NOCIL climbs after board clears Rs 130-cr capex for rubber chemicals facility expansion

NOCIL jumped 2.56% to Rs 140.05 after the company?s board approved a capital expenditure of approximately Rs 130 crore for capacity expansion of its rubber chemicals portfolio at its Dahej plant in Gujarat.

The company currently has a rubber chemicals capacity of 115,000 MTA, with utilization levels at around 70%. The proposed capacity addition involves expansion of some of its peak utilization products of the Rubber Chemical Portfolio. The brownfield expansion at Dahej will involve setting up a comprehensive integrated facility including backward integration of its inputs, in the specialty rubber chemicals business.

The proposed investment is expected to contribute to revenue growth, operational efficiencies, and improved market positioning over the medium to long term and help the company to expand / enhance its presence in local and global markets.

The total investment will be largely funded through internal accruals. The said expansion project is expected to be completed by H1 FY28.

NOCIL engaged in manufacture of rubber chemicals domiciled in India. The products manufactured by the company are used by the tyre industry and other rubber processing industries. The company has manufacturing facilities at Navi Mumbai (Maharashtra) and at Dahej (Gujarat).

The company?s consolidated net profit declined 28.29% to Rs 9.25 crore on 0.72% fall in revenue from operations to Rs 315.84 crore in Q3 FY26 over Q3 FY25.

Powered by Capital Market - Live News