Archean Chemical Industries Limited held its Q3 FY26 earnings conference call on February 06, 2026, announcing mixed financial results amid ongoing operational challenges. The company reported revenue growth but faced margin pressures due to production constraints in its bromine business.

Financial Performance Overview

The company's financial results for Q3 FY26 showed divergent trends across different metrics. On a consolidated basis, total revenue reached INR2,615 million, representing a 10% year-on-year growth. However, standalone operations showed more modest growth.

For the nine-month period, standalone revenue grew 7.4% to INR7,840 million, while EBITDA declined 10.8% to INR2,416 million. Net profit for nine months stood at INR1,246 million, down 1.6% year-on-year.

Business Segment Performance

The company's revenue mix in Q3 FY26 showed industrial salt dominating with 77% contribution, while bromine accounted for 23% of standalone revenues.

Industrial Salt Business

Industrial salt operations demonstrated strong volume performance with sales of 1.1 million tons during Q3 FY26, returning to the quarterly run rate of over 1 million tons. For the nine-month period, volumes reached 3 million tons with robust demand despite pricing pressures. Management noted that pricing remained stable quarter-on-quarter and expects this trend to continue.

Bromine Operations

Bromine production faced significant challenges during the quarter, with volume sales of 2,403 tons in Q3 FY26. The company maintained an order backlog of approximately 6,500 tons, down from previous quarters due to operational constraints.

Operational challenges stemmed from weather-related changes affecting brine quality and feedstock composition. These issues required modifications to brine field operations and plant systems to handle varying input feedstock quality. Management implemented improvement projects during the quarter and expects to return to steady-state operations in Q4.

Derivatives and Specialty Products

The bromine derivatives business through Acume operated at 30-40% utilization with around 40 reactors. Revenue from bromine derivatives reached INR142.1 million on consolidated basis. The business faced headwinds from lower crude oil prices affecting rig activities and oilfield chemical demand, while rising bromine prices created cost pressures.

SOP (Sulphate of Potash) operations remained limited with Q3 volumes of 71 metric tons generating INR32 lakhs in revenue. The company completed pilot stage trials and is progressing toward plant scale trials.

Strategic Initiatives and Leadership Changes

Archean Chemical announced the appointment of Rampraveen Swaminathan as Managing Director. Swaminathan brings 28 years of experience in business leadership and operations across industrial, energy and manufacturing sectors, most recently serving as MD and CEO of Mahindra Logistics Limited.

Semiconductor Business Development

The company's semiconductor initiative through SiCSeM continued advancing as one of 10 projects approved under the Indian Semiconductor Mission. Key developments include:

• 25-acre site allocation in Info Valley, Bhubaneswar
• Completion of land levelling and ongoing topographical surveys
• Finalization of fiscal support agreement with Indian Semiconductor Mission underway

Energy Storage Investment

Archean Chemical's investment in Offgrid Energy Labs progressed with the acquisition of 18.14% stake in the zinc bromide battery innovator. The company plans to establish a 10-megawatt hour demonstration manufacturing facility in the U.K., with R&D for next-generation stationary energy solutions underway.

Market Environment and Outlook

Management described operating in a mixed market environment with uncertainties over the past 3-4 quarters, though early improvement indicators suggest stabilization ahead. The company is monitoring developments in proposed India-U.S. and India-EU Free Trade Agreements, which could create opportunities for Indian specialty chemicals exporters.

For bromine operations, management expressed confidence in achieving over 18,000 tons production in the next fiscal year, targeting a medium-term run rate of 25,000 tons. The derivatives business aims for 50-60% capacity utilization with 15 new products in the development pipeline at various customer trial stages.

Despite near-term operational challenges, the company maintains strong business fundamentals with high product quality, customer acceptance, and strategic positioning in marine chemicals. Long-term investments in advanced materials continue progressing to support future growth initiatives.

Archean chemical industries Limited has entered into a strategic partnership with the Government of Gujarat through a Memorandum of Understanding signed on January 30, 2026. The agreement focuses on developing captive salt jetty infrastructure along Gujarat's coastline, marking a significant expansion in the company's operational capabilities.

Project Details and Specifications

The MOU outlines the development of captive salt jetty and associated infrastructure with substantial capacity specifications:

Government Support and Facilitation

The Government of Gujarat has committed to providing comprehensive support for the project implementation. The state government will facilitate Archean Chemical Industries Limited in obtaining all necessary regulatory approvals and clearances. This includes assistance with permissions, registrations, approvals, and clearances from various concerned departments of the state government.

Strategic Context

The MOU signing was conducted as part of the Investment Promotion Activity for the Vibrant Gujarat Regional conference, which was held on January 11, 2026. This initiative demonstrates Gujarat's commitment to attracting industrial investments and supporting infrastructure development in the chemical sector.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The information has been made available on the company's website at www.archeanchemicals.com , ensuring transparency for stakeholders and investors.