Apcotex Industries Ltd (APCOTEXIND)
🎯 Key Takeaways
- Apcotex Industries is in a phase of disciplined reinvestment and margin recovery, transitioning from volatile export markets to sustainable domestic growth and strategic capacity expansion. Management is prioritizing organic growth, prudent CAPEX allocation, and margin resilience over shareholder returns, supported by strong profitability trends and a resilient balance sheet.
- Revenue declined 13.1% QoQ to ₹92 in Q2FY17.
- ⚠️ Exposure to volatile export markets in MENA and geopolitical instability poses ongoing demand and pricing risks. Rising input costs and global overcap
- Market Cap
- ₹3,082
- P/E Ratio
- 82.1
- P/B Ratio
- 16.46
- ROE
- 0.0%
- ROCE
- 17.7%
- Debt/Equity
- 0.09
- Div Yield
- 0.76%
- Promoter
- 58.2%
📖 The Story
Apcotex Industries is in a phase of disciplined reinvestment and margin recovery, transitioning from volatile export markets to sustainable domestic growth and strategic capacity expansion. Management is prioritizing organic growth, prudent CAPEX allocation, and margin resilience over shareholder returns, supported by strong profitability trends and a resilient balance sheet.
📰 What's Happening
In Q1 FY27 (June 2026), Apcotex reported record financials with revenue of ₹526 crores (+40% YoY), EBITDA of ₹117 crores (+203% YoY), and PAT of ₹79 crores (+311% YoY), driven by price realizations and resilient operations despite export disruptions. The company revised its CAPEX plan downward from ₹220 crores to ₹130-135 crores, focusing on NBR and synthetic latex capacity expansion with first-phase additions expected by Q1 next year. Management emphasized sustainable 15-16% average margins, inventory gains contributing ~2% to EBITDA, and a strong net cash position of ₹40 crores. Export volumes declined 10-12% due to geopolitical tensions in MENA and rupee depreciation, but domestic growth of 10% provided stability. Shareholder approval was secured for the re-appointment of Executive Director Ravishankar Sharma and continuation of Non-Executive Chairman Atul Choksey beyond age 75. ICRA reaffirmed AA- (Stable) ratings for ₹588.89 crores of debt facilities, reinforcing lender confidence. The trading window closed post-audited Q1 results, which showed net profit of ₹787.34 lakhs and total comprehensive income of ₹8,681.27 lakhs, up sharply from prior-year quarters.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Dec 2015 | Mar 2016 | Jun 2016 | Sep 2016 |
|---|---|---|---|---|
| Revenue | 66 | 96 | 106 | 92 |
| Operating Profit | 7 | 8 | 8 | 2 |
| OPM % | 11.1% | 8.6% | 7.3% | 1.7% |
| Net Profit | 5 | 22 | 7 | 4 |
| EPS | ₹2.25 | ₹10.81 | ₹3.30 | ₹1.72 |
Apcotex has demonstrated a clear inflection in profitability, with PAT growing over 300% YoY in Q1 FY27 and operating margins expanding significantly from historical lows of 1.7% in 2016 to current sustainable levels above 15%. This turnaround is underpinned by pricing power, cost discipline, and resilient domestic demand, offsetting export headwinds. The company’s financial performance reflects improved operational efficiency and margin recovery, aligning with management’s focus on sustainable growth rather than volume-driven expansion. The upward trend in profitability, supported by strong cash generation and a robust balance sheet, indicates a maturing business model transitioning from cyclical volatility to structural resilience.
🔮 Management Outlook & What's Next
Management expects sustained margin expansion at 15-16% average levels, with capacity additions in NBR and synthetic latex to drive approximately ₹600 crores of revenue growth by 2027. CAPEX has been revised to ₹130-135 crores, reflecting a cautious approach amid global overcapacity and geopolitical risks, with first-phase projects on track for completion by Q1 next year. Export opportunities are being evaluated amid rupee depreciation and regional challenges, while domestic growth remains a key pillar. No immediate shareholder returns are planned, with capital allocation focused on organic growth and strategic reinvestment to strengthen long-term competitiveness.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2015 | Mar 2016 | Mar 2017 |
|---|---|---|---|
| Equity Capital | 5 | 10 | 10 |
| Reserves | 95 | 177 | 187 |
| Borrowings | 23 | 17 | 32 |
| Total Liabilities | 181 | 288 | 289 |
| Fixed Assets | 0 | 90 | 0 |
| Investments | 31 | 18 | 20 |
| Total Assets | 181 | 288 | 289 |
The balance sheet reflects a strong liquidity position with net cash of ₹40 crores and negligible debt, underscoring financial resilience and flexibility. Equity has grown steadily from ₹5 crores in 2015 to ₹10 crores in 2017, supported by reserves accumulation, while borrowings remain low at ₹32 crores in 2017, indicating conservative capital structure management. The company maintains a solid asset base of ₹289 crores as of March 2017, with assets growing in tandem with operational scale. This financial profile supports the company’s strategic focus on organic growth and disciplined capital allocation without overleveraging.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2016 |
|---|---|
| Operating | -18 |
| Investing | +35 |
| Financing | -17 |
| Net Cash Flow | +0 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 58.2% | 58.2% | 58.2% | 58.2% |
| FII | 0.6% | 0.6% | 0.6% | 0.7% |
| DII | 2.2% | 2.2% | 2.2% | 1.9% |
| Public | 32.6% | 32.2% | 32.3% | 32.5% |
| # Shareholders | 31,471 | 30,693 | 30,391 | 30,918 |
Promoter holding remains stable at 58.23% over the past year, indicating confidence in long-term prospects. Institutional investor interest is emerging, with FII holdings increasing slightly from 0.59% in Q2FY26 to 0.69% in Q1FY27, while DII holdings rose from 2.19% to 1.9% during the same period. The growing number of public shareholders (30,918 in Q1FY27) suggests expanding retail interest. No pledging or significant dilution is evident, and the shareholder base remains diversified, supporting market confidence.
