OCCL Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, demonstrating robust performance across key financial metrics. The company's board meeting held on February 04, 2026, approved the quarterly results and announced the appointment of Mr. Rajneesh Dhiman as Senior Management Personnel.

Q3FY26 Financial Performance

The company delivered strong financial results for the third quarter, with significant growth across revenue and profitability metrics. The performance reflects the company's market leadership position in insoluble sulphur production for the tyre and rubber industry.

Nine Months Performance Highlights

For the nine months ended December 31, 2025, OCCL Limited reported total income of Rs. 358.73 crores with EBITDA of Rs. 67.1 crores, achieving an EBITDA margin of 18.7%. The company's profit after tax for the nine-month period stood at Rs. 28.36 crores with a PAT margin of 7.9%.

Management Commentary and Market Outlook

Mr. Arvind Goenka, Promoter and Managing Director, highlighted the company's strong performance and positive market outlook. He noted that a significant portion of exports are in Europe where trade relations remain stable, and the India-EU Free Trade Agreement is expected to support medium-term export prospects. The recent trade deal with the USA is anticipated to lower tariffs and improve realizations.

The management emphasized the positive impact of GST reduction on automobiles, which has boosted vehicle sales across segments. This development is expected to increase tyre production, thereby enhancing demand for insoluble sulphur in India. The company also benefited from anti-dumping duties imposed on imports from Japan and China, leading to improved domestic realizations.

Senior Management Appointment

The board approved the appointment of Mr. Rajneesh Dhiman as Senior Management Personnel effective February 04, 2026. Mr. Dhiman brings over 23 years of extensive experience in the chemicals and materials industry, with expertise in insoluble sulphur, carbon black, and related products. He previously served as General Manager – Sales & Marketing at OCCL, managing a business portfolio exceeding Rs. 150 crores.

Regulatory Compliance and Trading Window

The financial results were prepared in accordance with Indian Accounting Standards (Ind AS) and SEBI regulations. The company implemented a trading window closure for designated persons from January 01, 2026, which will reopen 48 hours after the submission of financial results. The results received a limited review from statutory auditors Singhi & Co., confirming compliance with regulatory requirements.

OCCL Limited , a leading manufacturer of insoluble sulphur and sulphuric acid, has reported a 16% year-on-year growth in total income for Q2 FY26, despite facing challenges from rising raw material costs and international trade pressures.

Financial Highlights

For H1 FY26, OCCL Limited reported a total income of Rs. 244.00 crores, with an EBITDA of Rs. 47.00 crores and margins of 19.20%.

Operational Performance

The company is currently operating at approximately 70% capacity utilization for insoluble sulphur production, while its sulphuric acid plant is running at full capacity. The total debt position as of September 2025 stood at Rs. 81.00 crores, including long-term debt of Rs. 26.50 crores.

Market Dynamics and Challenges

OCCL Limited faces a complex market environment characterized by both opportunities and challenges:

1. Anti-dumping Duties: The imposition of anti-dumping duties on imports from China and Japan has improved domestic realizations. However, the full benefit has been offset by rising raw material costs.

2. Raw Material Pressures: Benchmark sulphur costs have seen a steady uptrend, driven by tight supply and stronger demand, putting pressure on input costs across the industry.

3. U.S. Tariffs: The recent 50% tariff imposed by the United States on imports from India has impacted the company's margins on its U.S. exports.

4. Global Market Oversupply: The insoluble sulphur market remains stable, but global realizations are under pressure due to oversupply conditions.

Strategic Outlook

Despite near-term challenges, OCCL Limited remains optimistic about its growth trajectory:

1. Domestic Market Focus: The company aims to increase its domestic market share from the current 55% to 60-65%, leveraging the fast-growing Indian insoluble sulphur market.

2. Global Demand Growth: Management expects a 2-3% annual growth in global demand for insoluble sulphur.

3. Potential Anti-dumping Measures: The company is exploring the possibility of initiating anti-dumping measures against Malaysia if current pricing trends continue.

4. R&D and Operational Efficiency: OCCL Limited is focusing on its R&D foundation and cost-competitive manufacturing base to strengthen its market position.

Mr. Akshat Goenka, Joint Managing Director of OCCL Limited, commented, "While we expect near-term realizations to stay soft as supply currently exceeds demand, we remain confident in our ability to navigate the short-term challenges. We are hopeful that the U.S. tariff situation should get resolved soon."

The company's management remains committed to operational efficiency, product quality, and sustainability to deliver consistent value to stakeholders in the medium to long term.

Conclusion

OCCL Limited's Q2 FY26 results reflect the company's resilience in a challenging market environment. While revenue growth remains strong, margin pressures from rising raw material costs and international trade issues persist. The company's strategic focus on the domestic market and potential regulatory measures could provide support in the coming quarters. Investors should monitor global sulphur prices, the resolution of U.S. tariffs, and the potential for new anti-dumping measures as key factors influencing the company's performance in the near term.