OCCL Q2 Profit Surges to Rs 27.86 Crore

Revenue jumped to Rs 257.04 crore from Rs 119.64 crore; Net profit rose to Rs 27.86 crore from Rs 8.69 crore.

Reader Takeaway: Robust volume and global supply constraints boosted margins, though increased inventory stocking is currently pressuring cash flows.

What just happened

OCCL Ltd has released its financial results for the second quarter ended September 30, 2026. The company reported a significant year-on-year increase in both top-line revenue and bottom-line profit. Alongside the financial update, the board of directors declared an interim dividend of Rs 2 per equity share with a face value of Rs 2. The record date for this payout is set for November 13, 2026.

Why this matters

The performance underscores a strong rebound in demand for insoluble sulphur. The company successfully capitalized on reduced Chinese imports in the domestic market, coupled with global supply chain disruptions that favored its own product availability. The improvement in EBITDA margins by 192 basis points to 18.81% for the quarter indicates effective cost management and stronger pricing power.

Risks to watch

Investors should monitor the company's working capital position. Inventory levels have climbed from Rs 94.44 crore in March 2026 to Rs 167.30 crore by the end of September 2026. This build-up, described as precautionary, has resulted in a net cash outflow from operations of Rs 40.68 crore for H1 FY27, a notable shift from the cash inflow seen in the prior year period.

What to track next

Watch for management’s ability to pass on raw material costs to customers as global supply chain dynamics shift. Additionally, the normalization of inventory levels will be a key factor in assessing the company's cash flow recovery in the coming quarters.