⚖️ Peer Comparison — Chemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| PIDILITIND | 1.50 L Cr | 56.5 | 33.4% | — | 0.01 |
| SRF | 72,171 | 33.4 | 15.6% | — | 0.36 |
| LINDEINDIA | 52,799 | 96.6 | 17.5% | — | 0.00 |
| FLUOROCHEM | 48,503 | 79.3 | 9.6% | — | 0.34 |
| NAVINFLUOR | 42,232 | 53.4 | 22.2% | — | 0.31 |
| GODREJIND | 35,513 | 30.2 | 9.2% | — | 4.57 |
| HSCL | 33,663 | 41.8 | 20.7% | — | 0.16 |
| AETHER | 23,246 | 98.6 | 13.8% | — | 0.08 |
| DEEPAKNTR | 20,783 | 26.5 | 15.3% | — | 0.26 |
| CASTROLIND | 19,792 | 18.6 | 76.2% | — | 0.00 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
Exposure to volatile export markets in MENA and geopolitical instability poses ongoing demand and pricing risks. Rising input costs and global overcapacity in chemical segments could pressure margins if pricing power erodes. Dependence on a few key product lines and customer segments may limit growth diversification. Execution risks in CAPEX projects could delay capacity additions and impact revenue ramp-up. Currency fluctuations, particularly rupee depreciation, may benefit exports but also increase input costs, creating margin volatility.
📋 Recent Filings
- Announcement2026-09-28Apcotex Industries Ltd announced that its trading window closes on October 1, 2026, remaining shut until two days after the audited financial results …
- 🔴 Announcement2026-08-27Apcotex Industries disclosed that ICRA reaffirmed its AA- (Stable) credit ratings for multiple debt facilities totaling Rs. 588.89 crores, covering ca…
- Announcement2026-07-30Apcotex Industries reported Q1 FY27 operational revenue of INR 5,256 Mn, up 39.9% YoY, with EBITDA at INR 1,171 Mn and PAT of INR 789 Mn, reflecting s…
- 🔴 Financial Results2026-07-30Apcotex Industries announced that the audio recording of its earnings conference call for the quarter ended 30 June 2026, held on 30 July 2026, is now…
- 🟡 Board Meeting2026-07-29Apcotex Industries approved audited financial results for Q1 June 2026 showing net profit of **₹787.34 lakhs** and total comprehensive income of **₹8,…
- Announcement2026-07-23Apcotex Industries announced its Q1 FY27 earnings conference call scheduled for 30 July 2026 at 2:00 pm IST, inviting analysts and institutional inves…
- 🟡 concall transcript2026-06-30Apcotex Industries reported record Q1 FY27 results with revenue of **₹526 crores** (+40% YoY), EBITDA of **₹117 crores** (+203% YoY), and PAT of **₹79…
- Financial Results2026-06-26Apcotex Industries Limited announced that its trading window will close on July 1, 2026, and remain closed for 48 hours after the release of audited f…
- 🟡 Board Meeting2026-06-25Apcotex Industries Limited held its 40th Annual General Meeting on 25 June 2026 at 11:00 AM via video conferencing. Shareholders approved all seven re…
- 🟡 Board Meeting2026-06-25Apcotex Industries announced shareholder approval at its June 25, 2026 AGM for the re-appointment of Executive Director Ravishankar Sharma for a two-y…
🧠 Analyst's Read
Apcotex is transitioning from a cyclical chemical player to a more resilient, margin-focused enterprise with improving profitability and disciplined capital allocation. The key watchpoints are sustained margin expansion, successful execution of CAPEX plans, and ability to stabilize export markets amid global headwinds. Investors should monitor domestic demand trends, capacity addition timelines, and any shift in shareholder return policy as indicators of strategic direction.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-30.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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