OCCL Q2 profit before tax rises 226% as revenue doubles

OCCL Limited reported Q2 FY27 profit before tax of Rs 37.69 crore, up 226% year on year, as revenue from operations increased 115% to Rs 257.04 crore for the quarter ended September 30, 2026. EBITDA margin rose 192 basis points to 18.81%, according to the company’s unaudited results.

How did OCCL perform in Q2 FY27?

OCCL delivered higher revenue and faster profit growth in Q2 FY27. Revenue from operations rose from Rs 119.64 crore in Q2 FY26 to Rs 257.04 crore, while profit before tax increased from Rs 11.56 crore to Rs 37.69 crore. Profit after tax rose 220% to Rs 27.86 crore from Rs 8.69 crore, and total income was Rs 257.37 crore, including other income of Rs 32.79 lakh.

OCCL’s earnings per equity share were Rs 5.58 in Q2 FY27, compared with Rs 1.74 a year earlier. Paid-up equity share capital was Rs 9.99 crore at September 30, 2026, unchanged from Q2 FY26. The company had no exceptional item in the September 2026 quarter, whereas the audited FY26 result included an exceptional impact of Rs 2.06 crore from labour codes.

Why did OCCL’s Q2 profitability and margins increase?

OCCL’s reported profitability increased as EBITDA rose 139% to Rs 48.34 crore and EBITDA margin expanded to 18.81% from 16.89%. A basis point is one-hundredth of a percentage point, making the margin increase 192 basis points. Profit-after-tax margin rose by 357 basis points to 10.84%, from 7.27% in Q2 FY26.

Management said the Insoluble Sulphur business recorded higher sales volume and realisation during the quarter. It attributed the change to higher raw-material costs and improved demand. Management also said domestic demand benefited from lower Chinese imports following provisional anti-dumping duties and precautionary inventory stocking amid geopolitical uncertainty, while global demand was supported by Chinese supply constraints, shipping disruptions and the Huatai plant closure.

Cost of materials consumed increased to Rs 152.48 crore in Q2 FY27 from Rs 50.38 crore a year earlier, while freight and forwarding rose to Rs 12.00 crore from Rs 8.28 crore. Employee benefits expense increased to Rs 15.30 crore from Rs 12.94 crore, and other expenses rose to Rs 29.73 crore from Rs 24.68 crore. Total expenses rose 101% to Rs 219.68 crore, below the 114% increase in total income.

How did OCCL’s first-half FY27 results compare with H1 FY26?

OCCL’s H1 FY27 profit before tax rose 206% to Rs 91.51 crore from Rs 29.90 crore in H1 FY26. Revenue from operations for the six months ended September 30, 2026, increased 96% to Rs 476.71 crore from Rs 242.73 crore. Profit after tax increased 212% to Rs 68.11 crore from Rs 21.83 crore.

OCCL reported H1 FY27 EBITDA margin of 23.48%, compared with 19.34% in H1 FY26, an expansion of 414 basis points. Its H1 profit-after-tax margin increased 530 basis points to 14.29% from 8.99%. Basic and diluted earnings per share for the half year were Rs 13.64, compared with Rs 4.37 in the corresponding six months of FY26.

The half-year expense profile included a Rs 34.96 crore reduction from changes in inventories of finished goods and work in progress, compared with an expense of Rs 2.65 crore in H1 FY26. Cost of materials consumed rose to Rs 292.96 crore from Rs 104.06 crore, while total expenses increased to Rs 387.46 crore from Rs 214.21 crore. Management said Q1 FY27 profit was higher than Q2 FY27 mainly because of an inventory valuation gain.

What changed in OCCL’s cash flow, balance sheet and dividend?

OCCL recorded net operating cash outflow of Rs 40.68 crore in H1 FY27, compared with operating cash inflow of Rs 12.64 crore in H1 FY26. The cash-flow statement showed an increase in inventories of Rs 72.86 crore and an increase in trade and other receivables of Rs 68.48 crore. Cash generated from operations before tax was negative Rs 26.63 crore, versus positive Rs 17.90 crore a year earlier.

OCCL’s total assets rose to Rs 758.29 crore at September 30, 2026, from Rs 601.65 crore at March 31, 2026. Inventories increased to Rs 167.30 crore from Rs 94.44 crore, trade receivables rose to Rs 148.64 crore from Rs 84.66 crore, and cash and cash equivalents increased to Rs 35.42 crore from Rs 3.81 crore. Current borrowings rose to Rs 156.68 crore from Rs 78.64 crore, while total equity increased to Rs 490.39 crore from Rs 431.27 crore.

OCCL’s Board declared an interim dividend of Rs 2 per equity share of face value Rs 2 for FY 2026-27. The declared payout is Rs 9.99 crore, with November 13, 2026 set as the record date. The company said the dividend would be paid within 30 days of its November 6, 2026 declaration; its H1 financing cash inflow was Rs 69.77 crore, including Rs 79.41 crore of net proceeds from current borrowings.

Conclusion

OCCL converted 115% Q2 revenue growth into 226% growth in profit before tax, while its Q2 EBITDA margin increased to 18.81%. The first half showed a similar pattern, with revenue from operations up 96%, profit before tax up 206%, and EBITDA margin expanding 414 basis points to 23.48%; however, operating cash flow moved to an outflow as inventories and receivables increased.

Next, investors can watch OCCL’s November 13, 2026 interim-dividend record date and management’s stated focus on expanding domestic market share while maintaining key export markets. Management also said it intends to pursue timely pass-through of raw-material cost increases and protect per-metric-tonne contribution margins as it seeks to convert growth into operating profitability.