Oriental Carbon and Chemicals Ltd

Stock Opportunities Untested - but worth a good look
603

Anti-dumping duty imposed on China & Japan for five years.

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Hi all,
Quick query.

The anti-dumping duty imposed (finalised on 8th June) on Chinese and Japanese impots of sulphur, benifits OCCL Ltd, but why only the parent company (Oriental Carbon NSE:OCCL) is locked in 20% for past couple of days and the actual operating company, OCCLLtd (NSE: OCCLLTD) is not raising as much?

Ideally, OCCLLtd should raise more? Please let me know if I am missing something.

Disc: Invested in OCCLLtd and views are biased.

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605

They want to delist it, could that be the reason?

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Thanks for the response.

  1. Delisting only from NSE, will still be listed in BSE
  2. It’s 10 day old news
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Summary of OCCL Limited Q1 FY26 Earnings Call (July 31, 2025):

  • Financial Performance:

    • Revenue for Q1 FY26 was INR 123 crores, up 14% from Q4 FY25.

    • EBITDA grew by 36% to INR 27 crores, with margins improving to 21.7% (from 18.1%).

    • Profit after tax stood at INR 13 crores (PAT margin 10.6%).

    • Growth was driven by higher sulphuric acid margins and improved domestic market realization due to anti-dumping duties.

  • Market & Industry Updates:

    • Anti-dumping duties were imposed on imports from China and Japan, benefiting OCCL’s domestic pricing.

    • OCCL expects to pass on more anti-dumping benefits in coming quarters and is evaluating further action against other countries (e.g., Malaysia).

    • The insoluble sulphur market remains stable in demand but faces global oversupply and weak realizations, though fundamentals are strong due to tyre industry growth.

  • Operational Highlights:

    • Insoluble sulphur plant operated at ~70% capacity utilization; sulphuric acid at 100%.

    • OCCL is focusing on technology-led innovation, cost optimization, and product development, especially for next-generation tyres.

    • No immediate plans for capacity expansion; will consider capex after optimal utilization of current capacity.

  • Strategic & Financial Outlook:

    • Company aims to increase domestic market share (currently 55%, targeting over 60%).

    • Anti-dumping duty benefit expected to add INR 70-80 lakhs per month at PBT level.

    • Debt reduced to INR 56 crores (with long-term debt of 36 cr to be repaid in two years).

    • Cash will be conserved for strategic opportunities,

  • Other Points:

    • OCCL’s product portfolio is more diversified and flexible compared to some competitors..

    • Export markets (US and Europe) remain significant, but recent tariffs in the US are being monitored for impact.

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