Excel Industries , a leading chemical manufacturer, has announced its financial results for the second quarter of fiscal year 2026, revealing a significant decline in profit despite a modest increase in revenue.

Financial Performance

For the quarter ended September 30, 2025, Excel Industries reported:

The company's revenue from operations saw a marginal increase of 0.48% year-over-year, rising from ₹268.91 crore in Q2 FY2025 to ₹270.19 crore in Q2 FY2026. However, net profit after tax declined significantly by 45.31%, falling from ₹34.25 crore to ₹18.73 crore during the same period.

Half-Year Performance

For the half-year ended September 30, 2025, Excel Industries' financial results showed:

• Revenue from operations increased to ₹579.66 crore, up from ₹533.82 crore in the corresponding period last year.
• Net profit decreased to ₹52.29 crore, compared to ₹65.73 crore in the previous year's first half.

Operational Highlights

Excel Industries operates primarily in the chemicals business, with a focus on polymer inputs, pharmaceutical intermediates, and veterinary APIs. The company's Environment & Biotech Division also contributes to its operations.

Board Meeting and Auditor's Review

The financial results were approved by the Board of Directors at a meeting held on November 11, 2025. Price Waterhouse Chartered Accountants LLP conducted a limited review of the financial statements, as per regulatory requirements.

Earnings Call

Excel Industries has scheduled an earnings call for analysts and investors to discuss the Q2 and H1 FY26 results on November 14, 2025, at 4:00 PM IST. This call will provide an opportunity for stakeholders to gain further insights into the company's performance and future outlook.

Market Impact

The significant drop in quarterly profit may raise concerns among investors, despite the slight increase in revenue. Shareholders will likely be looking for explanations regarding the reduced profitability and strategies to improve performance in the coming quarters.

As Excel Industries navigates through these challenging results, the market will be watching closely for any signs of recovery or further guidance from the management during the upcoming earnings call.

Excel Industries , a leading chemical manufacturing company, has released its financial results for the second quarter of the fiscal year, revealing a mixed performance with revenue growth but a significant decline in profitability.

Key Financial Highlights

Revenue Growth Amid Profit Decline

Excel Industries reported a marginal increase in revenue, which grew to ₹270.00 crore in Q2 FY2024 from ₹268.00 crore in the same period last year, representing a modest growth of 0.75%. However, this growth was overshadowed by a significant drop in profitability metrics.

Profitability Under Pressure

The company's net profit for the quarter stood at ₹21.20 crore, marking a substantial decline of 40.62% compared to ₹35.70 crore in Q2 FY2023. This sharp decrease in profit despite revenue growth indicates challenges in maintaining profit margins.

EBITDA and Margin Compression

Excel Industries' EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a considerable decrease:

• Q2 FY2024 EBITDA: ₹29.90 crore
• Q2 FY2023 EBITDA: ₹49.00 crore
• Year-over-Year Decline: 38.98%

The EBITDA margin contracted significantly from 18.21% in Q2 FY2023 to 11.07% in Q2 FY2024, representing a compression of 714 basis points. This substantial margin reduction suggests increased operational costs or pricing pressures in the market.

Analysis and Outlook

The divergence between revenue growth and profit decline points to potential challenges in cost management or unfavorable market conditions affecting Excel Industries' operations. The company may need to focus on operational efficiency and cost control measures to improve its profitability in the coming quarters.

Investors and analysts will likely be watching closely to see how Excel Industries addresses these challenges and whether it can reverse the trend of declining profitability in subsequent quarters. The management's strategy to navigate through this period of margin pressure will be crucial for the company's financial performance going forward.

As the chemical industry continues to face global economic uncertainties and fluctuating raw material costs, Excel Industries' ability to adapt and maintain its competitive edge will be key to its future success.