Ducol Organics and Colours Limited profit rises to Rs 6.47 crore

Ducol Organics and Colours Limited reported consolidated unaudited profit of Rs 6.47 crore for the half year ended September 30, 2026, up from Rs 2.82 crore a year earlier, as revenue from operations rose to Rs 112.26 crore from Rs 64.52 crore. The reported period includes Xchem Polymers India Private Limited from May 1, 2026.

How did Ducol's first-half profit and revenue change?

Ducol's profit for the half year ended September 30, 2026 increased by Rs 3.66 crore year on year to Rs 6.47 crore. Profit before tax rose to Rs 8.83 crore from Rs 3.08 crore, while total comprehensive income increased to Rs 6.53 crore from Rs 2.84 crore.

Revenue from operations grew 74% to Rs 112.26 crore from Rs 64.52 crore in the corresponding 2025 half year. Total income reached Rs 113.41 crore, compared with Rs 66.06 crore, despite other income declining to Rs 1.15 crore from Rs 1.54 crore. The change in total income was therefore principally associated with operating revenue rather than other income.

Ducol reported basic and diluted earnings per share of Rs 3.61 for the September 2026 half year, against Rs 1.74 in the prior-year period, on shares with a nominal value of Rs 10 each. The half-year profit also exceeded the Rs 4.43 crore reported for the half year ended March 31, 2026, although those are consecutive half-year periods rather than directly corresponding periods.

What costs accompanied Ducol's revenue growth?

Ducol's total expenses increased to Rs 104.58 crore from Rs 62.98 crore as revenue expanded. Cost of materials consumed rose to Rs 84.58 crore from Rs 45.34 crore, an increase of Rs 39.24 crore and the largest cost movement disclosed in the consolidated statement.

Employee benefits expense increased to Rs 8.47 crore from Rs 5.79 crore, finance costs rose to Rs 2.87 crore from Rs 2.32 crore, and depreciation and amortisation increased to Rs 2.21 crore from Rs 1.55 crore. Other expenses were Rs 9.55 crore, compared with Rs 8.38 crore in the earlier half year.

The statement recorded a Rs 3.14 crore reduction in expenses from changes in inventories of finished goods and work in progress, compared with a Rs 0.80 crore reduction a year earlier. Tax expense was Rs 2.36 crore versus Rs 0.26 crore, with current tax of Rs 2.21 crore and deferred tax of Rs 0.14 crore; the prior-year half had a Rs 0.61 crore deferred-tax credit.

Where did Ducol's sales increase come from?

Ducol reported India sales and other income from operations of Rs 100.95 crore for the half year ended September 30, 2026, up from Rs 60.66 crore a year earlier. Sales and other income outside India rose to Rs 12.46 crore from Rs 5.40 crore, taking the geographic total to Rs 113.41 crore from Rs 66.06 crore.

India accounted for Rs 40.29 crore of the Rs 47.35 crore increase in geographic sales and other income, while the outside-India increase was Rs 7.06 crore. Ducol identifies manufacture of other chemical products as its only business segment, so the filing does not provide separate sales or profit figures by chemical product category.

Segment debtors in India were Rs 35.64 crore at September 30, 2026, compared with Rs 20.05 crore at September 30, 2025. Outside-India debtors were Rs 6.77 crore against Rs 2.76 crore, bringing total segment debtors to Rs 42.41 crore from Rs 22.81 crore. Additions to fixed assets in India were Rs 4.84 crore, compared with Rs 5.69 crore in the prior-year half.

How did the Xchem acquisition and funding affect Ducol?

Ducol obtained 100% control of Xchem Polymers India Private Limited on May 1, 2026 and consolidated its results from that date to September 30, 2026. The auditor's report states that Xchem recorded revenue of Rs 31.85 crore and profit of Rs 2.03 crore over that five-month consolidated period, meaning it was not included in the September 2025 comparative half year.

The acquisition followed a March 26, 2026 share purchase agreement for a 100% equity stake in Xchem for aggregate consideration of Rs 75 crore. Ducol disclosed Rs 38 crore paid in cash for a majority stake, Rs 30 crore settled through a share swap, and Rs 7 crore payable in cash within 24 months of executing the agreement.

Ducol's other wholly owned subsidiary, Bitumag Industries Private Limited, reported revenue of Rs 33.25 crore and profit of Rs 2.30 crore for the September 2026 half year. Bitumag has been consolidated since April 1, 2025, whereas Xchem's five-month contribution makes the year-on-year group comparison not fully like for like.

Total assets rose to Rs 254.62 crore at September 30, 2026 from Rs 169.58 crore at March 31, 2026. Inventories increased to Rs 42.33 crore from Rs 27.76 crore, trade receivables rose to Rs 38.82 crore from Rs 27.52 crore, and long-term borrowings increased to Rs 40.21 crore from Rs 23.11 crore.

What do Ducol's cash flows show?

Ducol generated net cash flow from operating activities of Rs 13.69 crore in the six months ended September 30, 2026. Increases in inventories of Rs 11.06 crore and trade receivables of Rs 14.80 crore were among the working-capital movements reported during the period.

Investing activities used Rs 75.92 crore, including Rs 64.45 crore for investment in subsidiaries and goodwill and Rs 12.64 crore for fixed-asset purchases. Financing activities provided Rs 45.05 crore, including Rs 30 crore from issue of shares including share premium, and cash and cash equivalents closed at Rs 3.67 crore, compared with Rs 20.86 crore at March 31, 2026.

The statutory auditor separately certified that Ducol had utilised Rs 31.44 crore of Rs 31.51 crore raised through its initial public offering by September 30, 2026. The remaining Rs 7.63 lakh was held in a fixed deposit with NKGSB Bank, and the certificate says no initial public offering proceeds were used between April 1 and September 30, 2026.

Conclusion

Ducol's September 2026 half-year result shows consolidated revenue from operations rising to Rs 112.26 crore and profit increasing to Rs 6.47 crore. Higher India and outside-India sales accompanied the result, while increased materials costs, inventories, receivables, borrowings and investment cash outflows show the balance-sheet and working-capital demands associated with the larger group.

The disclosed matter to watch next is the remaining Rs 7 crore cash consideration for Xchem, which is payable within 24 months of the March 26, 2026 agreement. A subsequent full reporting period will also provide a comparison including Xchem for a complete period, after its results were consolidated for only May 1 to September 30, 2026 in this filing.