Sigachi Industries Targets Rs. 575 Crore Revenue for FY26, Expands MCC Production

Sigachi Industries , a key player in the microcrystalline cellulose (MCC) market, has unveiled ambitious plans for growth and profitability enhancement. The company has set its sights on achieving a minimum revenue of Rs. 575 crore for the fiscal year 2026 (FY26), with potential for further growth by March of that year.

Expansion and Revenue Projections

Sigachi Industries is implementing several strategic initiatives to boost its financial performance:

Product Range Enhancement: The company aims to improve profit margins by expanding its product offerings.
Operational Efficiency: Efforts are underway to streamline operations and increase overall efficiency.
MCC Expansion: A new 12,000 MT MCC expansion at Dahej is expected to significantly contribute to revenue growth.

Metric	Target/Projection
Minimum Revenue Target for FY26	Rs. 575 crore
Expected Revenue from New Dahej Expansion (at full capacity)	Rs. 250 crore

Regulatory Approvals and Market Expansion

Sigachi Industries is actively pursuing regulatory approvals in the European market:

Nine Certificate of Suitability applications are currently under review.
These approvals could potentially open up new market opportunities and contribute to the company's growth strategy.

Outlook

The company's focus on expanding its MCC production capacity, coupled with its efforts to secure regulatory approvals in Europe, indicates a strong push for market expansion and revenue growth. The success of these initiatives will be crucial in achieving the projected revenue targets for FY26.

Investors and industry observers will likely keep a close watch on Sigachi Industries' progress towards these goals, particularly the ramp-up of the new Dahej facility and the outcomes of the European regulatory applications.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.32%	-2.01%	-9.08%	-26.59%	-32.81%	-42.26%

Sigachi Industries , a key player in the Indian market, has reported a significant decline in its financial performance for the second quarter. The company's consolidated results show a substantial decrease in net profit and revenue, along with a compression in its EBITDA margin.

Financial Highlights

Metric	Q2 Current Year	Q2 Previous Year	Change
Net Profit	103.00 million rupees	218.00 million rupees	-52.75%
Revenue	1100.00 million rupees	1250.00 million rupees	-12.00%
EBITDA	75.00 million rupees	172.00 million rupees	-56.40%
EBITDA Margin	6.82%	13.79%	-6.97 percentage points

Performance Analysis

Sigachi Industries experienced a sharp decline in its financial metrics during the second quarter:

Net Profit: The company's consolidated net profit fell by 52.75% year-over-year, dropping from 218.00 million rupees to 103.00 million rupees.
Revenue: There was a 12% decrease in revenue, with the figure declining from 1250.00 million rupees in the previous year's Q2 to 1100.00 million rupees in the current quarter.
EBITDA: The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a significant reduction of 56.40%, falling from 172.00 million rupees to 75.00 million rupees.
EBITDA Margin: The company's EBITDA margin compressed considerably, decreasing from 13.79% in the corresponding quarter of the previous year to 6.82% in the current quarter, representing a decline of 6.97 percentage points.

These results indicate that Sigachi Industries faced challenges during the quarter, with substantial pressure on both its top-line and bottom-line performance. The significant drop in EBITDA and EBITDA margin suggests that the company may have experienced increased operational costs or pricing pressures in its market segments.