NOCIL Limited , a leading manufacturer of rubber chemicals, has reported a 4% quarter-on-quarter growth in sales volumes for Q2 FY '26, despite facing multiple challenges in the global market. The company's quarterly revenue stood at Rs. 321.00 crores, reflecting a sequential decline due to softer price realizations and competitive pricing pressure from imports.

Key Financial Highlights

• Revenue: Rs. 321.00 crores for Q2 FY '26
• Operating EBITDA: Rs. 22.00 crores with a 7% margin
• Volume Growth: 4% quarter-on-quarter increase

Market Challenges and Company Response

NOCIL faced several headwinds during the quarter, including:

1. Softer price realizations
2. Competitive pricing pressure from imports
3. Decline in export volumes, primarily due to U.S. tariff impacts

In response to these challenges, NOCIL has taken several strategic steps:

• Filed anti-dumping petitions on select products, with authorities initiating detailed investigations
• Continued focus on operational efficiency measures and cost optimization initiatives
• Ongoing TDQ capacity investment at Dahej, with commissioning expected in H1 calendar year 2026

Domestic Market Outlook

The company expects domestic market demand to remain robust, supported by:

• GST rate reductions on tires
• Continued infrastructure push by the government

Export Market Challenges

NOCIL's export volumes declined during the quarter, primarily impacted by:

• U.S. tariff situation leading to uncertainties in international markets
• Cautious customer sentiment in key export geographies

Management Commentary

Mr. V.S. Anand, Managing Director of NOCIL Limited, commented on the company's performance: "Despite macroeconomic disruptions, the company navigated the volatility, recording a 4% quarter-on-quarter growth in sales volumes. We remain focused on our strategic priorities to deliver sustainable growth."

Future Outlook

While near-term challenges persist, NOCIL remains optimistic about its long-term growth trajectory. The company is actively managing margin pressure through:

• Judicious mix of price and volume strategies
• Operational efficiencies
• Various cost optimization initiatives

NOCIL continues to push for long-term engagement with customers and is exploring ways to increase volumes in other geographies to offset the impact of U.S. tariffs.

As the rubber chemicals industry navigates through a complex global market environment, NOCIL's focus on efficiency, innovation, and strategic expansion positions it to capitalize on future growth opportunities in both domestic and international markets.

NOCIL , a prominent player in the Indian chemical industry, has reported a significant decline in its financial performance for the second quarter. The company's latest financial results reveal a sharp drop in net profit and a contraction in revenue, reflecting challenging market conditions.

Financial Highlights

NOCIL's financial results for the second quarter show a substantial decline across key metrics:

Net Profit

The company's net profit decreased by 58.3% year-over-year, falling to ₹173.00 million from ₹415.00 million in the same quarter of the previous year.

Revenue

Revenue for the quarter stood at ₹3.20 billion, down from ₹3.60 billion in the corresponding period last year, marking an 11.1% decline.

EBITDA and Margins

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) experienced a significant drop, decreasing to ₹204.00 million from ₹365.00 million in the previous year's second quarter. This represents a 44.1% reduction in EBITDA.

The EBITDA margin also contracted, falling to 6.36% from 10.06% in the same period last year, indicating a decrease of 370 basis points.

These results suggest that NOCIL is facing headwinds in its operating environment. The substantial decline in profitability, despite a less severe drop in revenue, points to challenges in maintaining operational efficiency or managing costs effectively during the quarter.