Apcotex Industries Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Apcotex Industries Ltd filed with BSE on 14 May 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 Q4 FY'26 operating revenue of INR 398 crores, up 14% year-on-year, with EBITDA of INR 55 crores, up 42% year-on-year, and PAT of INR 35 crores, up 107% year-on-year. Management attributed the improvement to higher volumes, better realizations, operational efficiency, and temporary margin benefits in Nitrile latex linked to the West Asia crisis affecting competitor supply. For the full year, operating revenue grew 4% to INR 1,442 crores while EBITDA rose 42% to INR 177 crores, and the company announced a final dividend of Rs. 5.50 per share, taking the total FY'26 dividend to Rs. 8 per share.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Operating revenue: INR 398 crores (Q4 FY26)
p. 3
“For Q4 FY '26, the operating revenue stood at INR 398 crores, registering a growth of 14% yearon-year.”
Vivek Thakur, page 3 of the filed PDF · View the filing
Operating EBITDA: INR 55 crores (Q4 FY26)
p. 3
“Operating EBITDA stood at INR 55 crores, up 42% year-on-year with EBITDA margins which have improved to 13.76, which is driven by higher volumes, better realizations and enhanced operational efficiency.”
Vivek Thakur, page 3 of the filed PDF · View the filing
Profit after tax: INR 35 crores (Q4 FY26)
p. 3
“Profit after tax for the quarter stood at INR 35 crores, which reflects a strong growth of 107% growth year-on-year.”
Vivek Thakur, page 3 of the filed PDF · View the filing
PAT margin: 8.73% (Q4 FY26)
p. 3
“PAT margins improved to 8.73%.”
Vivek Thakur, page 3 of the filed PDF · View the filing
Operating revenue: INR 1,442 crores (FY26)
p. 3
“While operating revenue stood at INR 1,442 crores, which is a growth of 4% year-on-year, operating EBITDA reached a new peak at INR 177 crores, up 42% year-on-year.”
Vivek Thakur, page 3 of the filed PDF · View the filing
EBITDA margin: 12.31% (FY26)
p. 3
“EBITDA margins expanded to 12.31% for the year supported by strong volume growth, improved margins and higher capacity utilization.”
Vivek Thakur, page 3 of the filed PDF · View the filing
Profit after tax: INR 101 crores (FY26)
p. 3
“Profit after tax for the year stood at INR 101 crores, reflecting a growth of 88% year-on-year.”
Vivek Thakur, page 3 of the filed PDF · View the filing
PAT margin: 7.03% (FY26)
p. 3
“PAT margins are at 7.03%.”
Vivek Thakur, page 3 of the filed PDF · View the filing
Net debt-to-equity: 0.08 (FY26)
p. 4
“Our net debt-to-equity also improved to 0.08.”
Vivek Thakur, page 4 of the filed PDF · View the filing
Final dividend: Rs. 5.50 per equity share (FY26)
p. 4
“Lastly, the Board has announced a final dividend of Rs. 5.50 per equity share, which is subject to shareholders’ approval.”
Vivek Thakur, page 4 of the filed PDF · View the filing
Total debt: INR 90 crores (As of March 31, 2026)
p. 14
“As of March 31st, we have a total debt of about INR 90 crores.”
Vivek Thakur, page 14 of the filed PDF · View the filing
Cash and investments: INR 160-odd crores (As of March 31, 2026)
p. 14
“And our investments and cash bank balances are INR 160-odd crores.”
Vivek Thakur, page 14 of the filed PDF · View the filing
Employee benefit provisions: approximately INR 14 crores (Q4 FY26)
p. 4
“Employee benefit expenses include certain provisions of approximately INR 14 crores which relate to long-term incentive plan, pending litigations based on external legal advice and higher gratuity and leave encashment obligations arising from policy changes.”
Vivek Thakur, page 4 of the filed PDF · View the filing
Turbine impairment loss: about INR 4 crores (Q4 FY26)
p. 4
“an impairment assessment of turbine and related accessories at our Valia facility, it resulted in recognition of impairment loss of about INR 4 crores which has been charged under other expenses.”
