1. Opening Hook
When the U.S. slaps a50% import tariff, most exporters panic — OCCL just adjusts its sulphur mix and keeps marching. The insoluble sulphur specialist found itself juggling geopolitics, raw material spikes, and Malaysian mischief — yet still managed growth that would make even tyre giants nod in approval. From anti-dumping drama to acid shutdowns, this call had everything except a Bollywood soundtrack. Stick around — the fun begins when we hit “Malaysia.”
2. At a Glance
- Revenue up 16% YoY:The tyres kept rolling despite global potholes.
- EBITDA up 5% YoY:Margins melted faster than sulphur in summer.
- PAT up 16%:Profit squeezed through tariffs and still smiled.
- EBITDA Margin 16.8%:Down from 21.7% — acid shutdowns are expensive hobbies.
- Debt ₹81 Cr:A pinch of leverage never hurt an export recipe.
- Capacity Utilization:Insoluble sulphur at 70%, sulphuric acid full throttle.
3. Management’s Key Commentary
“Anti-dumping duties on China and Japan have improved domestic realizations.”(Translation: Finally, protectionism works — sometimes.)
“U.S. tariffs of 50% have impacted margins, but we’re hopeful of resolution.”(Translation: Washington sneezed, we caught a cold 😏)
“Global oversupply is keeping realizations soft.”(Translation: Everyone’s cooking sulphur like it’s Diwali sweets.)
“Benchmark sulphur costs are up due to tight supply.”(Translation: Our raw material budget now qualifies as a horror story.)
“We remain confident in maintaining long-term growth.”(Translation: Optimism — the corporate painkiller of choice.)
“If Malaysia continues dumping, we’ll go legal.”(Translation: Time to lawyer up and dump the dumpers.)
“Annual shutdown impacted sulphuric acid output.”(Translation: Maintenance — the polite word for margin murder.)
4. Numbers Decoded
| Metric | Q2FY26 | Q2FY25 | YoY Change | Comment |
|---|---|---|---|---|
| Total Income | ₹121 Cr | ₹104 Cr | +16% | Still rolling uphill |
| EBITDA | ₹20 Cr | ₹19 Cr | +5% | Slight puff left in the sulphur tank |
| EBITDA Margin | 16.8% | 18.3% | -150 bps | Acid trip (shutdown) effect |
| PAT | ₹9 Cr | ₹8 Cr | +16% | Survived tariffs & costs |
| H1 Revenue | ₹244 Cr | ₹210 Cr | +16% | Demand still sticky |
| Debt | ₹81 Cr | ₹74 Cr | +9% | Manageable sulphur burn |
| Sulphur Price Impact | +₹10,000/ton | — | — | Ate into entire hike gain |
Note: ₹2 Cr stamp duty + forex MTM losses added spice to the expense stew.
5. Analyst Questions
Q:Global demand-supply balance?A:Supply ≈ 3.57 lakh tons, demand ≈ 3 lakh — oversupply is the new normal.
Q:How much from the U.S.?A:“No comment” — translation: enough to hurt, not enough to disclose.
Q:Anti-dumping from Malaysia coming?A:Not yet, but our lawyers are stretching.
Q:Margin down 500 bps — why?A:Acid shutdown, mark-to-market hit, stamp duty cameo.
Q:Cost of sulphur?A:Up ₹10,000 per ton — exactly our price hike. The universe loves balance.
6. Guidance & Outlook
Management expectssteady domestic share gainsas anti-dumping duties kick in and Malaysia’s pricing tactics are probed. TheU.S. tariff painmay ease post bilateral talks, whileglobal tyre demandprovides long-term comfort. Q3 may stay bumpy with high input prices and low acid seasonality, but normalization
