NOCIL Limited (NSE: NOCIL) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
P. Srinivasan — President of Finance and Chief Financial Officer
V.S. Anand — Deputy Managing Director
Analysts:
Nirav Jamadia — Analyst
Aditya Khetan — Analyst
Nitesh Dhoot — Analyst
Harshil Parekh — Analyst
Radha Agarwalla – — Analyst
Presentation:
operator
Ladies and gentlemen, you are connected for the Nosfer Limited Q3FY26 conference call. Please stay connected, the call will begin shortly. Please note you have been connected for Nocel Limited Quarter 3 call. Please stay connected, the call will begin shortly. Ladies and gentlemen, good day and welcome to the NOSO Limited Q3FY26 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 the 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 participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone. I now hand the conference over to Mr. VS Anand, Managing Director from Noso Limited. Thank you. And over to you sir.
V.S. Anand — Deputy Managing Director
Thank you Ikra. Thank you and 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 on our company’s website. During the quarter, volumes continued to show an upward trajectory. The domestic volumes witnessed a high single digit growth driven largely by the improved demand due to GST 2.0. However, volumes in the international markets were dampened due to the seasonal effect and U.S.
tariff issues. Based on our quarter three performance and the current trends, we expect to end financial year 26 with a volume growth of 3 to 4%. In spite of a minus 5% degrowth in H1FY26 on a year to year basis, quarterly revenue remained largely stable reaching Rupees 316 crores. This moderation was primarily attributed to lower price realizations influenced by competitive pricing pressures including dumping from imports. In this evolving global environment, we continue to focus on a balancing mix of price and volume. To address the price dumping. As stated in our previous calls, we have filed anti dumping petitions on select key products.
With the Government of India seeing merit in our submissions, the authorities have initiated detailed investigations and we expect the outcome of these proceedings in the coming months. On the export side, volumes sequentially declined during the quarter. As mentioned earlier, it was due to a combination of year end seasonal effects and lower orders from the US on account of tariffs. The US tariffs, as all of you know, had led to uncertainty and cautious customer behavior in the international markets. However, the recent developments on the revision in US Tariff structures is expected to see a recovery in volumes in the US Market.
Looking ahead, the Indo India U FTA is also expected to support our initiatives and strategic engagement in the European markets. On the domestic market environment front, the Indian tire industry is positioned to deliver healthy and sustained growth over the medium to long term. This positive outlook is supported through a combination of demand side triggers and continued infrastructure investments. The recently concluded trade agreement with Europe and revisions in the US Tariff framework is also expected to augur well for our rubber industry in India, both from a tyre and non tyre sector point of view. Coming back to developments at nosil, our TDQ Antioxidant investment at the Hedge is coming along well and we expect to be ahead of our original schedules with production trials planned during the first half of the calendar year.
I’m delighted to inform you that the Confederation of Indian Industry has honored NOSIL with the CII Industry Academia Partnership Award 2025 in the diamond category. This award is a recognition of our collaborative work sponsored projects with research and academic institutions. This recognition is a testament to our continued commitment to fostering strong industry academia collaboration and driving excellence through innovation. A big shout out and appreciation to all our teams involved. Looking ahead as we look to build our domestic volumes and continue our growth momentum, we we expect the trade agreements with the US and EU to provide a fillip for better overall volume growth in financial year 27.
We expect that this enhanced volume growth coupled with our continual operational efficiency measures will drive development of our margins. That’s it. From my side, I now invite Mr. P. Srinivasan to provide an overview of our financial performance.
P. Srinivasan — President of Finance and Chief Financial Officer
Thank you Mr. Anand and good morning to everyone. Now let’s run through the consolidated financial highlights on the sales volume front volumes for Q3FY26 stood at 140 basis points taking a base of 100 as Q1FY20 coming to the net revenues. The net revenues from operations for Q3FY26 stood at 316 crores sequentially down by 5 crores. As in Q2 we recorded 321 crores coming to the nine months revenue performance April to December 25 stood at 973 crores visa vis 1053 crores for April to December 24. During the quarter, as Anand said, we recorded a high single digit volume growth in the domestic market.
