Excel Industries Limited has reported a decline in revenue for Q2FY26, citing prolonged monsoon and weak demand in key products. However, the company has secured a significant contract manufacturing agreement, potentially diversifying its revenue streams.

Financial Performance

For the quarter ended September 30, 2025 (Q2FY26), Excel Industries reported:

• Revenue of ₹270.00 crores, down from ₹309.50 crores in Q1FY26
• H1FY26 revenue stood at ₹580.00 crores

The company attributed the revenue decline to:

• Prolonged monsoon affecting agro demand
• Weak offtake in key products

Despite the challenges, Excel Industries maintained its export performance:

• Exports accounted for 17.70% of total revenue in Q2FY26
• For H1FY26, exports contributed 20.30% of total revenue

Profitability

The company's profitability was impacted by the lower demand:

• EBITDA margins were 11.10% for Q2FY26 and 12.50% for H1FY26
• PAT (Profit After Tax) margin stood at 6.90% for Q2FY26 and 9.00% for H1FY26

New Contract Manufacturing Agreement

In a strategic move to diversify its revenue sources, Excel Industries announced:

• A 5-year contract manufacturing agreement with a leading Indian specialty chemicals company
• The deal is valued at ₹35.00-40.00 crores per annum
• This agreement aims to reduce the company's dependence on the agrochemicals sector

Operational Highlights

Excel Industries has also made progress in its operational capabilities:

• Initiated a capacity expansion for one of its biocides
• The new capacity came on stream in October 2025

Market Position

Despite the challenging quarter, the company stated that it continues to:

• Maintain market share in key products
• Focus on diversification of its product portfolio

While the revenue decline presents short-term challenges, Excel Industries' new contract manufacturing agreement and capacity expansion efforts suggest a proactive approach to navigating market fluctuations and diversifying its business model. The company's ability to maintain export performance and market share in key products during a difficult quarter may indicate resilience in its core operations.

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.