IOL Chemicals shares rise 13% on strong Q2 earnings

Shares of IOL Chemicals and Pharmaceuticals rise 13% on Wednesday post strong Q2 earnings. The company reported a net profit of ₹30 crore for the second quarter of the financial year, rising 56.3% compared to ₹19.2 crore in the same period last year. Revenue for the quarter stood at ₹567.5 crore, marking an 8% rise from ₹525.8 crore in the corresponding quarter a year ago.

The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) also witnessed an impressive jump, rising 37% year-on-year to ₹57 crore from ₹41.6 crore previously. Operating margins improved significantly, expanding to 10% from 7.9% as reported in the same period last year. The strong quarterly performance triggered robust interest in the stock, leading to a surge in trading volumes and driving the shares to their intraday high.

IOL Chemicals and Pharmaceuticals shares rose 13% intraday to Rs 99.88 against the previous close of Rs   88.77. Market cap of the firm stood at Rs 2877.45 crore.

The results placed IOL Chemicals in a favourable position compared to peers in the pharmaceutical and chemicals sector, although specific competitor names were not mentioned in the available disclosure. As no further corporate announcements or future projections were discussed, the company’s near-term outlook will remain closely tied to its ability to maintain margin growth and profit momentum in subsequent quarters.