Laxmi Organic Industries (LXCHEM IN) – Q3FY26 Result Update – Subdued performance continues – REDUCE
Published on 30 Jan 2026
LXCHEM reported Q3FY26 revenue of Rs7.2bn, down 8.6% YoY, but up 2.7% QoQ. The Essential Chemicals segment, contributing to 70% of total revenue, declined 6% YoY. EBITDAM for the segment stood at -5.1%, down by 730bps YoY, impacted by falling prices of the key raw material acetic acid, which compressed spreads in ethyl acetate (constitutes 80–85% of the essentials basket). The Specialty Chemicals segment witnessed a 30% YoY revenue decline, impacted by the phase-out of a product contributing to ~10% of the portfolio as well as no sales of campaign product compared to Q3FY25. A replacement for the phased-out product is expected to be launched by Q4FY26. The Fluorochemicals segment remains in the ramp-up phase, with the management guiding for 40–60% of its Rs2bn peak revenue potential to be achieved in FY26. On the demand side, sub-segments such as pharmaceuticals and printing & packaging continued to show stable trends QoQ, agrochemical demand remained moderate, and paints & coatings stayed weak. Ethyl acetate spreads are expected to remain under pressure in the near term. Hence, we maintain a cautious view on the stock and retain our ‘Reduce’ rating. The stock currently trades at 33x FY28E EPS. Using SOTP-based valuation, we arrive at TP of Rs125.
