Southern Petrochemical Industries Corporation Ltd (SPIC) Reports 74% Profit Surge in Q2 FY26 Driven by Strong Operations and Insurance Payouts

Southern Petrochemical Industries Corporation Ltd (SPIC) has announced robust financial results for the second quarter of the fiscal year ending September 2025 (Q2 FY26). The company posted a significant 74% year-on-year increase in Profit After Tax (PAT), reaching ₹61 crore, compared to ₹35 crore in the corresponding period of the previous fiscal year. Revenue from operations also saw a healthy rise, standing at ₹817 crore for the quarter, up from ₹760 crore in Q2 FY25.

For the half-year ended September 30, 2025, SPIC's PAT grew to ₹127 crore, an improvement from ₹97 crore reported in the same period last year. Revenue from operations for the first half of FY26 stood at ₹1,598 crore, compared to ₹1,514 crore in the prior year.

The company's financial performance was also bolstered by insurance claims. SPIC received ₹55 crore as an insurance payout for damages incurred due to floods. Additionally, ₹20 crore, recorded under other income for the quarter and half-year, pertains to a claim for loss of profits when operations were temporarily shut from December 2023 to March 2024 as a result of these floods.

Ashwin Muthiah, Chairman of SPIC, commented on the results, stating, "The increase in turnover and significant improvement in profitability compared to the corresponding quarter last year demonstrate disciplined execution and a focus on profitable growth." He also highlighted positive trends in India's fertilizer landscape, noting increased consumption due to a larger area under cultivation and the positive impact of a downward revision in Goods and Services Tax (GST), which is improving farmer returns. Urea consumption increased by 2% during the Kharif season, correlating with a 0.6% rise in net sown area.

In other company news, SPIC announced the appointment of Sweta Suman as a Nominee Director representing Tamil Nadu Industrial Development Corporation Ltd (TIDCO).

Impact:

• Stock Performance: Following the announcement, SPIC shares closed at ₹92.25 on the National Stock Exchange on Monday, marking a 2.79% increase, indicating positive investor sentiment.
• Investor Confidence: The strong profitability growth and improved operational efficiency are likely to enhance investor confidence in SPIC's future prospects.
• Sector Outlook: The company's commentary on the fertilizer sector suggests a favourable environment for agrochemical companies, driven by government support and increased agricultural activity.
• Rating: 8/10 - This news provides a strong, positive financial update directly impacting the company and offering relevant insights into the agricultural sector.

Difficult Terms:

• PAT (Profit After Tax): The profit remaining after all expenses, including taxes, have been deducted from a company's total revenue. It represents the company's net earnings.
• Revenue from operations: The total income generated by a company from its primary business activities before deducting any expenses.
• Kharif: The main cropping season in India, typically lasting from June to October, coinciding with the monsoon season.
• GST (Goods and Services Tax): A comprehensive indirect tax levied on the supply of goods and services in India. A downward revision implies a tax reduction.
• Urea: A widely used nitrogenous fertilizer crucial for plant growth, providing essential nutrients to crops.
• Nominee Director: A director appointed to a company's board to represent the interests of a specific shareholder, such as a government entity or a large institutional investor.
• TIDCO (Tamil Nadu Industrial Development Corporation Ltd): A state government undertaking in Tamil Nadu established to promote and facilitate industrial development within the state.