This was largely Offset by a decline in export volumes resulting in an Overall sales growth of 1% compared to Q2FY26. Coming to operating EBITDA parameters, the operating EBITDA for Q3FY26 stood at 27 crores as against 22 crores recorded in Q2FY26. EBITDA margin stood at 8.5% in Q3FY26. As far as the 9 months, operating EBITDA parameters stood at 80 crores as against 103 crores for the previous year which is at 8.2% during the year 9 months FY26 PBT the PBT for Q3FY26 stood at 13 crores as compared to 19 crores for Q2FY26 for 9 months. The PPT for 9 months FY26 stood at 55 crores as compared to 88 crores in 9 months FY25.
Profit After Tax Profit after tax for Q3FY26 stood at 9 crores as compared to 12 crores in Q2FY26. It may be noted in profit of the tax for 9 months FY26 to 39 crores as compared to 82 crores in 9 months FY25. Please note that during the last year there was a revision in the taxation LTCG rate. Therefore the deferred tax liability had a 15 crore credit. Hence there was a lower tax outgo in the last year’s financials. With this we would like to open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star n1 on their 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 question queue assembles. The first question is from the line of Nirav Jamadia from Annual Wealth. Please go ahead.
Nirav Jamadia
Yes sir. Good morning and thanks for the opportunity sir. I have few questions to ask sir first is on the commentary by various industry players predominantly from the CV side like one of the largest CV player has reported close to around 30% volume growth in quarter three of FY26 and also when we see the commentary by most of the tire companies their performance was good in Q3 and even they have guided for a better numbers going forward. So just wanted to have your thoughts like with this US deal also in place and the FTA with EU which you Just mentioned in your opening remarks, how do you see the growth in the export markets which has been a dampener in Q3 as well as your growth in the domestic market? If you can share some guidance of volume growth for FY27, that would be very helpful.
V.S. Anand
Yes, thank you. Thanks Nirav. So the as far as quarter three again a year on year comparison has also been in the strong double digit, I would say in terms of the domestic market growth, year on year comparison and going. And clearly this momentum is expected to continue into quarter four also. That’s why I also kind of indicated how we see that the year will complete going forward with the tariff situation. Surely the India EU FTA is only expected to come into play in calendar year 27 roughly. But with the US tariffs clearly we see some of the volumes coming back in a two to three month horizon.
Whatever we had kind of lost, we expect that to come back. And with the domestic buoyancy that we see, I would say financial year 27 definitely growth prospects in the double digits overall.
Nirav Jamadia
In terms of the volumes you are saying, right?
V.S. Anand
That’s right, that’s right.
Nirav Jamadia
Correct. And sir, in terms of whatever lost volumes in the USA, let’s say we were at 100 before the tariff issues start kicking in. So where were we in terms of the run rate in Q3? If you can just say on an indexation basis, that also would help roughly.
V.S. Anand
About 50% of that. Yeah. So I would say.
Nirav Jamadia
Correct. So those 50% could come back to us within next two to three months. This is what you are saying?
V.S. Anand
That’s right, that’s right.
Nirav Jamadia
Correct. And sir, recently also we have seen Chinese currency getting appreciated by 8 to 9%. And even when we see some of the product prices and the raw materials like aniline and subsequently the antioxidants and the accelerators, they have started showing some uptick in terms of the prices. So given the kind of operating environment where China is operating in terms of the margins and everything, don’t you feel that this 8, 9% currency appreciation could give us that sort of competitive advantage in various markets where we operate in terms of the incremental volumes?
V.S. Anand
Yes. So I think factor that in also while kind of looking at how we see growth prospects going forward. But yes, it should give us a positive, it should give us a competitive advantage here.
Nirav Jamadia
Correct. So you also touched upon the trial runs for our new TUDYQ capacity in calendar year of this 26. So is it possible that since the capacity is getting expanded by 20% on an overall basis, do we feel that since we are very strong on the antioxidant side, is there a possibility that even from there also we could see some volumes coming in before the sample means after the samples are approved here?
