Galaxy Surfactants Limited, a leading manufacturer of performance surfactants and specialty care products, has announced plans to expand its capacity in specialty surfactants while strengthening customer partnerships. The company aims to innovate sustainable ingredients to meet rising demand in emerging markets, as it reports robust financial results for the first quarter.

Expansion and Innovation Strategy

Galaxy Surfactants is set to increase its production capacity for specialty surfactants, a move aligned with its vision to capture growing opportunities in emerging markets. The company's focus on sustainable ingredient innovation underscores its commitment to meeting evolving consumer demands and environmental considerations in the personal and home care industries.

Financial Highlights

For the quarter ended June 30, Galaxy Surfactants reported impressive financial results:

• Total revenue increased by 31.6% year-over-year to ₹1,289.20 crore
• EBITDA grew by 4.3% to ₹135.10 crore
• Profit After Tax (PAT) remained stable at ₹79.50 crore

Performance Across Segments

The company's performance across its business segments showed promising growth:

Overall volume growth remained in the mid-single digits compared to the previous year.

Regional Performance

Galaxy Surfactants reported varied performance across different regions:

• India: Flat year-over-year growth, with double-digit sequential growth
• AMET (Africa, Middle East, and Turkey): Flat year-over-year performance
• ROW (Rest of World): High double-digit growth, driven by Latin America and Asia-Pacific markets

Management Commentary

Mr. K. Natarajan, Managing Director of Galaxy Surfactants, commented on the company's performance: "Q1 Volume grew at 5% YoY and nearly double-digit sequential across both performance and specialty care segments, reflecting a sign of improvement across all regions. India's domestic performance reflects a market in transition and evolution, with flat YoY and double-digit QoQ volume growth."

He further added, "As we reaffirm our long-term strategy, we remain focused on innovation, agility, and sustainability—confident in our ability to navigate current complexities and deliver enduring value to all stakeholders."

Future Outlook

Galaxy Surfactants' expansion plans in specialty surfactants, coupled with its focus on sustainable innovations, position the company well for future growth. The company's strong performance in emerging markets and its ability to adapt to changing market dynamics suggest a positive outlook for the coming quarters.

As the company continues to strengthen its customer partnerships and invest in capacity expansion, it is poised to capitalize on the growing demand for specialty surfactants and sustainable ingredients in the personal and home care industries.

Galaxy Surfactants Limited, a leading manufacturer of performance surfactants and specialty care products, has reported a robust revenue growth for the first quarter, despite facing margin pressures.

Financial Highlights

• Revenue: Galaxy Surfactants saw a significant increase in consolidated revenue, which grew by 31.6% year-over-year to ₹1,289.20 crore, up from ₹979.50 crore in the same period last year.
• EBITDA: The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a modest growth of 4.3% YoY, reaching ₹135.10 crore compared to ₹129.50 crore in the corresponding quarter.
• Net Profit: Net profit remained nearly flat at ₹79.50 crore, compared to ₹79.70 crore in the corresponding quarter of the previous year.
• EBITDA Margin: The EBITDA margin compressed to 10.5% from 13.2% in the same quarter last year, reflecting cost pressures.

Operational Performance

• Volume Growth: The company reported a 5% year-on-year volume growth, with nearly double-digit sequential growth across both performance and specialty care segments.
• Segment Performance:

Regional Performance

• India: Experienced flat year-on-year growth but showed double-digit quarter-on-quarter volume growth.
• AMET (Africa, Middle East, Turkey): Volumes remained flat year-on-year.
• ROW (Rest of World): Witnessed high double-digit volume growth, primarily driven by LATAM and APAC regions.

Management Commentary

K. Natarajan, Managing Director of Galaxy Surfactants Limited, commented on the results: "Q1 Volume grew at 5% YoY and nearly double-digit sequential across both performance and specialty care segments, reflecting a sign of improvement across all regions. India's domestic performance reflects a market in transition and evolution, with flat YoY and double-digit QoQ volume growth."

He further added, "In AMET, while Egypt and Turkey faced headwinds, resilience in Gulf and Sub-Saharan markets helped maintain momentum. Our supply chains adapted swiftly despite geopolitical tensions, ensuring continuity and responsiveness. ROW region led growth with a strong 16% YoY increase, driven by LATAM and APAC, while Europe delivered a richer product mix aligned with our Vision 2030."

Challenges and Outlook

The company faced supply-side challenges, including tight raw material availability and regional congestion. However, price pass-through mechanisms and inventory vigilance helped mitigate the impact. Fatty alcohol prices remained buoyant during the quarter.

Galaxy Surfactants remains focused on innovation, agility, and sustainability as it navigates current market complexities. The management expressed cautious optimism, supported by favorable macro factors such as a good monsoon, rate cuts, and rural stimulus in the Indian market.

As Galaxy Surfactants continues to adapt to evolving market conditions, it remains committed to its long-term strategy of delivering value to all stakeholders while maintaining its position as a key player in the surfactants and specialty care products industry.