NOCIL (NOCIL IN) – Q2FY26 Result Update – Headwinds continue to persist – HOLD
Published on 03 Nov 2025
NOCIL reported revenue of Rs3.2bn (PLe: Rs3.2bn, Consensus: Rs3.3bn), marking a decline of 11.6% YoY and 4.7% QoQ. The topline was impacted by a 2% YoY drop in volumes and lower realization. Based on our estimates, the average realization stood at Rs229/kg, reflecting a QoQ and YoY decline of 8% and 10% respectively. While sales volume grew 4% QoQ, EBITDA/kg dropped 30% QoQ and 40% YoY, leading to a 210bps QoQ and 340bps YoY contraction in EBITDAM. Capacity utilization stood at ~65%, though usage varied significantly across product lines. To meet rising demand for select rubber chemicals like TDQ antioxidants, with plants already operating at high utilization levels, the company is investing Rs2.5bn in capacity expansion. Trial production of these capacities is expected to commence in H1CY26, though peak utilization across the portfolio may take another 1.5 to 2 years. Near-term headwinds are expected to persist; however, a potential ADD on ~40% of the company’s product portfolio could provide significant relief. The stock is currently trading at ~26x Sep’27 EPS, we value it at 27x Sep’27 EPS and maintain “Hold” rating.
