1. Opening Hook
While most chemical companies are still detoxing from post-COVID hangovers, Apcotex just spiked its performance chart like a Formula 1 lap time. Revenues dipped a tad, but profits zoomed 130%, and the CFO casually announced they’ve gonenet cash positive—in the middle of a raw material price slump. Somewhere in Gujarat, their Valia plant is prepping for a ₹210 crore makeover to pump out more latex and nitrile rubber than ever.
If you thought rubber was dull, wait till you see these margins bounce. Keep reading—because Apcotex just turned chemistry into cash flow.
2. At a Glance
- Revenue ₹337 crore (↓4% YoY):Prices dipped, but CFO says, “Volume’s still vibing.”
- EBITDA ₹41 crore (↑48%):Margin expansion faster than latex drying.
- EBITDA Margin 12.06%:Finally, chemistry with profitability.
- PAT ₹25 crore (↑130%):From slump to spike, faster than an NBR polymer cure.
- Net Cash Positive:Debt detox achieved. 🎉
- H1 Revenue ₹713 crore (↑4% YoY):Highest-ever exports; clearly, latex travels well.
- CAPEX ₹210 crore announced:Because what’s growth without a giant cheque?
3. Management’s Key Commentary
“Volumes up 11%, but revenue dipped 4% due to lower realizations.”(Translation: Prices fell, but we sold more stuff anyway.)😏
“EBITDA up 48%, margins at 12.06%.”(Translation: Finally, operating leverage decided to RSVP.)
“We’ve turned net cash positive as of September.”(Translation: Banks can stop calling now.)
“DGTR’s anti-dumping recommendation is positive; waiting for Finance Ministry’s nod.”(Translation: Bureaucracy is the new KPI.)
“We’re investing ₹210 crore in Valia for 37,000 MT latex & 14,600 MT nitrile rubber.”(Translation: Let’s make Valia the Disneyland of chemicals.)
“The expansion adds ₹550–600 crore revenue potential.”(Translation: That’s what we call a stretchy goal.)
“No more capacity at Taloja; Valia’s the new playground.”(Translation: One plant’s full, another’s getting a spa treatment.)
4. Numbers Decoded
| Metric (₹ crore) | Q2 FY26 | Q2 FY25 | YoY Change | Commentary |
|---|---|---|---|---|
| Revenue | 337 | 351 | -4% | Raw material crash deflated top line |
| EBITDA | 41 | 28 | +48% | Volume + Margin cocktail 🍹 |
| EBITDA Margin (%) | 12.06 | 8.0 | +406 bps | Margin steroids |
| PAT | 25 | 11 | +130% | Profits found lost chemistry |
| PAT Margin (%) | 7.51 | 3.2 | +431 bps | Latex meets leverage |
| H1 Revenue | 713 | 684 | +4% | Flat prices, fat profits |
| H1 EBITDA | 79 | 59 | +34% | Process efficiency pays |
| Debt Reduction | 53 | — | N/A | From borrowings to bragging rights |
Margins up, debt down, and cash flowing—the kind of chemistry Wall Street dreams of.
5. Analyst Questions
Q:Exports dipped this quarter—seasonal?A:“Yes, large orders shift between quarters.”(Translation: Timing, not talent, bro.)
Q:210 crore CAPEX—over two years?A:“Six to seven quarters; phased rollout.”(Translation: No cash burn marathons.)
Q:Gross margins up—why?A:“Higher utilization, better mix, less chaos.”(Translation: We finally ran at full throttle.)
Q:Anti-dumping duty impact?A:“One importer exempt—ouch. Still, net positive.”(Translation: Close enough to a win.)
Q:Cash flow best ever—sustainable?A:“Lower prices helped; let’s not jinx it.”(Translation: Enjoy it while it lasts.)
6. Guidance & Outlook
Management’s betting on growth through chemistry—literally. The ₹210 crore Valia expansion aims to add 51,000 tonnes of capacity with ₹550–600 crore revenue potential. Completion is slated forQ1 FY27–28, but minor capacity debottlenecking starts mid-2026.
NBR margins remain volatile, but higher utilization and likely anti-dumping relief may cushion that. Synthetic latex will
