News Earnings Galaxy Surfactants Q3FY26 Earnings: EBITDA Rises 13% YoY Despite Multiple HeadwindsGalaxy Surfactants Q3FY26 Earnings: EBITDA Rises 13% YoY Despite Multiple Headwinds
Galaxy Surfactants reported Q3FY26 EBITDA growth of 13% YoY to INR124 crores despite facing reformulation pressures, GST disruptions, and regional challenges. The major breakthrough came with US tariff reduction from 50% to 18%, expected to boost specialty segment growth. The company launched 5 new sun care products and refreshed its brand identity after 45 years, while maintaining stable consolidated volumes through diversified operations across segments and geographies.
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Galaxy Surfactants demonstrated resilience in Q3FY26 despite facing multiple operational headwinds, with the company reporting improved profitability metrics and securing a major breakthrough on the trade front that positions it well for future growth.
Financial Performance Overview
The company's Q3FY26 financial results reflected both challenges and strategic progress across key metrics:
| Metric | Q3FY26 | Q3FY25 | Change |
|---|---|---|---|
| EBITDA (before exceptional items) | INR124 crores | INR110 crores | +13% YoY |
| EBITDA per metric ton | INR20,156 | INR17,527 | +15% YoY |
| YTD 9-month EBITDA | INR376 crores | INR375 crores | Flat YoY |
| YTD EBITDA per metric ton | INR19,126 | INR19,272 | -0.8% YoY |
Consolidated volumes remained stable on a year-on-year basis for Q3FY26, with the Performance Surfactants portfolio experiencing a high single-digit decline offset by high single-digit volume growth within the Specialty segment.
Major Breakthrough on US Trade Relations
A significant positive development emerged during the quarter with the reduction of reciprocal tariffs imposed by the US on Indian exports from 50% to 18%. This tariff normalization is expected to restore competitiveness and create a more level playing field in the US market.
The company expects this development to:
- Support reinstatement of existing customer pipelines
- Accelerate penetration in high-value specialty opportunities
- Unlock new avenues for growth in North America
- Improve pricing flexibility and reduce landed costs
Regional Performance Analysis
India Operations
India volumes grew by mid-single digit year-on-year for Q3FY26, with contrasting performance across segments:
| Segment | Performance | Key Factors |
|---|---|---|
| Performance Surfactants | -4% YoY decline | Continued reformulation by Tier 1 accounts |
| Specialty Business | +35% YoY growth | Strong momentum despite challenges |
The GST rationalization led to temporary inventory adjustments by customers in October, creating a temporary demand disruption. However, the company has developed alternate surfactant systems aligned to new reformulations, with approvals underway and commercialization expected to start in Q4FY26.
AMET Region Challenges
The AMET region recorded a double-digit decline in high teens during Q3FY26, driven by market share losses in key Tier 1 accounts and heightened competitive intensity from backward integrated and local players. However, the company has recovered significant volume traction in Q4FY26 from most customers.
Rest of World Performance
Rest of world volumes grew mid-single digit year-on-year, with Latin America and Europe posting growth across both Performance and Specialty segments. This performance helped balance the overall portfolio despite tariff-induced softness in North American specialty exports from India.
Innovation and Brand Development
The company launched 5 new products in the GalSORB SunBliss range for sun care applications in November 2025. These second-generation molecules offer:
- High photostability and strong efficacy at low dosage
- Broad spectrum UV protection including blue light defense
- Improved sensory performance
- Compliance with evolving safety and environmental standards
Commercializationof these products is expected from Q4FY26 onwards.
Strategic Brand Refresh
In January 2026, Galaxy refreshed its brand identity after 45 years as part of its strategic evolution. Guided by the purpose "chemistry creates care," the new brand identity reinforces focus on long-term partnerships, responsible innovation, and sustainable value creation. The company is expanding its portfolio beyond home and personal care into beauty, derma, and wellness segments.
Market Outlook and Guidance
Looking ahead, the company expects:
- India performance volumes to increase incrementally in both Tier 1 and non-Tier 1 accounts
- Double-digit volume growth in the specialty segment to continue
- AMET volume recovery from Q4FY26 onwards
- North America specialty business to benefit from tariff reduction starting late Q4FY26
Despite multiple headwinds including reformulation pressures, GST-related disruptions, and competitive intensity in AMET, the company's diversified business model across customer segments and geographies has enabled it to maintain stable volumes and improve profitability metrics.
Historical Stock Returns for Galaxy Surfactants
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.47% | +6.23% | +2.91% | -10.89% | -16.32% | -10.96% |
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