OCCL Limited (OCCLLTD) share price

₹208.36 on NSE as of 2026-10-08. -4.11% on the day. market cap ₹1,041 Cr. P/E 13.9. 52-week range ₹77.78 to ₹217.30. Chemicals.

www.occlindia.com

OCCL Q1 FY27: Revenue Up 78%, Operating Profit Up 134%, and a Margin That Went From 16% to 28%

At a glance

OCCL Ltd makes insoluble sulphur, a chemical that tyre factories mix into rubber. It sells almost nothing else. The brand is DIAMOND SULF, and it is 86% of what the company produces.

Revenue for the three months to June 2026 was ₹219.67 crore. The same quarter a year earlier brought ₹123.09 crore. The quarter immediately before that brought ₹149 crore. Operating profit rose from ₹26.33 crore to ₹61.67 crore over the year. Net profit for the quarter was ₹40.25 crore, against ₹13.14 crore a year earlier.

Operating margin had sat politely in the 16-17% band for five straight quarters. In the June quarter it came in at 28%.

For scale, net profit for the twelve months to March 2026 was ₹47.71 crore. A single quarter has now delivered ₹40.25 crore.

The company is the only domestic maker of insoluble sulphur. It holds 55-60% of the Indian market and roughly 10% of the world market. Installed capacity is 39,500 tonnes a year. It ran at about 70% in the December quarter.

The market pays ₹11.50 for every ₹1 of yearly profit. For the industry, the figure is ₹20.60.

Introduction

OCCL Ltd is the chemicals half of an older company. Under a business restructuring, the chemicals business was demerged into OCCL Ltd. The investments, including a holding in Duncan Engineering, stayed with Oriental Carbon & Chemicals Limited, since renamed AG Ventures Limited. A large portion of those investments was hived off to AG Ventures.

The operation underneath is much older than the name. It was incorporated in 1978 as Dharuhera Chemicals Limited, to make sulphuric acid. In 1983 it merged with Oriental Carbon Limited, a maker of carbon black, and became Oriental Carbon & Chemicals Ltd. Insoluble sulphur production began in 1994, at 3,000 tonnes a year. The carbon black unit was sold to Continental Carbon Company in 2000.

Thirty-two years and several expansions at existing sites later, insoluble sulphur capacity is 39,500 tonnes a year. Beside it sits 88,200 tonnes a year of sulphuric acid and oleum, a concentrated form of the same acid. Three units carry all of it: two at Dharuhera in Haryana, one in the Mundra special economic zone in Gujarat.

The recent calendar has been busy for a single-product chemicals company. In March 2025, an investigation into insoluble sulphur imports was under way. In June 2025, anti-dumping duties were imposed on imports from China and Japan. Such duties are charged on goods sold into India below their home-market price. In July 2025, the company widened its founding document to cover power generation and energy-related business.

In January 2026, Muneesh Batta, VP Sales & Marketing, resigned and was relieved on 27 January. Rajneesh Dhiman was appointed Head of Sales & Marketing with effect from 4 February. In March 2026, the DGTR, the government's trade-remedy directorate, began an absorption review into Chinese insoluble sulphur imports. Such a review checks whether exporters have swallowed the duty instead of raising their prices. The case is numbered AD(AA)-02/2026 and was notified on 20 March. Its period of investigation covers the six months from July to December 2025.

ICRA, a credit-rating agency, reaffirmed the long-term facilities at AA- with a stable outlook in August 2025. It reaffirmed the short-term rating at A1+. The total rated limits are ₹188.5 crore.

Business model

Insoluble sulphur is 86% of what OCCL makes. It is a vulcanising agent, the ingredient that turns soft rubber into a tyre holding its shape. Tyre makers need more sulphur in the mix than ordinary sulphur will dissolve into the rubber. Ordinary sulphur then migrates to the surface of uncured rubber and blooms, which ruins the bond. Insoluble sulphur stays where it is put.

It is sold as DIAMOND SULF, in high dispersion grades, high stability grades and special grades. That is three ways of saying whichever version the tyre company's own laboratory approved.

The remaining 14% is sulphuric acid and oleum. Commercial grade goes to the steel and superphosphate industries. Battery grade goes to storage batteries, rayon, dyes and pharmaceuticals. This is a by-product of the main process that happens to be saleable, which is the chemicals trade's version of selling the exhaust.

Getting in is slow, and slow is what keeps others out. Customers require a minimum of 24 months to approve and validate material from a new supplier. Every large global tyre manufacturer has approved OCCL's in-house technology. So the pitch is less about better sulphur than about the two years already spent testing this one.

The customer list runs to more than 40 buyers, in 21 countries across five continents. Exports bring 55-60% of revenue, and the United States accounts for 10-15%.

The Mundra plant sits inside a special economic zone, which carries a tax exemption benefit and lower power cost. It also sits at a port, which reduces logistics and freight cost. Dharuhera is self-sufficient in steam. A 3.5-megawatt captive solar plant generates renewable energy on site. Water utilisation has been reduced, and the company has become water neutral at Dharuhera. It won an EcoVadis Gold sustainability rating in 2025, placing it in the top 6% of companies assessed globally.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for OCCL Limited.

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