Archean Chemical Industries Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26. The disclosures are made on a standalone basis and pertain only to the listed entity.

Business Overview

The company’s primary business activity is the production of Marine Chemicals, which accounted for 99.79% of its turnover. Operations are concentrated nationally, with one plant located in Hajipir, Gujarat, and offices in Chennai and Bhuj. The company serves markets across nine states in India and eight countries internationally. Exports contributed 78% to the total turnover for FY 2025-26.

Financial and Operational Metrics

The company reported a turnover of Rs. 1,04,153.98 Lakhs and a net worth of Rs. 1,99,803.24 Lakhs. The paid-up capital stands at Rs. 24,69,16,788. The workforce comprises 689 employees, with 257 permanent and 432 other than permanent employees.

Environmental Initiatives

The company identified carbon emissions as a material risk and implemented several mitigation strategies. It integrated a hybrid renewable energy solution, importing 2,35,50,593 kWh of electricity during the year. This transition displaced coal requirements for the cogeneration plant. Additionally, the company harvested 49,89,890 kL of rainwater, significantly reducing reliance on external water sources.

To enhance energy efficiency, the company installed a 132 kW Variable Frequency Drive (VFD) panel for the cooling tower pump and a 55 kW VFD for the Bromine plant compressor. An Automatic Power Factor Correction (APFC) panel was also commissioned at PS-9.

Emissions and Waste Management

The company reported a reduction in Scope 1 greenhouse gas emissions to 66,771.59 metric tonnes of CO2 equivalent, down from 75,631.92 metric tonnes in the previous year. Scope 2 emissions also decreased to 12,615.51 metric tonnes of CO2 equivalent. The total waste generated during the year was 13,717.89 metric tonnes, comprising both hazardous and non-hazardous waste.

Governance and Compliance

The report confirms that the company has policies covering all nine principles of the National Guidelines on Responsible Business Conduct (NGRBCs). These include the Anti-Bribery and Anti-Corruption Policy, Whistle Blower Policy, and Diversity and Inclusion Policy. The Managing Director, Mr. Rampraveen Swaminathan, is responsible for the implementation and oversight of these policies.

The company maintained a strong compliance framework with no reported instances of non-compliance with environmental laws. A fine of Rs. 35,000 was paid to the National Stock Exchange of India Limited regarding a delay in the appointment of the Compliance Officer.

Archean Chemical Industries reported a steep year-on-year decline in profitability in Q4FY26, even as full-year consolidated revenue posted modest growth. The company's Q4FY26 consolidated net profit (Profit After Tax) fell to ₹122.3mn from ₹537.5mn in Q4FY25, reflecting significant pressure on the bottom line. Consolidated total income for Q4FY26 came in at ₹3,063.3mn, compared to ₹3,533.8mn in the year-ago quarter. For the full year FY26, consolidated total income grew 8% year-on-year to ₹11,740.2mn from ₹10,912.4mn in FY25. In a regulatory filing, the company announced that the audio recording of the earnings conference call held on May 13, 2026, is now available on its website.

Q4FY26 & FY26 Consolidated Financial Performance

Operational profitability saw a sharp contraction during Q4FY26. Consolidated EBITDA declined to ₹490.8mn from ₹961.0mn on a year-on-year basis. Finance costs rose sharply to ₹104.3mn in Q4FY26 from ₹2.9mn in Q4FY25, weighing heavily on the bottom line. For the full year FY26, consolidated EBITDA stood at ₹2,657.3mn against ₹3,514.4mn in FY25, while consolidated PAT for FY26 was ₹1,054.1mn compared to ₹1,621.4mn in FY25. The following table summarizes the key consolidated financial metrics:

Management Commentary on Q4 Performance

Management attributed the quarterly performance to a mixed demand environment and significant external headwinds. Industrial salt volumes for Q4FY26 stood at 1.1 million tons, down 7.2% year-on-year, impacted by customer deferrals and logistics challenges. Road construction in Kutch increased transportation distances, raising logistics costs by approximately ₹200 to ₹220 per ton by March 2026. Bromine volumes increased 4% year-on-year to 3,731 metric tons, with realization up 14% year-on-year due to pricing actions. However, the Middle East crisis led to a 50% increase in industrial fuel prices and an 18-20% rise in global freight costs.

Standalone Performance

On a standalone basis, Archean Chemical's Q4FY26 total income stood at ₹3,047.1mn versus ₹3,333.3mn in Q4FY25. Standalone EBITDA for Q4FY26 came in at ₹664.0mn compared to ₹1,011.2mn in Q4FY25. Standalone PAT for Q4FY26 was ₹297.6mn, down from ₹583.1mn in Q4FY25. For the full year FY26, standalone total income was ₹10,887.5mn against ₹10,634.5mn in FY25, while standalone PAT stood at ₹1,543.7mn compared to ₹1,849.2mn in FY25.

Subsidiary-wise Revenue and Profitability Contribution

The consolidated performance was supported by strong revenue growth from subsidiaries, particularly ACUME Chemicals, which reported total income of ₹830.5mn in FY26 versus ₹274.7mn in FY25, a growth of 202% year-on-year. The parent entity ACIL contributed ₹10,887.5mn in FY26, up 2% from ₹10,634.5mn in FY25. NEUN reported income of ₹5.2mn in FY26 against ₹2.7mn in FY25, a growth of 89%. However, at the EBITDA level, subsidiaries ACUME, IDEALIS, and NEUN remained loss-making, with ACUME reporting EBITDA of ₹-98.3mn in FY26 versus ₹-4.3mn in FY25, and IDEALIS reporting ₹-47.8mn versus ₹-75.8mn in FY25.

Silicon Carbide Semiconductor Facility: A Strategic Milestone

A key strategic development highlighted in the investor presentation is the progress on Archean's semiconductor ambitions. The company's subsidiary, SiCSem Private Limited, conducted a Bhoomi Pujan and Groundbreaking ceremony in November 2025 to establish an integrated Silicon Carbide (SiC)-based Compound Semiconductor fab and ATMP Unit in Info Valley, Bhubaneswar, Odisha. The facility has been approved by the Cabinet under the Indian Semiconductor Mission (ISM) and is positioned as the first commercial compound fab in the country. The project is being developed in collaboration with Clas-Sic Wafer Fab Limited, UK, in which Archean Chemical holds a 21% stake.

Consolidated Balance Sheet Highlights

As of March 26, consolidated total assets stood at ₹26,647.8mn compared to ₹23,890.3mn as of March 25. Shareholders' funds increased to ₹19,343.9mn from ₹18,640.1mn. Current borrowings rose significantly to ₹2,783.5mn from ₹264.7mn, contributing to an increase in current liabilities to ₹4,383.5mn from ₹1,972.8mn. Non-current borrowings declined to ₹1,266.7mn from ₹1,516.0mn over the same period. Cash and cash equivalents stood at ₹412.3mn as of March 26 versus ₹405.4mn as of March 25.