Apcotex Industries Reports 92% Jump in Q3 FY26 Net Profit, Hosts Earnings Call
Apcotex Industries delivered outstanding Q3 FY26 performance with net profit surging 92.2% to ₹2,221.53 lakhs despite revenue decline due to raw material price corrections. The company conducted an earnings conference call on January 30, 2026, where management highlighted 10% volume growth, record export performance, and significant EBITDA margin expansion to 13.12%. With high capacity utilization across segments and ongoing expansion plans, the company declared an interim dividend of ₹2.50 per share.
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Apcotex Industries Limited delivered impressive financial performance for the third quarter of fiscal year 2026, with net profit jumping 92.2% year-on-year to ₹2,221.53 lakhs. The synthetic emulsion polymers manufacturer's strong results were announced following a Board meeting held on January 29, 2026, and subsequently discussed in detail during an earnings conference call on January 30, 2026.
Financial Performance Highlights
The company's quarterly performance showed robust growth across key metrics:
| Metric: | Q3 FY26 | Q3 FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations: | ₹33,145.78 lakhs | ₹35,526.68 lakhs | -6.7% |
| Total Income: | ₹33,473.13 lakhs | ₹35,993.50 lakhs | -7.0% |
| Net Profit After Tax: | ₹2,221.53 lakhs | ₹1,155.52 lakhs | +92.2% |
| Earnings Per Share: | ₹4.28 | ₹2.23 | +92.0% |
| Operating EBITDA: | ₹4,400 lakhs | ₹2,700 lakhs | +61% |
| EBITDA Margin: | 13.12% | 7.6% | +550 bps |
Despite a decline in revenue due to falling raw material and finished goods prices, the company demonstrated strong operational efficiency with profit before tax increasing to ₹2,754.93 lakhs from ₹1,641.79 lakhs in the previous year quarter.
Nine-Month Performance
For the nine months ended December 31, 2025, Apcotex Industries maintained its growth trajectory:
| Parameter: | 9M FY26 | 9M FY25 | Growth (%) |
|---|---|---|---|
| Revenue from Operations: | ₹1,04,391.50 lakhs | ₹1,04,295.98 lakhs | +0.1% |
| Net Profit After Tax: | ₹6,667.07 lakhs | ₹3,730.96 lakhs | +78.7% |
| Total Comprehensive Income: | ₹7,795.82 lakhs | ₹4,642.07 lakhs | +67.9% |
| Operating EBITDA: | ₹12,300 lakhs | ₹8,700 lakhs | +42% |
| EBITDA Margin: | 11.75% | 8.3% | +345 bps |
The nine-month results reflect the company's ability to maintain revenue levels while significantly improving profitability through enhanced operational efficiency.
Management Commentary and Operational Insights
During the earnings conference call, Vice Chairman and Managing Director Abhiraj Choksey highlighted several key operational achievements. Total volumes grew 10% year-on-year for the quarter, with the company achieving its highest ever sales volumes for the nine-month period, up 15% year-on-year. Export volumes reached record levels, increasing 21% year-on-year for the nine months.
Capacity Utilization and Segment Performance
| Business Segment: | Capacity Utilization | Performance Status |
|---|---|---|
| NBR (Solid Rubber): | 100% | Full capacity throughout the year |
| Nitrile Latex: | 70-75% | Improving due to US duties on Chinese gloves |
| Other Synthetic Latex: | 85-87% | Strong performance across paper and construction |
| Tire Cord: | 85-90% | Consistent operational levels |
The management noted that paper segment margins, which were at unhealthy levels for the previous couple of years, have returned to reasonably acceptable levels. The rubber segment also showed better margin improvement due to full capacity operations.
Exceptional Items and Cost Management
The quarter included exceptional items totaling ₹478.46 lakhs in employee benefit expenses, primarily related to the implementation of four labour codes by the Ministry of Labour & Employment. The company assessed the material impact of these new regulations, which came into effect from November 21, 2025.
Total expenses for Q3 FY26 decreased to ₹30,239.74 lakhs from ₹34,351.71 lakhs in the corresponding quarter of the previous year, demonstrating effective cost management strategies. The company reduced debt by approximately ₹9,400 lakhs during the nine-month period, highlighting strong cash generation.
Dividend Declaration and Expansion Plans
The Board of Directors approved key shareholder returns:
| Dividend Details: | Specification |
|---|---|
| Interim Dividend: | ₹2.50 per equity share |
| Face Value: | ₹2.00 per share |
| Record Date: | February 4, 2026 |
| Paid-up Share Capital: | ₹1,036.90 lakhs |
Regarding expansion plans, the company expects to complete its ongoing projects by the end of FY27, which will add approximately ₹550-600 crores to the top line. The expansion involves a CAPEX of ₹130-140 crores, significantly lower than the initially envisaged ₹200-250 crores due to innovative capacity enhancement methods.
Anti-Dumping Duty Status and Market Outlook
The management provided updates on the anti-dumping duty case for NBR products. While the Director General of Trade Remedies (DGTR) issued final findings in September, the Finance Ministry notification expected in December 2025 has not yet been issued. Despite this uncertainty, the company continues with its expansion plans.
The US imposition of 100% duty on Chinese gloves, implemented in January 2026, has positively impacted demand from Southeast Asian and South Asian glove manufacturers, benefiting the company's nitrile latex business.
Innovation Recognition
Apcotex Industries received recognition from the Confederation of Indian Industry (CII) as one of the top 100 most innovative companies, reaffirming its commitment to innovation, technology development, and self-reliance in the synthetic polymers sector.
Historical Stock Returns for Apcotex Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.52% | -1.00% | -1.40% | -9.48% | +15.36% | +105.62% |
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