Hindustan Organic Chemicals Limited (HOCL) has officially announced the temporary shutdown of its Phenol plant operations from March 14, 2026, afternoon onwards, following the complete discontinuation of LPG supply from Bharat Petroleum Corporation Limited (BPCL). The company issued this announcement in continuation to its earlier intimations dated March 9, 2026, and March 11, 2026, highlighting the escalating impact of the supply disruption on its manufacturing operations.

Government Directive and Supply Disruption

The shutdown stems from a Government of India directive requiring all Public Sector Oil manufacturing companies to ensure that LPG procured or marketed by them is supplied exclusively to domestic LPG consumers. Following this directive, BPCL, being the bulk LPG supplier of HOCL, has discontinued the LPG supply entirely. The company emphasized that LPG supplied by BPCL serves as the primary source for supplying feedstock to HOCL, making any disruption directly affect plant operations.

Force Majeure Declaration and Operational Impact

HOCL's Kochi unit in Kerala, which operates the Phenol Complex manufacturing Phenol, Acetone, and Hydrogen Peroxide, represents the company's only manufacturing facility. The company has declared this situation as a force majeure event arising from Government of India directions, which is entirely beyond the company's control. The likely impact of this force majeure on the company cannot be estimated at this point as it remains an ongoing event.

Production Continuity Measures

Despite the broader operational challenges, HOCL has maintained that its Hydrogen Peroxide plant will continue to operate as usual, providing some operational continuity during this disruption period. The company is closely monitoring the situation and will provide necessary updates, including information regarding the reopening of the plant, to BSE as developments occur.

Regulatory Compliance and Communication

The company has issued this announcement in compliance with Regulation 30 read with Schedule III Part A Para B of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. HOCL has committed to maintaining transparent communication with stakeholders regarding this matter and will provide further updates as the situation evolves. The announcement was signed by Subramonian H, Company Secretary & Compliance Officer, demonstrating the company's commitment to proper regulatory disclosure.

Source: None/Company/INE048A01011/07c810a2-240d-4806-8d4a-05129b8a4296.pdf

Hindustan Organic Chemicals Limited, a Government of India enterprise, announced its unaudited financial results for Q3 FY26 and nine months ended December 31, 2025. The Board of Directors approved these results during their 425th meeting held on February 12, 2026.

Financial Performance Overview

The company demonstrated significant improvement in its financial position, reporting a substantial reduction in net losses despite operational challenges. The quarterly results show marked progress in loss reduction alongside revenue adjustments.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company's performance showed marked improvement across key financial metrics with revenue growth and substantial loss reduction.

Operational Expenses and Cost Structure

The company's total expenses for Q3 FY26 amounted to ₹15,653.08 lakhs compared to ₹20,979.71 lakhs in Q3 FY25, reflecting improved cost management.

Legal and Regulatory Developments

The company recognized exceptional items totaling ₹31.58 lakhs in Q3 FY26, primarily related to interest on mesne profits. Following the Supreme Court's directive, the company now pays mesne profits at a revised interest rate of 6% per annum, reduced from the previously recognized 8% rate. The court has extended the payment timeline by six months.

Restructuring and Going Concern Status

Hindustan Organic Chemicals continues implementing its government-approved restructuring plan. The company's Phenol plant at Kochi remains operational, and the sale of unencumbered land at Rasayani is progressing. These factors support the preparation of financial statements on a going concern basis.

Consolidated Results and Subsidiary Performance

On a consolidated basis, including subsidiary Hindustan Fluorocarbons Limited, the company reported a net loss of ₹388.19 lakhs for Q3 FY26 compared to ₹7,915.81 lakhs in Q3 FY25. The subsidiary contributed a profit of ₹8.82 lakhs from discontinued operations during the quarter.