Ladies and gentlemen, good day and welcome to the Q1 FY 2027 NOCIL Limited conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. V.S. Anand, Managing Director from NOCIL Limited. Thank you, and over to you, sir.
Yeah. Good morning. Good morning to everyone. I'd like to start by expressing my appreciation for your presence today. Joining me are Mr. P. Srinivasan, our Chief Financial Officer, and our investor relations advisors from SGA. I hope you've all received our investor presentation. If not, it's available on both the stock exchanges and our company website. Let me begin by providing an overview of the company's performance for Quarter 1, Financial Year 2027. We started Financial Year 2027 on a strong note with revenue from operations reaching INR 403 crore, reflecting an impressive 20% year-on-year growth driven by growing volumes and increase in selling prices on account of increase in raw material costs. The company delivered a healthy 9% volume growth compared to Quarter 1 Financial Year 2026, driven by sustained demand across key end markets.
Domestic volumes registered double-digit growth supported by improved demand from the implementation of GST 2.0. Export volumes also recorded single-digit growth driven by successful conversion of ongoing customer engagements into business gains and continued traction in international markets. This balanced performance across both domestic and export businesses highlights our ability to capitalize on market opportunities while strengthening customer relationships and expanding our global footprint.
While we are encouraged by these results, we also remain realistic about the operating environment. Global markets continue to experience geopolitical uncertainties, supply chain disruptions, and a competitive pricing landscape. On a sequential basis, revenue grew by a robust 22% over the previous quarter. Volumes, however, witnessed a moderate decline of 3%, primarily due to temporary supply-side constraints related to utilities and logistical challenges arising from the ongoing geopolitical situation, which resulted in the postponement of certain order commitments.
These challenges were operational in nature rather than demand-driven, with underlying customer demand remaining healthy. We did see a temporary demand contraction in the non-tire segment due to lower production on account of a sharp increase in input costs and shortage of labor due to the cooking gas shortages during the quarter. We continue to work closely with our suppliers and logistics partners to normalize supplies and execute the pending orders, and we remain confident of recovering the deferred volumes in the coming quarters. With respect to the anti-dumping petitions filed with the Government of India, the central government has approved the imposition of anti-dumping duty on sulfenamides covering both CBS and NS on 20th June 2026. On the other product front, the PILFLEX 13, the Directorate General of Trade Remedies, DGTR, issued a positive final recommendation in June 2026.
The implementation of the anti-dumping duty on PILFLEX 13 is now subject to the approval of the Government of India. The tire industry continued to witness healthy domestic demand during the quarter, supported by strong replacement demand and healthy OEM offtake across both the passenger and commercial vehicle segments, still aided by the implementation of GST 2.0 and ongoing infrastructure activities.
While some moderation in demand is expected in the near term owing to seasonal factors and the progress of the monsoon, these are expected to be temporary in nature. The underlying industry fundamentals remain strong, supported by healthy replacement demand, continued momentum in OEM volumes, and favorable long-term growth drivers. Accordingly, the overall demand outlook remains positive, and the industry is well-positioned to navigate the near-term challenges while sustaining its long-term growth trajectory.
In the international tire markets, even as the overall volume showed a minor dip in the first half of the calendar year, mainly on account of lower OEM volumes, the replacement market held positive, reflecting healthy demand. Coming back to NOCIL, trial production at our new TDQ plant in Dahej is coming along well with initiation of samples to customers. As approvals progress and commercial supplies ramp up over time, we believe this investment will further reinforce our competitive position in the market. Our new INR 130 crore investment in Dahej is also progressing well, and our teams have done a great job of keeping it on track in spite of the challenges and disruptions we've been witnessing on account of the war in the last few months.
As we look to expand our product portfolio, our R&D and technology teams are working very closely with customers on new products, and we expect positive traction during the course of the year. Looking ahead, while we remain mindful of the uncertainties that continue to exist in the global environment, we are optimistic about the direction in which the business is progressing.
