Galaxy Surfactants Limited Q2 & H1 FY26 Concall Decoded:Tariffs, reformulation, GST shock – when everything that could go wrong politely queued up

---

1. Opening Hook

If you thought Q1 was tough, Galaxy’s Q2 basically said, “Hold my fatty alcohol.” US slapped tariffs, FMCG players dumped inventory, palm kernel oil prices refused to behave, and customers decided petrochemicals look suddenly attractive. Management didn’t sugarcoat it—this was one of those rare quarters where every identified risk showed up on time.

Volumes stalled, margins sulked, and optimism was postponed to Q4 like a delayed flight. Yet, amid the chaos, Galaxy quietly gained share with Tier-2 and Tier-3 customers and kept its long-term story alive.

Short-term pain? Absolutely. Structural breakdown? Management says no—just another ugly cycle in a 30-year déjà vu loop.

Stick around. The calm-after-the-storm thesis starts appearing much later in the call.

---

2. At a Glance

• H1 Revenue +2% YoY – Growth crawling, not sprinting.
• EBITDA ₹251 Cr (–5% YoY) – Margin compression said hello early.
• EBITDA/MT ₹18,700 (H1) – Below comfort zone, management admits it.
• Volumes flat YoY – Survival mode successfully activated.
• Tariff impact: 3–5% of FY25 EBITDA – Uncle Sam took a real cut.

---

3. Management’s Key Commentary

“Q2 has been about navigating short-term turbulence.”
(Translation: Everything broke at once 😐)

“Additional 50% US tariffs had an adverse impact on demand and pipeline projects.”
(Translation: Customers ghosted us politely.)

“Fatty alcohol prices have never stayed this high for so long.”
(Translation: Raw materials are acting unhinged.)

“This is probably the fifth time in my 32 years I’ve seen reformulation.”
(Translation: Relax, we’ve seen worse cycles.)

“We could have sold 3,000–4,000 tons more without reformulation.”
(Translation: Volumes didn’t die, they were kidnapped.)

“We don’t see reformulation as structural.”
(Translation: Petrochemicals are a rebound fling, not marriage.)

“Q3 will likely be similar to Q2.”
(Translation: Don’t expect miracles before year-end 😬)

---

4. Numbers Decoded

Source table

Metric	Q2 / H1 FY26	Decoded Reality
Revenue Growth	+2% YoY (H1)	Barely outran inflation
EBITDA	₹251 Cr	Margin pressure fully visible
EBITDA/MT	₹17,300 (Q2)