NOCIL Limited, one of India’s largest manufacturer of rubber chemicals, reported a strong financial performance for the first quarter of FY2026-27 (Q1 FY27), driven by higher sales volumes, improved operating efficiency, and better pricing. The company posted a 20% year-on-year increase in revenue from operations to ₹403 crore, while net profit surged 61% to ₹28 crore, reflecting resilient demand and disciplined execution across domestic and export markets.
Revenue and Profit Register Strong Growth
NOCIL delivered healthy financial growth during the quarter despite a challenging business environment. Key financial highlights include: Revenue from Operations: ₹403 crore, up 20% YoY, Net Profit: ₹28 crore, up 61% YoY and EBITDA Margin: 11.2%, expanding by 210 basis points over the corresponding quarter last year. The improvement in profitability was supported by higher selling prices, which offset the sharp rise in raw material costs. Additionally, enhanced operating efficiency and inventory gains contributed to stronger margins.
Domestic Demand and Export Growth Boost Volumes
Sales volumes increased 9% year-on-year, supported by robust growth in both domestic and international markets. According to the company, domestic demand recorded strong double-digit growth following the implementation of GST 2.0, while exports continued to improve through the successful conversion of the company’s international order pipeline. As a result, NOCIL strengthened its market position across key customer segments while maintaining steady business momentum.
₹130 Crore Brownfield Expansion at Dahej
To support future growth, NOCIL announced an additional ₹130 crore brownfield capital expenditure programme at its Dahej manufacturing facility. The expansion will increase production capacity for high-demand rubber chemicals through an integrated, backward-integrated manufacturing facility, enabling the company to improve operational efficiency and strengthen supply chain integration. This investment is in addition to the ₹250 crore capital expenditure programme already underway at the Dahej plant, where trial production has commenced. The newly announced project is expected to be completed by the first half of FY28 and will be funded primarily through internal accruals.
Strengthening Long-Term Manufacturing Competitiveness
The expanded investment reflects NOCIL’s long-term strategy of enhancing manufacturing capabilities while improving cost competitiveness. By expanding capacity and increasing backward integration, the company aims to meet growing domestic and global demand, improve supply chain reliability, enhance manufacturing efficiency, strengthen long-term profitability and reinforce India’s position as a global rubber chemicals manufacturing hub.
Management Confident About Future Growth
V.S. Anand, Managing Director, NOCIL Limited, said the company’s results demonstrate consistent execution across both domestic and export businesses despite challenging market conditions. He added that the expanded investment at Dahej reflects NOCIL’s commitment to structured capacity expansion, backward integration, and strengthening its long-term competitiveness as global customers increasingly view India as a reliable manufacturing destination for specialty chemicals and rubber chemicals.
Outlook
With strong earnings growth, expanding manufacturing capacity, and continued investment in backward integration, NOCIL is well positioned to capitalize on rising demand from the tyre and rubber industries. As per the press release, the company’s strategic investments at Dahej are expected to enhance production capabilities, improve operational efficiencies, and support sustainable long-term growth in both domestic and international markets.
