NOCIL Q2 FY27 Earnings Call — Analysis (NSE: NOCIL)
NOCIL reported Q2FY27 revenue growth of 33% YoY to ₹427 Cr driven by realisations despite a 3% volume decline, while maintaining full-year revenue guidance towards the upper end of ₹1,400–₹1,600 Cr.
Result quality: stable — Results context unavailable. Management sentiment: neutral.
The take
Q2FY27 Revenue from Operations ₹427 Cr ( +33% YoY ) .
Results
Revenue grew 33% YoY to ₹427 Cr on higher average selling prices while volumes declined 3% YoY; EBITDA rose 61% YoY to ₹36 Cr with margins at 8.4%.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹427 Cr | +33% | yoy · Q2FY27 |
| Revenue from Operations | ₹427 Cr | +6% | qoq · Q2FY27 |
| EBITDA | ₹36 Cr | +61% | yoy · Q2FY27 |
| EBITDA | ₹36 Cr | -20% | qoq · Q2FY27 |
| EBITDA Margin | 8.4% | none · Q2FY27 | |
| Profit Before Tax | ₹28 Cr | +52% | yoy · Q2FY27 |
| Profit After Tax | ₹24 Cr | +98% | yoy · Q2FY27 |
| H1FY27 Revenue | ₹830 Cr | +36% | yoy · H1FY27 |
| H1FY27 EBITDA | ₹81 Cr | +54% | yoy · H1FY27 |
| H1FY27 PAT | ₹52 Cr | +76% | yoy · H1FY27 |
Guidance
Management reiterated FY27 revenue to close towards the upper end of ₹1,400–₹1,600 Cr with ~10% EBITDA margins and full-year volume growth of 8–10%.
Key themes
Realisation-led growth amid supply constraints
Operational commentary
- Dahej brownfield TDQ expansion completed ahead of schedule, progressing through customer approvals with capitalization expected in Q3FY27.
- Integrated specialty rubber chemicals project is advancing as planned.
- Working capital cycle improved from >30-32% of sales in March 2025 to ~25% in H1FY27.
- Q2 volume decline (-3% YoY, -7% QoQ) was driven by temporary supply side constraints and logistical issues that management reports are now addressed.
- Higher conversion costs during the quarter were driven by surging fuel costs (coal, gas) and elevated sea freight rates.
- Antidumping duties on sulfonamides contributed partially to Q2 realizations, but management noted sulfonamides form a smaller portion of portfolio vs antioxidants (~60%).
- Actively exploring inorganic growth opportunities in the chemical space funded by balance sheet cash reserves.
Analyst Q&A
Q. Feasibility of achieving the steep implied H2FY27 volume index of 160–165 to hit 8-10% full-year growth.
Management confirmed confidence in reaching an index of 160–165 driven by recovery in supply constraints, domestic demand, and fructifying international export opportunities.
Q. Potential margin impact if antidumping duty (ADD) on 4ADPA precursor gets notified.
Explained that 4ADPA duty would raise production costs for domestic peers lacking backward integration, while domestic players will continue to compete with finished product imports outside ADD.
Q. Specific quantum of realization and margin benefit derived from the ADD on sulfonamides.
Management declined to quantify the exact benefit, stating import pricing data is unavailable and sulfonamides are a smaller share of the portfolio compared to antioxidants (60%).
Q. Inventory build-up risk of ₹57 Cr in H1 if raw material prices reverse.
Management highlighted that inventory is maintained on a rolling 40–60 day cycle and working capital as a percentage of sales has been reduced to ~25%, minimizing near-term reversal risk.
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