NOCIL navigates headwinds, reports Q2 FY'26 results

NOCIL Limited announced its Q2 FY'26 earnings, reporting a 4% quarter-on-quarter growth in sales volumes despite challenging market conditions, including revised U.S. tariff structures and heightened competitive pricing. Quarterly revenue stood at Rs.321 crores, a sequential decline attributed to softer price realizations and competitive pressure from imports. Operating EBITDA for Q2 FY'26 was Rs.22 crores, with an EBITDA margin of 7%. Profit after tax (PAT) for the quarter was Rs.12 crores.

The company is addressing pricing challenges through anti-dumping petitions on select key products with the Government of India, with investigations underway. Domestically, NOCIL anticipates continued robust demand, particularly from the Indian tire industry, supported by government infrastructure initiatives and GST rate reductions. Export volumes, however, saw a decline due to U.S. tariff situations creating uncertainties in international markets.

NOCIL remains focused on sustainable growth, managing margin pressures through price and volume strategies, operational efficiencies, and cost optimization. The ongoing TDQ capacity investment at Dahej is on track, with commissioning and trial production anticipated in H1 calendar year 2026. The company also reported improved operating cash flow due to enhanced working capital efficiency, reducing sales number of days by 20%.