Laxmi Organic Reports Q2FY26 Revenue and PAT Decline; Commences Dahej Phase 1 Production
Laxmi Organic reported Q2FY26 revenue down 9% and PAT down 61% due to subdued spreads and product mix. Dahej Phase 1 received CTO, and H1FY26 cash flow improved significantly. An investor meet is scheduled for October 30, 2025.
The announcement contains consolidated financial results with significant declines in key financial metrics (revenue, PAT, EBITDA) for both the quarter and half-year. Such financial performance is a primary driver of investor sentiment and stock valuation, indicating a high impact.
The company reported substantial year-on-year declines in consolidated revenue, PAT, and Adjusted EBITDA for both Q2FY26 and H1FY26. While there are some positive operational developments, the overall financial performance for the quarter is significantly negative.
* Laxmi Organic Industries Limited (LXCHEM) informed about an Investor and Analyst Meet scheduled for Thursday, October 30, 2025, at 14:00 hours (IST), to discuss performance for the quarter and half-year ended September 30, 2025. An investor presentation was enclosed for this meeting. * Q2FY26 Consolidated Financial Highlights (vs Q2FY25): * Revenue from operations decreased by 9% to ₹6,997 million (₹699.7 crore). * Profit After Tax (PAT) decreased by 61% to ₹110 million (₹11 crore). * Adjusted EBITDA decreased by 47% to ₹371 million (₹37.1 crore). * Gross Margin stood at 33.1% (down 270 bps). * PAT Margin was 1.6% (down 200 bps). * Adjusted EBITDA Margin was 5.3% (down 410 bps). * H1FY26 Consolidated Financial Highlights (vs H1FY25): * Revenue from operations decreased by 6% to ₹13,927 million (₹1392.7 crore). * PAT decreased by 48% to ₹324 million (₹32.4 crore). * Adjusted EBITDA decreased by 46% to ₹678 million (₹67.8 crore). * Gross Margin was 32.0% (down 370 bps). * PAT Margin was 2.3% (down 190 bps). * Adjusted EBITDA Margin was 4.9% (down 420 bps). * Key Reasons for Performance: The declines were primarily due to the subdued spread in key products like ethyl acetate in the Essentials segment, and the anticipated phase-out of an agro-chemical intermediate coupled with deferred deliveries to H2FY26 in the Specialties segment, leading to an adverse product mix. * Management Commentary (MD & CEO Rajan Venkatesh): * The global chemical industry continues to be impacted by supply-side overcapacities, leading to a focus on cost optimization and restructuring. * Q2 demand signals were stable for Packaging, Inks & Adhesives, moderate for Agrochemicals, weak to moderate for Paints & Coatings, and stable for Pharmaceuticals. * Raw material pricing saw acetic acid remain bearish, while ethanol pricing was flattish. * The company made headway with market penetration into newer products like n-propyl acetate, focusing on volume-driven profitable growth for Essentials. * Fluorine intermediates operations at the Lote facility are ramping up well and are on track to deliver revenues as outlined. * A contract with Hitachi Energy for an eco-efficient gas production was concluded, with associated capex accommodable within the previously announced ₹11000 million. * The company received Consent to Operate (CTO) from the Gujarat Pollution Control Board (GPCB) for Phase 1 of its Synthetic Organic Chemicals manufacturing facility at Dahej around Diwali (October 2025). Phase 2 completion and operationalization remain a priority. * Cash flow from operations in H1FY26 significantly improved to +₹1528 million, compared to -₹127 million in H1FY25. * Other Business Updates: * Successful Recertification of ISCC Plus GHG Certification for Site 1 until June 2026. * Awarded three State Level Safety Awards from the National Safety Council - Maharashtra Chapter. * Achieved BIS (Bureau of Indian Standards) Certification for Acetic Anhydride, Ethyl Acetate, n-Butyl Acetate, Methyl Ester, and Acetaldehyde, marking a first in India for these products. * Commenced production of Acetaldehyde at Dahej during Q2FY26.
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