Shares of Galaxy Surfactants soared 20% on Friday following a strong quarter, upgraded profit guidance, and positive investor sentiment driven by a rebound in Indian volumes and resilient global demand.
Galaxy Surfactants shares surged to their 20% upper circuit on Friday after managing director K. Natarajan said the company’s latest quarter had exceeded expectations and led to a sharp increase in profit guidance. EquityPandit reported that the stock touched a fresh 52-week high as investors reacted to comments from Natarajan, who said the period benefited from a rebound in tier-one volumes in India and that “everything fell in place” this time. The rally extended a run that had already lifted the stock in the previous session. Business Standard has also reported that the company’s recent results showed stronger revenue even as profitability remained uneven across quarters.
The company raised its full-year EBITDA guidance to Rs 24,000-Rs 25,000 per tonne from an earlier estimate of Rs 19,000-Rs 21,000 per tonne, according to the interview cited by EquityPandit. It also reiterated expectations for volume growth of 6% to 8% in FY27, supported by resilient domestic demand and a gradual recovery overseas. The upbeat tone contrasted with earlier quarterly reports from Business Standard and Capital Market, which showed that profits had been under pressure even as revenue continued to rise, underlining how quickly conditions have improved.
Not every region moved in step. EquityPandit said India delivered low-single-digit growth, while Africa, the Middle East and Turkey recorded weaker volumes. The rest-of-world business grew in the mid-single digits and helped overall volume growth remain in the mid-single-digit range. Raw material costs also stayed elevated, with fatty alcohol, a key input, rising to $2,806 per tonne from $2,751 in the previous quarter, yet margins still expanded on better product mix and pricing discipline.
The company also approved a final dividend of Rs 22 per share at its 40th annual general meeting, adding another reason for shareholders to cheer.
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