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View Claim Ledger →Apcotex Industries Limited — Q4 FY26
Apcotex delivered a strong Q4 FY26 with revenue of INR 398 Cr (+14% YoY) and EBITDA of INR 55 Cr (+42% YoY), driven by higher volumes (+10% YoY), better realizations, and operational efficiencies.
bullish
high
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2-Minute Summary
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Apcotex delivered a strong Q4 FY26 with revenue of INR 398 Cr (+14% YoY) and EBITDA of INR 55 Cr (+42% YoY), driven by higher volumes (+10% YoY), better realizations, and operational efficiencies. PAT surged 107% YoY to INR 35 Cr, while EBITDA margins expanded to 13.76% (+270 bps YoY). The nitrile latex segment saw significant margin improvement, partly due to temporary supply disruptions from the West Asia crisis. Management highlighted proactive raw material coverage ensuring uninterrupted operations. For FY27, volume growth is expected in low double digits, but revenue visibility is low due to volatile raw material prices and geopolitical uncertainty. Key risk: a sharp drop in crude prices could hurt margins given high-cost inventory coverage.
Promises1 met · 0 missedRisks4 trackedTranscriptfull text
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1 delivered, 1 close, 0 missed.
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Risk Intelligence
Sharp drop in crude prices could hurt margins
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Read Transcript →Quarter Snapshot
Total Volumes Growth (Q4)
10%
+10% YoY
Volume growth supported revenue increase; steady demand across key segments.
Nitrile Latex Capacity Utilization
100%
Flat vs prior quarter
Running at full capacity; margins improved due to supply disruptions from competitors.
Export Volumes Growth (FY26)
14%
+14% YoY
Record high export volumes for the full year, driven by strong international demand.
Net Cash Position
INR 70 Cr
+INR 70 Cr vs prior year
Cash and investments exceed total debt by ~INR 70 Cr; net debt-to-equity improved to 0.08.
What Changed vs Last Quarter
NEW
NBR capacity to double by Q1 FY28
Expansion project to double NBR capacity is on track, expected to come on stream in Q1 FY28.
NEW
New R&D center capex of INR 20-25 Cr
Board approved a new R&D center with planned spend of INR 20-25 Cr on infrastructure this year.
NEW
Volume growth expected in low double digits for FY27
Management expects low double-digit volume growth for FY27, subject to demand and capacity constraints.
DROPPED
EBITDA margin target of 13-16%
Management reiterated sustainable EBITDA margin range of 13-16%, with current quarter at 13.12% and potential to improve further.
DROPPED
Expansion plan to add INR 550-600 Cr revenue by FY27-end
Capex of INR 130-140 Cr for capacity expansion across multiple product lines, commissioning from end of FY26 to April FY27.
DROPPED
Nitrile latex to reach full utilization run-rate next year
Current utilization at 70-75%; expected to hit full capacity run-rate at some point in FY27.
DROPPED
Effective tax rate of 27-28% for FY26
CFO guided for effective tax rate of 27-28% for the full year.
NEW RISK
Sharp drop in crude prices could hurt margins
If crude prices fall sharply, the company may be stuck with high-cost inventory, compressing margins for a quarter.
NEW RISK
Geopolitical tensions impacting export markets
The West Asia crisis has disrupted exports to the Middle East, Egypt, and Turkey, which contribute ~12% of revenue.
NEW RISK
Customer resistance to price increases
Rising raw material costs may face pushback from customers, especially in automotive and other price-sensitive sectors.
NEW RISK
Nitrile latex margin sustainability
Improved nitrile latex margins partly due to temporary supply disruptions; structural improvement is gradual.
RISK GONE
Non-notification of anti-dumping duty on NBR
Finance ministry has not yet notified the recommended anti-dumping duty on NBR, which could pressure rubber margins if dumping resumes.
RISK GONE
Raw material price volatility
Sharp increases in raw material prices (e.g., styrene, acrylonitrile) could compress EBITDA margins if pass-through is incomplete.
RISK GONE
US tariffs impacting carpet/textile/tire demand
US tariffs have caused degrowth in carpet, textile, and tire segments, which could persist if trade uncertainty continues.
RISK GONE
Global overcapacity in nitrile latex
Chinese overcapacity may lead to increased competition in Southeast Asia, delaying margin recovery in nitrile latex.
Fast read
Guidance and risk preview
Expansion project to double NBR capacity is on track, expected to come on stream in Q1 FY28.
If crude prices fall sharply, the company may be stuck with high-cost inventory, compressing margins for a quarter.
View Risks →