Galaxy Surfactants Limited — Q2 FY26

Galaxy Surfactants reported a challenging Q2 FY26 with consolidated volumes flat YoY and QoQ, as multiple headwinds converged. US reciprocal tariffs (50% on Indian exports) disrupted specialty care demand and delayed project pipelines, with a full-year EBITDA impact of 3-5% of FY25 EBITDA. Elevated fatty alcohol prices triggered reformulation in India, costing an estimated 3,000-4,000 tons of volume in the quarter. GST rate rationalization caused inventory destocking by FMCG clients, further pressuring domestic volumes. Management expects Q3 to remain similar to Q2, with recovery likely only from Q4 FY26, contingent on tariff resolution, fatty alcohol price correction, and GST normalization. The company is mitigating via market share gains with non-Tier 1 customers, shifting US-bound production to Egypt, and launching new sunscreen ingredients. Volumes flat, EBITDA per metric ton at ₹17,300, reformulation impact of 3,000-4,000 tons, and tariff EBITDA impact of 3-5% are key figures. Risk: prolonged reformulation or tariff persistence could structurally erode market position.