Apcotex Industries Ltd (BOM:523694)

Q1 2027 Apcotex Industries Ltd Earnings Call Transcript

Jul 30, 2026 / 08:30 AM GMT

Release Date Price: ₹638.05 (-6.41%)

Transcript

Key Points

Positve

Apcotex Industries Ltd (BOM:523694) achieved its highest-ever quarterly revenue of INR 526 crore, a 40% year-on-year growth, driven by improved price realizations.
The company reported record EBITDA of INR 117 crore, up 203% year-on-year, with EBITDA margins expanding to 22.3% from 10.3% in the prior-year quarter.
Profit after tax surged 311% year-on-year to INR 79 crore, with PAT margins improving to 15.01% from 5.11%.
Management highlighted strong operational resilience, including dual fuel sources at plants and multiple raw material sourcing options, which enabled uninterrupted customer service during industry-wide disruptions.
The company is executing strategic capacity expansions (NBR and synthetic latex) with a total CapEx of ~INR 220 crore, expected to add ~INR 600 crore to the top-line, with projects on track for Q1 FY2028.
Domestic volumes grew by 10% year-on-year, indicating robust demand across key sectors like paper, construction, and rubber goods.
The company maintains a strong balance sheet with a net cash position of ~INR 40 crore and has self-funded CapEx so far, with no debt taken for expansions.
Management expressed confidence in achieving average EBITDA margins of 15-16% over time, supported by improving nitrile latex margins and a favorable competitive environment.

Negative

Export volumes declined by 10-12% year-on-year due to geopolitical tensions in West Asia, leading to logistic disruptions and increased ocean freight costs.
The company acknowledged that ~2% of the EBITDA margin was attributable to one-time inventory gains, which are not considered sustainable.
Management cautioned that the record 22.3% EBITDA margin is not a normalized level and could be difficult to sustain, especially with volatile crude oil prices.
Working capital requirements increased during the quarter due to higher raw material prices, leading to higher inventory values and receivables, which reduced net cash from INR 70 crore to INR 40 crore.
The nitrile latex segment, while improving, has not yet fully recovered to pre-COVID margin levels, and the company remains cautious about global overcapacity in the glove supply chain.
The company is delaying a decision on the next phase of NBR capacity expansion (Stage 2) for 3-4 months, citing uncertainty from new capacity additions in Malaysia and the China factor.
The company faces potential margin pressure from rising crude oil prices, which could increase raw material costs and necessitate price corrections in the coming quarters.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

APCI.NS - Apcotex Industries Ltd
Q1 2027 Apcotex Industries Ltd Earnings Call
Jul 30, 2026 / 08:30AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to the Q1FY27 earnings conference call of Apcotex Industries Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing *0 on a touch tone phone. Please note that this conference is being recorded. At this time, I would like to hand over the conference to Ms. Purvangi Jain from Valorum Advisors.

Thank you and over to you ma'am.

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Unidentified_2 [2]
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