We expect revenue for Financial Year 2027 to be in the range of INR 1,400 crore to INR 1,600 crore. This is the current pricing environment with EBITDA in the region of 10%. Our focus will remain on executing our strategy with discipline, driving operational excellence, expanding our product portfolio, deepening customer relationships, and maintaining a prudent financial management. With this, I now invite Mr. P. Srinivasan to provide an overview of our financial performance. Following his remarks, we will be pleased to take your questions.
Thank you, Mr. Anand, and good morning to everyone. Now let's run through the consolidated key financial highlights. The sales volume for Q1 FY 2027 was 145 index, taking a base of 100 as Q1 FY 2020. Revenue. The net revenue from operations for Q1 FY 2027 stood at INR 403 crore, registering a strong growth of 20% YoY from INR 336 crore in Q1 FY 2026, and 22% QoQ from INR 330 crore in Q4 FY 2026.
Volumes, as Anand stated, volumes recorded a healthy 9% YoY growth in Q1 FY 2027 compared with Q1 FY 2026. While we witnessed a moderate 3% sequential decline compared to Q4 FY 2026 due to temporary supply side constraints and other logistic issues. On the operating EBITDA performance, EBITDA for Q1 FY 2027 stood at INR 45 crore, registering a strong growth of 48% YoY from INR 31 crore in Q1 FY 2026 and 115% QoQ from INR 21 crore in Q4 FY 2026.
EBITDA margins for Q1 FY 2027 stood at 11.2%, expanding by 210 basis points YoY compared to Q1 FY 2026 and by 480 basis points QoQ compared to Q4 FY 2026. Profit before tax, PBT for Q1 FY 2027 stood at INR 37 crore, registering a strong growth of 60% YoY from INR 23 crore in Q1 FY 2026 and 77% QoQ from INR 21 crore in Q4 FY 2026. Profit after tax for Q1 FY 2027 stood at INR 28 crore, registering a strong growth of 61% YoY from INR 17 crore in Q1 FY 2026 and 63% QoQ from INR 17 crore in Q4 FY 2026. With this, we would like to open the floor for question answers.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions assemble. The first question is from the line of Nirav from Anvil Wealth. Please go ahead.
Yes, sir. Good morning and congratulations on a very good set of numbers. Sir, a few questions to ask. Sir, as you mentioned in your opening remarks that because of the supply side challenges, we could see a moderate dip in our QoQ volumes by close to around 3%. I presume that this quarter would have some benefit of the low-cost RMC also. Moving into Q2, Q3, how do you see the EBITDA run rate which we have achieved this quarter? Do you believe that this EBITDA run rate can be more of a sustainable number which we should work with, given the fact that any dip in the gross margins per kg could be compensated through the benefits of operating leverage, which we could see through higher volumes?
Yeah, thank you, Nirav. Like I mentioned in my speech, while there could be a bit of small adjustments in the EBITDA, overall for the year with the combination of the volume growth also kind of kicking in as well as operating leverages, we expect to hover around 10% of EBITDA. Yeah, that's our expectation.
Correct. Then, sir, what sort of volume growth we have assumed in this top-line number which you have mentioned?
Around 10%, yeah.
Okay. 10% for the full year.
Yes.
Correct. Also, sir, on the conversion cost side, what we could see that this quarter our conversion cost on a sequential basis has gone up from INR 110 crore to INR 130 crore. One of the reason could be the employee cost which normally we have seen in first quarter of every financial year there is an increase.
Yes.
But excluding that part, were there any non-recurring expenses which won't be repeated in quarters to come? If you can just highlight this increase in the conversion cost which has happened this quarter.
