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.

Archean Chemical Industries Limited, through its step-down subsidiary SiCSem Private Limited, has executed a Fiscal Support Agreement (FSA) with the India Semiconductor Mission (ISM) on May 11, 2026. The agreement was entered into pursuant to the Semicon India Programme of the Government of India, and marks a key procedural milestone in the implementation of eligible fiscal support as notified under the scheme guidelines.

Fiscal Support Agreement: Key Details

The FSA formalises the fiscal incentive framework under which the Government of India has committed capital expenditure (CapEx) support to SiCSem for the establishment of India's first approved Silicon Carbide (SiC) based Compound Semiconductor Fab and ATMP (Assembly, Testing, Marking and Packaging) facility. The agreement was executed with the participation of Archean Chemical Industries Limited and its wholly owned subsidiary, Neun Infra Private Limited.

The following table summarises the key parameters of the proposed facility:

Facility Scope and Target Sectors

The compound semiconductor manufacturing facility is proposed to be established at Info Valley, Bhubaneswar, Odisha. The project will integrate end-to-end Wafer Fabrication and Packaging capabilities, positioning it as a comprehensive domestic manufacturing hub for advanced semiconductor components. The facility is designed to cater to a range of critical and emerging sectors, including:

• Electric Vehicles (EVs)
• Renewable Energy
• Smart Grids
• 5G
• Industrial Automation
• Data Centres

Background and Prior Milestones

The execution of the FSA follows a series of earlier developments in the project's progression. SiCSem received approval from the ISM on August 12, 2025, marking the initial regulatory clearance for the project. Subsequently, Archean Chemical Industries extended inter-corporate funding to its subsidiary, Neun Infra Private Limited, to advance the procurement of long-lead machinery and equipment, pending the execution of the FSA. The signing of the FSA on May 11, 2026, represents the formalisation of the government's fiscal commitment to the project under the Semicon India Programme.

The company has stated that the above information will also be available on its website at www.archeanchemicals.com . The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.