OCCL Limited Reports Q1 FY26 Net Profit of ₹13.14 Cr on Acid Division Momentum

Mumbai, 30 July 2025: In a marked turnaround, OCCL Limited reported a consolidated net profit of ₹13.14 crore in Q1 FY26 — reversing a loss of ₹0.041 crore in Q1 FY25 — driven by healthy operational efficiencies and strong performance in its acid division.

Revenue Surge and Efficiency Boost Drive 14% QoQ Growth in Q1 FY26

Revenue from operations rose to ₹123.09 crore, up 14% from ₹107.48 crore in Q4 FY25. Total income reached ₹123.49 crore, indicating broader operational gains. The acid division’s stronger output helped lift margins and operational metrics industry‑wide.

EBITDA Soars 36% QoQ to ₹26.73 Cr, Reflecting Margin Expansion to 21.7%

EBITDA climbed to ₹26.73 crore, up 36% from ₹19.67 crore in Q4 FY25. The EBITDA margin widened to 21.7%, compared to 18.1% last quarter, showcasing improved cost control and acid segment leverage. Profit before tax increased to ₹18.34 crore from ₹11.39 crore.

PAT Jumps 51% QoQ to ₹13.14 Cr, PAT Margin Expands to 10.6%

Net profit surged 51% sequentially to ₹13.14 crore, up from ₹8.70 crore in Q4 FY25. The PAT margin improved to 10.6%, against 8.0% in the previous quarter. EPS stood at ₹2.63 (face value ₹2), up from ₹1.74. Prior‑year Q1 FY25 numbers aren’t comparable due to chemical business demerger.

MD Arvind Goenka Sees Tailwinds from Domestic Protections and Rising Tyre Demand

Managing Director Arvind Goenka commented: “We have started FY26 on a positive note… With recent anti‑dumping duties on imports from China and Japan, domestic acid pricing dynamics have improved.”

He also highlighted long-term demand drivers in the insoluble sulphur business stemming from the global tyre industry’s growth and increasing demand for environment-compliant, high-performance tyres.

Financial Health: Strong Operating Metrics, High Industry Margins, and Governance Indicators

OCCL demonstrates robust operating metrics with an operating profit margin of approximately 21.4% Q‑on‑Q and a trailing twelve‑month margin near 18.4%, both among the top in the industry. The company’s Piotroski score is 6, indicating average financial stability. Institutions’ holdings dropped slightly by 0.71% to 5.17%, while key valuation ratios such as P/E (21x) and price-to-book (1.9x) remain below the industry median.

Stock Reacts with Nearly 3% Rise to Earnings Momentum; Investors Take Notice

OCCL saw its share price climb approximately 2.86%, closing around ₹221, after the Q1 earnings release. Crisp operations and improved profitability buoyed investor sentiment. The stock opened at ₹218, reached a high of ₹225.55, and fell to ₹213.50 intraday. Market cap stands at ₹220.8 crore, with a P/E of 73.2x. Dividend yield remains nil, with a 52-week range of ₹151–₹338.40.

About OCCL Limited: Manufacturer of Insoluble Sulphur and Specialty Acid Products

OCCL Limited—now operating under the name AG Ventures Limited—is a global producer of insoluble sulphur, sulphuric acid, and oleums, serving the rubber and tyre industries. With manufacturing plants in Haryana and Gujarat, OCCL addresses both domestic and export markets. Post‑demerger, the company focuses on chemicals with leadership in niche sulphur products.

REF:https://nsearchives.nseindia.com/corporate/OCCLLTD_30072025150726_STX.pdf

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