Nirav, P. Srinivasan. Thank you for the question. Basically there are few things which is there. One is, in this quarter as we witnessed the Middle East war crisis, we had logistic challenges. Obviously, the freight rates went up. There was some increase on account of that, which if the economic situation stabilizes, hopefully these corrections will happen. But till the time this crisis remains, you will see an inflated cost on that. Secondly, generally, our commitments towards CSR is on the higher side in the first quarter, though at the end of the year it evens out, but since the expenditure is already incurred, there was some additional money spent on CSR. Thirdly, there were some challenges on the utilities front. We were all aware the gas prices went up significantly because of the Middle East crisis. Gas availability issue was there.
Operational constraints were imposed by the regulatory bodies because we have to operate a plant at certain throughput rates. Based on that, some additional cost came in the utilities front. We also had a manufacturing improvement in volume terms. If you see in the stock change, there is INR 45 crore created in the stock change, so that also played a role. And lastly, there were some maintenance issues at our plant, so that also had led to some corrections in some inflated costs. Which we feel those things will get evened out. These are all one-off expenses. But I think this is the broad story which we can give you the reasons.
Correct. Sir, if you can just quantify what could be this one-off cost, which won't be repeated in the next quarter, including the employer cost, which we have seen on a higher side this quarter.
Employee costs, I think, will get stabilized. That hopefully will come down because generally the retirees get loaded in the evaluations as and when the increments get rolled out. As far as the utility cost, I think this is purely the pricing, because as and when the oil prices stabilize, hopefully the utility cost will come down. Some few crore will come down on account of this one-off maintenance cost, et cetera. That will be a one-time expense which will not be repeated.
Got it. Sir, last from my side, what we have seen that you mentioned that the approvals from the customers so far as the TDQ plant is concerned, we have started getting the samples approved from the customers. In best of our understanding, when can we see the volumes coming from the TDQ plant materially for NOCIL? What could be those period? Can this improvement in volumes from TDQ plant take our 100 to, or the index version to, let's say, 160, 165 in quarter four of FY 2027? Can that numbers be workable, sir?
The approvals are expected. So it takes typically about six to eight months, right? Which we've been talking. Sometimes even lesser. So we should start seeing it, start trickling in quarter four, but more going into quarter one of next year is when I see the numbers coming in. But I think we should start seeing those first things coming in quarter four. Yeah.
Correct. What was the mix of export and domestic volumes in first quarter, if you can just share the mix?
In the first quarter, we see exports about 33%, roughly 33% and domestic 67%.
This is the volume part you are mentioning, sir, right?
Yeah.
Perfect, sir. Thank you, sir, and wish the team all the best for the future.
Thank you.
Thank you.
Thank you. The next question is from the line of Praveen Kumar from Acuitas Capital Advisors. Please go ahead.
Yes. Hi. Thanks for the opportunity. I had a few questions. The first one was on the volumes. While you have alluded to logistical challenges, et cetera, impacting volumes. But I think from a Q4 perspective, we were talking about Q4 improvement from there. Also, in terms of exports, we were expecting a double-digit kind of a volume growth expectation for the year. Versus that, if I look at your overall FY 2027 volume, what you are talking about 10%. So has there been a revision downwards internally due to the evolving geopolitical situation? Is that what is driving the overall volume growth expectation for FY 2027? Or is it driven by reassessment on the domestic front, if you could throw some light on that?
Yeah. So there has been some kind of small impact on the non-tire sector in the quarter, but not necessarily in the tire. There we see still the robust demand continuing. We have not kind of scaled down. We still see that for the full year compared to financial year 2026, we should keep up the 10% growth rate. So I do not see that flagging. We have not kind of scaled down the numbers in any way as yet.
I understand. On the antioxidant front, if I look at the import data on antioxidants, there seems to be an increase in import volumes there. Realizations seem to, on a YoY basis, continue to contract on the antioxidants front. In light of the fact that TDQ, that ADD was not approved by the ministry specifically, right? You are putting up your TDQ volumes are up from this new facility. How do you see this entire antioxidants piece playing out? If you can throw some light on that, in light of all this development, continued dumping, continued foreign realizations, and that ADD was not approved by the ministry.
