Apcotex Industries Q2 FY27 results: net profit up 37.7% to ₹34.84 crore, revenue up 48.2%

How did Apcotex Industries perform in Q2 FY27?

Apcotex Industries reported standalone revenue of ₹498.92 crore for Q2 FY27, the July–September 2026 quarter, against ₹336.69 crore in Q2 FY26, a rise of ₹162.23 crore or 48.2%. EBITDA was ₹58.34 crore, up ₹17.74 crore or 43.7% year on year, and the EBITDA margin was 11.7%, 0.4 percentage points lower than 12.1%. Profit before tax rose to ₹47.50 crore from ₹35.98 crore, and net profit was ₹34.84 crore against ₹25.30 crore, with basic EPS of ₹6.72 versus ₹4.88.

Against the previous quarter, revenue fell 5.1% to ₹498.92 crore from ₹525.63 crore in Q1 FY27 and total income was down 4.7% to ₹503.44 crore. EBITDA fell 50.2% to ₹58.34 crore from ₹117.10 crore, the margin easing 10.6 percentage points to 11.7% from 22.3%, profit before tax fell 54.6% to ₹47.50 crore and net profit fell 55.9% to ₹34.84 crore from ₹78.94 crore. Basic EPS was ₹6.72, down ₹8.51 from ₹15.23. All figures are on a standalone basis.

What changed in Apcotex Industries' costs and profit?

Cost of materials consumed was ₹340.80 crore in Q2 FY27, up ₹100.99 crore or 42.1% from ₹239.81 crore a year earlier. Employee cost rose 14.3% to ₹23.57 crore from ₹20.62 crore, other expenses increased 25.1% to ₹52.57 crore from ₹42.02 crore, and depreciation and amortisation was ₹12.80 crore against ₹12.02 crore. Finance costs fell 13.9% to ₹2.55 crore from ₹2.96 crore, and total expenses rose 46.6% to ₹455.94 crore from ₹311.07 crore.

Other income was ₹4.52 crore, down ₹0.08 crore or 1.7% from ₹4.60 crore in Q2 FY26. Tax expense rose ₹2.43 crore or 22.8% to ₹13.11 crore from ₹10.68 crore. There was no exceptional item in Q2 FY27, against an exceptional gain of ₹5.75 crore in the year-ago quarter, so profit before tax rose 32.0% to ₹47.50 crore.

On the earnings call, management said other expenses rose because of higher freight costs from geopolitical supply-chain disruptions, and that a significant portion of those costs was passed on to the market. Management said gross margin was lower because prices fell in the first two months of the quarter and rose again, leading to inventory losses, and referred to aggressive export pricing. The company did not give a full quantified reconciliation of the quarterly margin change.

How did the first half of FY27 go?

For the first half of FY27, Apcotex Industries reported standalone revenue of ₹1,024.56 crore against ₹712.46 crore in H1 FY26, an increase of ₹312.10 crore or 43.8%. Total income rose 43.4% to ₹1,031.88 crore from ₹719.71 crore. Profit before tax rose ₹89.84 crore or 144.2% to ₹152.15 crore from ₹62.31 crore.

Profit after tax for H1 FY27 was ₹113.78 crore, up ₹69.32 crore or 155.9% from ₹44.46 crore in H1 FY26, and basic EPS was ₹21.95 against ₹8.57. The company said the period marked its strongest-ever half-yearly financial performance, with record EBITDA, profit before tax and profit after tax, supported by volume growth, improved margins and price adjustments.

What do the balance sheet and cash flow show?

Total assets rose to ₹1,162.73 crore at 30 September 2026 from ₹986.49 crore at 31 March 2026, while total equity was ₹713.18 crore against ₹620.99 crore. Borrowings stood at ₹137.99 crore, higher than ₹92.96 crore, and cash and cash equivalents fell to ₹14.82 crore from ₹31.83 crore. Inventories rose to ₹172.18 crore from ₹128.18 crore and trade receivables to ₹321.45 crore from ₹244.49 crore, while trade payables were ₹201.58 crore against ₹184.45 crore.

