Oriental Carbon and Chemicals Ltd

Stock Opportunities Untested - but worth a good look
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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.

1 Like
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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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Q3 FY26 Concall notes:

  1. Increase in Sulphur prices (Raw prices) had been significant, which the company is not able to pass to the customers. Sulphur prices are trading all time high currently.
  2. The increase in realization due to anti dumping duty is offsetted with higher cost of raw material (Sulphur). The pressure on the margins continues.
  3. While the major exports are to Europe, decrease in US Tariffs will still help increase the margins.
  4. Exports are more profitable than domestic market. Devaluation of indian currency further helps in increasing margins in normal times.
  5. The endeavour is to increase the market share in the current situation of glut, so the margins will be strained. In fact, the company has no choice but to match the compiteters price, to remain in the market.
  6. Capacity utilization at 70%

Disclosure - Invested and biased