NOCIL (NOCIL IN) – Q1FY27 Result Update – Q1FY27 Result Update – TDQ on track; ADD outcome awaited – HOLD
Published on 04 Aug 2026
Looking ahead, the INR1.3bn Dahej expansion remains on track, while the TDQ antioxidant project has entered the customer qualification stage, with commercial contributions expected from Q4FY27, subject to customer approvals. Management has guided for FY27 revenue of INR14–16bn, ~10% volume growth, and an ~10% EBITDA margin. However, management also expects some moderation in demand over the coming quarters, additionally uncertainty surrounding raw material availability and pricing continues to persist. Excluding TDQ, nearly 25–30% of the company's topline could potentially come under the proposed anti-dumping duty (ADD) on accelerators. However, the timing and magnitude of any benefit remain uncertain. Consequently, despite the better-than-expected quarterly performance, we remain cautious on the medium-term earnings outlook. The stock is currently trading at ~26x FY28E EPS. We value the company at 27x FY28E EPS and maintain our 'Hold rating with a target price of INR179.
