Sigachi Industries shares are expected to be in focus following a regulatory disclosure regarding the company's top leadership. The company informed stock exchanges on December 28, 2025, that its Managing Director and CEO Amit Raj Sinha was remanded on December 27, 2025, in connection with an ongoing investigation into a fire incident at the company's Hyderabad manufacturing unit.

Investigation and Incident Details

The fire incident at the Pashamylaram facility has resulted in significant casualties and triggered a criminal investigation. Key details of the incident and investigation timeline are outlined below:

The incident triggered a criminal investigation following allegations of gross negligence by the company. The Telangana-based pharmaceutical company later announced an ex-gratia payment of ₹1.00 crore each to the families of the deceased.

Interim Management Arrangements

To ensure operational continuity during this challenging period, Sigachi Industries has implemented interim leadership arrangements. Deputy Group CEO Lijo Stephen Chacko has been designated to oversee operations and day-to-day business activities. The company has assured stakeholders that all necessary measures have been taken to maintain business continuity.

Market Performance and Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. On Friday, shares of Sigachi Industries closed marginally in the red at ₹33.96 on the BSE.

Business Operations

Sigachi Industries operates manufacturing facilities across India and supplies microcrystalline cellulose and other excipients to pharmaceutical and food companies globally. The company has not commented on whether the fire incident or ongoing investigation has impacted production or financial performance.

Sigachi Industries Limited faces a significant corporate development as its Managing Director & CEO, Mr. Amit Raj Sinha, was remanded on December 27, 2025, in connection with the ongoing investigation relating to the fire incident at the company's Hyderabad manufacturing facility. The company has informed stock exchanges about this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, while ensuring operational continuity through interim leadership arrangements.

Leadership Transition and Operational Continuity

Following the remand of the Managing Director & CEO, the company has implemented immediate measures to maintain business operations. Mr. Lijo Stephen Chacko, Deputy Group CEO, will oversee the company's operations in the interim period. The company has assured stakeholders that all necessary measures have been taken to ensure continuity of operations and day-to-day activities.

Board Meeting and Fund Raising Plans

Despite the leadership challenge, Sigachi Industries has scheduled a board meeting for December 31, 2025, to discuss raising funds through non-convertible debentures via private placement. This development comes after the company received a credit rating downgrade from CARE Ratings Limited, with its long-term bank facilities rating revised from CARE A- to CARE BBB+ (Rating Watch with Negative Implications) following the operational and financial impact of the fire incident.

Fire Incident Impact and Investigation

The fire at Sigachi's Hyderabad plant on June 30, 2025, caused complete destruction of the 6,400 MTPA capacity facility, representing 30% of total installed capacity and contributing 20% of total operating income. The incident resulted in 54 fatalities and injuries to 28 employees, prompting a government investigation that remains ongoing and has now led to the remand of the company's top executive.

Financial Performance and Recovery Strategy

The H1 FY26 financial results reflect the significant impact of the incident, with revenue of ₹245.16 crores, PBILDT margin of 15.52%, and net loss of ₹90.44 crores due to exceptional provisions of ₹116.35 crores for plant loss and compensation. Post-incident, production operations shifted to the company's Dahej and Jhagadia units in Gujarat, with management targeting 90% utilization by Q4 FY26.

The company expects to recover ₹51.00 crores of insurance claims for plant and machinery loss by the end of December 2025, to be received in tranches extending through Q4 FY26 or Q1 FY27.