A global speciality chemical conglomerate, primarily engaged in the manufacturing of carbon materials and chemicals, including lithium-ion battery materials in India, operates with a strong presence in both domestic and international markets, making it a player worth watching closely.
We’re talking about Himadri Speciality Chemical Limited, which stands out as a global frontrunner in advanced materials and sustainable chemical solutions. Its diverse portfolio spans speciality carbon black, coal tar pitch, refined naphthalene, advanced materials, SNF, Speciality oils, power, etc., catering to industries like lithium-ion batteries, paints, plastics, tires, aluminium, graphite electrodes, agrochemicals, defence and construction chemicals.
In this article, we’ll take a closer look at the company’s financial performance, key ratios, management outlook, segment-wise revenue & other details. With a market cap of Rs. 22,346 crores, shares of Himadri Speciality Chemical Limited hit an intraday high at Rs. 456.65 on Monday, up by around 2.5 percent on BSE, as against its previous closing price of Rs. 445.55.
The stock has delivered negative returns of nearly 13 percent over a one-year period, as well as over 2 percent returns in the last month.
Financials & Segment Performance
In Q1 FY26, Himadri reported a consolidated revenue from operations of Rs. 1,118.3 crores, a decline of around 1.5 percent QoQ and 7 percent YoY. Revenue was impacted due to the correction in raw material prices.
In contrast, net profit for the quarter stood at Rs. 179.4 crores, representing a rise of nearly 15 percent QoQ and 45 percent YoY. This significant growth in profitability was driven by Himadri’s continued focus on high-value speciality products, operational efficiencies that improved yields, and the continued strengthening of its waste heat recovery systems.
During the same period, the company’s debt-to-equity ratio stood at 0.22, with a current ratio of 2.27. Net profit margin was at 16.04 percent, while the operating margin was reported at 21.04 percent.
Total segment revenue for the quarter stood at Rs. 1,138.4 crore. The Carbon materials and chemicals segment was the largest contributor, generating Rs. 1,112.8 crore, accounting for 97.8 percent of the total revenue. The Power business followed with Rs. 25.5 crore (2.2 percent) in revenue.
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Management Guidance
The management anticipates doubling net profit between FY24 and FY27. In FY24, Himadri posted a net profit of Rs. 411 crore. While no specific revenue or margin guidance has been provided, the company is prioritising absolute EBITDA per MT as its key performance metric, given the volatility in raw material prices.
For FY26, growth will be driven by the core business, the commissioning of the speciality carbon black expansion by Q3 FY26, the operational commencement of Birla Tyres in Q1 FY26 with a phased ramp-up, and the launch of the branded retail product Durofresh (naphthalene balls).
In FY27, momentum will accelerate with a full year of operations from the speciality carbon black expansion, further ramp-up of Birla Tyres in the OHT (off-highway tyres) and CV (commercial vehicle) segments, and the commissioning of forward integration projects for anthraquinone and carbazole by Q2 FY27. Additionally, the Phase 1 commercial plant for lithium iron phosphate (LFP) cathode active material will commence operations in Q3 FY27, alongside a scale-up in Durofresh production.
By FY28, the company expects a full year’s contribution from speciality carbon black, anthraquinone, and carbazole operations, along with an expanded Birla Tyres portfolio covering OHT, CV, and PCR (passenger car radial) segments. The commercial LFP plant will run for a full year, and Durofresh will reach steady-state operations.
Capex Plans
The company’s capex program is centred on strategic expansions across key business segments. Birla Tyres is targeting a turnaround and market share gains, backed by a Rs. 306 crore capex, with operations commencing in Q1 FY26 through an acquisition-led expansion.
The LFP cathode active material project, a greenfield initiative aimed at establishing a pioneering presence in India, will see an investment of Rs. 1,125 crore and is scheduled to become operational in Q3 FY27.
In speciality carbon black, the company is pursuing forward integration via a capex of Rs. 220 crore brownfield expansion, set to begin operations in Q3 FY26. Meanwhile, the speciality chemicals vertical is undertaking a Rs. 120 crore brownfield expansion for vertical integration, targeted for Q2 FY27.
A highlight of the plan is the addition of a 70,000 MTPA speciality carbon black line, which will more than double total capacity to 1.3 lakh MTPA, making it the largest single-site speciality carbon black facility globally. This expansion, fully supported by available land for future growth, is on track for commissioning by Q3 FY26.
Written by Shivani Singh
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