Himadri Speciality Chemical has announced positive developments in its recent performance, highlighting volume growth and improved margins. The company, known for its specialty chemicals and carbon materials, has shared insights into its current operations and future plans.

Volume Growth and Margin Improvement

The company reported significant volume growth across its product lines, indicating a strong demand for its specialty chemicals. This growth was accompanied by an improvement in margins, suggesting effective cost management and potentially favorable market conditions for Himadri's products.

Birla Tyres Unit to Boost Volume

Himadri Specialty expects its Birla Tyres unit to play a crucial role in driving volume growth in the near term. This projection indicates that the company is leveraging its diverse product portfolio to capitalize on market opportunities and expand its business.

Addressing Carbon Black Capacity Issues

In a strategic move to enhance its production capabilities, Himadri Specialty has identified capacity issues in its carbon black operations. The company has outlined plans to resolve these constraints by the third quarter of the fiscal year 2026 (Q3 FY26). This long-term planning demonstrates Himadri's commitment to addressing operational challenges and positioning itself for sustained growth.

Carbon black is a crucial material used in various industries, including rubber, plastics, and coatings. By addressing capacity issues, Himadri aims to meet the growing demand for this essential product and potentially strengthen its market position.

Outlook

The combination of volume growth, margin improvement, and strategic capacity expansion plans paints a picture of a company focused on operational excellence and market responsiveness. Himadri Specialty's proactive approach to addressing production constraints while capitalizing on growth opportunities through its Birla Tyres unit suggests a balanced strategy for near-term performance and long-term sustainability.

As the company moves forward with its plans, stakeholders will likely be watching closely to see how these initiatives translate into financial performance and market share in the specialty chemicals sector.

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.