Himadri Speciality Chemical Limited , a leading player in the carbon materials and chemicals sector, has announced its financial results for the second quarter of fiscal year 2026, demonstrating robust growth and improved profitability.

Key Financial Highlights

Revenue and Profitability

Despite a slight dip in revenue, Himadri Speciality Chemical has shown significant improvement in its bottom line. The company's standalone net profit for Q2 FY26 stood at ₹186.85 crore, marking a substantial 39% increase from ₹134.44 crore in the corresponding quarter of the previous year. This growth in profitability comes despite a 5.70% year-on-year decrease in revenue from operations, which stood at ₹1,070.41 crore for the quarter.

Operational Performance

The company's EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) for Q2 FY26 reached ₹275.90 crore, up by 25.70% compared to ₹219.56 crore in Q2 FY25. This improvement in EBITDA indicates enhanced operational efficiency and cost management.

Segment Performance

Himadri Speciality Chemical operates in two primary segments:

1. Carbon Materials and Chemicals
2. Power Generation

The carbon materials and chemicals segment continued to be the major revenue driver, while the power segment contributed to the company's diversified operations.

Financial Position

As of September 30, 2025, the company's balance sheet remains strong:

• Total assets stood at ₹5,326.64 crore
• Shareholders' equity increased to ₹3,996.39 crore
• The debt-to-equity ratio remained healthy at 0.20

Corporate Actions

During the quarter, Himadri Speciality Chemical undertook several corporate actions:

• Conversion of 308,000 warrants into equity shares
• Allotment of 12,451 equity shares under the employee stock option plan
• Issuance of commercial papers worth ₹300 crore

Management Commentary

While specific management comments were not provided, the financial results reflect the company's ability to enhance profitability despite challenging market conditions. The improved bottom line suggests effective cost management and possibly a more favorable product mix.

Outlook

The company's focus on operational efficiency and strategic financial management positions it well for future growth. The robust increase in net profit, despite a slight decrease in revenue, indicates Himadri Speciality Chemical's resilience and adaptability in the dynamic chemical industry landscape.

Investors and stakeholders will likely keep a close watch on how the company leverages its strong financial position to drive future growth and navigate market challenges in the coming quarters.

Himadri Speciality Chemical Ltd has successfully raised Rs. 200 crore through the issuance of commercial paper, as announced in a regulatory filing on September 26, 2025. This move demonstrates the company's strategic approach to short-term financing and liquidity management.

Key Details of the Commercial Paper Issuance

Issuance Particulars

The commercial paper has been issued in favor of Kotak Mahindra Bank, with ICICI Bank Limited serving as the Issue and Paying Agent (IPA). This strategic partnership with two of India's leading banks underscores the credibility of Himadri Speciality Chemical in the financial markets.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, Himadri Speciality Chemical promptly informed the stock exchanges about this significant financial move. The issuance was executed under the authority delegated by the Board of Directors to the Finance and Management Committee.

Market Implications

The successful placement of this commercial paper indicates strong investor confidence in Himadri Speciality Chemical's short-term financial prospects. By opting for a commercial paper with a relatively short tenure of 89 days, the company demonstrates its ability to manage working capital efficiently while taking advantage of favorable short-term interest rates.

The 6.25% coupon rate reflects current market conditions and the company's credit standing. This competitive rate may contribute positively to Himadri's financial management strategy, potentially optimizing its cost of capital in the near term.

As the commercial paper is set to be listed on the BSE Limited, it provides an opportunity for increased liquidity and transparency in the debt instrument. This listing may also enhance the company's visibility among institutional investors and debt market participants.

Himadri Speciality Chemical's decision to raise funds through commercial paper showcases its proactive approach to treasury management and its ability to leverage various financial instruments to support its operations and growth initiatives.