Appreciation in H-Acid prices fails to lift Bodal Chemicals earnings

Week ahead

Indian benchmark indices enter the week on a weak footing after extending their losing streak to an eighth consecutive week, marking the longest weekly decline in 25 years, as investors cautiously face external headwinds like geopolitical tensions in West Asia, Brent crude oil prices trading around the 100 dollars per barrel mark, and US 10-year Treasury yields trading around 5.3 percent. Amid these pressures, the domestic calendar features several key scheduled events, starting with the weekly National Stock Exchange index derivatives expiry on Tuesday, October 6, 2026, followed by the Reserve Bank of India’s interest rate decision on Wednesday, October 7, 2026, concluding a policy meeting that begins on October 5 [1]. The week continues on Thursday, October 8, 2026, with the weekly Bombay Stock Exchange SENSEX derivatives expiry and the official start of the Q2 FY27 earnings season, when Tata Consultancy Services is scheduled to announce its financial results [1].

From the investor's mind

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@soicfinance · on X

As structural headwinds drag down cash brokerage and futures and options (F&O) segments, the Margin Trading Facility (MTF) has emerged as the brokerage industry's only remaining growth vector. Highlighting this shift, Ishmohit Arora of SOIC notes that the industry's MTF book has grown roughly sixfold in just three and a half years, ballooning from Rs 24,920 crore in FY23 to Rs 1.52 lakh crore by August 2026. This surge represents a staggering twentyfold increase from its historical lows. The takeaway is that brokerages are increasingly relying on leverage-backed products to sustain their business expansion as traditional trading volumes and revenue streams face pressure.

Word in the street

What the wider market is buzzing about

Bodal Chemicals Limited

₹190Past year ▲ 202%M.cap ₹2,418 Cr

Investors are closely monitoring Bodal Chemicals Limited, a company with a market cap of about 2,418 crore whose stock has surged 202.05 percent over the past year from a 52 week low of 58. Despite holding a 7,200 MTPA capacity in H-Acid, matching the highest in India, the appreciation in H-Acid prices has not improved its earnings, as Q1 profit declined from Q4 of 2026. While some point to West Asia crisis logistics issues delaying raw material shipments, others argue Bodal faces deeper, company specific problems. Investors are particularly questioning other expenses incurred due to its foreign subsidiaries.

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