NOCIL reported a strong 33% YoY revenue jump to Rs 427 crore in Q2FY27, though profitability missed brokerage expectations. Rising utility and freight costs led to an EBITDA margin contraction to 8.4%. Management expects margins to normalize in H2FY27 as the Dahej plant commercializes and production volumes scale.
NOCIL Q2 FY27 Results: Revenue Up 33%, Profits Miss Estimates
Revenue stood at Rs 427 crore, while PAT was Rs 24 crore for the quarter.
Reader Takeaway: Strong revenue growth shows demand resilience, but margin pressure from logistical costs remains a key monitorable.
What just happened
NOCIL reported its Q2FY27 results, showing a significant 33% year-on-year growth in revenue to Rs 427 crore. However, bottom-line performance lagged behind expectations, with a PAT of Rs 24 crore missing the Axis Securities estimate of Rs 26 crore. EBITDA fell 20% quarter-on-quarter to Rs 36 crore, leading to an EBITDA margin of 8.4%.
Why this matters
The margin contraction—down from 11% in the previous quarter—was driven by temporary supply-side issues, higher utility costs, and shipping bottlenecks. Despite the margin dip, the company is successfully advancing its growth projects. The Dahej TDQ brownfield project is complete with trial production underway, and commercialization is anticipated in Q3FY27.
Capacity and Outlook
Management has maintained its FY27 volume growth guidance of 8–10%. The company is confident in reaching the upper end of its Rs 1,400–1,600 crore revenue target. Plans for an integrated expansion in Navi Mumbai, costing Rs 130 crore, remain on track for completion by the first half of FY28.
Risks to watch
Key risks include potential delays in customer approvals for the new plant and ongoing geopolitical shipping bottlenecks. Furthermore, the company experienced a 6.9% quarter-on-quarter decline in sales volume, which management attributed to supply-side constraints rather than a broader slowdown in demand.
What to track next
Investors should look for the commercialization of the Dahej facility in the coming quarter and the anticipated recovery in operating margins during H2FY27 as production volumes normalize and scale.