Yeah. For TDQ, we are looking at both increase in volumes in the domestic market as well as in the international markets. Given the fact that it has a wide range of applicability not only limited to tires but also the non-tire sector, we see that there are sufficient opportunities to grow it, in spite of the fact that we didn't get the anti-dumping. Like we had also mentioned earlier, we do keep having and structuring plans for different scenarios.
We still have a roadmap to continue to grow the volumes, both in the tire and the non-tire sector. Albeit even the domestic as well as the international markets. Yeah.
How do you plan to counter this increased dumping on the antioxidant front and the falling realization, if you could?
We have not seen a significant change in the import numbers because also we have limited visibility on that. But we don't see a significant increase in influx on account of any of this anti-dumping changes that are happening.
Understood. On accelerators, there was, I think, recent announcement that one of your large Chinese competitor, China Sunsine, was putting up additional capacity in one of the accelerators. If you could throw some light on how that could impact either pricing or volumes on that front.
That was also one of the reasons that we had approached for the anti-dumping on the accelerators. Those capacities you're referring to was also one of the intermediates to the main accelerators. We have a position both not only in domestic but also with international customers on that front. We are able to compete at this point with also the anti-dumping duty now that's in place.
Understood. Lastly on the geopolitical situation and logistics impacting or pushing out volumes from this quarter. Do you see any improvement on that front in this current quarter, what you're seeing? Or do you continue to see uncertainty and if you could throw some light on that?
Yeah. So there is continued uncertainty, definitely, on the front of raw materials. I think you have to take those calls because it does keep moving up and down like it has happened in the last few weeks, depending on the geopolitical situation. But we are not seeing any significant impact on demand as yet. So we still see it as positive. But there is going to be this uncertainty on pricing of raw materials and availability is something that we will need to keep a close watch on. Yeah.
Understood. Thanks for the response.
Thank you.
Thank you. The next question is from the line of Aditya Khetan from SMIFS Institutional Equities . Please go ahead.
Thank you, sir, for the opportunity and congrats on a good set of performance. Just a couple of questions. Sir, in your opening remarks, you mentioned some INR 1,400 crore to INR 1,600 crore top line number for 2027, and you also mentioned some 10% margins. So that comes out to INR 140 crore to INR 160 crore. So when we look compared to 2026, you are talking of 10% volume growth. So ideally, we are talking of some around 30%-40% pricing growth, that means. Just to know more onto the pricing part. So are we assuming like the price war-related benefits of higher realization that would sustain going ahead? Or it is also the anti-dumping duty benefits coming in from the sulfenamide accelerator or the better product mix? Which are the factors which are keeping in perspective of 30%-40% higher realization growth?
Yeah. It is a combination of all, which is surely like you mentioned, we will have to get also realistic. There is expected to be some moderation. It will not be at the same level as quarter one, but there will be some moderation. And it is a combination of volume, also product mix, also coming from the fact that better price realization in the domestic markets for accelerators, and operating leverages that will come. Yeah.
Is it possible to quantify the inventory gains during the quarter? Any ballpark numbers are good hint.
Let me just check. But maybe not right away. We will kind of come back to you on this. Okay. Yeah.
Got it. Sir, when we look, so during the quarter, a 9% YoY growth, and you also mentioned like the non-tire segment that is more of a subdued as of now. But sir, when we look at the commentary of India's largest latex player, so they have stated the demand is quite good and they have also been able to take the price increase. Ideally, so whatever demand commentary they have given, so that looks good. But we are saying like it is more of a subdued. Anything, sir, you can correlate?
So what I was mentioning also was it was kind of a transitionary element, it was temporary in nature. More because of quite a few of our. So again, when you speak about non-tire is multiple sub-segments, right? It is not one latex, but there are multiple sub-segments. And there is also a high dependency in those smaller companies on contract labor and also when input cost went up, many of them also had to cease production for some time. So these things played out in the quarter. But it was more transitionary and we expect that demand to kind of come back.
