On the segmental front, Essentials revenue and Specialties revenue for Q1 FY26 was Rs 485.8 crore (up 4% YoY) and Rs 207.1 crore (down 18% YoY), respectively. Total volumes grew by 8%.

The company said that reduction of Acetic Acid prices in the Essentials segment, anticipated phase out of a product serving the agricultural solutions industry and deferment of deliveries of few products impacted revenue in Q1 FY26.

EBITDA fell by 57% to Rs 30.8 crore in Q1 FY26 from Rs 71.2 crore in Q1 FY25. EBITDA margin for Q1 FY26 was 4.4% as against 9.9% in Q1 FY25.

Profit before tax for the first quarter was Rs 14.2 crore, down by 74% from Rs 54 crore posted in the same period last year.

Rajan Venkatesh, MD & CEO, said: 'The global chemical industry has been marked by continued efforts towards cost optimization, rerouting supply chain linked to evolving tariffs and regional conflicts, and a strong push towards innovation. Regional dynamics continue to play a crucial role in shaping the industry's trajectory.

Acetic acid prices remained bearish. The spread for ethyl acetate continued to be subdued. That notwithstanding, we have sustained our volume growth momentum (+11%YoY) and in line with our strategy, continued the diversification into newer products. In this current backdrop, our primary focus for the Essentials segment remains achieving volume-driven profitable growth.

The fluorine intermediates operations at the Lote facility are ramping up well, and we remain on track to deliver revenues as previously outlined (40-60% of peak revenues). At the upcoming Dahej site, the project remains on schedule in terms of timelines, scope and cost.

We anticipate concluding the contract with Hitachi Energy to set up production of an eco-efficient gas used in their SF6-free high-voltage switchgear portfolio in Q2FY26. Building on our execution excellence, we can accommodate the capex for the same in the previously announced Rs 1,100 crore.

Given the current operational backdrop, we will continue our focus on productivity, commercial excellence, execution excellence, cost discipline and growth projects. The end-to-end digitization of our supply-chain operations which has been started in Q1FY26 is one such example that should advance efficiency and predictability, reduce costs and improve agility to serve our customers.”

Laxmi Organic Industries is a leading manufacturer of acetyl intermediates and specialty intermediates with almost three decades of experience in large-scale manufacturing of chemicals.