NACL Industries Swings to Q2 Loss as Revenue Falls 18%

November 6, 2026

Curated by Gurdeep Singh, Amritsar, Punjab
Updated: November 6, 2026, 1:46 p.m. IST

NACL Industries moved into the red on a consolidated basis in the September quarter, reporting a net loss of ₹1.42 crore as revenue fell 18.1% from a year earlier. The agrochemical maker’s operating earnings dropped much more sharply than sales, while its standalone business remained profitable. The company also announced a change in its finance leadership, with a new chief financial officer set to take over at the start of 2027.

Consolidated revenue from operations was ₹374.21 crore for the quarter ended September 30, compared with ₹456.94 crore in the year-ago period. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to about ₹11.9 crore from ₹44.7 crore, leaving the operating margin at roughly 3.2%, against 9.8% a year earlier. Profit after tax shifted from a ₹2.55-crore profit to a ₹1.42-crore loss.

The figures show pressure at more than one level: lower sales were accompanied by a steep contraction in operating earnings. Compared with the June quarter, revenue was down about 2.4%, while the company moved from consolidated profit of ₹20.84 crore to a loss. The latest result therefore reflects both a year-on-year slowdown and a weaker sequential quarter. The company’s disclosures do not attribute the change to one specific cause, so the numbers alone do not establish whether pricing, volumes, product mix or costs were chiefly responsible.

Q2 FY27 consolidated performance

Revenue from operations: ₹374.21 crore, down 18.1% year on year from ₹456.94 crore.
Profit before tax: loss of ₹0.73 crore, against a profit of ₹6.45 crore a year earlier.
Profit after tax: loss of ₹1.42 crore, compared with a profit of ₹2.55 crore.
EBITDA: approximately ₹11.9 crore, down about 73% from ₹44.7 crore.
EBITDA margin: about 3.2%, compared with 9.8% in Q2 FY26.

Standalone business stays profitable

NACL’s standalone results presented a different picture from the consolidated figures. Revenue from operations was ₹357.31 crore, with total income of ₹359.56 crore. Standalone profit before tax reached ₹8.47 crore and profit after tax was ₹6.42 crore. The gap between the standalone profit and the group-level loss indicates that the consolidated result was weighed down outside the parent company’s individual accounts; the reported figures do not, by themselves, identify which subsidiary or associate accounted for the difference.

The consolidated reporting perimeter includes several subsidiaries and an associate. The results note that NACL sold its entire equity stake in Nasense Labs Private Limited during the quarter, after which the company ceased to be an associate from August 10. This change affects the group entities included in consolidation for the period, although it should not be read as an explanation for the quarter’s loss without further detail from management.

Leadership transition and rights-issue update

The board recorded that N. Shankar, chief financial officer and key managerial personnel, will retire at the close of business on December 31, 2026. Ankur Gupta has been appointed CFO and key managerial personnel effective January 1, 2027. Indranil Chowdhury was appointed head of field sales for the business-to-consumer channel and senior management personnel from November 6.

The board also approved a statement and monitoring-agency report on the use of proceeds from the rights issue completed in December 2025. The issue covered 32.50 million shares at ₹76.70 apiece, raising about ₹247.71 crore. The filing said ₹15.97 crore remained unutilised and was held in an earmarked bank account. Investors can use these disclosures to track how the proceeds are being deployed, though the update does not change the quarter’s operating performance.

What the results leave to watch

The immediate question is whether sales and operating margins stabilise in the coming quarters. A 2.4% sequential revenue decline is smaller than the year-on-year fall, but the movement from a June-quarter consolidated profit to a September-quarter loss warrants attention. Further updates on demand, product mix and cost trends would help explain the weak operating leverage reflected in the latest figures.

The CFO handover will take effect after the current financial year’s third quarter begins. Continuity in financial reporting and clear updates on rights-issue deployment will matter alongside a recovery in the business. For now, the quarter offers a mixed signal: NACL’s standalone operation remained in profit, but the consolidated group faced a sharp earnings setback.