NGL Fine Chem Limited, a prominent player in the fine chemicals sector, has released its financial results for the second quarter of the fiscal year 2025-2026, showcasing a mixed performance with significant revenue growth but a marginal decline in profits.

Financial Highlights

Revenue Growth

NGL Fine Chem reported a substantial increase in its consolidated revenue, which rose to ₹1,200.00 crore in Q2 FY2026, up from ₹935.00 crore in the same period last year. This represents a robust year-over-year growth of 28.34%, indicating strong demand for the company's products and potentially expanded market reach.

Profit Performance

Despite the impressive revenue growth, the company's net profit saw a slight decrease. NGL Fine Chem posted a consolidated net profit of ₹96.00 crore for the quarter, compared to ₹98.00 crore in the corresponding quarter of the previous fiscal year, marking a marginal decline of 2.04%.

EBITDA and Margins

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed significant improvement, rising to ₹171.00 crore from ₹116.00 crore in the year-ago period, representing a 47.41% increase. However, the EBITDA margin contracted to 14.25% from 17.28% in the previous year, a decrease of 303 basis points.

Management Approval

According to the LODR (Listing Obligations and Disclosure Requirements) data, the Board of Directors of NGL Fine Chem Limited approved these unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025, in their meeting held on November 12, 2025.

The mixed results present a nuanced picture of NGL Fine Chem's performance. While the substantial revenue growth is a positive indicator, the slight dip in profits and the decrease in EBITDA margin may warrant attention from investors and analysts. The company's ability to manage costs and improve profitability while maintaining its growth trajectory will be crucial factors to watch in the coming quarters.

NGL Fine Chem , a leading player in the animal health sector, has made a significant investment of approximately Rs. 119.83 crore in the first quarter towards the expansion of its S-18 plant. This strategic move, aimed at catering to future growth, follows the company's earlier communication dated March 25, regarding its expansion plans.

Investment Details

The company disclosed this information in a regulatory filing dated August 7, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The investment is part of NGL Fine-Chem's ongoing efforts to enhance its manufacturing capabilities and meet growing demand.

Expansion Timeline

According to the company's investor presentation, there have been some executional delays in the capital expenditure (CAPEX) initiatives. As a result, the completion timeline for the expansion has been extended by approximately one quarter. The CAPEX is now expected to be completed in Q4, with meaningful contributions anticipated towards the end of the following fiscal year.

Market Challenges and Strategy

NGL Fine-Chem's management acknowledged the challenging operating environment in Q1, citing industry headwinds and macroeconomic factors. Despite these challenges, the company reported topline growth driven by higher volumes. However, increased competition from newly commissioned capacities in India and international markets has put pressure on product realizations.

Financial Performance

For the quarter ended June 30, NGL Fine-Chem reported:

Future Outlook

The company remains focused on its long-term strategies, including diversification into regulated markets, which offer better profitability prospects and limited competition. Management expressed confidence that ongoing initiatives will position NGL Fine-Chem to capitalize on growth opportunities as market conditions stabilize.

NGL Fine-Chem continues to be a dominant player in the veterinary API segment, with 95% of its revenue coming from this sector. The company boasts a comprehensive product portfolio of 35 APIs (33 veterinary and 2 human), 4 intermediates, and 12 finished dosage forms.

As NGL Fine-Chem progresses with its expansion plans, investors and industry observers will be keenly watching how this significant investment translates into future growth and market positioning for the company.