Apcotex Industries Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Apcotex Industries Ltd filed with BSE on 05 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Apcotex reported its highest ever quarterly revenue of Rs 526 crore, up 40% year-on-year, driven by improved price realizations despite lower sales volumes. Operating EBITDA grew 203% year-on-year to Rs 117 crore with margins improving to 22.3% from 10.3%, while profit after tax rose 311% to Rs 79 crore. Management attributed the results to inventory gains, disciplined procurement and inventory management amid export disruptions in the MENA region caused by geopolitical tensions and higher ocean freight costs.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue: 526 crores (Q1 FY27)
p. 3
“achieving its highest ever quarterly revenue of 526 crores, which represents a 40% year-on-year growth”
Vivek Thakur, page 3 of the filed PDF · View the filing
Operating EBITDA: 117 crores (Q1 FY27)
p. 3
“Operating EBITDA stood at 117 crores, registering a growth of 203% year-on-year, with EBITDA margins improving to 22.3% from 10.3% in the corresponding quarter of the previous year.”
Vivek Thakur, page 3 of the filed PDF · View the filing
Profit after tax: 79 crores (Q1 FY27)
p. 3
“Profit after tax for the quarter stood at 79 crores.”
Vivek Thakur, page 3 of the filed PDF · View the filing
PAT margin: 15.01% (Q1 FY27)
p. 3
“with PAT margins improving to 15.01% from 5.11%”
Vivek Thakur, page 3 of the filed PDF · View the filing
Domestic volume growth: 10% (Q1 FY27)
p. 4
“In fact, the domestic volume has gone up by 10%.”
Abhiraj Choksey, page 4 of the filed PDF · View the filing
Inventory gain impact on EBITDA: 2% (Q1 FY27)
p. 4
“I think, if I am not mistaken, in terms of EBITDA, maybe the EBITDA would have been 2% higher because of inventory gain.”
Abhiraj Choksey, page 4 of the filed PDF · View the filing
Total CAPEX for NBR and latex expansion: 220 crores
p. 7
“About 200-odd crores, 220 crores.”
Abhiraj Choksey, page 7 of the filed PDF · View the filing
NBR debottlenecking CAPEX: 130 to 140 crores
p. 11
“So, I think that 130 to Page 11 of 16 140 crores out of the 220 that I mentioned.”
Abhiraj Choksey, page 11 of the filed PDF · View the filing
CAPEX spent so far: 15-20%
p. 12
“I would say right now not more than 15%, 20% of the total outflow has happened.”
Abhiraj Choksey, page 12 of the filed PDF · View the filing
Net cash position: 30 crores (Q1 FY27)
p. 13
“So, earlier we were at about till March and we were at about 70 crores, but partially because of the higher working capital we have come down to about 30 crores.”
Vivek Thakur, page 13 of the filed PDF · View the filing
US duty on gloves from China: 100%
p. 17
“No, no, the total is 100%. Earlier it was 50%, now it's 100%.”
Abhiraj Choksey, page 17 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 15%, 16% average margins
stated as an aspiration by Abhiraj Choksey
p. 4
“And we are quite confident of 15%, 16% average margins that I have mentioned before as well.”
Abhiraj Choksey, page 4 of the filed PDF · View the filing
NBR CAPEX commissioning — Q1 next year
stated firmly by Abhiraj Choksey
p. 5
“The NBR will be on stream by Q1 next year as per plan right now.”
Abhiraj Choksey, page 5 of the filed PDF · View the filing
SB latex and other synthetic latex CAPEX commissioning — end of Q1 next year
stated conditionally by Abhiraj Choksey
p. 5
“And the SB latex and other synthetic latex CAPEX would probably be just a couple of months after that. So, maybe end of Q1 or so, probably”
Abhiraj Choksey, page 5 of the filed PDF · View the filing
Incremental revenue from announced investments — about 600 crores · 2027
stated conditionally by Abhiraj Choksey
p. 6
“The investments that we have already announced and which will be on stream in 2027, both will come on stream in 2027, will help us add another probably about 600 crores to our top line.”
Abhiraj Choksey, page 6 of the filed PDF · View the filing
Stage two nitrile capacity expansion decision — another three, four months
stated conditionally by Abhiraj Choksey
p. 8
“So, I think we will wait for another three, four months and then take a call on that, but I think the project plan is ready.”
Abhiraj Choksey, page 8 of the filed PDF · View the filing
Debt for CAPEX funding — next couple of quarters
stated firmly by Abhiraj Choksey
p. 13
“We have not taken any debt for it yet, but we will be in the next couple of quarters.”
