Laxmi Organic Industries (LXCHEM IN) – Q4FY26 Result Update – Higher realization drives sequential performance – REDUCE
Published on 22 May 2026
Laxmi Organic Industries (LXCHEM) reported consolidated revenue of Rs7.4bn, up 3.6% YoY and 2.3% QoQ, primarily driven by higher price realizations. The Essentials segment contributed ~71% of the total revenue, +6.6% YoY and +3.9% QoQ. The Specialty Chemicals segment recorded 18% degrowth in FY26; however, EBITDA margin contracted by 300bps to 15.8%. One of the products in this segment is undergoing a regulatory phase-out, which is expected to impact near-term topline performance as its replacement product is recently commercialised.
Management highlighted that the Fluorochemicals segment achieved nearly 40–45% of peak revenue potential in FY26 and maintains a healthy order book for FY27, with full ramp-up expected in FY27 itself. The company also successfully commissioned its Ethyl Acetate plant at Lote. Demand for printing & packaging and pharma segments remained stable during Jan–Feb and witnessed improvement in Mar, whereas industrial solutions demand remained steady during the quarter.
At CMP, the stock trades at 35x FY28E EPS. We value the stock at Rs143/share based on SOTP valuation and maintain our ‘Reduce’ rating on the stock.