V.S. Anand
Yeah. So yes I would expect definitely the approval period will take its course in terms of especially our large customers who have the time frames to approve the product. We will start with lower volumes initially and then slowly ramp up once the approvals come in during the upcoming financial. This should happen, correct?
Nirav Jamadia
Correct sir, third question is on the operating cost. So when I compare nine months of last year to nine months of this financial year, I think on a conversion cost basis we have saved close to around 23 crores. So this is despite of the fact that our volumes have been steadier or have grown on a nine month basis when we see last year to this year. So from where these cost savings are coming through and also if you can share that how much of the cost initiatives which we have earlier planned in terms of the power and other savings in the variable as well as fixed cost is captured in Q3 and how much is left yet to be captured on.
I am not talking about the operating leverage part, I am just talking about the operating cost savings through the initiatives which we have taken over last one or two years.
V.S. Anand
Yeah, sure.
P. Srinivasan
Nira Srinivas here. Morning. So if I see the broader breakup of this nine months reduction and other expenses largely it is aligned with two issues which happened during the year. We made a conscious effort to control the working capital. There was some significant savings and if you see the September balance sheet it is evident there. So as a result we aligned the production as per the inventory adjustment. And secondly we also had a situation that’s why you can see the stock change has a debit rather than the credit. If you see during the nine months period the second part is this also led to some requirement of lower requirement of utilities and efficient management of utilities.
So there that was one of the savings. Second, we negotiated fine rates on the on the S and D freight etc to the customer. There was some saving there and of course there are some other operational operating cost where you have the normal factory establishment. Wherever we could see some areas where to improve, we made an effort to improve that. It’s a combination of 34 factors which led to this reduction in cost. While we have achieved this, we don’t wish to stop it here. We would like to continue this effort to look at other areas and see how best we can improve.
Nirav Jamadia
Correct. And sir, last question before I join back sir, on the newer products which we were talking about in the earlier con calls, when can we see those products getting commercialized or start selling to the customers? If you can share your thoughts here. And let’s say whenever it starts picking up out of our overall volumes how much it could form a part of. I am talking about the current numbers. What current run rate of volumes we are doing from these newer products. Whenever they would start ramping up what sort of percentage it could form out of our overall volumes.
V.S. Anand
Yeah, you are right. There are a couple of products in the pipeline. One of them we have done bit of a soft launch largely with trials with customers and it’s taking its slow ramp up speed. Eventually surely we would like it. We expect these products should give us at least about 10 to 12% compared to current volumes. At least in terms of volumes we see that.
Nirav Jamadia
Let’s say whatever total volumes we are doing on an annualized basis, 10% contribution could come from this volume. So how the ramp up would happen? Like are we expecting FY27 some sort of benefits coming in and FY28 could be a year where these numbers could be achieved.
V.S. Anand
Yes. Yeah. So FY27 will still be on the slower side But I expect that 28 it should pick up speed Once the approval starts coming in then it starts starts picking up much faster.
Nirav Jamadia
Thank you so much sir for all the detailed answers and I’ll again join my. Wish you all the best.
V.S. Anand
Thank you.
operator
Thank you. The next question is in the line of Aditya from Smith Institutional Equities. Please go ahead.
Aditya Khetan
Thank you sir for the opportunity. So just a couple of questions. So this double digit volume growth which you are stating in FY27 how much of this would come from the base capacity and how much from the new TDQ facility?
V.S. Anand
A large part will still come from the base capacity. Because since we will still be ramping up and stabilizing production in the upcoming year the contribution will be much significantly lesser. And we’ll also still be waiting for approvals and all that. A large part will still come from the base capacity, improve utilization.
Aditya Khetan
Got it sir. Despite like seeing a good reduction in cost and ramping up the volumes as you said for the next two years still one issue of imports from China that remain unaddressed. You have said that anti dumping duty earlier like you stated like that would come by December. Now we are standing in February. Any updates that are we reapplying the duty earlier duty has not been approved so it has been canceled now. And how things will shape up like for the next one year.
