20% Upper Circuit: Small-Cap Specialty Chemical Stock Rallies After Q4FY26 Results; Highest Dividend Declared Since 2019

The Indian equity markets were seen trading with marginal gains as of 9:35 AM on Thursday, May 7, but action in the broader markets continued with stock-specific activity.

On May 7, there is one Small-Cap stock that has hit an Upper Circuit of 20 per cent after announcing its Q4FY26 results.

Apcotex Industries share price jumped 20 per cent with robust volume of over 2.5 lakh shares on NSE, which is the highest single-day volume in six months.

Apcotex is a rapidly growing specialty chemical company with a diverse customer base across key markets. It is one of India’s leading producers of synthetic rubber, including NBR and HSR, and synthetic latex, including nitrile, VP latex, XSB and acrylic latex, based on styrene-butadiene chemistry and butadiene-acrylonitrile chemistry.

Apcotex Industries Limited reported a sharper improvement in profitability for the quarter and financial year ended March 31, 2026, even as full-year revenue growth remained modest. The company’s board also recommended a final Dividend of Rs 5.50 per equity share of face value Rs 2 each for FY26, subject to shareholder approval at the ensuing 40th Annual General Meeting.

Q4FY26 Performance: Revenue and Profitability Improve

For Q4FY26, revenue from operations stood at Rs 397.58 crore, compared with Rs 349.40 crore in Q4FY25, registering a year-on-year growth of 13.79 per cent. 

Total income for the quarter came in at Rs 404.31 crore, up 15.41 per cent from Rs 350.33 crore in the same quarter last year. On a quarter-on-quarter basis, total income increased 20.78 per cent from Rs 334.73 crore.

The company reported profit before Tax of Rs 44.99 crore in Q4FY26, compared with Rs 24.48 crore in Q4FY25, reflecting a growth of 83.81 per cent. Compared with Q3FY26 PBT of Rs 27.55 crore, the figure was higher by 63.30 per cent.

Net profit after tax stood at Rs 34.74 crore in Q4FY26, against Rs 16.76 crore in Q4FY25, marking a growth of 107.34 per cent. 

Margin Expansion Supports Q4 Earnings

The improvement in quarterly profit was supported by better operating leverage. Total expenses increased 10.27 per cent year-on-year to Rs 359.32 crore, which was lower than the growth in total income.

The PBT margin, calculated on revenue from operations, improved to 11.32 per cent in Q4FY26 from 7.00 per cent in Q4FY25. PAT margin also improved to 8.74 per cent from 4.80 per cent in the corresponding quarter last year.

FY26 Results of Apcotex Industries: Profit Growth Outpaces Revenue Growth

For the full year FY26, revenue from operations stood at Rs 1,441.50 crore, compared with Rs 1,392.36 crore in FY25, showing growth of 3.53 per cent.

Total income increased 3.99 per cent to Rs 1,458.74 crore from Rs 1,402.74 crore in the previous year. However, total expenses declined marginally by 0.12 per cent to Rs 1,324.86 crore from Rs 1,326.49 crore.

This helped the company report a sharp rise in profit before tax. PBT increased 76.86 per cent to Rs 134.85 crore in FY26 from Rs 76.25 crore in FY25. Net profit rose 87.57 per cent to Rs 101.41 crore from Rs 54.06 crore.

Earnings per share also improved to Rs 19.56 in FY26 from Rs 10.43 in FY25, an increase of 87.54 per cent.

Cash Flow and Balance Sheet Position

Apcotex Industries reported net cash flow from operating activities of Rs 203.44 crore in FY26, compared with Rs 84.72 crore in FY25, registering growth of 140.13 per cent.

The company also reduced its total borrowings. Non-current and current borrowings together stood at Rs 92.96 crore as of March 31, 2026, compared with Rs 184.79 crore as of March 31, 2025, a decline of 49.69 per cent.

Other equity increased to Rs 610.62 crore from Rs 542.81 crore in the previous year, while total assets stood at Rs 986.49 crore as of March 31, 2026.

Dividend Announced by Apcotex Industries Highest Since 2019

The board recommended a final dividend of Rs 5.50 per equity share of face value Rs 2 each for FY26. The dividend is subject to approval of shareholders at the company’s upcoming 40th Annual General Meeting. This is the highest dividend declared by the company after 2019.

Key Developments of Apcotex Industries

Apcotex Industries stated that it is engaged in the business of synthetic emulsion polymers and has only one business segment. The company also clarified that it does not have any subsidiary, associate or joint venture company as of March 31, 2026, and therefore consolidated financial results are not required.

The board also approved the continuation of directorship of Mr. Atul Choksey as a Non-Executive Non-Independent Director after attaining the age of 75 years, subject to shareholder approval.

In another development, the company approved a change in project entity from Amplus Ceres Solar Private Limited to Amplus Ampere Private Limited due to unavailability of power in Amplus Ceres Solar Private Limited. The company proposes to acquire 1.275 per cent of the issued and paid-up share capital of Amplus Ampere Private Limited for Rs 72 lakh. The objective of the acquisition is captive consumption of solar power generated by the entity.

Disclaimer: The article is for informational purposes only and not investment advice.