NOCIL Limited conducted its Q3FY26 earnings conference call on February 12, 2026, where management provided detailed insights into the company's operational performance and future growth prospects. The call, led by Managing Director V.S. Anand and CFO P. Srinivasan, addressed investor queries about the quarter's performance and strategic initiatives.

Q3FY26 Financial Performance Overview

The company reported mixed quarterly results with revenue remaining largely stable at ₹316 crores. Management highlighted that domestic volumes witnessed high single-digit growth driven by improved demand due to GST 2.0 implementation, while international volumes were dampened by seasonal effects and US tariff issues.

Volume Performance and Market Dynamics

During the earnings call, management revealed that sales volumes for Q3FY26 stood at 140 basis points, taking Q1FY20 as the base of 100. The domestic market showed strong momentum with high single-digit growth year-on-year, while export volumes declined sequentially due to US tariff uncertainties and seasonal factors.

Management expects to end FY26 with volume growth of 3% to 4% despite a 5% degrowth in H1FY26. The US market volumes were particularly affected, operating at approximately 50% of pre-tariff levels during Q3FY26.

Strategic Initiatives and Future Outlook

The company's TDQ antioxidant investment at Dahej is progressing ahead of schedule, with production trials planned during the first half of calendar year 2026. This expansion represents a 20% increase in overall capacity and is expected to contribute significantly to future growth.

Antidumping Measures and Competitive Landscape

Management provided updates on antidumping petitions filed against select key products with the Government of India. The authorities have initiated detailed investigations across four product notifications covering various countries including China, EU, USA, Korea, and Thailand. The company expects outcomes within the next 1.5 to 2 months following administrative delays due to organizational restructuring.

P. Srinivasan clarified that antidumping duties apply to the country of origin, not the country of supply, preventing potential rerouting strategies. The company has filed cases against both Chinese and Korean players in the antioxidants segment.

Cost Management and Operational Efficiency

The company achieved significant cost savings during the nine-month period, with management highlighting ₹23 crores in conversion cost savings compared to the previous year. These savings resulted from conscious working capital management, production alignment with inventory adjustments, utility optimization, and freight rate negotiations.

Market Recovery and Growth Projections

Looking ahead to FY27, management expressed optimism about volume growth prospects. The resolution of US tariff issues is expected to restore lost volumes within 2-3 months, while the domestic market momentum is anticipated to continue. Management projects double-digit export volume growth for FY27, with the domestic market maintaining its strong performance.

The Indian rubber chemicals market size is estimated at approximately 85,000 tons, with NOCIL holding a 40% market share. The company expects new product contributions to reach 10-12% of current volumes by FY28-FY29, following customer approval processes.

Recognition and Industry Partnerships

During the quarter, NOCIL received the CII Industry Academia Partnership Award 2025 in the diamond category from the Confederation of Indian Industry. This recognition acknowledges the company's collaborative work and sponsored projects with research and academic institutions, demonstrating its commitment to innovation and excellence.

Mafatlal Industries Limited has created a pledge on 9,59,065 equity shares of NOCIL Limited with ICICI Bank, as disclosed in a regulatory filing dated January 13, 2026. The pledge was created on January 12, 2026, as part of security cover changes under the facilities agreement executed between the company and ICICI Bank.

Pledge Details and Transaction Overview

The pledged shares are equity shares of ₹10 each, representing 0.57% of NOCIL's total share capital. This transaction was undertaken in compliance with the security cover requirements under the facilities agreement with ICICI Bank.

Updated Shareholding Position

Following this pledge creation, Mafatlal Industries Limited's encumbered shareholding position in NOCIL has been updated. The company's total holding in NOCIL stands at 2,52,59,059 shares, representing 15.12% of the total share capital.

Promoter Group Holdings

The disclosure reveals the complete promoter group structure of NOCIL Limited. The total promoter group holding stands at 5,63,91,184 shares, representing 33.76% of the company's total share capital. Among the promoter entities, Hrishikesh Arvind Mafatlal as trustee of Gurukripa Trust holds the largest individual stake at 3,03,26,782 shares (18.16%), followed by Mafatlal Industries Limited at 2,52,59,059 shares (15.12%).

Regulatory Compliance

The disclosure was made under Regulation 31(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing was signed by Amish Shah, Company Secretary of Mafatlal Industries Limited, and submitted to both BSE Limited and National Stock Exchange of India Limited on January 13, 2026. NOCIL Limited trades on BSE under code 500730 and on NSE under the symbol NOCIL.