Excel Industries Q4 FY26: Revenue up 13%, dividend ₹13.75

Overview

Excel Industries Ltd (BSE: 500650) reported higher revenues in Q4 FY26 and for the full year ended March 31, 2026, supported by demand for agrochemical intermediates and improved price realisation. The year, however, also reflected margin pressure from higher input costs and a decline in profit compared with FY25. Alongside the results, the board recommended a final dividend of ₹13.75 per equity share, subject to shareholder approval. The company also highlighted a strong balance sheet with zero long-term debt and a net cash position.

Q4 FY26: revenue growth with stable EBITDA margin

For the quarter ended March 31, 2026, Excel Industries reported revenue from operations of ₹281.1 crore. The company described this as a 13% year-on-year increase, with growth driven by higher demand for agrochemical intermediates and better price realisation.

Profit after tax (PAT) for Q4 FY26 stood at ₹12.7 crore. The company’s adjusted EBITDA for the quarter was ₹22.4 crore, with margins stable at 8%.

A separate earnings summary also reported Q4 sales of ₹281.2 crore and revenue of ₹283.8 crore, compared with ₹247.8 crore and ₹253.6 crore, respectively, a year ago. It reported net income of ₹12.3 crore versus ₹12.4 crore in the year-ago quarter, and basic and diluted EPS of ₹9.77 versus ₹9.87.

FY26 performance: revenue up, profit down

For FY26, Excel Industries reported revenue from operations of ₹1,094.2 crore, up 12% from ₹978.1 crore in FY25. Profit for the period stood at ₹73.4 crore, down from ₹83.5 crore in FY25.

The earnings summary for the full year also reported sales of ₹1,094.5 crore and revenue of ₹1,121.8 crore, compared with ₹978.1 crore and ₹1,008.3 crore, respectively, in the prior year. Net income was reported at ₹75.7 crore versus ₹85.3 crore a year ago, with basic and diluted EPS of ₹60.19 versus ₹67.87.

Margin and cost trends: FY26 EBITDA margin moderated

Excel Industries reported an adjusted EBITDA margin of 10.1% for FY26, down from 12.3% in FY25. The company attributed the decline to higher key input material costs.

In Q4 FY26, adjusted EBITDA margin was reported at 8%. While the company described margins as stable for the quarter, the full-year margin movement indicates that cost inflation remained a key theme through FY26.

Exports and mix: performance solutions supported demand

For the full year, exports revenue constituted 20% of total revenue and grew 26% over the previous year, driven by improved demand in performance solutions.

The company also disclosed a broad segment revenue mix: agrochemical intermediates at 50% to 60%, performance solutions at 25% to 30%, the YP segment at 7% to 10%, pharma intermediates and API at 6% to 8%, and waste management at around 1%.

H1 and Q2 context: monsoon impact and sequential softness

Management commentary flagged that the first half of FY26 was challenging for the Indian agrochemical sector due to extended monsoons and inventory buildup. In Q2 FY26, standalone revenue declined to ₹270 crore from ₹310 crore in Q1 FY26, alongside subdued agrochemical demand and weaker demand for key products.

Q2 FY26 EBITDA fell sequentially to ₹30 crore from ₹42 crore in Q1, and Q2 PAT declined to ₹19 crore from ₹34 crore in Q1. Export contribution also dropped to 17.7% of revenue in Q2.

For H1 FY26, net operating revenue rose 9% year-on-year to ₹580 crore, while EBITDA was ₹72 crore versus ₹88 crore in H1 FY25, and PAT was ₹52 crore, down 20% year-on-year.

Capex, contracts, capacity: projects aimed at adding revenue

Excel Industries disclosed a binding five-year contract manufacturing agreement with a reputed Indian specialty chemicals company. The arrangement involves a new dedicated production line, with expected annual revenue of ₹35 to ₹40 crore (excluding raw material costs). The company described it as EBITDA accretive and noted a ₹25 crore trade advance from the customer.

The company also commissioned a capacity expansion for a key biocide product in October 2025, with initial supplies under a long-term contract with a leading MNC having commenced. The biocide plant capex was reported at ₹10.33 crore, with expected annual revenue of ₹15 crore. In addition, the company cited an additional product opportunity of ₹10 to ₹12 crore annual revenue at full stream.

Capacity utilisation was reported at 70% to 75%. The company also indicated maintenance and modernisation capex of ₹40 to ₹50 crore per year.

R&D and balance sheet: innovation spend with net cash position

Excel Industries stated it operationalised a new corporate R&D centre, underlining its focus on innovation and product development. Elsewhere in the same set of disclosures, the R&D centre was described as launched last year and on track to become operational in Q3 FY26.

On the balance sheet, the company highlighted zero long-term debt and a net cash position. A separate metrics snapshot showed a debt to equity ratio of 0.6%.

Dividend: ₹13.75 per share recommended

The board recommended a final dividend of ₹13.75 per equity share, pending shareholder approval. The company described this as a 275% payout of face value.

Market snapshot and valuation metrics cited

Excel Industries was reported trading at ₹998.75 on Fri, May 22, 2026 (09:55:12). The company’s market capitalisation was shown as ₹1,258 crore.

A metrics snapshot also cited revenue (TTM) of ₹1,061 crore and earnings (TTM) of ₹75.79 crore. It listed a TTM P/E ratio of 15.48 compared with a sector P/E of 29.16, and showed a current dividend yield of 1.4% and a payout ratio of 20%.

Shareholder questions and visibility issues

The disclosures also noted shareholder criticism around perceived stagnation in growth and lack of value creation over the years, including concerns about the stock price remaining stagnant over the past decade despite significant capex.

Separately, the company indicated it was unable to provide specific timelines or details on ongoing investigations and their potential impact on revenues. The same disclosures flagged uncertainty around future demand for agrochemical intermediates due to the risk of suboptimal monsoon conditions.

Key numbers at a glance

Market impact and what to watch

The reported numbers point to a year where demand and pricing helped lift revenues, while input cost pressure weighed on margins and profits. The contract manufacturing agreement and biocide capacity expansion add clearer medium-term revenue lines, with disclosed capex and expected annual revenue ranges.

Near-term monitoring factors remain sector-linked. The company itself flagged uncertainty in agrochemical intermediates demand tied to monsoon conditions and inventory dynamics. Investors are also likely to track updates on the stated ongoing investigations, given the company’s comment that it cannot provide timelines or quantify revenue impact at this stage.

Conclusion

Excel Industries closed FY26 with double-digit revenue growth, lower year-on-year profit, and a recommended ₹13.75 final dividend, while maintaining a net-cash balance sheet. The next key checkpoints are shareholder approval for the dividend, progress on the five-year contract manufacturing line, and any incremental clarity on demand conditions and investigations.