APCOTEXIND - Apcotex Industri

📊 NSE: APCOTEXIND 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 18:23

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 23.8% in FY25 to INR 1,392.35 Cr from INR 1,124.55 Cr in FY24. In H1 FY26, revenue reached INR 712.5 Cr, a 3.6% YoY increase, despite a 4% revenue decline in Q2 FY26 (INR 337 Cr) caused by lower realizations from falling raw material prices.

Geographic Revenue Split

The company achieved its highest-ever export volumes in H1 FY26, contributing to an 18% overall volume growth. While specific regional percentages are not disclosed, the company maintains a strong regional position in South and Southeast Asia to leverage freight advantages.

Profitability Margins

Net Profit After Tax (PAT) for H1 FY26 was INR 44.5 Cr, a 72.5% increase YoY. PAT margins improved from 3.75% in H1 FY25 to 6.25% in H1 FY26. FY25 Profit Before Tax stood at INR 76.24 Cr, up 2.3% from INR 74.51 Cr in FY24.

EBITDA Margin

Operating EBITDA margin for H1 FY26 was 11.13%, up 251 bps from 8.62% in H1 FY25. Q2 FY26 EBITDA margin reached 12.06% (INR 41 Cr), driven by volume growth and margin expansion despite lower top-line revenue.

Capital Expenditure

The company invested INR 49.95 Cr in Property, Plant, and Equipment and Intangibles during FY25, an 80% increase from the INR 27.77 Cr spent in FY24. A major 37,000-tonne capacity expansion is underway to unlock future revenue.

Credit Rating & Borrowing

ICRA reaffirmed ratings with a comfortable liquidity profile supported by cash and investments of INR 132 Cr as of March 31, 2025. Finance costs decreased 20.5% YoY in H1 FY26 to INR 6.6 Cr as the company turned net cash positive by September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Styrene, Butadiene, and Acrylonitrile, which collectively represent approximately 70% of the total revenue cost.

Import Sources

Not specifically disclosed, but the company faces competition and pricing pressure from global suppliers in Korea, Russia, and China.

Capacity Expansion

Current capacity expansion of 37,000 tonnes is expected to unlock revenue potential of INR 550 Cr to INR 600 Cr. The company estimates a peak revenue potential of INR 1,600 Cr to INR 1,700 Cr with existing and newly commissioned capacities.

Raw Material Costs

Raw material costs in FY25 were INR 1,022.10 Cr, representing 73.4% of operating revenue. Profitability is highly vulnerable to volatility in Styrene and Butadiene prices, as the company typically benefits when prices rise and faces stock losses when they fall.

Manufacturing Efficiency

Volume growth of 18% in H1 FY26 indicates high utilization. Management notes that increasing utilization from 80% to 90%+ provides the operating leverage to reject low-margin orders and improve absolute margins.

Logistics & Distribution

The company benefits from regional proximity in South and Southeast Asia, making it highly competitive in freight-sensitive products like synthetic latex compared to global peers.

📈 Strategic Growth

Expected Growth Rate

18%

Growth Strategy

Growth is driven by a 37,000-tonne capacity expansion, increasing export volumes, and diversifying the customer mix. The company is also pursuing anti-dumping duties to protect domestic market share from unfair foreign competition.

Products & Services

Synthetic rubber (NBR) and synthetic latex (Nitrile latex) used in industries like paper, carpets, construction, and gloves.

Brand Portfolio

Apcotex.

New Products/Services

The company is focusing on specialized, margin-accretive segments within the 37,000-tonne expansion to improve overall profitability.

Market Expansion

Targeting increased market share in Southeast Asian glove manufacturing, which is growing due to US tariffs on Chinese-made nitrile gloves.

Market Share & Ranking

Strong market position in the synthetic rubber and synthetic latex segments in India; recognized as a leading regional player in South and Southeast Asia.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward regional supply chains to manage freight costs. Apcotex is positioning itself to capture this by expanding capacity and seeking regulatory protection via anti-dumping duties.

Competitive Landscape

Faces intense competition from large global players in Korea, Russia, and China who often have larger scales of operation.

Competitive Moat

The moat is built on logistical advantages in freight-sensitive latex and a 30-year promoter experience. This is sustainable as long as the company maintains regional proximity and cost-efficient manufacturing.

Macro Economic Sensitivity

Highly sensitive to global petrochemical cycles and economic growth in India and Southeast Asia, which drive demand for rubber and latex products.

Consumer Behavior

Increased demand for nitrile gloves and specialized synthetic rubbers in industrial applications is driving volume growth.

Geopolitical Risks

US-China trade tensions (tariffs on Chinese gloves) have shifted demand to Southeast Asian manufacturers, benefiting Apcotex as a regional supplier of nitrile latex.

⚖️ Regulatory & Governance

Industry Regulations

The Director General of Trade Remedies (DGTR) issued positive final findings on anti-dumping duties for the company's products, which is expected to provide a level playing field against imports.