Apcotex Industries Ltd

Apcotex Industries Limited – Trading Window closed from Thursday, October 1, 2026 until forty-eight hours after the declaration of Audited Financial Results of the Company for the quarter and half year ending September 30, 2026

Apcotex Industries Limited — Trading Window closed from Thursday, October 1, 2026 until forty-eight hours after the declaration of Audited Financial Results for the quarter and half year ending September 30, 2026

Rating action and instruments

• Long Term-Fund Based-Cash Credit: AA-(Stable); reaffirmed with enhanced limit to Rs 168 crore.
• Long Term-Fund Based-Term Loan: AA-(Stable); reaffirmed with enhanced limit to Rs 196.89 crore.
• Long Term Interchangeable-Others: AA-(Stable); reaffirmed.
• Long Term/Short Term-Fund Based-Cash Credit: AA-(Stable)/A1+; reaffirmed.
• Long Term/Short Term-Fund Based/Non Fund Based-Others: AA-(Stable)/A1+; reaffirmed.
• Short Term-Interchangeable-Bank Guarantee: A1+; reaffirmed.
• Short Term-Interchangeable-Buyers Credit/Suppliers Credit: A1+; reaffirmed and enhanced.
• Short Term-Interchangeable-Letter of Credit: A1+; reaffirmed.
• Short Term-Non Fund Based-Others: A1+; reaffirmed.
• Total rated: Rs. 588.89 crore.
• Outlook: Stable for all long-term ratings.
• Surveillance due within one year.

Financial Performance

• Q1 FY27 revenue was 526 crores, up 40% YoY.
• EBITDA stood at 117 crores with a 22.3% margin.
• PAT was 79 crores, up 311% YoY, with 15.01% PAT margin.
• Export volumes faced headwinds from West Asia and higher ocean freight.
• Inventory gains contributed about 2% to EBITDA.
• Management expects long-term average margins around 15-16%.

Operating and Market Update

• Prices realized rose while volumes were lower, driving revenue growth.
• Nitrile latex margins improved; trend expected to continue gradually.
• Domestic demand remained robust across multiple sectors.
• Rupee movements provide limited benefit; raw materials are dollar-denominated.

Balance Sheet and Cash Flow

• Net cash position around ₹40 crores; March cash near ₹70 crores earlier.
• Higher working capital increased inventory and receivables.
• Capex so far is self-funded; no debt yet.

Projects and Capex

• Total capex about ₹220 crores for NBR and SB latex expansions.
• NBR on-stream by Q1 next year; SB latex around end of Q1.
• Capex largely self-funded; equipment deliveries expected in Q3/Q4.

Q&A Highlights

• Inventory gains quantified; EBITDA uplift about 2%.
• Margins sustainable level discussed; long-term average around 15-16%.
• Nitrile Stage 2 expansion discussed; decision in 3–4 months.
• Domestic demand remains strong; exports face headwinds from geopolitics.
• Dividend payout could rise if profitability remains high; board decision required.

Meeting Details

• Date: 30 July 2026; time not disclosed.
• Meeting type: earnings conference call (audio), hosted on company website.

Participants

• Key participant: Head - Company Secretary & Legal.

Purpose

• Purpose: earnings results discussion for quarter ended 30 June 2026.

Additional Notes

• Recording of the earnings call is available on the company website.