Overview
Laxmi Organic Industries Limited reported a 9% year-on-year (YoY) decline in revenue for the second quarter of FY26, mainly due to weaker performance in its specialty chemicals segment, which saw a 20% revenue fall. The company’s Essentials segment also recorded a 5% drop, impacted by feedstock-linked pricing.
Key Financial Highlights
| Metric | Q2 FY26 | Q2 FY25 | Change |
| Revenue | – | – | -9% YoY |
| EBITDA | ₹37 crore | ₹74 crore | ↓ 50% |
| EBITDA Margin | 5.3% | 9.7% | ↓ 440 bps |
Segment Performance
Specialty Chemicals Segment
- Revenue declined 20% YoY due to:
- 10% fall from the planned phase-out of an agrochemical product.
- 7% reduction from market price moderation.
- Remaining decline from deferred customer orders shifted to H2 FY26.
Essentials Segment
- Recorded a 5% decline in revenue, primarily driven by feedstock-linked pricing.
- Sales volume remained steady compared to the previous year.
Operational Updates
- Dahej Facility: Received operational consent from the Gujarat Pollution Control Board for Phase 1 and commenced customer supplies.
- Fluorination Project: Progressing as planned, expected to achieve 40–50% of peak revenue in the near term.
- Hitachi Energy Partnership: Entered a contract with Hitachi Energy for SF₆-free gas production.
- Capacity: 60 metric tonnes
- Capex: ₹75 crore
- Expected mechanical completion: Q2 FY27
Summary
Laxmi Organic Industries reported a 9% YoY revenue decline in Q2 FY26, primarily due to a 20% fall in its specialty chemicals segment and a 5% drop in the Essentials segment. EBITDA fell to ₹37 crore, with margins narrowing to 5.3%. Despite near-term challenges, the company secured operational approval for its Dahej facility, advanced its fluorination project, and signed a partnership with Hitachi Energy for SF₆-free gas production.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing