OCCL Limited , a leading manufacturer of insoluble sulphur and sulphuric acid, has reported a strong start to the fiscal year, with significant growth in both revenue and profitability for the first quarter.

Financial Highlights

• Revenue stood at INR 123.00 crores, marking a 14% increase from the previous quarter
• EBITDA grew by 36% to INR 27.00 crores
• EBITDA margins improved to 21.70% from 18.10% in the previous quarter
• Profit After Tax (PAT) reached INR 13.00 crores, with PAT margins at 10.60%

Key Drivers of Growth

The company's growth was primarily attributed to increased sulphuric acid margins, which benefited from elevated sulphur prices. OCCL Limited operates at 100% capacity utilization for sulphuric acid production, allowing it to capitalize on favorable market conditions.

Anti-Dumping Duties and Market Share

In June, anti-dumping duties were imposed on insoluble sulphur imports from Japan and China. While the full impact of these duties was not reflected in the Q1 results, OCCL Limited expects to see benefits in future quarters. The company estimates a monthly benefit of INR 70.00-80.00 lakhs at the Profit Before Tax (PBT) level due to these measures.

OCCL Limited currently holds a 55% domestic market share in insoluble sulphur and anticipates this to exceed 60% following the implementation of anti-dumping measures. However, the company noted that imports from Malaysia continue without price increases, which may limit the full benefit of the anti-dumping duties.

Operational Performance

• Insoluble Sulphur: Operating at 70% capacity utilization
• Sulphuric Acid: Operating at 100% capacity utilization

Strategic Focus

OCCL Limited is concentrating on several key areas to drive future growth and maintain its competitive edge:

1. Product Innovation: Continuous improvement in product quality, with a focus on enhancing dispersion and thermal stability for next-generation tyres
2. Cost Optimization: Implementing measures to improve operational efficiency
3. Sustainability Initiatives: Adopting renewable energy solutions, including rooftop solar power generation at both plants and a contracted 3.2 megawatt captive power plant for the Dharuhera facility

Market Outlook

While the insoluble sulphur market continues to see stable demand with steady year-on-year growth, global realizations remain weak due to oversupply. However, OCCL Limited remains confident in navigating these challenges, citing the long-term structural growth in the global tyre industry and rising demand for high-performance, environment-compliant products.

Management Commentary

Akshat Goenka, Joint Managing Director of OCCL Limited, stated, "We have started the fiscal year on a positive note. With the recent imposition of anti-dumping duties on imports from Japan and China, there will be improvement in the domestic market realization. We have been able to pass on some of these anti-dumping benefits in this July quarter to our customers and we hope to pass on the balance in the upcoming quarters."

OCCL Limited's strong performance in Q1, coupled with its strategic initiatives and favorable market conditions, positions the company well for continued growth in the coming quarters. The management remains focused on leveraging its operational strengths and market opportunities to deliver value to its shareholders.

OCCL Limited , a market leader in Insoluble Sulphur production for the tire and rubber industry, has announced its unaudited financial results for the quarter ended June 30, 2025, showcasing robust growth across key financial metrics.

Financial Highlights

OCCL Limited reported a total income of ₹123.49 crore for Q1 FY26, representing a 14% sequential growth compared to ₹108.46 crore in the previous quarter. The company's EBITDA stood at ₹27 crore, with margins improving to 21.7%, marking a significant 36% quarter-on-quarter growth. Profit after tax reached ₹13.14 crore, with margins of 10.6%, showcasing a substantial 51% sequential increase.

Operational Performance

The company's revenue from operations for the quarter was ₹123.09 crore, up from ₹107.48 crore in the previous quarter. This growth was primarily attributed to good results from the acid division and improved operational efficiency.

Management Commentary

Arvind Goenka, Managing Director of OCCL Limited, commented on the results, stating, "We have started FY26 on a positive note. The revenue growth of 14% was supported by good performance from the acid division. Our EBITDA grew by 36% quarter-on-quarter, with improved margins due to enhanced operational efficiency and better acid margins."

Goenka also highlighted the impact of recent anti-dumping duties on imports from Japan and China, which are expected to strengthen the domestic market environment. He noted that while the global Insoluble Sulphur market continues to witness stable demand, realizations remain weak in certain geographies due to over-supply.

Future Outlook

Despite short-term challenges, OCCL Limited remains optimistic about the long-term fundamentals of the Insoluble Sulphur market. The company is focusing on technology-led innovation and product development, with emphasis on enhancing product quality, particularly in dispersion and thermal stability - critical performance attributes for next-generation automotive tires.

About OCCL Limited

OCCL Limited is a market leader in the production of Insoluble Sulphur for the tire and rubber industry globally. The company operates state-of-the-art manufacturing facilities in Dharuhera, Haryana, and Mundra, Gujarat. In addition to Insoluble Sulphur, OCCL Limited also manufactures Sulphuric Acid and Oleums.

The company's board meeting to approve these results was held on July 30, 2025, commencing at 1:00 PM and concluding at 2:15 PM. The unaudited financial results, along with the Limited Review Report, are available on the company's website at www.occlindia.com .