Galaxy Surfactants navigates headwinds with flat Q2 volumes

Galaxy Surfactants Limited reported flat consolidated volumes year-on-year and quarter-on-quarter for Q2 FY26. H1 FY26 consolidated revenues increased by 2% year-on-year, driven by double-digit growth in Specialty Care products. However, EBITDA declined by 5% year-on-year to INR251 crores, with EBITDA per metric ton at INR18,700. The company noted that the overall impact for the full year on EBITDA due to US tariffs is estimated to be in the range of 3% to 5% of FY25 EBITDA, leading to project delays.

India's domestic growth was hampered by GST rate reductions on FMCG products, causing inventory adjustments and subdued volumes. Elevated fatty alcohol prices accelerated reformulation shifts, particularly affecting Tier 1 category volumes. Despite these challenges, non-Tier 1 customer volumes grew robustly, offsetting declines and resulting in flat overall volume performance for India. The company anticipates a gradual recovery in India from Q4 FY26.

In the AMET region, volumes saw a modest single-digit decline due to intensified competition in Egypt. Latin America and Asia Pacific, however, posted strong double-digit growth. The company is actively working on mitigating headwinds by engaging with customers and accelerating projects in other geographies.