Vivek Thakur, page 4 of the filed PDF · View the filing
Additional depreciation from useful life revision: about INR 2 crore (Q4 FY26)
p. 4
“Further following an internal technical assessment, we revised the useful life of certain plant and machinery resulting into additional depreciation of about INR 2 crore during the quarter.”
Vivek Thakur, page 4 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.
NBR capacity — almost double NBR capacity · next year
stated firmly by Abhiraj Choksey
p. 7
“We continue to expand and we continue the expansion project for NBR, which will almost double our NBR capacity by next year.”
Abhiraj Choksey, page 7 of the filed PDF · View the filing
EBITDA margins — coming year
stated as an aspiration by Abhiraj Choksey
p. 7
“But look, I would say strategically, as we are at a higher capacity utilization levels, we expect margins to be better than the average of last year, at least for this coming year.”
Abhiraj Choksey, page 7 of the filed PDF · View the filing
New capacity expansion — FY28
stated firmly by Abhiraj Choksey
p. 9
“FY '27, no. Most of this capacity will come on stream in FY '28.”
Abhiraj Choksey, page 9 of the filed PDF · View the filing
Raw material coverage — end of June
stated conditionally by Abhiraj Choksey
p. 10
“So far, we feel fairly confident that we are covered up to the end of June.”
Abhiraj Choksey, page 10 of the filed PDF · View the filing
Nitrile latex capacity step-up — eight to nine months lead time, next financial year
stated conditionally by Abhiraj Choksey
p. 13
“I think we will probably take a call on that in the next three to six months. But again, if that capacity comes on stream, it will be in the next financial year, not this financial year.”
Abhiraj Choksey, page 13 of the filed PDF · View the filing
R&D center capex — INR 20 crores to INR 25 crores
stated firmly by Abhiraj Choksey
p. 19
“we are going to spend somewhere between INR 20 crores to INR 25 crores, building a new R&D center, where not only in our current industry segments, but even in different types of polymers, we will be doing new research, new molecules.”
Abhiraj Choksey, page 19 of the filed PDF · View the filing
Volume growth — low double-digits · FY27
stated conditionally by Abhiraj Choksey
p. 22
“I think, as I said, the whole world is a little very uncertain right now, but if the demand is there and we do have capacity to grow by another in double-digits, low double-digits in volume for the whole year.”
Abhiraj Choksey, page 22 of the filed PDF · View the filing
Long-term incentive provision — INR 260 lakhs per annum
stated firmly by Abhiraj Choksey
p. 14
“There is an accounting thing about sort of time value, so that may differ every year, but yes, per annum. Correct. It is per annum. So, from now onwards we will be providing it for every quarter.”
Abhiraj Choksey, page 14 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 attributed the increase to three provisions: a new long-term incentive plan, pending litigation, and gratuity policy changes; and explained the depreciation change was due to reduced useful life of a co-gen turbine no longer in use.
Answered by Abhiraj Choksey
Asked by Aditya Khetan: Why did employee benefit expenses and one-off costs rise sharply this quarter, and what caused the depreciation policy change?
p. 5
“For one was a new policy on long-term incentives for certain senior management employees that we have just introduced in the last quarter.”
Abhiraj Choksey, page 5 of the filed PDF · View the filing
Management said inventory gains were not significant, Nitrile latex is running near full capacity utilization, and margin gains this quarter were partly temporary due to competitors being unable to supply during the war situation.
Answered by Abhiraj Choksey
Asked by Aditya Khetan: Can you quantify inventory gains and give an update on Nitrile latex utilization and oversupply?
p. 6
“So, inventory gains, yes, there has been some inventory gains. I do not think it has been significant.”
Abhiraj Choksey, page 6 of the filed PDF · View the filing
Management said they don't give quarterly guidance given business volatility, but expect margins to be better than last year's average for the coming year.