V.S. Anand
Yeah.
P. Srinivasan
So Aditya Srinivas here just want to clarify something. See the. The procedure as per the anti dumping rules is one year from the date of notification. The findings should get concluded due to their administrative organization restructure. The DA got transferred and the new DA got inducted somewhere in December. So there had to be a mass mandatory repeat of public hearings which got finished. So as per the PROs protocol and the statute they have taken a three months extension as it is available on the DGTR website. So we hope that in the next one and a half two months they should conclude the findings.
Aditya Khetan
Okay. And sir coming to next questions on to the export market. You have rightly mentioned that 50% of US volumes will come back. Any other markets are like where we see significant ramp up like earlier like one market was lower. Now that market will see higher volumes and any a higher tariff in China to US versus India. Anything sort of an advantage play which we have here. Like considering if today uss considering the tariff differential between India and China how much you see India can grow from here to US So versus China.
V.S. Anand
Yeah. So just, just coming back to your earlier question. Just a clarification that there was not any cancellation like what Srini just clarified. It was more an administrative delay. So I just wanted to kind of mention that. And coming back to your second question. The growth for us is not only limited. So that means the growth will we still have opportunities to grow in Asia. We have opportunities to grow in Europe as well as the us. The US market today are at least last six months. Our view is that since with all those tariffs there has been more increased volumes going in from Europe and less from China because China was also inhibited due to the tariffs situation very similar to US.
So we expect to gain in all the markets where we are working because we still have much lower market share in most of the markets. Just.
P. Srinivasan
To add a bit, just to add a bit. See what we are doing is this is a relation on a principle to principal basis. The allocation on different destination is decided with the principal. So it’s not an only US market or EU market. So that’s one thing. Also it addresses that part. So we if suppose one market is unfavorable because of tariffs we may the discussion through the discussion we will try to divert that particular volume to some other market.
Aditya Khetan
Got it sir.
operator
Now next question.
Aditya Khetan
Sir, when we look at the India EU FTA what I know sir, like Europe still has some 10 15% of the global supply. Is there any chance wherein now with the Zero duty. There could be higher volumes flowing from Europe. And second, sir, like are you witnessing any new capacities buildings of globally, China, Europe, US and.
V.S. Anand
So yes, you’re right. So any FTA always plays both ways. But I still see that the FTA should on balance also give us our opportunities. Like the players in Europe will also have opportunities. But I see it more on the positive side of things. Looking ahead as far as the India, EU and FTA is concerned, in terms of newer capacities coming in outside of China, there hasn’t been too much of investments in the antioxidants and accelerators. It’s largely been more in China there have been some capacities in antioxidants and accelerators that have come in the last 12 to 15 months.
Aditya Khetan
Is there any risk, sir, like we foresee already? Sir, we are sitting at highest imports today. Is there any further chance whether this could go up?
V.S. Anand
Yeah, so imports coming in. So it has kind of been at a certain level in the last few quarters. I don’t expect that it should now significantly increase from here on.
Aditya Khetan
Got it, sir. Thank you.
operator
Thank you. The next question is from the line of Nitesh Dhoot from Anant Rathi Institutional Equity. Please go ahead.
Nitesh Dhoot
Yeah, hi. Thanks. Thank you. Good afternoon to you. So my first question is on the gross margins. So while optically, you know, the gross margins might have increased percentage terms, but given the lower denominator, but in per kilograms, if you see we probably hit the lowest levels, you know, even lower than Q2 there. So has this now stabilized or you know, there is like, you know, more pressure on the gross spreads. And also if you look From EBITDA per kg number, there is some improvement there given the cost initiatives, I believe. I just wanted to check on how much cost savings from the initiatives are already embedded.
That will be my first question.
P. Srinivasan
So Ritesh Srinivas here. So coming on the gross margin per kilogram or the value addition which we talk about per kilogram per se. Yeah, it looks to be one of the lower end of the spectrum. But what we see is probably we have been trying to say that, but I think we are trying to assume the way looks, the costs are building up. We feel things from here on should improve as we go forward. Secondly, on the cost initiatives. Yes, some cost initiatives already been reflected in the nine months results. If you are seeing, I think there was one question asked by the previous participant.
