Laxmi Organic Industries (LXCHEM IN) – Q2FY27 Result Update – Higher volumes and realizations drive growth – REDUCE
Published on 06 Nov 2026
Laxmi Organic Industries (LXCHEM) reported consolidated revenue of INR10.8bn in Q2FY27, up 54.7% YoY and 11.8% QoQ, driven by volume growth, higher realizations, an improved product mix and pass-through of higher raw material costs. The Essentials segment contributed 77% to revenue and grew 61% YoY, with EBITDAM expanding 800bps YoY, supported by strong double-digit volume growth and improved spreads. Currently, higher acetyl spreads are supporting the Essentials segment's performance. However, we believe this is temporary, with spreads likely to normalise over time. At the current market price, the stock trades at 22x FY29E EPS. We value the company at INR150/share based on our SOTP valuation and maintain our 'Reduce' rating.