Answered by Abhiraj Choksey
Asked by Ankit Minocha: Should Q4 EBITDA be treated as the new base for coming quarters?
p. 7
“Yes, as you know, we generally don't give any guidance for future quarters. Our business is fairly volatile quarter-on-quarter.”
Abhiraj Choksey, page 7 of the filed PDF · View the filing
Management said the Finance Ministry did not notify the anti-dumping duties recommended by DGTR, and the company has not built any such benefit into its plans.
Answered by Abhiraj Choksey
Asked by Ankit Minocha: What is the status of anti-dumping duty (ADD) support from the government?
p. 7
“Unfortunately, the Finance Ministry, as I mentioned in the last con call as well, the Finance Ministry did not notify the anti-dumping duties that were recommended by the DGTR, which is part of the Commerce Ministry.”
Abhiraj Choksey, page 7 of the filed PDF · View the filing
Management said Jan-Feb were stable months and margins improved, but acknowledged some cyclicality or temporary benefit in March, though not a very large amount for the quarter overall.
Answered by Abhiraj Choksey
Asked by Sajal Kapoor: How much of the current margin expansion is structural versus temporary/cyclical?
p. 9
“So, there might be some amount of, as you would say, cyclicality or temporary benefits that would have come. Hard to quantify, but in this quarter, I think not a very large amount in Q4.”
Abhiraj Choksey, page 9 of the filed PDF · View the filing
Management described securing raw materials in advance and running plants without production loss despite the Strait of Hormuz closure, and said they are covered through the end of June.
Answered by Abhiraj Choksey
Asked by Mehul Panjwani: How is the company managing raw material supply amid the Middle East conflict?
p. 9
“Fortunately, we have been able to run our plant without one, even one day of shutdown because we were able to take some bold calls in early March.”
Abhiraj Choksey, page 9 of the filed PDF · View the filing
Management said little is one-time, working capital benefited from muted raw material prices for most of the year, but overall profitability improvement is expected to be structural.
Answered by Abhiraj Choksey
Asked by Ankit Kanodia: How much of the FY26 cash flow from operations, aided by working capital, is structural versus one-time?
p. 10
“So, we expect it to only improve cash generation, on an annual basis.”
Abhiraj Choksey, page 10 of the filed PDF · View the filing
Management said ApcoBuild finished the year with double-digit growth despite earlier manpower issues, which have been corrected, and expects continued double-digit growth.
Answered by Abhiraj Choksey
Asked by Ankit Kanodia: How is ApcoBuild performing and what is the outlook given slower growth this year?
p. 11
“Actually, in ApcoBuild, we have had, and we finished the year quite strong. So, we have had double digit growth.”
Abhiraj Choksey, page 11 of the filed PDF · View the filing
Management confirmed Nitrile latex margins have improved gradually since a post-COVID low, with a significant jump in Q4 partly due to a temporary competitive advantage in March.
Answered by Abhiraj Choksey
Asked by Saurabh Shroff: How has Nitrile latex profitability evolved and is it contributing to overall profitability now?
p. 11
“In Q4, there was a significant improvement, but as I mentioned to one of the callers earlier, especially the month of March could have been a little bit of a blip because we were better placed than some of our competitors.”
Abhiraj Choksey, page 11 of the filed PDF · View the filing
Management confirmed total debt of about INR 92 crores against cash and investments of INR 160-odd crores, and clarified that litigation and gratuity provisions and the turbine impairment are non-recurring, while the long-term incentive and revised depreciation will recur.
Answered by Vivek Thakur
Asked by Farokh Pandole: What is the company's net cash/debt position and which provisions are non-recurring?
p. 14
“It includes all the loans. Entire debt is INR 92 crores.”
Vivek Thakur, page 14 of the filed PDF · View the filing
Management said raw material price increases were broadly in line with a roughly 70% rise in crude prices over a couple of months, and acknowledged customer resistance to further increases is a concern.
