Synopsis: Himadri Speciality Chemical is positioning carbon nanotubes (CNTs) as a future growth engine alongside its battery materials business. With applications spanning EV batteries, semiconductors, and aerospace, CNTs could become a high-margin vertical, supported by strong R&D, strategic investments, and integrated manufacturing capabilities in advanced materials.
As global industries increasingly adopt advanced materials to improve efficiency and performance, carbon nanotubes (CNTs) are emerging as one of the most promising next-generation materials. Their superior strength, conductivity, and lightweight properties have created opportunities across electric vehicles, semiconductors, aerospace, and electronics.
Against this backdrop, Himadri Speciality Chemical is expanding beyond its traditional specialty chemical business and building capabilities in advanced materials and battery technologies. The company’s entry into CNT manufacturing could potentially open a new high-growth avenue and strengthen its position in future-orientated industries.
With a market cap of Rs 39,000 crore, the shares of Himadri Speciality Chemical Ltd are trading at Rs 772 and are trading at a PE of 49 compared to their industry’s PE of 56. The shares have given a return of more than 1,300% in the last 5 years.
Himadri’s Transformation into an Advanced Materials Company
Himadri Speciality Chemical Ltd is a leading speciality chemicals and advanced materials company engaged in manufacturing coal tar derivatives, specialty carbon black, and battery materials. The company is expanding into high-growth segments such as lithium-ion battery materials, carbon nanotubes (CNTs), and advanced carbon products, catering to industries including electric vehicles, semiconductors, aerospace, and energy storage
It has made an impressive turnaround from being essentially a producer of coal tar-based derivative products to becoming a leader in advanced material and energy-transition technologies. These changes have become more apparent through the performance of the firm financially.
For Q1FY27, the consolidated income of Himadri was reported at an increase of 28% compared to last year and stood at Rs 1,432 crore. EBITDA was reported at Rs 313 crore, recording a 33% increase with margins at 22%. PAT was recorded at Rs 228 crore, leading to a PAT margin of 16%. The standalone EBITDA margins were recorded at 24%.
Carbon Nanotubes Mark Himadri’s Entry into a Strategic Industry
One of the significant events for the company has been its successful indigenous development of carbon nanotube technology over several years of internal research and development. Himadri is planning to make an investment of approximately Rs 70 crore in the setting up of a 200 MTPA CNT manufacturing plant, which is likely to get commissioned in Q4 FY27.
Carbon nanotubes are regarded as one of the most advanced materials in the world, as they have the ability to offer nearly 100 times the strength of steel and conductivity equal to that of copper, and yet remain very light in weight. There are only a few companies in the world which manufacture carbon nanotubes commercially, and Himadri is one of them.
Why CNT Could Become a Large Global Opportunity
Management pointed out that the worldwide market for carbon nanotubes today is around 30,000 metric tonnes and keeps growing fast as new uses get added each year. In contrast to much of Himadri’s current business that depends heavily on domestic demand, CNT is very much a global proposition since the use of CNTs in India is still in its infancy.
The intention is to start by stabilizing output, qualifying customers, and then expanding capacities over time. While the first facility at 200 MTPA might bring in less than Rs 100 crore per annum in revenue, management has stressed that the realization and margin on CNTs are considerably better than regular specialty products.
Electric Vehicles and Battery Storage Could Drive CNT Demand
The most important potential area for the use of carbon nanotubes will likely be in the electric vehicles and battery ecosystem. Global demand for lithium-ion batteries is expected to grow from about 1.6 terawatt hours in 2025 to 6.8 terawatt hours in 2035. Carbon nanotubes are currently being employed as conductive additives in batteries due to their ability to enhance conductivity, energy density, efficiency of charging, and battery longevity.
Himadri has been strategically investing in the battery value chain in the form of anode and cathode materials. Himadri had already commissioned its 200 MTPA anode material plant in April 2026, with another 2,000 MTPA LFP cathode plant in the third quarter of FY27 as part of its Phase I 40,000 MTPA capacity expansion project. In the long term, Himadri intends to expand LFP capacities up to 200,000 MTPA, which could make it a 2-3 per cent player in the global LFP market.
Strategic Investments Strengthen the Battery Ecosystem
Strategic investments in the battery value chain have also been undertaken by Himadri to enhance commercialisation prospects. Himadri upped its stakes in International Battery Company (IBC), which manufactures lithium-ion cell technologies in regions outside China and will build a plant having a capacity of 7 GWh in India.
Himadri is also a strategic investor in Sicona, which just raised AUD45 million to facilitate commercialisation of its silicon carbon anode technology. This helps Himadri validate its products commercially and create an ecosystem from raw materials all the way to battery implementation.
Himadri indicated that its products were currently being employed in commercial cell applications through IBC, which considerably mitigates commercialisation risks for its battery materials segment.
Semiconductors and Electronics Open Another Growth Avenue
Besides batteries, semiconductors and electronics are yet another huge potential application area for CNTs. These tubes feature remarkable electrical conductivity, thermal stability, and mechanical strength, which makes them applicable in semiconductor packaging, conductive layers, sensors, flexible electronics, and computing.
With an increasing capacity of semiconductor production around the world and supply chain diversification of countries, the demand for advanced materials will increase dramatically. One of the areas pointed out by management as one of the major markets for CNTs was semiconductors.
Aerospace Applications Could Unlock Long-Term Value
Aerospace and advanced automotive materials could emerge as another future area of growth for carbon nanotubes. The aerospace industry is always in search of new materials that provide high strength along with lightness to increase efficiency.
The ratio of strength and weight of carbon nanotubes is very high compared to any other material available, hence making them useful for aerospace composites, coatings, conductive materials, and structural applications. Also, the demand for lighter materials is increasing in the automotive industry for increased efficiency of the battery.
Integration and R&D Could Become Himadri’s Biggest Advantages
One of the critical competitive advantages of Himadri is its integrated business structure and ongoing investments towards innovation. During the last year, the company made investments worth over Rs 125 crore in research and development, which account for about 2.6 per cent of its revenue.
At present, the company holds the world’s largest integrated carbon complex at one location, which has the capacity of 600,000 MTPA of coal tar distillation and has more than 65 per cent share in the domestic coal tar pitch market. Besides, it has a 250,000 MTPA carbon black capacity, out of which 130,000 MTPA is specialty carbon black capacity.
The management has stated capex worth around Rs 2,000 crore over the coming two years, which will include investment in CNTs, LFP cathodes, specialty chemicals, and Birla Tyres, all of which would be funded from internal resources.
Can CNT Become Himadri’s Next High-Growth Vertical?
Despite the relatively small size of the first CNT manufacturing plant, the potential strategic importance of it may turn out to be tremendous. Carbon nanotubes are connected directly to a number of structural megatrends, such as electric vehicles, battery storage, semiconductors, the aerospace industry, electronics, and advanced industrial materials.
The management has stressed on several occasions that CNT is an expensive and high-margin product with huge potential for future growth, and future plans for expanding the capacities might be much more ambitious depending on customer demand and development of the market.
In case of successful implementation of the technology by Himadri, carbon nanotubes could turn out to be the most profitable business segment of the company. With the help of its battery business ecosystem and advanced material offerings, carbon nanotubes could possibly turn Himadri into one of those rare Indian advanced materials companies operating in EV batteries, semiconductors, and the aerospace industry.
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