SYNOPSIS: The company begins the restart of Phenol and Cumene plants after LPG supply resumes from BPCL, following the earlier shutdown due to force majeure, with a commercial production update expected soon.
During Monday’s trading session, shares of a company involved in the business of bulk industrial chemicals and chemical intermediates surged more than 17 percent on the BSE, following the company announced restarting Phenol and Cumene plants after LPG supply resumes.
With a market cap of Rs. 234.5 crores, shares of Hindustan Organic Chemicals Limited are currently trading in the green at Rs. 34.91 on BSE, up by more than 16 percent, compared to its previous closing price of Rs. 30. The stock has delivered negative returns of over 10 percent in the last one year, but has gained by about 29 percent in just one month.
What’s the News:
Hindustan Organic Chemicals Limited provided an update on the operational status of its Kochi unit. This follows earlier communications regarding the temporary shutdown of its Phenol and Cumene plants due to a force majeure event.
The company informed that Bharat Petroleum Corporation Limited (BPCL) has resumed the supply of LPG in accordance with directives from the Government of India.
Following the restoration of LPG supply, the company has initiated plant restart activities, which are currently in progress. Any further updates on the resumption of commercial production at the Phenol and Cumene plants will be communicated by the company in due course.
Financials & More:
HOCL reported a decline in revenue from operations, experiencing a year-on-year decrease of around 11 percent, from Rs. 165 crores in Q3 FY25 to Rs. 147 crores in Q3 FY26. However, at the profitability level, the company reported a significant improvement, with net losses narrowing by nearly 95 percent YoY, from Rs. 79 crores to Rs. 4 crores during the same period.
Hindustan Organic Chemicals Limited is principally engaged in the business of manufacturing bulk industrial chemicals and chemical intermediates. It has only one functioning unit located at Ambalamugal, Ernakulam, Kerala, commonly referred to as the Kochi Unit. This facility is engaged in the production of phenol, acetone and hydrogen peroxide, with the phenol and hydrogen peroxide plants currently operational.
Operational performance at the Kochi unit has shown improvement, particularly in terms of capacity utilisation of the main products (Phenol and Acetone). For the financial year ended 31st March 2025, the phenol and hydrogen peroxide plants achieved capacity utilisation levels of 87 percent and 97 percent, respectively, indicating enhanced operational efficiency.
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