DMCC speciality chemicals reports mixed Q2 FY26 amid operational hurdles

DMCC Speciality Chemicals Limited reported a stable topline for Q2 FY26, with revenue from operations at ₹126.03 Cr, a slight decrease of 0.80% quarter-over-quarter (QoQ) but a 22.69% increase year-over-year (YoY). Profit after taxes stood at ₹5.75 Cr, down 25.85% QoQ and 1.09% YoY, reflecting a challenging quarter. EBITDA was ₹14.31 Cr, declining 17.07% QoQ and 8.43% YoY, resulting in an EBITDA margin of 11.32%.

The company faced persistent raw material supply challenges in its Boron segment, which significantly impacted output and profitability. Despite the Roha plant resuming operations, the Boron business was virtually non-operational for the first month of the current quarter. However, the commodity chemicals business experienced strong prices, enabling effective pass-through to customers and contributing to domestic revenue, which comprised 84% of total revenues.

DMCC also expanded into new geographic markets like China and Latin America to offset subdued demand in Europe for speciality chemicals, which accounted for 35% of sales. The company managed to contain the impact of recent US tariffs by transferring costs to customers in that region. DMCC anticipates a gradual improvement in sentiment and performance as raw material flows for the Boron segment are now restored.