Abhiraj Choksey, page 13 of the filed PDF · View the filing
Dividend payout — next year
stated conditionally by Abhiraj Choksey
p. 16
“But obviously, if profitability is higher, generally, the dividend payout would also be higher.”
Abhiraj Choksey, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management estimated inventory gains added about 2% to EBITDA and volumes fell 10-12% due to export disruption, while domestic volumes rose 10%.
Answered by Abhiraj Choksey
Asked by Aditya: How much of the margin improvement came from inventory gains, and how much did volumes decline?
p. 4
“I think, if I am not mistaken, in terms of EBITDA, maybe the EBITDA would have been 2% higher because of inventory gain.”
Abhiraj Choksey, page 4 of the filed PDF · View the filing
Management cited intentional investments in dual fuel sources, multiple raw material sourcing, and quick procurement decision-making as durable capabilities.
Answered by Abhiraj Choksey
Asked by Sajal Kapoor: What structurally changed in the business that allowed it to remain profitable despite export disruption?
p. 5
“Just to give you an example our plants have two fuel sources, right? A lot of our competitors had only one fuel source.”
Abhiraj Choksey, page 5 of the filed PDF · View the filing
A one-off impairment provision in Q4 and higher repair/maintenance costs in that quarter explained the reduction.
Answered by Vivek Thakur
Asked by Deepak Poddar: What caused the decline in other expenses this quarter versus Q4?
p. 8
“There was a one-off impairment provision, which was done about 4 crores last quarter.”
Vivek Thakur, page 8 of the filed PDF · View the filing
Net cash stood at about 30 crores, down from 70 crores in March due to higher working capital, with 15-20% of CAPEX spent so far.
Answered by Vivek Thakur
Asked by Farokh Pandole: What is the current net cash position and how much of the 220 crore CAPEX has been spent?
p. 13
“Yes, so we have about 40 crores of net cash position.”
Vivek Thakur, page 13 of the filed PDF · View the filing
Management said realizations had started softening as oil fell but could rise again with crude increasing, while domestic demand remained strong across sectors.
Answered by Abhiraj Choksey
Asked by Raman KV: How is demand and realization trending into Q2 given crude oil volatility?
p. 13
“So, Raman, very difficult question to answer because the realization, in fact, compared to average of Q1 had started coming down because oil had started falling.”
Abhiraj Choksey, page 13 of the filed PDF · View the filing
Management said margins improved in Q1 but it was too early to confirm sustainability, needing a few more months to assess.
Answered by Abhiraj Choksey
Asked by Jasdeep Valia: Have nitrile latex margins reached the pre-COVID sustainable level of 15-16%?
p. 15
“So, FY25-26, while they improved, they did not reach that level for sure.”
Abhiraj Choksey, page 15 of the filed PDF · View the filing
Management clarified the margin expansion was broad-based across all segments, not specific to nitrile latex or the duty.
Answered by Abhiraj Choksey
Asked by Chandpal Vilk: Is the margin expansion this quarter linked to the US duty on Chinese glove products?
p. 17
“Not, at all. It has been done across the board. Not only for nitrile latex, in all other segments, the margin expansion has been done in this quarter.”
Abhiraj Choksey, page 17 of the filed PDF · View the filing
Risks flagged
Export disruption from geopolitical developments in West Asia and logistics/ocean freight cost increases
p. 3
“During the quarter, the export business encountered temporary headwinds as geopolitical developments in West Asia and the resulting logistic disruptions and increase in ocean freight costs adversely impacted the export volumes.”
Vivek Thakur, page 3 of the filed PDF · View the filing
Volume decline due to Strait of Hormuz closure affecting MENA customers
p. 4
“And because of the Strait of Hormuz being shut, a lot of our customers' production being down, of course not being able to get material to them in some of them.”
Abhiraj Choksey, page 4 of the filed PDF · View the filing
Higher working capital requirements from rising raw material prices
p. 3
“Working capital requirements increased during the quarter, primarily due to higher raw material prices, which resulted in higher inventory values and receivables following the passthrough of increased input costs to the customers.”
Vivek Thakur, page 3 of the filed PDF · View the filing
Overcapacity in the nitrile glove/latex supply chain persisting since COVID
p. 9
“And that is, that whole market, the whole glove industry, as well as the supply chain for gloves is still in that overcapacity mode, even after three years after COVID, three, four years after COVID.”
Abhiraj Choksey, page 9 of the filed PDF · View the filing
Additional nitrile latex capacity coming online in Malaysia and elsewhere in Asia
p. 8
“There is some additional capacity that has also come up in Malaysia recently, or coming up in July, August right now.”
Abhiraj Choksey, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.