capex disclosed
    • TDQ antioxidant investment at Dahej
    our TDQ antioxidant investment at Dahej, is coming along well. And we expect to be ahead of our original schedule with production trials planned during the first half of the calendar year.

Guidance & targets

Volume Growth

  • Overall FY26 Volume Growth Volume Growth · FY26 · High confidence 3-4%
    Based on our quarter 3 performance and the current trends, we expect to end financial year '26 with a volume growth of 3% to 4% in spite of a minus 5% degrowth in H1 FY '26 on a year-to-year basis.

    — V. S. Anand

Capacity Expansion

  • TDQ Antioxidant Production Trials Capacity Expansion · H1 CY26 · High confidence H1 CY26
    our TDQ antioxidant investment at Dahej, is coming along well. And we expect to be ahead of our original schedule with production trials planned during the first half of the calendar year.

    — V. S. Anand

New Product Contribution

  • New Products Volume Contribution New Product Contribution · upcoming financial year · Medium confidence 10-12%
    Eventually, surely, we expect these products should give us at least about 10% to 12% compared to current volumes, at least. In terms of volumes, we see that.

    — V. S. Anand

Export Volume Recovery

  • U.S. Lost Volumes Recovery Export Volume Recovery · 2-3 months · Medium confidence 50%
    Roughly about 50% of that, yes.

    — V. S. Anand

Margin Improvement

  • Annual EBITDA Margin Improvement Margin Improvement · next 2 to 3, 4 years · Medium confidence 150 basis points plus or minus
    We are looking that with all the initiatives over the next 2 to 3, 4 years, we expect at least on an annual basis, an improvement of 150 basis points plus or minus on an annual basis.

    — V. S. Anand

Export Volume Growth

  • FY26 Export Volume Level Export Volume Growth · end of FY26 · High confidence flat
    So, we should get to a flat level at least by the end of the year. You're talking about FY '26, right? Yes.

    — V. S. Anand

Market context

  • FY27 Volume Growth Volume Growth · FY27 · Medium confidence double-digit
    I would say financial year '27, definitely see growth prospects as well.

    — V. S. Anand

What to watch in Q4 FY26

Antidumping Duty Investigation Outcome

Next 1.5-2 months
Current Pending, delayed due to administrative restructure
Target Conclusion of findings

Why it matters

Crucial for addressing import dumping and improving price realizations and margins.

So, we hope that in the next 1.5, 2 months, they should conclude the findings.

Risks & concerns

  • Competitive pricing pressures and dumping from imports

    high

    Lower price realizations influenced by competitive pricing pressures, including dumping from imports, leading to antidumping petitions.

    Management acknowledged

  • U.S. tariff issues and seasonal effects impacting international volumes

    medium

    Volumes in international markets were dampened due to seasonal effects and U.S. tariff issues, though recovery is expected.

    Management acknowledged

  • Delays in antidumping investigations

    medium

    Antidumping duty findings were delayed due to administrative restructuring, with conclusions now expected in 1.5-2 months.

    Analyst acknowledged

  • Raw material price volatility

    medium

    Increase in key raw material (Aniline) prices, which management expects to pass on.

    Analyst acknowledged

Q&A highlights

6 direct
Volume growth for FY27, especially with US deal and EU FTA Direct
Going forward, with the tariff situation, surely the India-EU FTA is only expected to come into play in calendar year '27 roughly. But the U.S. tariffs, clearly, we see some of the volumes coming back in a 2- to 3-month horizon; whatever we had kind of lost, we expect that to come back. And with the domestic buoyancy that we see, I would say financial year '27, definitely see growth prospects as well.

Management provides a clear outlook on future volume growth drivers, including specific timelines for US volume recovery and EU FTA impact.

Asked by Nirav Jimudia

Impact of Chinese currency appreciation on competitive advantage Direct
Yes. So, I think a factor that in -- also while kind of looking at how we see growth prospects going forward, but yes, it should give us a competitive advantage.

Addresses a potential tailwind for Indian chemical manufacturers against Chinese competition, indicating improved competitiveness.

Asked by Nirav Jimudia

Status and timeline of antidumping duty investigations Partial
See, the procedure as per the antidumping rules is 1 year from the date of notification, the findings should get concluded. Due to their administrative organization restructure, the DA got transferred. And the new DA got inducted somewhere in December. So, there had to be a mandatory repeat of public hearings, which got finished. So as per the protocol and the statute, they have taken a 3-month extension as it is available on the DGTR website. So, we hope that in the next 1.5, 2 months, they should conclude the findings.

