Galaxy Surfactants Reports Steady Q2 Amid Market Volatility

Managing Director K. Natarajan said Q2FY26 volumes were largely flat on both a year-on-year and quarter-on-quarter basis, reflecting short-term turbulence across markets. Strong double-digit growth in the Specialty segment helped offset a higher single-digit decline in the Performance segment.

In India, domestic performance faced temporary challenges. Volumes were flat year-on-year and quarter-on-quarter as GST rate cuts on FMCG products prompted inventory recalibration among large players. Elevated feedstock prices also led some customers to reformulate their products, weighing on the Performance segment. Despite this, non-Tier 1 customers posted healthy growth on both comparisons, helping cushion the softness among Tier-1 customers. Natarajan added that GST reforms should unlock medium-term consumption upside.

In the AMET region, volumes recorded a modest decline, with single-digit sequential and higher single-digit annual drops. This was mainly due to Tier-1 share erosion in Egypt amid intensified local competition.

The Rest-of-World segment continued its strong growth trajectory, driven by LATAM and APAC, both of which delivered double-digit year-on-year gains across Performance and Specialty segments. North America, however, faced pressure from reciprocal tariffs that impacted specialty care margins, particularly in the masstige category, although prestige-tier products from Tri-K continued to perform well.

Supply-side conditions showed mixed patterns. Freight costs eased, but shipment delays persisted due to port congestion and blank sailings. Raw material availability improved slightly, yet feedstock prices remained elevated owing to lower-than-expected palm kernel oil output.

Natarajan said that navigating the current environment requires sharpening strategic focus through tactical adjustments, enhanced operational agility, and portfolio fortification to ensure resilience and long-term market relevance.