Galaxy Surfactants (GALAXYSURF) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 volumes remained flat year-over-year and quarter-on-quarter, with strong double-digit growth in Specialty Care outside the US and a decline in Performance Surfactants; India volumes were flat due to GST-driven inventory adjustments and elevated feedstock prices, while non-Tier 1 customers posted robust growth.

• AMET region saw a mid single-digit volume decline year-over-year, mainly due to Tier-1 share erosion in Egypt amid local competition, while Turkey showed strong double-digit growth.

• Rest-of-World (ROW) segment achieved high single-digit to double-digit volume growth year-over-year, led by Latin America and APAC; North America declined due to tariffs, but TRI-K Industries performed well.

• Despite headwinds from US tariffs, elevated fatty alcohol prices, and GST-driven disruptions, management remains confident in long-term growth, focusing on operational agility and strategic adjustments.

• Unaudited consolidated and standalone financial results for the quarter and half year ended 30th September 2025 were approved by the Board on 12th November 2025, with no material misstatements identified by auditors.

Financial highlights

• Consolidated revenue from operations for Q2 FY26 was ₹1,326.17 crore, up from ₹1,062.99 crore in Q2 FY25; half-year revenue was ₹2,604.09 crore, up from ₹2,037.05 crore year-over-year.

• Consolidated net revenue from operations rose 24.8% year-over-year in Q2FY26 and 27.8% in H1FY26.

• H1 FY26 EBITDA declined 5.4% year-on-year to INR 251 crore; EBITDA per metric ton for H1 was INR 18,700, and for Q2 was INR 17,300.

• PAT for Q2 FY26 was ₹84.71 crore, compared to ₹75.54 crore in Q2 FY25; half-year PAT was ₹145.98 crore, down from ₹164.43 crore year-over-year.

• EBITDA margin dropped to 8.7% in Q2FY26 from 12.7% in Q2FY25; PAT margin was 5.0% in Q2FY26, down from 7.9% in Q2FY25.

Outlook and guidance

• Near-term outlook remains muted due to global challenges and margin pressures; Q3 expected to be similar to Q2, with potential improvement from Q4 as GST adjustments normalize and new product approvals come through.

• No formal guidance provided for full-year EBITDA or volume growth due to ongoing volatility; management expects GST reforms to unlock medium-term consumption upside in India.

• Raw material feedstock prices are expected to remain elevated in the next quarter.

• Management notes ongoing legal proceedings regarding land utilization but expects no immediate financial impact.