Apcotex Industries Limited has announced a significant capacity addition project worth INR 210 crores for nitrile rubber and synthetic latex production, as detailed in its February 2026 investor presentation filed with the National Stock Exchange of India and BSE Limited. The presentation was digitally signed by Drigesh Mittal, Head - Company Secretary and Legal.

Strategic Expansion Initiative

The company has initiated this substantial investment to consolidate its position in carpet, construction, textile, paper, and rubber products segments. This expansion aims to meet growing domestic and international demand while strengthening Apcotex's global presence, particularly in South East Asia, Middle East, and Africa.

Company Overview and Market Position

Apcotex Industries operates as a leading producer of synthetic rubber and synthetic latex in India, with one of the broadest ranges of emulsion polymers available in the market. The company maintains an approximate market capitalization of INR 19,382.24 Mn as of 31st December 2025.

The company has achieved recognition as part of the Top 10 Indian companies on Forbes Asia Best Under A Billion 2023 list. Apcotex serves marquee clients across multiple industries including ITC, Asian Paints, Ultratech Cement, MRF, SRF, and Paragon Footwear.

Manufacturing Capabilities and Product Portfolio

Apcotex operates two strategically located manufacturing facilities on India's western coast. The Taloja facility in Maharashtra produces 1,03,000 MTPA synthetic latex and 7,000 MTPA high styrene rubber. The Valia facility in Gujarat manufactures 21,000 MTPA nitrile rubber and allied products, along with 50,000 MTPA nitrile latex.

Product Applications:

• Synthetic Latex: Paper and paperboard manufacturing, carpet backing, textile finishing, construction materials, tyre cord dipping, medical gloves
• Synthetic Rubber: Nitrile Rubber (NBR) for automotive applications, NBR Polyblends, High Styrene Rubber for footwear, NBR Powder for brake pads

Financial Performance Overview

The presentation includes comprehensive financial data spanning multiple periods:

For FY25, the company reported operational revenue of INR 13,924 Mn, EBITDA of INR 1,247 Mn, and PAT of INR 541 Mn. The diluted earnings per share for FY25 stood at INR 10.43.

Research and Development Capabilities

Apcotex maintains strong R&D capabilities with 38 employees dedicated to research and technical support. The company operates specialized laboratories including product development labs, quality assurance facilities, and product application centers. The company has achieved multiple quality certifications including ISO 9001, ISO 14001, OHSAS 18001, and Responsible Care certification.

Apcotex Industries Limited delivered impressive financial performance for the third quarter of fiscal year 2026, with net profit jumping 92.2% year-on-year to ₹2,221.53 lakhs. The synthetic emulsion polymers manufacturer's strong results were announced following a Board meeting held on January 29, 2026, and subsequently discussed in detail during an earnings conference call on January 30, 2026.

Financial Performance Highlights

The company's quarterly performance showed robust growth across key metrics:

Despite a decline in revenue due to falling raw material and finished goods prices, the company demonstrated strong operational efficiency with profit before tax increasing to ₹2,754.93 lakhs from ₹1,641.79 lakhs in the previous year quarter.

Nine-Month Performance

For the nine months ended December 31, 2025, Apcotex Industries maintained its growth trajectory:

The nine-month results reflect the company's ability to maintain revenue levels while significantly improving profitability through enhanced operational efficiency.

Management Commentary and Operational Insights

During the earnings conference call, Vice Chairman and Managing Director Abhiraj Choksey highlighted several key operational achievements. Total volumes grew 10% year-on-year for the quarter, with the company achieving its highest ever sales volumes for the nine-month period, up 15% year-on-year. Export volumes reached record levels, increasing 21% year-on-year for the nine months.

Capacity Utilization and Segment Performance

The management noted that paper segment margins, which were at unhealthy levels for the previous couple of years, have returned to reasonably acceptable levels. The rubber segment also showed better margin improvement due to full capacity operations.

Exceptional Items and Cost Management

The quarter included exceptional items totaling ₹478.46 lakhs in employee benefit expenses, primarily related to the implementation of four labour codes by the Ministry of Labour & Employment. The company assessed the material impact of these new regulations, which came into effect from November 21, 2025.

Total expenses for Q3 FY26 decreased to ₹30,239.74 lakhs from ₹34,351.71 lakhs in the corresponding quarter of the previous year, demonstrating effective cost management strategies. The company reduced debt by approximately ₹9,400 lakhs during the nine-month period, highlighting strong cash generation.

Dividend Declaration and Expansion Plans

The Board of Directors approved key shareholder returns:

Regarding expansion plans, the company expects to complete its ongoing projects by the end of FY27, which will add approximately ₹550-600 crores to the top line. The expansion involves a CAPEX of ₹130-140 crores, significantly lower than the initially envisaged ₹200-250 crores due to innovative capacity enhancement methods.

Anti-Dumping Duty Status and Market Outlook

The management provided updates on the anti-dumping duty case for NBR products. While the Director General of Trade Remedies (DGTR) issued final findings in September, the Finance Ministry notification expected in December 2025 has not yet been issued. Despite this uncertainty, the company continues with its expansion plans.

The US imposition of 100% duty on Chinese gloves, implemented in January 2026, has positively impacted demand from Southeast Asian and South Asian glove manufacturers, benefiting the company's nitrile latex business.

Innovation Recognition

Apcotex Industries received recognition from the Confederation of Indian Industry (CII) as one of the top 100 most innovative companies, reaffirming its commitment to innovation, technology development, and self-reliance in the synthetic polymers sector.