Answered by Vivek Thakur
Asked by Rudraksh Raheja: How much have raw material prices increased in Q4, and is there customer resistance to further price increases?
p. 15
“We have seen the crude prices have gone up by about 70% in a couple of months.”
Vivek Thakur, page 15 of the filed PDF · View the filing
Management estimated Nitrile latex contributes 15-20% of revenue, with margins structurally lower than the base business but catching up over time.
Answered by Abhiraj Choksey
Asked by Aditya Khetan: What is Nitrile latex's contribution to FY26 revenue and EBITDA, and how do its margins compare to the base business?
p. 18
“Overall percentage revenue of Nitrile latex will be probably, I am guessing, 15% to 20%.”
Abhiraj Choksey, page 18 of the filed PDF · View the filing
Management described developing specialty grades across eight industry verticals and building a new R&D center to develop new molecules and polymer applications, including battery binders.
Answered by Abhiraj Choksey
Asked by Sajal Kapoor: What is the company's R&D and innovation strategy to move up the value chain?
p. 19
“Another new thing is, you know, for batteries, we are developing something for battery binders, which is very specific for a few customers.”
Abhiraj Choksey, page 19 of the filed PDF · View the filing
Management said the Middle East contributes about 12% of revenue, freight and raw material cost increases are a concern, and Chinese competitors have begun appearing in Turkey and Egypt.
Answered by Abhiraj Choksey
Asked by Mehul Panjwani: How sustainable is the export business, and what is the Middle East's contribution to revenue?
p. 20
“For the first time, we are seeing in Turkey and Egypt, for example, Chinese latex coming in there.”
Abhiraj Choksey, page 20 of the filed PDF · View the filing
Management said imports are down due to freight costs, margins have improved in recent months, and the plant continues to run at full capacity.
Answered by Abhiraj Choksey
Asked by Aditya (Securities Investment Management): How is the NBR product performing given rising freight costs affecting imports?
p. 23
“So, I think overall, yes, imports are down. But then demand is also quite challenging in the current context.”
Abhiraj Choksey, page 23 of the filed PDF · View the filing
Risks flagged
West Asia crisis causing raw material price volatility and export demand moderation
p. 3
“During the quarter, the ongoing West Asia crisis led to heightened volatility in raw material prices and some moderation in export demand across select markets.”
Vivek Thakur, page 3 of the filed PDF · View the filing
Closure of the Strait of Hormuz affecting petrochemical supply chains
p. 10
“With the Strait of Hormuz being closed, there are a lot – not only oil, but a lot of petrochemicals that the world is dependent on the Middle East region for those petrochemicals.”
Abhiraj Choksey, page 10 of the filed PDF · View the filing
Nitrile latex remains structurally oversupplied
p. 6
“but as far as longterm is concerned, it still remains an oversupply.”
Abhiraj Choksey, page 6 of the filed PDF · View the filing
Customer resistance to further price increases amid high raw material costs
p. 15
“Short answer is yes, absolutely. I think that is a big worry because in the long run, I don't know these kinds of high energy prices and high petrochemical prices, I don't know the, or nobody knows, I don't think anyone can predict what the demand destruction will be.”
Abhiraj Choksey, page 15 of the filed PDF · View the filing
Sharp fall in crude prices could hurt margins given raw material coverage commitments
p. 16
“I think, look, a fall will definitely hurt us because we are covering for material.”
Abhiraj Choksey, page 16 of the filed PDF · View the filing
Increased freight and raw material costs making exports less competitive against Chinese suppliers
p. 20
“So, that's gone up. So, we are quite – that is one of the concerns for us in the coming year is how – one is, if those customers themselves are kind of running at lower – what would you say?”
Abhiraj Choksey, page 20 of the filed PDF · View the filing
Pending litigation against the company
p. 5
“The second reason is there are some pending litigations that were against the company and again, this was discussed with the auditor, audit committee.”
Abhiraj Choksey, page 5 of the filed PDF · View the filing
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