Himadri Speciality Chemical Reports Record Q2 & H1 FY26 Profitability; Announces Major Expansions
Himadri Speciality Chemical reported record Q2 & H1 FY26 profits, with PAT up 39% YoY. The company announced major expansions in speciality carbon black, coal tar pitch, and lithium-ion battery materials, along with Birla Tyres revival.
The announcement carries high impact due to record financial results, substantial capital expenditure plans for capacity expansion across core and new segments (speciality carbon black, coal tar pitch, LFP battery materials), and strategic diversification into high-growth areas. These initiatives are expected to drive significant future revenue and profitability, positioning the company for long-term growth and market leadership.
The company reported record high quarterly and half-yearly EBITDA and PAT, demonstrating strong financial performance despite a slight revenue decline. Significant capacity expansions in high-value segments like speciality carbon black and entry into future-ready markets like lithium-ion battery materials and EV tires indicate strong growth prospects and strategic foresight. Management's confidence in exceeding future PAT targets further contributes to the positive outlook.
Himadri Speciality Chemical Limited (HSCL) announced its financial performance for the 2nd Quarter and Half Year ended 30 September 2025, during an earnings conference call held on 24 October 2025. * Financial Highlights (Standalone Q2 FY26): Revenue from operations stood at ₹1,070 crores (down from ₹1,135 crores in Q2 FY25), EBITDA grew 21% year-on-year to ₹243 crores, and PAT increased 39% year-on-year to ₹187 crores. For the half year (H1 FY26), revenue was ₹2,171 crores, EBITDA reached ₹477 crores (up 23% YoY), and PAT was ₹369 crores (up 43% YoY). * Consolidated Financial Highlights (Q2 FY26): Revenue was ₹1,071 crores (down from ₹1,137 crores last year), EBITDA grew 17% year-on-year to ₹238 crores, and PAT increased 30% year-on-year to ₹176 crores. H1 FY26 consolidated revenue was ₹2,189 crores, EBITDA ₹473 crores, and PAT ₹356 crores. * Management Commentary: The company achieved its highest ever quarterly EBITDA and PAT for Q2 FY26 and H1 FY26. The revenue decline was primarily due to softer raw material prices, increased focus on high-value products, and deferment of an export shipment to Q3. Profitability strengthened due to strategic emphasis on value-added offerings and operational efficiency. The company is ahead of schedule to double PAT from FY24 (₹411 crores) by FY27, expecting FY27 results to far exceed original expectations. * Strategic Expansions & Initiatives: * Speciality Carbon Black: Brownfield expansion is progressing well, set to more than double capacity to 130,000 MT per annum by end of Q3 FY26, positioning Himadri as the world's largest single-site producer. Total carbon black capacity will reach 250,000 MT per annum. * Coal Tar Pitch: De-bottling will increase capacity to 600,000 MT, primarily catering to the global market (Middle East). The first liquid pitch shipment from the newly commissioned Mangalore terminal is expected in November 2025. * Speciality Chemicals: A new facility for anthraquinone and carbazole production is expected to be commissioned by Q2 FY27. The company also introduced Durofresh naphthalene with 99.5% purity. * Lithium-ion Battery Material: The initial 40,000 MT per annum LFP cathode active material plant is under development and on track to commence operations by Q3 FY27, targeting a phased capacity of 200,000 MT per annum. Research for anode technologies (natural and synthetic graphite) is advancing. Partnerships include Sicona Battery Technologies (exclusive rights for silicon carbon anode in India), and strategic investments in Sicona (17.6%), International Battery Company (IBC) (16.2%), and Invati Creations (40%). IBC will use Himadri's LFP for its Prabal 2000 cells. * Birla Tyres: The business is reviving, focusing on OHT, OTR, EV, and passenger car radial segments. Installation of plant and machinery for the passenger car radial unit (for EVs and SUVs) is scheduled within the next 12 months. Q2 FY26 tyre sales were ₹26 crores. * Sustainability: Himadri achieved ISCC-Plus certification for its Mahistikry plant and an 'A' rating in CDP's Suppliers Engagement Assessment. The company has a net zero ambition for 2050 and operates all manufacturing sites as zero-liquid discharge facilities, utilizing 100% in-house clean power. * Liquidity & Leverage: The company maintains a healthy liquidity position with a low debt-to-equity ratio, expecting to be cash positive in terms of net debt by March.
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