Himadri Speciality Chemical reported a 29% year-on-year rise in consolidated net profit for the first half of FY27, reaching ₹460 crore compared to the corresponding period last year. The company's top line expanded significantly, with revenue climbing 43% YoY to ₹3,123 crore. This robust growth in sales volume and value drove the bottom-line improvement, although operating margins faced pressure due to rising input costs and working capital adjustments.

Financial performance snapshot

The following table details the key financial metrics for H1FY27 compared to the prior year period:

For the second quarter specifically (Q2FY27), revenue stood at ₹1,691 crore, up 57.93% YoY from ₹1,071 crore. EBITDA for Q2FY27 was ₹303 crore, reflecting a 27.48% increase YoY from ₹238 crore. Net profit for the quarter rose 31.33% YoY to ₹231 crore from ₹176 crore.

Segment performance and operational drivers

The carbon materials and chemicals segment remains the primary growth engine, contributing ₹1,539.02 crore to the consolidated revenue in Q2FY27, up from ₹1,067.21 crore in the year-ago period. The power segment also witnessed healthy growth, with revenue rising to ₹33.32 crore from ₹22.90 crore YoY.

The "Others" segment, which includes mining and other businesses, recorded a revenue of ₹144.14 crore in Q2FY27, marking a significant addition to the portfolio structure compared to the previous year where it was not separately reported or was negligible.

Strategic expansion and new energy materials

Himadri is aggressively diversifying into high-growth sectors, particularly advanced battery materials and speciality chemicals. The company has commissioned a 200 MTPA anode material facility at Mahistikry, West Bengal, backed by over 10 years of in-house R&D. This facility is designed with feedstock flexibility to utilize internally developed materials.

In the cathode segment, Himadri is building capabilities for Lithium Iron Phosphate (LFP) Cathode Active Materials. A 2,000 MTPA demo capacity is expected to commission in Q3FY27, with a targeted long-term capacity of 200,000 MTPA. This positions the company as one of the first commercial LFP CAM facilities globally outside China.

Additionally, the company is setting up India's first commercial Carbon Nano Tube (CNT) plant with a capacity of 200 MTPA, targeting commissioning in Q4FY27. The project involves a capex of ₹70 crore. Himadri is also converting existing carbon black capacity to produce Super Speciality Carbon Black (SSCB), adding 6,000 MTPA of high-value production with a capex of ₹170 crore, expected to be operational by Q4FY28.

Strategic investments and partnerships

The company has strengthened its position in the battery ecosystem through strategic investments. It holds a 19.44% stake in International Battery Company (IBC), which is transitioning from pre-revenue to revenue generation. IBC's India Gigafactory operations are on track for Q1FY28.

Himadri also invested in Sicona Battery Technologies, which secured AUD 45 million in funding from the Australian Renewable Energy Agency (ARENA). Sicona completed the 100% acquisition of Advano (USA), enhancing silicon anode IP and adding US pilot plant capabilities. Furthermore, Himadri holds a 40% stake in Invati Creations, focusing on high-performance electrode materials via nanotech-enabled formulations.

In the tyre sector, Birla Tyres, acquired in October 2023, is nearing double-digit market share in select geographies. The brand currently operates with 49 distributors (40 domestic, 9 global) and over 1,300 dealers. The company targets entering the Passenger Car Radial (PCR) segment by FY28.

What the numbers show

A divergence is visible between the strong top-line growth and the contraction in operating efficiency. While revenue surged nearly 58% in Q2FY27, EBITDA grew at a slower pace of roughly 27%, causing the EBITDA margin to contract. This suggests that incremental costs, particularly in raw materials and logistics, absorbed a portion of the additional revenue generated during the quarter.

Furthermore, the balance sheet indicates rising working capital intensity. Trade receivables increased significantly to ₹1,026.18 crore as of September 30, 2026, from ₹696.42 crore as of March 31, 2026. Concurrently, current borrowings rose to ₹1,152.26 crore, reflecting the need for higher liquidity to support the expanded operations and inventory build-up. The consolidated cash flow statement shows negative cash generated from operations of ₹91.60 crore in H1FY27, driven by a significant outflow in working capital changes of ₹686.25 crore.

Corporate actions and future outlook

The Board of Directors approved a Scheme of Arrangement involving the demerger of the Tyre Business of Dalmia Bharat Refractories Limited (DBRL) into Himadri Speciality Chemical. The proposed appointed date for this transfer is October 1, 2026, subject to regulatory approvals. This move aims to consolidate the tyre business under the speciality chemicals entity, potentially creating synergies in downstream applications.

Additionally, the company issued commercial papers worth ₹150 crore in July and October 2026 at a discount rate of 6.60% per annum, rated A1+ by ICRA, to meet short-term funding requirements.

Himadri Speciality Chemical allotted ₹150 crore worth of commercial paper on October 9, 2026. The short-term debt instrument was issued to Kotak Mahindra Bank with a tenor of 80 days and an annual discount rate of 6.60%.

The allotment comprises 3,000 units, each with a face value of ₹5 lakh. The securities are unsecured and carry no special rights or privileges. Interest is payable upfront, while the principal amount will be repaid upon maturity.

Instrument Details

The company filed this intimation with the BSE and National Stock Exchange under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Finance and Management Committee of the Board approved the issuance.

Maturity and Payment Structure

The commercial paper matures on December 28, 2026. The payment schedule specifies that interest is paid upfront at the time of allotment. The principal amount is due for payment on the maturity date. ICICI Bank Limited serves as the Issuing and Paying Agent (IPA) for this transaction.

What the Numbers Show

The 6.60% discount rate reflects the cost of short-term liquidity for the company over the 80-day period. By issuing unsecured commercial paper, Himadri Speciality Chemical avoids encumbering its assets, maintaining flexibility in its balance sheet structure while meeting immediate working capital needs through a single institutional investor, Kotak Mahindra Bank.