DMCC Speciality Chemicals Limited, India’s leading sulphur chemistry solutions manufacturer, has released its Q3 and 9MFY26 financial results, highlighting steady growth despite challenging commodity markets.

 

Revenue from operations surged 27.8% year-on-year to Rs. 150.87 crore in Q3, while total income rose 27.6% to Rs. 151.06 crore. However, operating expenses jumped 35.7% YoY to Rs. 136.15 crore, squeezing EBITDA to Rs. 18.51 crore, down nearly 18% from the previous year, with margins falling 146 basis points to 9.87%.

 

Interest and depreciation costs also remained significant, with interest at Rs. 2.31 crore and depreciation at Rs. 3.76 crore in the quarter. Profit before tax stood at Rs. 8.84 crore, reflecting a 22% drop YoY, while net profit settled at Rs. 6.17 crore, down 21.6% from Q3FY25.

 

For the nine-month period, revenue climbed 32% to Rs. 403.94 crore, with net profit growing 31% to Rs. 19.67 crore, highlighting the company’s resilience despite margin pressures.

 

Commenting on the performance, Bimal Goculdas, Managing Director and CEO, said: "During Q3FY26, the Company recorded healthy growth in topline, driven by continuity in the Boron business and improved realisations in the commodity chemicals segment. 

 

"Commodity prices remained elevated during the quarter, particularly sulphur, which is a key raw material for this segment. The Company was able to pass through the increase to customers, thereby protecting absolute profitability. However, the higher revenue base resulting from elevated commodity prices led to a moderation in margin percentages."

 

He added: "In the current quarter as well, sulphur prices have remained firm, while sulphuric acid prices have softened following the commissioning of new smelter capacity during the year. While volumes in the commodity chemicals business have remained stable, profitability has moderated due to the divergence between raw material costs and finished product prices. The Company continues to actively manage pricing and volumes to maintain operational stability."

 

A key positive was the resumption of Boron operations. Goculdas noted: "Although Boron production contributed for only part of the quarter, operations have now returned to normal levels in the current quarter. At its present scale, the Boron business has the potential to generate annual revenues in the range of X125 to X150 crore, providing a meaningful diversification to the Company's overall portfolio."

 

Geographic diversification is also gaining ground. DMCC has expanded in Latin American markets, offsetting weaker demand in Europe, and expects further benefits from new trade agreements with the US and EU.

 

On the legal and sustainability fronts, progress is steady. Following a favorable land case ruling, the company is advancing administrative formalities for land rights and name registration. Meanwhile, renewable initiatives are taking hold:

 

"The solar power project at Roha, along with the waste heat recovery and cogeneration facilities at Roha and Dahej, now together contribute over 80% of the Company’s energy requirements, strengthening cost efficiency and environmental performance."

 

Despite persistent challenges in commodity and speciality chemicals, DMCC remains cautiously optimistic: "With trade uncertainties easing and diversification initiatives gaining momentum, DMCC expects gradual improvement in business performance over the coming periods, supported by its asset base, operational resilience and expanding market footprint."