Excel Industries has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, with the Bombay Stock Exchange and National Stock Exchange.

The disclosure outlines the company's environmental, social, and governance performance for FY26, highlighting improvements in resource efficiency and waste management across its manufacturing operations.

Operational Efficiency Metrics

The company reported a decline in energy intensity per rupee of turnover to 0.00009437 GJ/INR in FY26, down from 0.0001020 in the prior fiscal year. This improvement occurred despite a rise in total energy consumption to 10,32,939 GJ from 9,98,136 GJ in FY25.

Water intensity also improved, falling to 0.050 litre/rupee from 0.055 litre/rupee. Total water consumption stood at 5,51,229 KL, up slightly from 5,38,443 KL the previous year.

Environmental Management

Greenhouse gas emissions saw a reduction in intensity terms. Total Scope 1 and Scope 2 emissions per rupee of turnover dropped to 0.00000993 MT CO2/INR from 0.00001058 MT CO2/INR.

The Visakhapatnam facility operates as a Zero Liquid Discharge unit, while Roha and Lote sites have implemented partial ZLD with approved consented discharge facilities. The company generated 17,246.15 metric tons of waste in FY26, a slight decrease from 17,340 metric tons in FY25.

Social Impact and Governance

Employee turnover rates remained stable, with permanent employees showing a rate of 11.26% compared to 10.69% in FY25. The workforce comprises 675 permanent employees and 487 workers.

Under Principle 8, the company disclosed CSR spending of ₹50,00,000 in Raigad district and ₹60,00,000 in Ratnagiri district, Maharashtra. Procurement from MSMEs increased to 27.82% of total inputs, up from 24.42% in the previous year.

What the Numbers Show

The divergence between rising absolute energy consumption (+3.4%) and declining energy intensity highlights operational scaling outpacing efficiency gains on an absolute basis, though productivity per unit of energy improved. Similarly, waste generation declined marginally despite higher production volumes, suggesting effective waste management protocols are offsetting scale-related increases.

Excel Industries reported mixed financial results for the first quarter of FY27, with operating profits showing resilience while bottom-line earnings contracted due to lower non-operating income. The company’s standalone EBITDA rose marginally to ₹42.4 crore from ₹42.3 crore in the corresponding period last year. This represents an expansion in the EBITDA margin to 14.4% from 13.7% YoY.

However, this operational improvement was not sufficient to offset broader pressures on profitability. Standalone net profit for the quarter fell to ₹29.1 crore, down from ₹33.6 crore recorded in the previous year. The decline in net income occurred against a backdrop of lower top-line growth, with standalone revenue registering at ₹293.7 crore, compared to ₹309.5 crore in the prior year.

On a consolidated basis, total income from operations stood at ₹293.8 crore, a decrease from ₹309.5 crore in Q1FY26. Consolidated net profit after tax was reported at ₹29.5 crore, compared to ₹33.8 crore in the corresponding quarter of the previous fiscal year.

Operational Drivers and Segment Performance

The divergence between operating and net profit figures suggests that non-operating factors impacted the final bottom line. While Excel Industries managed to expand its EBITDA margin by nearly 70 basis points despite a revenue contraction, the net profit margin compressed significantly. The ability to grow EBITDA while revenue fell indicates potential cost efficiencies or favorable product mix shifts at the operating level, though these gains were eroded before reaching the net profit line.

Key operational highlights include:

• Erratic monsoon conditions impacted demand for the Agrochemical Intermediates product group.
• Despite underperformance in Agrochemical Intermediates, Q1 FY27 revenue reached approximately 95% of Q1 FY26 revenue.
• Strong performance from other product groups largely offset the decline in Agrochemical Intermediates.
• Revenue traction was supported by previously announced contract manufacturing projects with superior margin profiles.
• Prudent supply chain management ensured no stock-outs during disruptions amidst global volatility in raw material pricing and availability.

Strategic Developments

The company announced the successful completion of a project for production supplies against a long-term supply agreement on July 23, 2026. This project, which has an annual revenue potential of ₹35–40 crore (excluding cost of raw materials), underscores the company’s execution abilities. Managing Director Ravi Ashwin Shroff stated that this achievement strengthens Excel’s position as a reliable contract manufacturing partner and diversifies its revenue base.

Looking ahead, the company expects near-term demand challenges in Agrochemical Intermediates to persist. However, non-agrochemical product groups are expected to maintain growth momentum. With the dedicated manufacturing setup now commissioned, Excel targets higher volumes under the long-term specialty chemical supply agreement announced in November 2025. Development initiatives in Biocides and Performance Solutions remain on track, with product launches targeted during FY27.

What the Numbers Show

The data highlights a scenario where operational leverage helped stabilize EBITDA, but the overall financial performance was weighed down by the revenue shortfall and subsequent impact on net earnings. Specifically, other income dropped significantly from ₹11.8 crore in Q1FY26 to ₹6.2 crore in Q1FY27, accounting for the majority of the decline in Profit Before Tax (PBT) which fell from ₹44.2 crore to ₹38.5 crore. This indicates that the core operational business (EBITDA) performed better than the headline net profit suggests, as the profit decline was largely driven by non-recurring or non-operational income reductions rather than operational inefficiencies.