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 operat...
bullish
high
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Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
71%Questions answered1Evaded / deflected12Questions audited
Partial answer
High priority
Quantify employee benefit expense and depreciation policy change.
Asked by Adita Ketan, Smith's Institutional Equities
Management explained the nature of provisions but did not quantify the 13 cr breakdown or the 4 cr turbine loss.
no specific quantification of 13 cr breakdowndeclined to discuss litigation details
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Question
understood this employee benefit expense you had also mentioned in your footnotes that this uh some 13 cr of additional cost has been taken towards some pending litigations on on legal advice uh toward graduity leave... why we are changing some policies on depreciation like in a quarter where we are uh we are able to get good benefits but still these sort of some provision some uh one-offs and other expenses also of some 4 crores.
Management (unidentified speaker)
there are three or four provisions that were taken... one was a a new policy on long-term incentives for certain senior management employees... second reason is um there are some pending litigations... third thing was some changes in graduity policy... the second question on the depreciation actually you know this is a cogen power plant... we found it prudent to kind of impair this turbine...
Partial answer
High priority
Quantify inventory gain and utilization outlook for nitrile latex.
Asked by Adita Ketan, Smith's Institutional Equities
Management acknowledged inventory gains but did not quantify them, though provided utilization and margin outlook.
no quantification of inventory gain
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Question
is it possible to quantify the inventory gain during the copper and the nitro latics and any updates like where are we standing today in terms of utilizations and what are the what is the over supply situation today and what are we expecting like uh to ramp up or or to get some operating leverage for 27 and 28.
Management (unidentified speaker)
inventory gains yes there has been some inventory gains. I don't think it has been significant... we running at almost full 100% capac capacity utilization now for nitra latex... from a margin standpoint, short-term margins are certainly improved right now uh because of the war situation...
Evasive
High priority
Is Q4 margin the new base or will there be compression?
Asked by Ankit Minocha, Adzi Ventures family office
Management refused to give guidance and only offered a vague directional statement about being better than last year's average.
declined guidancevague directional statement
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Question
So would it be safe to assume this as like the new base for say the upcoming four quarters ahead for Q1 to Q4 or do you seek some kind of marginal compression and fraud?
Management (unidentified speaker)
we you know generally don't give any guidance for future quarters... difficult to say given the current war situation but uh look I would say strategically as we are at a higher capacity utilization levels we expect margins to be better than the average of last year at least for this coming year...
Answered
High priority
Status of anti-dumping duty on nitrile latex.
Asked by Ankit Minocha, Adzi Ventures family office
Management clearly stated they did not include ADD in plans and explained the current status.
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Question
just want to understand your latest read on um the add uh that was kind of sitting. So any read if it's coming in or not or uh if you've already built that benefit into your benefit or lack of benefit into your FI27 planning.
Management (unidentified speaker)
we never built it into the planning anyway... the finance ministry did not notify the anti-dumping duties that were recommended by the DJTR... there are some other legal cases on the same issue... we continue to uh expand and we continue the expansion project for NBR...
Answered
High priority
Can existing assets support growth or is utilization constrained?
Asked by Sergeant Kapoor, Antifragile Thinking
Management gave specific utilization levels and capacity outlook for each product line.
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Question
can the existing asset support further growth or has utilization already entered the constraint zone because the the new capex is further away and so going into fiscal 27 I mean how do you see at an overall aggregate basis and the capacity that is still available
Management (unidentified speaker)
in one or two plants we still have some capacity available but uh for NBR for example we uh we are at 100% capacity utilization... for synthetic latex we are building new capacity again which will come up in the following financial year... in nitral latex for Q4 we were at almost full capacity utilization.
Partial answer
High priority
How much of margin expansion is structural vs temporary?
Asked by Sergeant Kapoor, Antifragile Thinking
Management described the months but did not quantify the split between structural and temporary margin expansion.
no quantification of structural vs temporary
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Question
What part of the current margin expansion you think is a structural um operational improvement versus temporary you know raw material spread uh kind of a tailwind...
Management (unidentified speaker)
Jan and Feb were fairly stable months... so I think Jan and Feb for us were very good months. Sure, in the month of March, we did have we were better placed than some of our competitors... hard to quantify but in this quarter I think uh not a very large amount in Q4.
Answered
Medium priority
Current utilization levels across latex and NBR capacity.
Asked by Mahul Pawani, 40 cents
Management provided a clear range of utilization levels for Q4.
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Question
What are the current uh Thank you sir. What are the current utilization levels across uh latex number capacity?
Management (unidentified speaker)
I would say we are in for Q4. I'm talking about Q4. Yeah. not for the whole financial year but for Q4 we were between 90 and 100% across all our plants all our factories
Answered
High priority
Raw material inventory coverage for upcoming quarters.
Asked by Mahul Pawani, 40 cents
Management gave a specific timeframe for raw material coverage.
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Question
So I believe that we had uh we had inventory of raw materials earlier on. So how are we placed for the upcoming two quarters?
Management (unidentified speaker)
we feel very confident that we're covered up to the end of June.
Partial answer
Medium priority
How much of cash flow improvement is structural vs one-time?
Asked by Ankit Canoria, Zenesh
Management said little is one-time but did not quantify the split, attributing cash flow to muted raw material prices.
no quantification of structural vs one-time
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Question
so this FI26 uh we have generated 200 plus crores of cash flow from operating uh activity. So now and I see around 50 crores of that is because of working capital adjustments. So uh how do we see it rationally from here? Should we consider this as how much of this should be structural and how much of this can be one time...
Management (unidentified speaker)
nothing is one time or very little is one time because because it's uh I mean the the whole year in fact was a challenging year... we expected to only improve... raw material prices were fairly muted for about 9 or 10 months of the year that definitely helped with uh sort of cash generation...
Answered
Medium priority
Outlook for Apcotex brand growth and competition.
Asked by Ankit Canoria, Zenesh
Management confirmed double-digit growth and expressed confidence in continued double-digit growth.
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Question
we had a good uh run on appco bill for three four years and I think this year probably we have not grown that much. If you can throw more color as to how do we see that and uh what are your views over the next two three years directionally...
Management (unidentified speaker)
even after build we've had we finished the year quite strong so we've had double digit growth... we feel fairly confident that we will continue to grow at double digits.
Partial answer
High priority
Nitrile latex profitability and contribution to overall profitability.
Asked by Sarup Shra, QRC
Management confirmed contribution but did not provide specific margin figures, only qualitative description.
no specific margin numbers
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Question
how is sort of profitability shaped up in that quarter and now is that contributing to overall profitability?
Management (unidentified speaker)
the short answer is yes of course... every quarter we've seen a gradual improvement in margin. In Q4, there was a significant improvement... some of it may again come down uh in the coming few quarters but as of now uh nitri latex structurally remains still a challenging business but temporarily it's it's been very good for us in terms of margins.
Answered
High priority
Net debt position and which provisions are non-recurring.
Asked by Faruk Pandol, Westa Fund Management
Management provided net debt position and clearly categorized each provision as recurring or non-recurring.
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Question
where are we with regards to net cash? ... apart from the litigation uh based uh provision which you have taken what else from all the numerous provisions that you've mentioned are non-recurring.
Management (unidentified speaker)
as of March 31st we have a total debt of about 90 crores and our investments and cash bank balances are 160 odd crores... the litigation is also non-recurring... the long-term incentive will be recurring... the impairment of the asset That one asset turbine is non-recurring.