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Kothari Petrochemicals Faces Operational Disruption Due to Feedstock Supply Constraints
Kothari Petrochemicals has declared a force majeure situation following geopolitical tensions in the Middle East that have restricted gas supplies. The Ministry of Petroleum and Natural Gas has directed refineries to prioritize domestic LPG, resulting in the suspension of feedstock supplies to downstream industries. Consequently, the company has notified its industrial customers about the restriction of contracted supply quantities. The total financial impact of this ongoing disruption is currently unascertainable.
Key Highlights
Force majeure declared due to Middle East geopolitical situation and resulting gas supply restrictions.
Government directive mandates refineries to prioritize domestic LPG over downstream industry feedstock.
Company has officially communicated supply restrictions to its industrial customers as per existing agreements.
Operations are constrained by the lack of raw material availability from refineries.
The duration and financial impact of the disruption remain uncertain and are being closely monitored.
💼 Action for Investors
Investors should exercise caution as prolonged feedstock suspension will significantly impact quarterly revenue and margins. Monitor for updates on the geopolitical situation and any revised government directives regarding industrial gas allocation.
Kothari Petrochemicals Q3 Net Profit Rises 45% YoY to ₹18.70 Crore
Kothari Petrochemicals reported a strong year-on-year performance for Q3 FY26, with net profit surging 45.5% to ₹18.70 crore compared to ₹12.85 crore in Q3 FY25. Revenue from operations saw a modest growth of 2.7% YoY, reaching ₹134.84 crore, indicating significant margin expansion. On a sequential basis, the company maintained profitability despite a slight dip in revenue from ₹143.02 crore in Q2 FY26. For the nine-month period ending December 2025, the company recorded a total profit of ₹54.69 crore, up from ₹48.54 crore in the previous year.
Key Highlights
Net Profit for Q3 FY26 increased by 45.5% YoY to ₹1,869.57 lakhs from ₹1,285.04 lakhs.
Revenue from operations stood at ₹13,483.50 lakhs, a slight increase from ₹13,127.44 lakhs in the same quarter last year.
Earnings Per Share (EPS) for the quarter rose to ₹3.18, compared to ₹2.18 in Q3 FY25.
Nine-month net profit reached ₹5,468.78 lakhs, showing a 12.6% growth over the previous year's nine-month period.
Total expenses for the quarter decreased to ₹11,179.72 lakhs from ₹11,577.58 lakhs YoY, contributing to higher margins.
💼 Action for Investors
The company has demonstrated impressive margin improvement and bottom-line growth despite stagnant revenue. Investors should hold the stock while monitoring if the company can trigger higher revenue growth in its core Poly Iso Butylene segment.