Okay. So the 9% volume growth in this quarter on YoY basis. So possible to state how much was from the tire side and non-tire side?
Like I mentioned, it was more skewed towards the tire sector, lesser on the non-tire side. Yeah.
Lesser on the non-tire side. Okay, got it. Sir, just one last question. Sir, onto the promoter holding side, we have seen recently the promoter holdings are being pledged again. So one of the biggest promoter, their holdings are pledged by around 24%. Anything, sir, you can take up why is the promoter holding again getting pledged?
I think we cannot comment on that. That is promoters and their officers' call. So we prefer to remain non-committal on that.
Got it, sir. Thank you. That is it. Over.
Thank you. A reminder to all the participants to press star and one to ask a question. Ladies and gentlemen, if you wish to ask a question, you may press star and one on your touch-tone telephone. Participants, if you wish to ask a question, you may press star and one on your touch-tone telephone. A reminder to all the participants to press star and one to ask a question. The next question is from the line of Pawan from Nayan Securities. Please go ahead.
Hello, am I audible?
Yes, sir, you are audible. Please go ahead.
My question was on ADD recently. That was recently applied. My question was, how much realization can we have right after this ADD?
Sorry, the ADD has been notified on June 20. For the quarter end of June, I think there is no gain there. I think it will get eventually fanned out because it all depends on how much the foreign import producers absorb that. That we will derive only at the end of the quarter, not today. As far as the quarter ended June, nothing is there.
Thank you.
Thank you. The next question is from the line of Diya Jain from Sapphire Capital. Please go ahead.
Okay, sir. Thank you for taking my question. The Q1 growth that we had, can you quantify how much was volume-led and price-led? Can we expect the realizations to sustain in the coming quarters?
Yeah. Let me just check on the split, but on the realization outlook, I had given an indication that it is a slight moderation, but overall for the year, we expect EBITDA to be at a certain range. In terms of the split that we had given. One second. One second, please. Yeah. I think we already announced in our opening remarks that Q1 volume growth was 9% as compared to the previous year first quarter. As far as the sequential quarter, we are having a moderate decline of -3% as far as the volume parameter is concerned. As far as the revenue parameters, I think we mentioned about 20%-23% for the relevant comparable periods.
Okay, sir. Another question. The TDQ plant, are we expecting any revenues to come in this year?
Your voice is not so clear. Can you just repeat that, please?
Is it better now?
Yes.
From the TDQ plant, are we expecting any revenues to come in this year?
Yes. There will be revenues coming in this year. Yeah.
What utilizations will be hit?
Like I mentioned, we have an approval process. We will start with non-tire, both domestic as well as international, and gradually tire companies, as they start approving those volumes, will start coming in the next couple of quarters. Yeah.
Okay, sir. Thank you.
Thank you. A reminder to all the participants to press star and one to ask a question. The next question is from the line of Praveen Kumar from Acuitas Capital Advisors. Please go ahead.
Yeah. Hi. Thanks again for the opportunity. My question was on PILFLEX 13 ADD that was approved by DGTR recently. The previous time that the DGTR had approved it in 2021, the ministry had rejected appeals at that time. So what do you think is different this time, which could possibly result in a different outcome in terms of the overall application and so on? If you could throw some light on that.
See, this is central government's prerogative. As per the provision of the statute, the DGTR is a recommendatory authority. This is a cause investigation proceedings wherein all the stakeholders' views are taken into account, and then a very detailed order is given. The prima facie, the DGTR is convinced that there's a dumping, and therefore there is applicable ADD finalization or recommendation has been given. However, the central government looks at things beyond that, and they have some other issues also in terms of public interest and other national interests. So they have within their jurisdictional power to accept, reject whatever they wish to. And typically, these powers are exercised within a window of 90 days as per the statute. So today, we cannot comment what is the view of the central government, because it's purely discretionary in their regime.
We are hopeful that we will make adequate representation, whatever is, wherever is needed, to substantiate our case. Now, we will wait for the outcome, maybe by end September.
