SYNOPSIS: Shares rose 9 percent after management projected volume recovery, FY27 EBITDA/tonne guidance of Rs. 19,000-20,000, strong Specialty growth, improving North America outlook, and benefits from U.S. tariff reductions, boosting investor confidence.
During Tuesday’s trading session, shares of a leading manufacturer of performance surfactants and specialty care products, with 215+ product grades used in the Home and Personal Care industry, surged around 9 percent on the stock exchanges. So, what triggered this sharp rise? Let’s break it down in this article.
With a market cap of Rs. 7,191 crores, shares of Galaxy Surfactants Limited were trading in the green at Rs. 2,028.35 on BSE, up by over 7 percent, as against its previous closing price of Rs. 1,890.25. The stock has delivered negative returns of around 13 percent in the last one year, but has gained by over 7 percent in the last one month.
News
According to the latest interaction with CNBC, K. Natarajan, Managing Director and CEO of Galaxy Surfactants Limited, indicated that the company expects a gradual improvement in volumes, particularly led by recovery in the North American market. He also guided that EBITDA per tonne is likely to be in the range of Rs. 19,000-20,000 per tonne in FY27.
He noted that the company’s volumes remained largely flat during 9M FY26, and is aiming to deliver modest volume growth for the full financial year. The European market continues to pose challenges, having faced demand headwinds over the past few years.
During Q3 FY26, the Specialty Care segment benefited, accounting for nearly 35 percent of volumes, supported by the maturation of certain projects. He expects North America to witness a progressive recovery over the coming quarters. Additionally, clarity on India-US trade and potential tariff reductions could further help export growth.
However, the Africa, Middle East and Turkey (AMET) market remains under pressure, with significant currency depreciation in markets like Egypt and Turkey, which has adversely impacted consumption.
Additionally, as per the company’s investor presentation, Natrajan said that Q3 FY26 reflected a resilient performance despite multiple market headwinds. Consolidated volumes were flat YoY, with high single-digit growth in Specialty Care Products offsetting softness in the Performance Surfactants segment. EBITDA rose 13 percent YoY to Rs. 124 crore, supported by stronger contributions from the Specialty segment in India and the Rest of the World (ROW) region. Consequently, EBITDA per metric tonne improved to Rs. 20,156 per MT, driven by a favourable product mix and disciplined cost management.
The Prestige Specialty portfolio under the company’s Tri-K subsidiary continued to gain traction, strengthening the premium product mix.
While U.S. reciprocal tariffs impacted India-origin Specialty exports during the quarter, the recent tariff rate reduction is expected to mitigate this pressure going forward. Management indicated that with improving domestic demand conditions post-GST reforms, expected recovery in AMET volumes, incremental benefits from the US-India tariff revision, and continued premiumisation of the Specialty portfolio, the company remains confident of regaining growth momentum in the coming quarters.
Financials
For the quarter, Galaxy Surfactants posted a consolidated revenue from operations of Rs. 1,329 crores, reflecting a sequential growth of 0.22 percent QoQ compared to Rs. 1,326 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue grew by around 28 percent from Rs. 1,042 crores recorded in Q3 FY25.
Net profit for the quarter stood at Rs. 59 crore, indicating a decline of around 11 percent QoQ from Rs. 66 crores in Q2 FY26, as well as a fall on a year-on-year basis by more than 9 percent from Rs. 65 crores reported in Q3 FY25.
Galaxy Surfactants Limited is engaged in the business of manufacturing surfactants and other specialty ingredients for the personal care and home care industries. These products are used in consumer-centric Home and Personal care products like hair care, oral care, skincare, cosmetics, soap, shampoo, lotion, detergent, cleaning products, etc. The company has its manufacturing facilities located in India (5), Egypt (1) and the USA (1).
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Why did Galaxy Surfactants shares jump 9% in today’s session? appeared first on Trade Brains.