Sigachi Industries , a key player in the Indian market, has reported a significant decline in its financial performance for the second quarter. The company's consolidated results show a substantial decrease in net profit and revenue, along with a compression in its EBITDA margin.

Financial Highlights

Performance Analysis

Sigachi Industries experienced a sharp decline in its financial metrics during the second quarter:

1. Net Profit: The company's consolidated net profit fell by 52.75% year-over-year, dropping from 218.00 million rupees to 103.00 million rupees.

2. Revenue: There was a 12% decrease in revenue, with the figure declining from 1250.00 million rupees in the previous year's Q2 to 1100.00 million rupees in the current quarter.

3. EBITDA: The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a significant reduction of 56.40%, falling from 172.00 million rupees to 75.00 million rupees.

4. EBITDA Margin: The company's EBITDA margin compressed considerably, decreasing from 13.79% in the corresponding quarter of the previous year to 6.82% in the current quarter, representing a decline of 6.97 percentage points.

These results indicate that Sigachi Industries faced challenges during the quarter, with substantial pressure on both its top-line and bottom-line performance. The significant drop in EBITDA and EBITDA margin suggests that the company may have experienced increased operational costs or pricing pressures in its market segments.

Sigachi Industries , a leading manufacturer of pharmaceutical excipients and active pharmaceutical ingredients (APIs), has announced its financial results for the second quarter, revealing the impact of a significant fire incident at its Hyderabad plant earlier this year.

Financial Performance

For Q2, Sigachi reported:

The company's performance was significantly affected by the fire incident at its Pashamylaram unit in Hyderabad on June 30.

Fire Incident and Recovery Efforts

The fire at the Hyderabad plant resulted in 46 casualties, 8 unaccounted team members, and 28 injured employees. The incident caused substantial damage to property, plant, equipment, and inventories, with losses totaling ₹1,163.50 crore, accounted for under exceptional items.

In response, Sigachi Industries has:

1. Temporarily paused operations at the affected plant for an estimated 180 days.
2. Reallocated production to Dahej and Jhagadia units to maintain business continuity.
3. Fast-tracked a 12,000 MTPA capacity expansion at Dahej SEZ.
4. Made its Hyderabad API R&D center fully operational.

Management Commentary

Amit Raj Sinha, MD & CEO of Sigachi Industries, stated, "Q2 has been a period of careful rebuilding and steady progress for Sigachi. Our teams have demonstrated dedication and care in maintaining seamless operations and supporting our customers. These efforts have reinforced our commitment to resilience, trust, and sustainable growth as we move into the second half of the year."

Future Outlook

Despite the challenges, Sigachi Industries expects a strong second half, driven by:

• Higher capacity utilization
• Portfolio rebalancing
• Completion of the 12,000 MTPA capacity expansion at Dahej SEZ, which will elevate total MCC capacity to 30,000 MTPA

The company is focusing on prioritizing high-margin, demand-resilient products while deprioritizing low-throughput SKUs to ensure efficient resource use during recovery.

ESG Initiatives

Sigachi Industries continues to prioritize Environmental, Social, and Governance (ESG) initiatives:

• 74.47% of total waste generated was sustainably managed in Q2
• 80.64% of total water withdrawn was recycled post-operational use
• Recognized as "Best workplaces for Millennials" by GPTW Institute
• Over 12,600+ lives touched in India through CSR initiatives

As Sigachi Industries navigates through this challenging period, the company remains committed to operational excellence, safety improvements, and sustainable growth strategies.

Note: The company has submitted initial insurance claims, but no income from insurance claims has been accounted for in these financial results pending final claim submission.