Laxmi Organic share price hits record low on weak Q3 operational performace

Laxmi Organic Industries share price today

Laxmi Organic Industries share price declined nearly 4 per cent and hit a record low on Friday following the announcement of the company's third-quarter results (Q3FY26). The scrip fell 3.82 per cent to a new low of ₹134.33 on the National Stock Exchange (NSE) in the intraday trade.

 

By 11:58 AM, Laxmi Organic Industries share price had recouped losses to trade 1.64 per cent higher at ₹141.81, as compared to a 0.62 per cent decline in the Nifty 50 index.  

 

The counter has seen a trade of 0.3 million shares on the National Stock Exchange (NSE) so far. The company has a market capitalisation of ₹3,924.63 crore. 

 

In the last 12 months, Laxmi Organic Industries share price has declined 34.33 per cent, as compared to a 8.64 per cent decline in the Nifty 50 index.   CATCH STOCK MARKET UPDATE TODAY LIVE

Why did Laxmi Organic Industries share price fall today?

Laxmi Organic Industries share price touched a record low after the company reported a steep decline in its operating profit. The earnings before interest, taxes, depreciation, and amortisation (Ebitda) slumped 33 per cent on year to ₹49.9 crore from ₹74.8 crore.  

Laxmi Organic Industries reported a 13 per cent Y-o-Y decline in its net profit during the third quarter (Q3FY26). The net profit was at ₹25.4 crore versus ₹29.3 crore in the same quarter a year ago (Q3FY25). 

"The continued pressure on spreads in ethyl acetate and the adverse product mix between essentials and specialties weighed on the company's profitability. Moreover, the fixed-cost base increased due to the commissioning of new manufacturing sites, which also impacted the profit," Laxmi Organic Industries said in its investor presentation.  

In essentials, the spread for our key product, ethyl acetate, continued to be subdued. Our current focus for the essentials segment remains on achieving volume-driven profitable growth, said Rajan Venkatesh, the company's managing director and CEO.   ALSO READ | Aurobindo Pharma soars 6% on huge volumes; here's what triggered the rally 

That apart, Laxmi Organic Industries incurred a one-time loss of ₹3.8 crore during the quarter. The company also saw a one-time gain of ₹40.7 crore due to a favourable litigation settlement for wheeling and transmission charges, according to the investors’ presentation. 

Laxmi Organic Industries reported that its revenue decreased 9 per cent on year to ₹718.7 crore in the December quarter (Q3FY26) from ₹786.3 crore in the same quarter a year ago (Q3FY25).  

That said, Laxmi Organic Industries is focused on completing the Dahej Facility projec'’s second phase by the end of March quarter (Q4FY26). The fluorine intermediates operations at Lote remain on track. "We will continue our focus on productivity, commercial excellence, execution excellence, cost discipline, and growth projects," Venkatesh added.