Himadri Speciality Chemical Ltd has delivered exceptional Q3FY26 results, showcasing significant margin expansion and robust operational performance. The company's EBITDA margin improved to 21.09% compared to 19.35% in the previous year, reflecting enhanced operational efficiency and focus on high value-added products.

Enhanced Financial Performance in Q3FY26

The company's latest financial metrics demonstrate strong year-over-year growth with improved profitability:

For the nine-month period, the company maintained strong momentum:

Revenue for the period stood at ₹3,303.80 crores, with total sales increasing to 4,28,572 MT, depicting approximately 3% year-on-year growth. The improved EBITDA margin expansion of 174 basis points highlights the company's successful shift towards higher-margin specialty products.

Major Operational Milestones

Himadri achieved several significant operational breakthroughs during the quarter:

Speciality Carbon Black Expansion

The company started trial production at its speciality carbon black expansion project in Mahistikry in December 2025. This landmark achievement marks the beginning of the next growth phase:

Export Corridor Expansion

The quarter marked a significant milestone with the commissioning of the new Mangalore Port terminal and successful export of 3,600 tons of liquid coal tar pitch to the Middle East. This achievement establishes a second export corridor alongside Haldia, enhancing logistics flexibility and global reach.

Corporate Developments and Recognition

During the quarter, the company allotted one crore equity shares to promoters upon receipt of ₹237.00 crores, bringing promoter shareholding to 52.50%. The company received multiple sustainability recognitions:

Business Segment Performance

Birla Tyres strengthened its market presence across India and international markets through a network of 36 distributors and over 640 dealers. The segment features over 80 products across flagship ranges including KalaPatthar, Shaan+, BT339, and Ultra Trac.

The improved EBITDA margin performance, combined with successful operational milestones, positions Himadri Speciality Chemical for sustained growth in the specialty chemicals sector.

Himadri Speciality Chemical has submitted its monitoring agency report for the quarter ended December 31, 2025, in compliance with Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, prepared by ICRA Limited as the appointed monitoring agency, provides details on the utilization of proceeds from the company's preferential issue of warrants.

Issue Details and Proceeds

The preferential issue comprised warrants fully convertible into equity shares, with a total issue size of ₹341.82 crores. The issue involved 1,08,17,000 warrants priced at ₹316 each, generating net proceeds of ₹341.82 crores for the company.

Fund Utilization Progress

As of December 31, 2025, Himadri Speciality Chemical has utilized ₹151.40 crores from the total proceeds. The utilization is distributed across two primary categories as outlined in the original offer document.

During Q3 FY26, the company utilized ₹55.36 crores, primarily for capital expenditure projects. The capital expenditure allocation includes funding for new greenfield projects and brownfield expansion in existing units, either directly by the company or through its subsidiaries, joint ventures, or associates.

Deployment of Unutilized Funds

The company has deployed its unutilized proceeds of ₹190.41 crores across various financial instruments to optimize returns while maintaining liquidity. The majority of these funds, totaling ₹190.03 crores, are invested in mutual funds across multiple schemes.

Key Mutual Fund Investments:

• Mirae Asset Low Duration Fund: ₹25.00 crores
• Kotak Low Duration Fund: ₹25.00 crores
• DSP Ultra Short Fund: ₹20.00 crores
• Nippon Low Duration Fund: ₹20.00 crores
• Axis Treasury Advantage Fund: ₹20.00 crores
• Bandhan Ultra Short-Term Fund: ₹20.00 crores

The remaining ₹0.38 crores is maintained in the company's cash credit account for operational requirements.

Compliance and Monitoring

ICRA Limited, serving as the monitoring agency since March 15, 2024, confirmed that the utilization of proceeds aligns with the objects disclosed in the offer document. The report indicates no deviation from the stated purposes, with all expenditures being in line with the company's strategic objectives.

The monitoring agency noted that ₹0.47 crores was utilized as reimbursement for expenditure previously funded through internal accruals. The company maintains compliance with all regulatory requirements, with the report being made available on the company's website at www.himadri.com as mandated by SEBI regulations.

General Corporate Purpose Utilization

The entire amount of ₹82.87 crores allocated for general corporate purposes has been utilized for funding working capital requirements. No additional amount was deployed for general corporate purposes during Q3 FY26, indicating the company's focused approach to capital allocation.

The company's promoters include Mr. Shyam Sundar Choudhary, Mr. Anurag Choudhary, and Mr. Amit Choudhary, with the business operating in the specialty chemicals sector. The monitoring agency confirmed that there are no unfavorable events affecting the viability of the stated objects and no material information that could impact investor decision-making.