Yeah.
Just to put on that, Praveen Kumar, if I may go. I think the environment also is very clear, because this is a very long 15-month to 18-month investigation where the dumping and injury margins are very strongly back. We are quite positive that it will be seen in the positive light.
I appreciate what you are saying. I just want to understand that, see, I understand that the government will look at various factors, all of which cannot be enumerated. But I wanted to understand more from an industry perspective that what has changed in terms of capacity or profitability of the product, et cetera, which could make a difference this time. That was my question. I understand that there are other factors the government might look at which you may not have a solid view on, right? But in terms of the other parameters like industry capacity in the product or profitability of the product, et cetera, has there been a substantial change between the last application and now?
Yes. So actually, if you see something like this, the product that you referred to can be catered to entirely by domestic manufacturing. Clearly all domestic producers are under stress as far as on account of the dumping that is happening. That is quite clear. So even compared to the previous period, it is even more severe, to answer your question.
Understood. Thanks for that. My second question was on the last several months, the INR has depreciated against both the USD as well as the Chinese yuan. So specifically, because a lot of our products, we compete with the Chinese, has there been a specific depreciation benefit that we are seeing in terms of volumes and conversations with the clients in the export market and also on the domestic front in terms of the Chinese imports being cost here?
Not any significant change, Praveen. You are absolutely right on the data point that you mentioned, but we have not seen a significant impact on account of that.
Okay. Is that because the Chinese players are continuing to adjust their CNY prices downwards, and is that probably the reason?
Yes, that is right. Still, I think rubber chemicals are still a product group that still enjoys the export subsidies.
Understood. Thanks for the response.
Thank you.
Thank you. The next question is from the line of Aditya Khetan from SMIFS Institutional Equities. Please go ahead.
Thanks again, sir, for the opportunity. Sir, my question was on to the anti-dumping duty part. Sir, excluding for TDQ, considering that CBS and PILCURE NS, we have the duty, considering if PILFLEX 13 also if that duty is notified. So what could be the total top line that would be covered under the ADD excluding for the TDQ segment?
Sir, this would be totally about 25%-30%.
25%-30%. Okay. Sir, just whatever, like for the benefits of ADD that would be flowing to EBITDA, would it be of the similar quantum which we have seen in the last cycle? Or it would be slightly lower from that? Any sort of a direction can help.
It's a bit premature today. Let all the calculations see and then how the results come in the second quarter, third quarter, then we can probably comment on that. It's too premature to comment today. We don't know how much the foreign players will absorb. Those things need to be seen.
Perfect, sir. Sir, my second question was on to the exports part. Like you mentioned, it is at around 33%. Any targets are like we are looking for 28%-29% to take it to around 40%-45%?
Directionally, you're right, Aditya. That's the way it will go. Also from our presence in the international market, that will be the direction it will go. Yeah.
Perfect. And sir, the newer expansion which will come 1-2 years down the line, like you mentioned in last quarter, that is more focused onto the specialty segment. How you see that segment to move on from the current 15% overall top-line levels? So this specialty portion, how much potential it has to move from these levels to say, just around 20%, 25%?
Yeah. So that should add to that. So I would expect at least another 5%-10% we should see an additional. Yeah.
5%-10%. Okay.
Yeah.
Okay, cool. Thank you. That's it.
Thank you.
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. As there are no further questions from the participants, I now hand the conference over to Mr. V.S. Anand for closing comments.
Thank you. Thank you, everybody, for your time. On behalf of the entire NOCIL team, I would like to thank our customers for their continued trust, our employees for their unwavering commitment, our board for its guidance, and our shareholders for their continued support and confidence. I hope we've been able to address all your queries. For any further information, kindly get in touch with any one of us or Strategic Growth Advisors, our investor relations advisors. Thank you once again, and wishing everyone a very pleasant afternoon.
On behalf of NOCIL Limited, this concludes this conference. Thank you for joining us, and you may now disconnect your lines.