Himadri Speciality Chemical Reports Strong Q1 FY26 Results, Plans Significant Expansion in EV Battery Materials

2 min read     Updated on 15 Jul 2025, 10:39 PM
scanxBy ScanX News Team
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Overview

Himadri Speciality Chemical Ltd reported robust Q1 FY26 results with a 46.08% increase in net profit to Rs. 179.36 crore and a 25.39% rise in EBITDA to Rs. 235.25 crore. The company unveiled expansion plans in EV and energy storage markets, including production of LFP Cathodes, battery anodes, and increased carbon black capacity. Strategic partnerships and investments were made to strengthen its position in the EV battery materials market. The company also completed the acquisition of Birla Tyres to expand its speciality tyre portfolio.

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*this image is generated using AI for illustrative purposes only.

Himadri Speciality Chemical Ltd , a leading speciality chemical conglomerate, has reported robust financial results for the first quarter of fiscal year 2026, while simultaneously announcing ambitious expansion plans in the electric vehicle (EV) and energy storage markets.

Q1 FY26 Financial Highlights

The company's consolidated financial results for Q1 FY26 show significant year-on-year growth:

  • Net profit after tax surged by 46.08% to Rs. 179.36 crore, compared to Rs. 122.78 crore in Q1 FY25.
  • EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) increased by 25.39% to Rs. 235.25 crore, up from Rs. 187.61 crore in the same quarter last year.
  • Sales volume grew by 1% to 1,40,090 MT.
  • Revenue from operations saw a slight decrease of 6.84% to Rs. 1,118.29 crore, down from Rs. 1,200.41 crore in Q1 FY25, primarily due to corrections in raw material prices.

Expansion Plans in EV and Energy Storage Markets

Himadri Speciality has unveiled plans for significant expansion in key components for EV batteries and energy storage systems, aiming to capitalize on the growing demand in these sectors. The company's strategy includes:

  1. LFP Cathodes: Plans to produce 2,00,000 MTPA of Lithium Iron Phosphate (LFP) Cathode Active Material, catering to 100 GWh of Li-ion Battery capacity. The first commercial plant with 40,000 MTPA capacity is expected to be operational by Q3 FY2027.

  2. Battery Anodes: Leveraging its expertise in coal tar pitch, a key ingredient in anode materials, Himadri is developing technologies for natural, synthetic, hybrid, and silicon anode materials.

  3. Carbon Black Production: The company is more than doubling its speciality carbon black capacity to 1,30,000 MTPA, making it the world's largest speciality carbon black capacity at a single site. This expansion, with an estimated capex of Rs. 220 crore, is scheduled to be operational by Q3 FY26.

Strategic Partnerships and Investments

To strengthen its position in the EV battery materials market, Himadri has made several strategic moves:

  • Exclusive technology licensing partnership with Sicona for silicon-carbon anode technology in India.
  • Acquisition of a 16.24% stake in International Battery Company, Inc. (IBC) for USD 4.43 million.
  • 40% stake acquisition in Invati Creations for Rs. 45.16 crore, focusing on R&D in Li-ion electrode materials.

Birla Tyres Acquisition

The company has also completed the acquisition of Birla Tyres, focusing on building a comprehensive product portfolio of speciality tyres for Off-Highway, Commercial Vehicles, Agri, Industrial, and EV segments.

Management Commentary

Anurag Choudhary, CMD & CEO of Himadri Speciality Chemical Ltd, commented on the results: "We are pleased to report our highest-ever quarterly EBITDA and PAT, underscoring a strong, resilient and sustainable financial performance. Our strategic initiatives in the EV battery materials space and the Birla Tyres acquisition position us well for future growth."

The company's performance this quarter reaffirms Himadri's strong foundation and clear strategic direction. As it scales investments in battery materials, deepens global partnerships, and pursues innovation with sustainability at its core, Himadri Speciality Chemical Ltd appears well-positioned to generate long-term value for all stakeholders in the evolving EV and energy storage markets.

Historical Stock Returns for Himadri Speciality Chemical

1 Day5 Days1 Month6 Months1 Year5 Years
-0.69%+4.08%+9.37%-4.99%+22.72%+912.03%
Himadri Speciality Chemical
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Himadri Speciality Chemical Reports Strong Q1 Results with 46% Jump in Net Profit

2 min read     Updated on 15 Jul 2025, 02:26 PM
scanxBy ScanX News Team
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Overview

Himadri Speciality Chemical Ltd reported strong Q1 financial results with net profit increasing by 46.3% year-over-year to ₹182.57 crore. EBITDA rose by 25% to ₹240.00 crore, with EBITDA margin expanding to 22.15%. Revenue slightly decreased by 8.3% to ₹1,100.42 crore. The Carbon Materials and Chemicals segment generated ₹1,094.98 crore, while the Power segment contributed ₹25.54 crore. Key financial ratios show a strong position with a Debt-Equity Ratio of 0.21, Interest Service Coverage Ratio of 18.88, and Current Ratio of 2.25.

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*this image is generated using AI for illustrative purposes only.

Himadri Speciality Chemical Ltd , a leading specialty chemicals manufacturer, has reported robust financial results for the first quarter, showcasing significant growth in profitability despite a slight dip in revenue.

Impressive Profit Growth

The company's net profit surged by an impressive 46.3% year-over-year, reaching ₹182.57 crore in Q1, compared to ₹123.45 crore in the same quarter of the previous fiscal year. This substantial increase in profitability underscores the company's effective cost management and operational efficiency.

EBITDA and Margin Expansion

Himadri Speciality Chemical's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a remarkable improvement, rising to ₹240.00 crore from ₹192.00 crore in the corresponding quarter of the previous year, marking a 25% increase. The EBITDA margin expanded significantly, reaching 22.15% compared to 16.00% in the same quarter last year, indicating enhanced operational performance and cost optimization.

Revenue Performance

Despite the strong bottom-line growth, the company experienced a slight decrease in revenue. The total revenue from operations stood at ₹1,100.42 crore, down by 8.3% from ₹1,199.77 crore in the same period last year. This decline in revenue might be attributed to various market factors or changes in product mix.

Segment-wise Performance

The company's financial results reveal its performance across two main segments:

  1. Carbon Materials and Chemicals: This segment, which forms the core of Himadri's business, generated revenue of ₹1,094.98 crore.
  2. Power: The power segment contributed ₹25.54 crore to the company's revenue during the quarter.

Financial Position and Ratios

Himadri Speciality Chemical maintains a strong financial position, as evidenced by key financial ratios:

Ratio Value
Debt-Equity Ratio 0.21
Interest Service Coverage Ratio 18.88
Current Ratio 2.25

These ratios indicate the company's solid financial health, with a comfortable debt position and strong ability to meet its interest obligations.

Management Commentary

The company's Board of Directors approved these unaudited financial results at their meeting held on July 15. While specific management comments were not provided in the available data, the robust financial performance speaks to the company's resilience and strategic initiatives in navigating market challenges.

Conclusion

Himadri Speciality Chemical's Q1 results demonstrate the company's ability to enhance profitability and operational efficiency, even in the face of revenue headwinds. The significant improvement in EBITDA and net profit margins highlights the effectiveness of the company's cost management strategies and its focus on high-value products. As Himadri continues to leverage its strengths in the specialty chemicals sector, investors and stakeholders will be keen to observe its performance in the coming quarters.

Historical Stock Returns for Himadri Speciality Chemical

1 Day5 Days1 Month6 Months1 Year5 Years
-0.69%+4.08%+9.37%-4.99%+22.72%+912.03%
Himadri Speciality Chemical
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