Laxmi Organic Industries announced its Q3 FY26 results, reporting a revenue decrease of 9% quarter-on-quarter. EBITDA declined by 33% year-over-year to INR 50 crores. The company cited pressure on ethyl acetate spreads and a product mix shift as contributing factors. The Dahej facility expansion remains on track, with Phase 1 already online and Phase 2 expected to be completed by the end of Q4 FY26. The company remains focused on self-help measures and new growth projects.
Financial Performance Overview
In Q3 FY26, Laxmi Organic Industries experienced a revenue decline of approximately 9% compared to the previous year. The company’s EBITDA stood at INR 50 crores, a 33% decrease year-over-year. Profit after tax (PAT) reached INR 25 crores, down from INR 29.3 crores in the previous year. Several factors influenced these results, including ongoing pressure on ethyl acetate spreads, a shift in product mix impacting the Specialties business segment, and incremental costs related to the Lote and Dahej facilities.
Key Business Segment Trends
The Essentials business segment saw a revenue decrease of 6%, though volumes remained consistent, primarily influenced by lower acetic acid feedstock prices. The Specialties segment experienced a revenue decline of 30% due to price moderation (12% impact), the absence of a one-time campaign product from the previous year (5-6% impact), and the phase-out of an agrochemical intermediate (10% impact).
Project Updates and Strategic Focus
The company’s Dahej facility expansion is progressing as planned, with Phase 1 already operational and supplying customers. Phase 2 of the Dahej project remains on course for completion by the end of Q4 FY26. The fluoro intermediates operation at the Lote facility is also tracking according to plan. Laxmi Organic continues to focus on self-help measures, including productivity improvements, commercial excellence, and cost discipline. New growth projects and product development, particularly within the Specialties segment, remain a priority.
Feedstock and Pricing Dynamics
Acetic acid prices, a key feedstock, had decreased by over 20% during calendar years 2024 and 2025 but showed signs of positive reversal in December. While carefully monitored, improvement in feedstock price also improved spreads of ethyl acetate to reach around $130 range.
Other Key Highlights
Laxmi Organic reported a one-time gain due to a favorable litigation settlement related to wheeling and transmission charges amounting to INR 407 million. A provision of INR 38 million was made for labor code changes, and INR 9 million was allocated to an ongoing supply chain redesign project.
Source: BSE
