Jocil Limited

Jocil has over four decades of experience in manufacturing stearic acid flakes, fatty acids, toilet soap, soap noodles and refined glycerine. The company belongs to a strong promoter group. Jocil is a subsidiary of The Andhra Sugars Limited (TASL; holding 55.02% stake), with established business operations based in South India. J. Murali Mohan, Managing Director, has over four decades of experience in the industry and other directors of the company are also experienced and well-qualified. Jocil’

Jocil’s customers include reputed client base with its sales being to major players in India such as Hindustan Unilever Limit ed (HUL), Reckitt Benckiser Group (RB), ITC Limited, and MRF Limited, among others. The company established long -standing relationship with these customers resulting in repetitive orders year-on-year. However, Jocil faces customer concentration risk with majority of revenue derived from one customer. Risk is partially mitigated through repetitive orders from customers.

The company’s capital structure remains healthy with nil debt as on March 31, 2026. Overall gearing ratio stands nil. The company’s net worth is strong at ₹213.25 crore as on March 31, 2026. The company reliance on working capital limits has been low. The company’s other debt coverage indicators, interest coverage ratio and total debt to gross cash accruals (TD/GCA) remained healthy at 42.78x (PY: 24.96x) and 0.00x (PY: 0.00x) due to low reliance on debt. Jocil has already expanded its existing

The company usually makes payments within 10-15 days for its suppliers and extend a credit period of 30-45 days for its customers. The company’s operating cycle has improved and stood comfortable at 42 days as on March 31, 2026, against 48 days as on March 31, 2025, considering comfortable collection period at 25 days (PYE: 24 days). Inventory days improved from 47 days in FY25 to 40 days in FY26. Satisfactory performance in Q1FY27

Jocil Limited reported satisfactory performance in Q1FY27, with income from operations of ₹253.64 crore, reflecting ~24% of FY26 revenue of ₹1065.00 crore. PBILDT margin stood at ~1.72%, improving further compared to FY26 full-year PBILDT margin of ~1.46%. PAT margin stood at 0.86% for Q1FY27 higher than FY26 full-year PAT margin of ~0.78%, indicating a recovery in operational scale and stabilization of profitability in the FY27.

Major raw material required for manufacturing of soap noodles includes non-edible oils including palm oil, rice bran oil, shea olein and derivatives – fatty acids such as palm fatty acid distillate (PFAD), rice bran fatty acid, and lauric acid among others, which contribute ~80-83% of total total operating income (TOI). These products are derivates of crude vegetable oils and are volatile. Adverse changes in these prices may impact profitability.

In India, refineries with huge capacities have been setup for processing crude vegetable oils such as palm oil mainly imported from Malaysia and Indonesia. By -products generated from these refineries such as, RBD palm stearin (RBDPS) and PFAD are the company’s raw materials. As a result, the company indirectly depends on imports of crude vegetable oils. Malaysian and Indonesian governments impose export duty varying periodically on crude oil to encourage value addition within their country