Apcotex Industries Ltd

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.

Business Overview

• Apcotex is a leading Indian producer of synthetic rubber and latex.
• Operates Taloja (Maharashtra) and Valia (Gujarat) facilities.
• Broad emulsion polymers portfolio and diversified end-markets.
• Listed on BSE/NSE; market cap ~INR 26,265 Mn as of 30 Jun 2026.

Operational Highlights

• Q1-FY27 revenue INR 5,256 Mn, up 39.9% YoY.
• EBITDA INR 1,171 Mn; EBITDA margin 22.28%.
• PAT INR 789 Mn; PAT margin 15.01%.
• Diluted EPS INR 15.23; up 311.6% YoY.
• Export volumes impacted by West Asia tensions and logistics disruptions.
• Capex program ongoing to support future growth and efficiency.
• Working capital requirements increased due to elevated raw material prices.
• All-time quarterly high revenue; strongest EBITDA, PBT, and PAT.

Financial Performance

• Q1-FY27 revenue 5,256 Mn; YoY growth 39.9%.
• Q1 EBITDA 1,171 Mn; margin 22.28%.
• Q1 PAT 789 Mn; margin 15.01%.
• Diluted EPS 15.23; YoY growth 311.6%.
• FY26 revenue 14,415 Mn; PAT 1,014 Mn.
• FY26 EBITDA 1,774 Mn; EBITDA margin 12.31%.

Capital Structure & Liquidity

• Long-term borrowings 317 Mn; short-term borrowings 613 Mn (FY26).
• Total equity 6,210 Mn; cash and cash equivalents 318 Mn (FY26).
• Total assets 9,865 Mn; borrowings declined vs prior years.

Strategic Priorities & Outlook

• Disciplined capex to support growth, capacity expansion, and efficiency.
• Ongoing product development and export focus.

Risks & Mitigation

• Export volume volatility due to geopolitical tensions in West Asia.
• Raw material price pass-through increasing working capital.

Governance & Leadership

• MD: Abhiraj Choksey, Vice Chairman and MD.
• Company Secretary & Legal: Drigesh Mittal.
• Forbes Asia Best Under A Billion 2023 recognition.

Financial highlights

• Revenue from operations ₹52,563.35 lakhs; total income ₹52,843.89 lakhs.
• QoQ revenue growth 32.2%; YoY growth 39.9%.
• PBT ₹10,464.88 lakhs.
• Tax expense ₹2,570.95 lakhs.
• Net profit after tax ₹7,893.93 lakhs.
• EPS ₹15.23 basic and diluted for Q1 FY27.
• Other comprehensive income ₹787.34 lakhs; total ₹8,681.27 lakhs.
• Total expenses ₹42,379.01 lakhs; materials ₹37,650.66 lakhs; inventories (−₹3,727.40).
• Exceptional items net: Nil.
• Standalone results; single segment Synthetic Emulsion Polymers; no subsidiaries; board approved 29 July 2026.

Audit & compliance notes

• Board approved the audited results on 29 July 2026.
• Auditors: Manubhai & Shah LLP; opinion: true and fair view.

Business profile

• Business: Synthetic Emulsion Polymers; single segment.

Audited results

• Audited standalone financial results for the quarter ended June 30, 2026 approved by the Board.
• Statutory audit report by Manubhai & Shah LLP dated July 29, 2026 accompanying results.
• Standalone results; no consolidated statements due to single business segment.
• Revenue from operations: 52,563.35 Lakhs; Net profit after tax: 7,893.93 Lakhs.
• Earnings per share: 15.23 Basic & Diluted.

Audit opinion

• Auditor's report states true and fair view of results under IND AS and Listing Regulations.

Meeting Details

• Board meeting scheduled for Wednesday, 29 July 2026.

Key Agenda Items

• To consider and approve audited financial results for quarter ended 30 June 2026.

Other Notes

• Trading window closed since 1 July 2026; will reopen 48 hours after results declaration.

Dematerialisation status

• Dematerialisation requests received during the quarter were processed and confirmed to depositories (accepted/rejected).
• Securities dematerialised have been listed on the stock exchanges where the earlier issued securities are listed.
• Physical certificates for dematerialisation were mutilated and cancelled after due verification.
• Depository name substituted as registered owner in the register within prescribed timelines.