For H1 FY27, net cash flow from operating activities was ₹27.88 crore, compared with ₹107.28 crore in H1 FY26. Investing cash flow was negative ₹68.11 crore against negative ₹11.77 crore, with capital expenditure of ₹66.74 crore compared with ₹21.13 crore, and financing cash flow was ₹11.62 crore against negative ₹84.02 crore. The company said working capital requirements stayed elevated because of higher input costs, which lifted inventory and receivables, while it remained net cash positive as of 30 September 2026.

How has Apcotex Industries done over the last 8 quarters?

Revenue in the reported quarterly series bottomed at ₹331.46 crore in Q3 FY26 and reached a peak of ₹525.63 crore in Q1 FY27 before easing to ₹498.92 crore in Q2 FY27. Revenue has risen year on year in each of the last three quarters, and profit after tax has risen year on year in each of the last eight quarters.

Profit after tax bottomed at ₹11.56 crore in Q3 FY25 and peaked at ₹78.94 crore in Q1 FY27, then fell to ₹34.84 crore in Q2 FY27. The EBITDA margin moved from 7.6% in Q3 FY25 to a peak of 22.3% in Q1 FY27 before declining to 11.7% in the latest quarter, so revenue and profit remain higher than a year earlier while the margin has retreated from its recent high.

What else did the company announce?

Apcotex Industries filed the audited financial results for the quarter and half year ended 30 September 2026 on 28 October 2026, along with the audit report of M/s. Manubhai & Shah LLP. The board meeting ran from 11.30 am to 2.20 pm, and the company had earlier intimated on 21 October 2026 that the board would meet on 28 October 2026 to approve the results, with the trading window closed since 1 October 2026.

The company also filed an earnings presentation for September 2026 on the same day, titled for Q2 FY27 and headed 'Record H1 FY27 profit as revenue and EBITDA surge'. The presentation stated that sales volume grew 7% year on year, export volumes recovered in Q2 FY27 after a decline in Q1 FY27, and the execution of the INR 2,100 million capex projects approved for expansion at the Valia plant remained largely on track.

What did Apcotex Industries' management say?

Management said on the earnings call that operating revenue of ₹499 crore in Q2 FY27 was supported by 7% growth in sales volumes, with export volumes recovering after the decline in Q1 FY27. The chief financial officer said EBITDA of ₹58 crore grew 44% year on year on modest volume growth and enhanced contribution margin following strategic price adjustments, and that gross margin in the quarter was affected by inventory losses as prices fell in the first two months and then rose again.

The company expects average volume growth of about 10-12% a year over the next three to five years, framed as 20-30% above GDP growth. Management said the Valia capex programme of ₹210-220 crore was on track, with about ₹65 crore spent to date and about ₹155 crore still to be outflown by project completion and a little thereafter. The NBR line at Valia is targeted for commissioning in April 2027, with utilisation ramping to full capacity over two to three years, and the SBR latex plant is expected on stream in Q2 FY28.

Management said no decision had been taken on a further nitrile latex expansion and that it wanted a couple more quarters of consistent margins before deciding. The vice chairman and managing director, Abhiraj Choksey, said: "The focus is right now on volumes, even if it means a little bit lower gross margins." He added: "For me, EBITDA margins as a percentage is just one number. And we do not always just focus on that. The main number for us is ROCE." Risks flagged by management included freight and raw material cost inflation from geopolitical disruptions, structural overcapacity in nitrile latex, elevated working capital, weak carpet demand on US tariffs, war and high ocean freight rates, and the risk of dumped NBR imports.

How did Apcotex Industries shares react?

After the filing appeared, Apcotex Industries shares fell 4.4% in the first five minutes, were down 1.0% after 15 minutes and down 3.3% after 30 minutes. From the previous close of ₹525.00, the stock ended the first session that could trade on the news down 3.1%, and by the next day's close it was down 7.1% from that pre-results close.