Nocil Limited

NOCIL has over four decades of experience in manufacturing rubber chemicals. Over the years, it maintained a leadership position in the domestic rubber chemicals market with a product portfolio comprising over 20+ rubber chemicals. The company has an estimated market share of ~40% in the domestic rubber chemicals industry. Furthermore, the company has a presence in over 40 countries and enjoys long -standing relationships with its customers.

NOCIL’s liquidity continues to remain strong, marked by nil term debt repayment obligations in the near term, unutilised fund- based limits of ₹150 crore and healthy cash and liquid investments of ₹208 crore (excluding investments of ₹65 crore in unquoted FD) as on March 31, 2025. The company utilisesits non-based limits in the form of BG for procurement of raw materials, utilisation of which stood minimal at 2.65% in the last twelve months ended July 31, 2025. The company’s liquidity is further

NOCIL’s total operating income (TOI) declined by ~4% year-on-year (y-o-y) to ₹1392 crore in FY25, primarily due to a 9% y-o- y decline in overall realisations considering dumping led pricing pressure. Decline in revenue was partially offset by volume growth of 5% y-o-y, supported by strong growth of 12% y-o-y in export sales. Domestic volumes witnessed a modest growth of 2% y- o-y due to dumping from China, South Korea, Thailand and EU. Domestic sales contributed 64% to the total revenue in FY25

NOCIL faces competitive pressure from dumping of rubber chemicals in the Indian market, mainly from China, South Korea, Thailand and EU. Being a major producer of rubber chemicals in the world, China contributes significantly to the global exports. Chinese and other Asian manufacturers benefit from lower production costs and economies of scale, leading to pricing pressure and reduced margins for domestic producers. Amidst large imports, the company has been maintaining competitive pricing to

Most of NOCIL’s raw materials including benzene, chlorinated aromatics, and amines among others, are predominantly crude derivatives. Thus, raw material price volatility has a bearing on NOCIL’s profitability margins. NOCIL usually enters fixed-price volume contracts, for a quarter, with key customers, while remaining customers are contracted on a spot basis. There has been a declining trend in raw material prices for the company. However, higher decline in finished product prices, on the back o

The automobile industry is the major consumer of rubber and rubber chemicals for manufacturing tyres and other auto components. It constitutes ~70-80% of rubber chemicals demand. NOCIL’s revenue thus remains exposed to performance of automobile and tyre industry. CareEdge Ratings expects stable domestic demand prospects for rubber chemicals, primarily backed 2 CARE Ratings Ltd. Press Release by stable demand prospects for tyres aided by replacement demand. Furthermore, recent reduction of GST ra