Galaxy Surfactants Ltd Q2FY26 – When Chemistry Meets Comedy: Foam Is Down, But Spirit Still Up!

1. At a Glance

Galaxy Surfactants Ltd (NSE: GALAXYSURF) — the company that makes the stuff that makesotherstuff foam — just reported its Q2FY26 results, and it’s a perfect mix of chemistry, drama, and some soapy suspense. The ₹7,424 crore market cap giant closed the quarter with sales of ₹1,326 crore and a PAT of ₹66.5 crore, down 21.5% QoQ despite a 24.8% jump in revenue. The stock trades around ₹2,094, down ~4% over the past three months, while your shampoo still smells amazing, thanks to them.

Trading at a P/E of 25.9x with an ROE of 13.5% and ROCE of 16.2%, Galaxy sits comfortably cleaner than your detergent shelf but dirtier than your portfolio’s returns. Debt stands at just ₹268 crore with a modest D/E ratio of 0.11, so yes, they can pay their soap bills on time.

As the Bhagavad Gita says —“Yogah Karmasu Kaushalam”— excellence in action is yoga. Galaxy’s version? Turning fatty alcohols into cash flow while keeping the lather intact.

2. Introduction

Imagine a company that makes your hair shiny, your clothes fresh, your skin smooth, and still finds time to impress Unilever and P&G. That’s Galaxy Surfactants for you — the unsung hero of every shower and laundry session. You may not see their brand in stores, but you’ve rubbed them into your skin, rinsed them off your plates, and maybe even gargled them (if you use Colgate).

Founded in 1986, Galaxy has evolved from a small Indian oleochemical outfit to a global surfactant powerhouse supplying over 215 products across 80+ countries. Think of them as the “Intel Inside” of your FMCG — the silent force that gives all your favorite brands their bubbly personalities.

Yet, FY25 wasn’t all smooth. Inflation pinched margins, export dynamics got tangled, and raw material costs kept doing bhangra on the balance sheet. Still, Galaxy managed to lather up a 22.6% YoY sales growth in the latest trailing year, proving that even in chaos, hygiene sells.

If cleanliness is next to godliness, Galaxy’s EBITDA margins might just be its halo — not too bright lately, but still glowing at ~9.7%.

3. Business Model – WTF Do They Even Do?

So what does Galaxy Surfactants actually do? Simply put, they make surfactants — the molecules that break surface tension so your shampoo foams, your lotion spreads, and your detergent doesn’t just sit there judging your dirty laundry.

They operate under two divisions:

a) Performance Surfactants (60% revenue)– The grunt workers. Anionic, non-ionic, amphoteric, and cationic surfactants that help create cleansing and foaming effects. These are the bread and butter for soaps, shampoos, and detergents. Key products include FAES, FAS, LABSA, and Betaines — names that sound like chemistry exam nightmares but clean the world’s hair.

b) Specialty Care Products (40% revenue)– The posh cousins. Preservatives, UV filters, proteins, and mild surfactants that go into premium skincare, cosmetics, and sunscreens. Think of these as the “serums” of chemistry — fewer in quantity, higher in margins, and more likely to be loved by L’Oréal.

Galaxy’s customer base includes the holy trinity of FMCG — Unilever, P&G, and Reckitt Benckiser — along with regional brands and homegrown names like Himalaya and Emami. Their strategy? Sell chemistry that travels — 60% of revenue now comes from exports across AMET, the US, and Europe.

4. Financials Overview

Quarterly Financial Snapshot (₹ in crore)

Annualised EPS:₹18.75 × 4 = ₹75.0 → P/E ~27.9x

Commentary:Revenue is up, profit is down — the financial equivalent of working overtime and still being broke. EBITDA margins fell to 8%, probably due to higher raw material costs and product mix shifts toward performance surfactants. PAT margins are scrubbing near 5%, which for a surfactant maker, is still cleaner than your average PSU.

5. Valuation Discussion – Fair Value Range

Method 1: P/E Based Valuation

• FY26E EPS (annualised): ₹75
• Industry average P/E: 29x
• Reasonable range: 22x–28xFair Value Range:₹1,650 – ₹2,100

Method 2: EV/EBITDA

• EV/EBITDA