Clarifies the reason for delay and provides a revised timeline for the crucial antidumping duty findings, which are critical for addressing import dumping.

Asked by Aditya Khetan

Aggressive pricing from Korean players in antioxidants and potential antidumping investigation Direct
Harshil, Srinivas here. And the antioxidants product coming from Korea, we have already initiated a case against them and the investigation is underway.

Reveals that the company is actively pursuing antidumping measures against Korean imports, expanding beyond China and EU, which could protect margins in a key product segment.

Asked by Harshil Parekh

Risk of rerouting of goods via Southeast Asia to circumvent antidumping duties Direct
No, no. I think the antidumping is applicable on country of origin, not country of supply. So, the customs look at the country of origin from where it is originated. So, if suppose someone is routing Chinese material through Europe and then Europe is selling to India, the country of origin is China. So, there cannot be any I'm just giving you a hypothetical example. That is -- it is country of origin. It is not country of supply.

Provides clarity on the effectiveness of antidumping duties, assuring investors that rerouting tactics are unlikely to succeed, thus strengthening the expected impact of the duties.

Asked by Radha

Current capacity utilization in the latex segment Direct
Nirav, just a minute. I think in the 9 months, we are looking at, it's about 60%.

Gives insight into the operational efficiency and headroom available in a specific product segment, indicating potential for volume growth without significant new capex.

Asked by Nirav Jimudia

Size of the Indian rubber chemical market and import share Direct
Nirav, actually, what you should look at is we consider the we have a 40% share, right? The remaining 60% is supplied through intermediates as well as finished goods. So, if you per se, if you exclude intermediates, I think we'll be about 40%. Otherwise, if you include intermediates, it's 60%.

Provides crucial market sizing data and NOCIL's market share, highlighting the significant opportunity for import substitution and domestic growth.

Asked by Nirav Jimudia

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview

NOCIL reported Q3 FY26 revenue of Rs. 316 crores, a slight sequential decline from Rs. 321 crores in Q2 FY26. Operating EBITDA, however, improved to Rs. 27 crores from Rs. 22 crores QoQ, resulting in an EBITDA margin of 8.5%. For the nine months ended December 2025, revenue stood at Rs. 973 crores, down from Rs. 1,053 crores in the prior year, with operating EBITDA at Rs. 80 crores (8.2% margin) compared to Rs. 103 crores.

Domestic vs. International Market Dynamics

Domestic volumes showed high single-digit growth in Q3 FY26, driven by improved demand due to GST 2.0. In contrast, international markets experienced dampened volumes due to seasonal effects and U.S. tariff issues, leading to an 8-9% degrowth in export volumes for the nine-month period. Management anticipates a recovery of approximately 50% of lost U.S. volumes within 2-3 months and expects overall FY26 volumes to grow 3-4%, with FY27 showing double-digit growth.

Antidumping Measures and Trade Agreements

The company has filed antidumping petitions on select key products to counter competitive pricing pressures and dumping from imports. While findings were delayed due to administrative restructuring, conclusions are now expected within the next 1.5-2 months. NOCIL has also initiated a case against Korean antioxidant products. The India-EU FTA, expected to come into play in calendar year 2027, is anticipated to support strategic engagement in European markets.

Capacity Expansion and New Product Development

The TDQ antioxidant investment at Dahej is progressing ahead of schedule, with production trials slated for the first half of calendar year 2026. This expansion, along with new products currently in soft launch, is expected to contribute 10-12% to current volumes, with significant ramp-up anticipated from FY28-29. These initiatives are crucial for future volume growth and market share expansion.

Cost Optimization Initiatives

NOCIL has achieved approximately Rs. 23 crores in conversion cost savings over the nine-month period compared to the previous year. These savings stem from conscious efforts to control working capital, align production with inventory adjustments, and efficient management of utilities. The company aims for a sustained annual improvement of 150 basis points in EBITDA margin over the next 2-4 years through ongoing cost initiatives.

Indian Rubber Chemical Market Overview

The Indian rubber chemical market is estimated to be around 85,000 tons. NOCIL holds a 40% market share (excluding intermediates) or 60% (including intermediates), indicating a significant opportunity for growth through import substitution and leveraging its expanded capacities. The latex segment currently operates at about 60% capacity utilization, providing headroom for future growth.

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