OCCL Ltd(OCCLLTD)

NSE: OCCLLTDBSE: 544278

₹ 160.95-2.25%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 804 crWebsite: www.occlindia.comUpdated: 24 Oct 2026

About

OCCL Limited manufactures insoluble sulphur and sulphuric acid and oleum at two plants in Haryana and Gujarat, serving the global tyre and rubber chemicals industry. FY2025-26 was the company's first full year of operations following the transfer of the chemical business via demerger effective 1 July 2024, with revenue of ₹505.9 crores. OCCL holds approximately 10% global market share and 55 - 60% domestic market share in insoluble sulphur, making it one of a select group of manufacturers capable of producing high-performance grades for demanding tyre applications.^[1][2][3][4]

Business segments

OCCL operates a single reportable segment, Chemicals, covering insoluble sulphur and sulphuric acid and oleum. In FY26, insoluble sulphur accounted for 68% of product mix and sulphuric acid 32%, versus 81% and 19% respectively in FY25.^[1]
Exports contributed 36% of revenues in FY26; the balance was domestic. Two customers each exceeded 10% of total revenue in FY25, the first full post-demerger year.^[1][5]

Products and brands

The flagship product is insoluble sulphur, sold under the Diamond Sulf brand, which is widely recognised for quality, reliability and consistency in tyre applications.^[1]
OCCL also produces sulphuric acid and oleum as a co-product, with the sulphuric acid plant running at 100% capacity utilisation in FY25 and contributing meaningfully to EBITDA.^[6][4]
OCCL invested in the development of new insoluble sulphur grades through its pilot plant, aimed at high-performance tyre applications, and pursued increased customer plant approvals across geographies.^[1]

Manufacturing capacity and operations

As of 31 March 2026, installed capacity is 39,500 MTPA of insoluble sulphur and 290 MTPD of sulphuric acid and oleum, across plants at Dharuhera (Haryana) and Mundra (Gujarat).^[1]
Insoluble sulphur capacity utilisation was approximately 70% in FY25 and through Q3 FY26; management will consider expansion capex only after optimal utilisation is achieved.^[6][4][3]
Rooftop solar covers both plants; four captive wind units of approximately 3.2 MW each were contracted for the Dharuhera plant, and renewable energy contribution was reported ahead of internal green energy targets as of Q2 FY26.^[6][4]
FY26 maintenance capex guidance was approximately ₹10 - 13 crores; capital commitments remaining to be executed as of FY26 year-end were ₹819.72 lakhs net of advances.^[7][1]

Key operating numbers

Insoluble sulphur capacity utilisation was ~70% in Q3 FY26, unchanged from the FY25 average. Global IS capacity utilisation was estimated at 70 - 75% in Q3 FY26, below the ~85% level management considers healthy.^[3]
International IS selling prices ranged from $850 to $1,150/MT in Q3 FY26. Sulphur raw material cost averaged ₹29/unit in Q3 FY26 but rose to approximately ₹52 current at the time of the Q3 call.^[3]
Insoluble sulphur RM cost rose by more than ₹10,000/tonne in Q2 FY26 versus Q2 FY25, with realisation increases of a similar magnitude, meaning anti-dumping duty benefit was absorbed by raw material cost rather than expanding margins.^[4]
Global IS supply was approximately 3.57 lakh MT against demand of approximately 2.75 - 3 lakh MT as of Q2 FY26, with 2 - 3% annual demand growth expected to gradually absorb the overhang over a projected 4 - 5 years.^[4][3]
Freight costs moderated from approximately 9% of revenue for full-year FY25 to approximately 7.2% in Q4 FY25, returning to prior-year levels.^[7]

Market position and customers

OCCL held approximately 55 - 60% domestic insoluble sulphur market share and approximately 10% global market share as of Q3 FY26.^[3][4]
Products are marketed in 22 countries supported by agents and strategically located warehouses; exports contributed 36% of revenue in FY26.^[1]
Management is aggressively pursuing domestic market share growth following anti-dumping duties on Chinese and Japanese imports imposed in June 2025, targeting an increase from 55 - 60% to 60 - 65% over time.^[3][4]
The US and Europe constitute the bulk of OCCL's export volumes; US tariffs on Indian imports were reduced from 50% to 18%, which management expects to allow a rollback of approximately 25% discounts that had been given to US customers.^[3][6]

Competitive environment

Anti-dumping duty of $307/tonne on Chinese imports and $257/tonne on Japanese imports was imposed in June 2025 for five years following a DGTR recommendation.^[7][6]
Malaysia continued aggressive pricing in the Indian market post-duty, anchoring to Chinese prices and limiting OCCL's ability to capture the full benefit. OCCL was in consultation with lawyers on a potential anti-dumping filing against Malaysia as of Q3 FY26.^[3][6]
Management asserts OCCL's cost of production is among the lowest in the world, comparable to Chinese producers, with margin pressure attributed to low realisations and fixed-cost absorption rather than a manufacturing cost disadvantage.^[7]

Credit and capital structure

ICRA maintained OCCL's long-term credit rating at AA- and short-term rating at A1+ across FY2024 and FY2025.^[1]
Long-term debt stood at ₹22.75 crores as of Q3 FY26, down from ₹34 crores at Q1 FY26; management guided for full repayment of long-term debt by end of FY27.^[3][6]

Recent developments

FY2025-26 was OCCL's first full year of operations following the transfer of the chemical business effective 1 July 2024 via a demerger scheme; title deeds of land and buildings acquired via the demerger were still being transferred into OCCL's name as of March 2025.^[1][5]
Captive solar power was installed at both plants and renewable energy contribution was ahead of internal targets as of Q2 FY26; captive wind power units for Dharuhera were contracted and commissioning was expected by October 2025.^[4][6]
A one-time stamp duty charge of approximately ₹3.5 crores relating to demerger implementation was recorded in Q4 FY25, and a further ₹2 crore stamp duty charge was recorded in Q2 FY26.^[7][4]

Market Cap

₹804 Cr

High / Low

₹251 / 75

Stock P/E

13.1

Price / Book

2.3

Book Value

₹86

EPS

₹9.6

No. of Shares

5 Cr

ROCE

12.8%

ROE

11.5%

OPM

12.3%

Debt / Equity

0.20

Sales

₹506 Cr

Net Profit

₹48 Cr

Promoter holding

51.8%

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