So this year we have got that much benefit. As we go along, we will try to see how much we can that basis established. Now we will try to improve further that that is an ongoing task which will be continually be efforts will be put in by the management.
V.S. Anand
So there are more initiatives underway and so we should see it play out in the next few quarters.
Nitesh Dhoot
Sure sir. So but just on the same question, so what would be the steady state you know EBITDA margins there assuming more anti dumping duties and what would be the targeted medium term kind of margin band post the age, I mean post the expansion and just some color on whether the TDQ margins would be structurally higher versus the portfolio average.
V.S. Anand
So definitely in this we’re looking that with all the initiatives over the next two to three four years we expect at least on an annual basis an improvement of 150 basis points and plus or minus on an annual basis.
Nitesh Dhoot
So what percentage of you know the incremental tdp, I mean the incremental upcoming capacity is already pre discussed with customers. I mean what, what would be the expected potential there from this expansion and by when do we expect to reach there?
V.S. Anand
So like I think the approval phase is when post that the volumes start picking up. We expect that we should start improving our utilization towards the end of the next financial year but then it will again continue to run ramp up given that it is sizable volumes.
Nitesh Dhoot
Right. So just one last if I may on the export volume. So we we’ve seen some decline coming in there. I think US was one which you explained. Has there also been some demand weakness in some of our key markets like Japan there and what would be the reason?
V.S. Anand
So there’s been some weakness, not so much in Asia I would say, but some weakness in some of our partly a bit of our latex markets as well as in Europe. There’s been a bit of a weakness more from a market demand point of view.
Nitesh Dhoot
All right. And just one last on the raw material. So there’s there’s some bit of you know, increase coming through in your material in the last month or so. Will we be able to pass through the price increases immediately or will there be a lag? How do you see it?
V.S. Anand
Sorry, just. Yeah. So we are looking at so that we will be able to pass on because it is a overall gradual increase that’s been happening since, since the beginning of this year.
Nitesh Dhoot
Great. So thank you so much for answering my questions and wish you all the best.
V.S. Anand
Thank you.
operator
Thank you. Before we take the next question, a reminder to all the participants that you may press star N1 to ask a question. The next question is from the line of Harshil Parekh from Equitas Capital. Please Go ahead.
Harshil Parekh
Hi sir. Thanks for taking my question. So my question is related to antioxidants where the pricing from Korean players have continued to be aggressive. And I assume there is no anti dumping investigations for antioxidants coming from Korea. So will the company request for an investigation in this segment?
P. Srinivasan
Shil, I think Srinivas here and the antioxidants product coming from Korea, we have already initiated a case against them in the investigation is underway.
Harshil Parekh
Oh okay. Okay. And so second question was that recently China has announced scrapping of lot of export related rebates in a lot of commodities. So is rubber chemicals also included in this?
P. Srinivasan
Not in the first, not in this list. So far, not in this list.
Harshil Parekh
Okay, thank you. That’s all.
V.S. Anand
Thank you.
operator
Thank you. The next question is from the line of Radha from BNK securities. Please go ahead.
Radha Agarwalla –
Yeah. Hi sir. Thank you for the opportunity. So you mentioned that you have filed anti dumping duty against the coordinates also. But in your initial notification it was only against Cyber and European Union. So has this been applied separately? And the next 1 1/2 to 2 months timeline of final findings that you have given, will that be only for China and European Union? And do we expect Koreans to come in later?
P. Srinivasan
Srinivas here actually please refer to the product applications PUC product which we have applied and there are about four notifications are there in one notification it was only China, only the export country. The second notification, China, China, EU and usa. There was a third product which is China, eu, usa, Korea and Thailand. I think that is the one we are referring to which is due for the case was initiated in March 25 in initiation notification. And the last one is against China and EU which got initiated in September. So please refer to the notification. All these are already covered in the original notification itself.
