Apcotex Industries Limited , a leading manufacturer of synthetic latex and rubber, has reported a remarkable financial performance for the second quarter of the fiscal year. The company's net profit surged by 130% to ₹253 million, compared to ₹110 million in the same quarter of the previous year.

Financial Highlights

Despite a slight decline in revenue from ₹3.51 billion to ₹3.37 billion, Apcotex Industries demonstrated strong operational efficiency. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) improved substantially to ₹406 million from ₹275 million in the previous year, representing a 48% increase. This improvement led to a significant expansion in the EBITDA margin, which rose to 12.06% from 7.83% year-over-year.

Operational Performance

The company's robust performance can be attributed to improved operational efficiency and cost management strategies. Despite the marginal decrease in revenue, Apcotex Industries managed to significantly boost its profitability, indicating effective control over expenses and potentially favorable raw material costs.

Future Growth Plans

The Board of Directors has approved a fresh capital expenditure plan of ₹210 crore towards capacity addition at the company's manufacturing facility in Valia, Gujarat. This expansion plan includes:

• Addition of 37,000 MTPA Synthetic Latex capacity
• Increase of 14,600 MTPA in Nitrile Rubber and Allied Products capacity

The new capacities are expected to come on stream in a phased manner by the first quarter of FY2027. This expansion aims to meet the growing demand and increase sales in both domestic and international markets.

Management Commentary

While specific management quotes are not available, the approved capacity expansion plan suggests that the company's leadership is optimistic about future demand growth and is positioning Apcotex Industries to capitalize on emerging market opportunities.

Conclusion

Apcotex Industries' Q2 FY2026 results demonstrate the company's ability to enhance profitability even in the face of revenue challenges. The significant improvement in EBITDA and net profit, coupled with the ambitious capacity expansion plans, indicates a positive outlook for the company's future growth trajectory. As the company moves forward with its capacity addition plans, it will be crucial to monitor the execution of these projects and their impact on Apcotex's market position in the synthetic latex and rubber industry.

Apcotex Industries , a leading synthetic rubber and latex manufacturer, has reported a robust financial performance for the first quarter, with significant growth in revenue and profitability.

Strong Revenue Growth and Improved Margins

The company's operating revenue for Q1 stood at Rs 376.00 crores, marking a 12% year-on-year growth. This growth was primarily driven by a remarkable 37% increase in export revenues, which now contribute 37% of the total revenue.

Operating EBITDA reached Rs 39.00 crores, showing a substantial 22% year-on-year growth. The EBITDA margin improved to 10.30%, up from 9.45% in the same quarter last year. Profit after tax (PAT) stood at Rs 19.00 crores, with a PAT margin of 5.11%.

Record-Breaking Sales Volumes

Apcotex Industries achieved its highest ever quarterly sales volumes, with an impressive 25% year-on-year volume growth. This growth was primarily fueled by strong export performance.

Capacity Utilization and Expansion Plans

The company reported high capacity utilization across its facilities:

Given the high utilization rates, Apcotex is planning de-bottlenecking and expansion projects focusing on latex, SBR latex, styrene acrylics, and NBR products. The details of these expansion plans are expected to be announced shortly.

Export Performance and Market Diversification

Exports have become a significant growth driver for Apcotex, with a 37% year-on-year increase in export revenues. The company's strategy to diversify its market presence has paid off, with exports now accounting for 37% of total revenue.

Challenges in Nitrile Latex Segment

Despite high capacity utilization, the Nitrile Latex segment continues to face margin pressures due to industry overcapacity. The company is actively pursuing an anti-dumping case for NBR products to address these challenges.

Sustainability Initiatives

Apcotex has invested Rs 3.50 crores in a hybrid power project for its Gujarat plant, demonstrating its commitment to sustainable practices and reducing its carbon footprint.

Management Commentary

Abhiraj Choksey, Vice Chairman and Managing Director of Apcotex Industries, commented on the results: "We are pleased with our performance this quarter, especially the strong growth in exports and overall volumes. While challenges persist in certain segments, we are confident in our strategic initiatives and expansion plans to drive sustainable growth."

Looking ahead, Apcotex Industries remains focused on expanding its product portfolio, enhancing operational efficiencies, and capitalizing on export opportunities to maintain its growth trajectory in the coming quarters.