NOCIL net profit surges 65% in Q1FY27 on volume and ASP growth
NOCIL Limited reported strong Q1FY27 results with net profit jumping 65% to ₹27.32 crore and revenue growing 20% to ₹403 crore. Growth was fueled by 9% volume expansion and higher ASPs. The company highlighted a new ₹130 crore brownfield capex project targeting completion by H1FY28.
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NOCIL reported a robust financial performance for the first quarter of FY27, with standalone net profit after tax (PAT) rising 64.9% year-on-year to ₹27.32 crore. The Mumbai-based rubber chemicals manufacturer posted revenue from operations of ₹403.02 crore for the quarter ended June 30, 2026, up from ₹336.22 crore in the corresponding period of the previous year. This top-line growth was driven by a 9% increase in volumes and higher average selling prices (ASP), supported by strong domestic demand following the implementation of GST 2.0 and successful export conversions.
The Board of Directors approved the unaudited standalone and consolidated financial results at its meeting held on August 3, 2026. The results were reviewed by the Audit Committee and subjected to limited review by the company’s statutory auditors, Kalyaniwalla & Mistry LLP, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The investor presentation accompanying the results highlighted the company's strategic focus on product portfolio expansion and operational excellence.
Financial Highlights
NOCIL’s profitability expanded significantly alongside revenue growth. Earnings per share (EPS) on a standalone basis rose to ₹1.64 from ₹0.99 in Q1FY26. On a consolidated basis, which includes the results of its wholly-owned subsidiary PIL Chemicals Limited, net profit attributable to owners of the company increased to ₹27.76 crore from ₹17.26 crore in the year-ago quarter. Operating EBITDA margin improved to 11.2% from 9.1% in the prior year period, reflecting better operating leverage.
| Metric: | Standalone Q1FY27 | Standalone Q1FY26 | Consolidated Q1FY27 | Consolidated Q1FY26 |
|---|---|---|---|---|
| Revenue from Operations: | ₹403.02 Cr | ₹336.22 Cr | ₹403.02 Cr | ₹336.22 Cr |
| Net Profit After Tax: | ₹27.32 Cr | ₹16.58 Cr | ₹27.76 Cr | ₹17.26 Cr |
| Operating EBITDA Margin: | 11.2% | 9.1% | 11.2% | 9.1% |
| EPS (Basic): | ₹1.64 | ₹0.99 | ₹1.66 | ₹1.03 |
Operational Drivers and Capex Plans
The volume growth in Q1FY27 reached 145 units (base 100), compared to 133 units in Q1FY26. Domestic volumes witnessed double-digit growth, while export volumes recorded single-digit growth. However, quarter-on-quarter volumes de-grew by 3% due to supply-side constraints of utilities and logistical challenges amid geopolitical situations. ASPs increased due to higher raw material prices, with raw material costs rising to ₹273 crore from ₹195 crore in the year-ago quarter.
Looking ahead, NOCIL announced a further ₹130 crore brownfield capital expenditure program in March 2026 to expand capacity for peak-utilization rubber chemical products through an integrated facility. This includes backward integration of inputs, with completion targeted by H1FY28. Funding is largely expected through internal accruals. The company also commissioned a new TDQ facility to enhance its product offerings.
What the Numbers Show
The divergence between the substantial rise in net profit and the moderate increase in employee benefits suggests that the profit growth was largely driven by volume expansion and favorable pricing power rather than aggressive hiring. The significant improvement in EBITDA margins, despite higher raw material costs, indicates effective cost management and operational efficiency. The company’s strategy to diversify beyond China, leveraging its position as a dependable non-Chinese supplier, appears to be yielding results in both domestic and international markets.
Historical Stock Returns for NOCIL
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.32% | +7.99% | -3.84% | +28.02% | -6.86% | -36.33% |
How will the ₹130 crore brownfield expansion targeted for H1FY28 impact NOCIL's market share in high-demand rubber chemical segments?
What is the company's strategy to mitigate ongoing supply-side utility constraints and geopolitical logistical challenges that caused a QoQ volume decline?
To what extent can NOCIL sustain its improved EBITDA margins of 11.2% given the significant year-on-year increase in raw material costs?
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