Galaxy Surfactants Reports Margin Expansion and Regional Growth Signals

recorded near-double EBITDA growth, propelled by a sharp jump in EBITDA per tonne to ~₹35,500 (up from ~₹20,000 in Q1 FY26). This profitability expansion was largely driven by inventory gains and elevated prices for oleochemicals. Domestic Volume Leadership: Accounting for approximately 43% of total sales, the domestic segment registered an 11% volume growth. Outperforming the broader market, this performance was supported by strong Tier-1 demand, post-GST 2.0 stability, and a shift back toward fatty alcohol-based formulations. US Market Acceleration: Performance in the rest-of-the-world segment (~36% of sales) gained momentum due to US tariff reversals under Section 301, where effective rates dropped from over 50% to 10%, alongside a demand recovery at US subsidiary TRI-K Industries. AMET Region Recovery: While year-over-year volumes in the Africa, Middle East, and Turkey (AMET) region declined 4%, the segment posted a strong 18% sequential rebound as geopolitical tension in West Asia began easing during the quarter's second half. Upgraded Financial Guidance: Encouraged by regional trends and B50 biodiesel mandates tightening palm oil supplies, management raised its FY27 volume growth guidance to 6–8% and boosted its EBITDA per tonne target to ₹24,000–25,000. Favorable Valuation Profile: Despite a 51% stock rally from March 2026 lows, the equity trades at 16x FY28e earnings—offering reasonable valuation metrics alongside potential risks from erratic monsoons, US trade policy shifts, and Middle East volatility.