SYNOPSIS:
OCCL Limited reported mixed results for Q2 FY26, with revenue declining 3 percent QoQ to Rs. 119.6 crore and net profit falling 31 percent QoQ to Rs. 9 crore. The Board announced an interim dividend of Rs. 1 per share.
During Thursday’s trading session, shares of one of the market leaders in the production of insoluble sulphur for the tyre and rubber industry hit a 20 percent lower circuit at Rs. 109.6 on the stock exchanges, following the release of its mixed Q2 FY26 financial results.
With a market cap of Rs. 559 crores, shares of OCCL Limited closed in the red at Rs. 111.85 on BSE, down by around 18.4 percent, compared to its previous closing price of Rs. 137. The stock has delivered positive returns of around 24 percent in one year, but has fallen by more than 9 percent in the last one month.
What’s the News
OCCL Limited announced the financial results for the second quarter of FY26 on Thursday during market hours, as per the latest regulatory filings with the stock exchanges.
For Q2 FY26, the company reported a revenue from operations of Rs. 119.6 crores, reflecting a decline of around 3 percent QoQ compared to Rs. 123 crores in Q1 FY26, but a marginal year-on-year increase of more than 16 percent from Rs. 103 crores recorded in Q2 FY25.
During the same period, net profit stood at Rs. 9 crores, indicating a decline of around 31 percent QoQ from Rs. 13 crores in Q1 FY26, but a marginal growth on a year-on-year basis by nearly 20 percent from Rs. 7.5 crores reported in Q2 FY25.
Additionally, the company’s Board has approved an interim dividend of Re. 1 per equity share, representing 50 percent of the face value of Rs. 2 each, for the financial year ending 31st March 2026. The record date for determining eligible shareholders has been set as 7th November 2025, and the dividend payment will commence on or after 20th November 2025.
Arvind Goenka, Promoter and Managing Director of the company, stated that revenue stood at Rs. 121 crore, marking a 16 percent YoY increase, while EBITDA rose 5 percent to Rs. 20 crore, resulting in an EBITDA margin of 16.8 percent. The company’s net profit grew 16 percent YoY to Rs. 8.7 crore, reflecting a continued emphasis on profitable growth. He added that the quarter’s results included a one-time duty expense of ~Rs. 32 crore related to the demerger.
Goenka further noted that following the imposition of anti-dumping duties on imports from China and Japan, domestic sales realisations improved compared to the previous quarter. However, overall margins were impacted by the broader economic slowdown.
The company stated that it remains optimistic about its growth outlook, supported by a strong R&D foundation, a cost-efficient manufacturing base, and a favourable domestic market environment following the imposition of anti-dumping duties on Insoluble Sulphur imports. However, it also highlighted concerns over the recent increase in sulphur prices and the 50 percent import duty imposed by the US.
Despite these challenges, the management expressed confidence that its continued focus on operational efficiency, product quality, and sustainability will help strengthen its market position and drive consistent value creation for stakeholders.
OCCL Limited is an AG Ventures Group Company, primarily engaged in the business of manufacturing and selling chemicals, including insoluble sulphur. It is a global supplier of insoluble sulphur, of which the major turnover is from exports, with two manufacturing facilities, located in Dharuhera (Harayana) and Mundra (Gujarat). Apart from insoluble sulphur, it manufactures sulphuric acid and Oleums.
Written by Shivani Singh
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