There is no further amendment or application.
Radha Agarwalla –
So even if anti dumping duty comes in the next three months, do you think there is a risk of rerouting to India via South Southeast Asia?
P. Srinivasan
No, no. I think anti dumping is applicable on country of origin, not country of supply. So the customs look at the country of origin from where it is originated. So you if suppose someone is routing Chinese material through Europe and then Europe is selling to India. The country of origin is China, so there cannot be any. I’m just giving an hypothetical example. That is it is country of origin, it is not country of supply.
Radha Agarwalla –
Okay. And the last question said how much was the volume degrowth from exports on a quarter on quarter basis this quarter or nine months. If you can say.
V.S. Anand
Nine months for the nine months compared to the last year is about 8 to 9%.
Radha Agarwalla –
And this year how much we are expecting growth in exports in FY26 27.
V.S. Anand
So we should get to a flat level at least by the end of the year. Talking about FY26, right?
P. Srinivasan
Yeah, 27.
Radha Agarwalla –
27. Sir, how much growth are you expecting from this base in FY27?
V.S. Anand
Yeah, it, it will.
P. Srinivasan
It should be in the double digits here.
Radha Agarwalla –
Thanks and all the best.
V.S. Anand
Thank you.
operator
Thank you. A reminder to all the participants, if you wish to ask a question, please press star N1. The next question is from the line of Nirav Jimodia from Anvil Wealth. Please go ahead.
Nirav Jamadia
Thanks for the opportunity sir, from the latex point of view, let’s say whatever peak volumes which we did in FY21 22 during the COVID times and whatever capacities which we are having at what rate currently we are operating on, let’s say if you can share for third quarter of FY26.
P. Srinivasan
Neera, just a minute. Should be around. I think in the nine months if you are looking at it is about 60%.
Nirav Jamadia
60%. So this export double digit volume growth which we have assumed for FY27, does it also includes a growth in the latex or it is purely driven by the other products?
P. Srinivasan
No, it includes something in latex also.
V.S. Anand
But it’s quite moderate in the others which will be more perfect.
Nirav Jamadia
Sir, secondly, on this EU FTA deal which has happened, are there any raw materials which we are currently importing from Europe where the duties are higher and when the FTA would be in place, this should start benefiting us.
V.S. Anand
Yes, yes, there are some raw materials which there will be a benefit once the FTA comes into play.
Nirav Jamadia
Correct. So just wanted to understand like let’s say out of our overall imports is or are the imports from Europe forms a sizable chunk or it is, let’s say if you can just quantify in terms of our total overall imports how much would be from Europe?
V.S. Anand
It’s not sizable, but at this point I’m not able to really put my finger. But it’s not sizable at this point in time.
Nirav Jamadia
Correct. And sir, last bit from my side, like when we see the Indian market for rubber chemicals and let’s say for third quarter of FY26 where you, you mentioned that the imports have reached the peak in terms of the volumes which were coming to India. So let’s see if you can help us understand what was the size of Indian rubber chemical market in as on third quarter of FY26 and how much of this were through imports.
P. Srinivasan
Nirav Actually, what you should look at is I. Normally when we consider. We consider the importance, we have a 40% share, right? The remaining 60% is supplied through intermediates as well as finished goods. So if you. Per se, if you exclude intermediates, I think will be about 40%. Otherwise, if you include intermediates, it’s 60%.
Nirav Jamadia
Correct. But given the kind of rubber consumption of India, is it safe to assume that like the market in India could be closer to 80, 85,000 tons now?
V.S. Anand
Yes. Yes. About 85,000.
Nirav Jamadia
Perfect. Thank you so much and wish you all the best.
V.S. Anand
Thank you.
operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star N1. As there are no questions from the participants, I now hand the conference over to Mr. V S Anand for closing comments. Over to you.
V.S. Anand
Thank you. Thank you everybody for your time. 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 investment relations advisors. Thank you once again and wishing everyone a very pleasant afternoon.
operator
Thank you, sir. On behalf of Nossell Limited that concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.