Shares of Laxmi Organic Industries traded lower on Thursday, October 30, sliding 2.80% to Rs 197.51, after the company posted a sharp decline in earnings for the September 2025 quarter. The weakness in the stock reflects pressure on operating performance amid lower demand and margin compression in the specialty chemicals segment.
The company reported a net profit of Rs 11.02 crore in Q2 FY26, down 60.77% from Rs 28.09 crore in the same quarter last year. Sequentially, the earnings weakness continued as soft product realisations and higher expenses weighed on profitability.
Revenue for the quarter stood at Rs 699.75 crore, marking a 9.27% decline YoY versus Rs 771.25 crore in Q2 FY25. Operating profit margin reduced significantly to 5.30%, compared to 9.68% a year ago, driven by input cost pressures and subdued exports.
Profit before tax fell 66% YoY to Rs 15.50 crore, while PBDT declined 52% YoY to Rs 35.32 crore, underscoring broad-based weakness across performance metrics.
Q2 FY26 Performance Snapshot
| Metric | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Revenue | Rs 699.75 crore | Rs 771.25 crore | -9% |
| Operating Margin | 5.30% | 9.68% | Declined |
| PBDT | Rs 35.32 crore | Rs 73.70 crore | -52% |
| PBT | Rs 15.50 crore | Rs 46.25 crore | -66% |
| Net Profit | Rs 11.02 crore | Rs 28.09 crore | -61% |
Stock snapshot
| Metric | Value |
|---|---|
| Current Price | Rs 197.51 |
| Day Move | -2.80% |
| Previous Close | Rs 203.19 |
| Day Range | Rs 192.69 – Rs 199.00 |
| 52-Week Range | Rs 160.20 – Rs 284.00 |
| Market Cap | Rs 54.88 billion |
| P/E | 54.90 |
| Avg Volume | 540.3K |
| Dividend Yield | 0.25% |
The stock has been trading weak amid concerns over demand recovery in the chemicals space and pricing pressures across global markets.
Outlook
Laxmi Organic continues to navigate margin headwinds and sluggish sector demand. Market participants will watch for commentary on capacity utilisation, export recovery, product mix improvement, and pricing trends over the coming quarters.
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