Detailed Narrative
Q2 and H1 FY26 Financial Performance Overview
Archean Chemical reported a standalone revenue of INR 2,317.8 million for Q2 FY26, an 8% decline YoY, with EBITDA at INR 759.9 million (15% decline YoY) and a 33% EBITDA margin. For H1 FY26, standalone revenue grew 10% YoY to INR 5,232.3 million, and net profit after exceptional item📎s increased 28% YoY to INR 903.1 million. Consolidated figures for Q2 FY26 showed revenue of INR 2,395.6 million and net profit of INR 290.4 million.
Semiconductor Mission Approval and SiCSem Project
The company achieved a major milestone with the India semiconductor mission approval for its SiCSem project, a compound semiconductor initiative. A ground-breaking ceremony was held on November 1, 2025, marking the commencement of commissioning activity. The project involves an investment of INR 2,067 crores in Phase 1, with 60-65% expected fiscal support from central and state governments, and an overall timeline of approximately 30 months.
Elemental Bromine and Industrial Salt Performance
Elemental bromine contributed 30-31% of H1 FY26 revenue, with robust demand and healthy prices, though Q2 production volumes were below target due to technical issues and prolonged monsoon. Industrial salt sales reached 0.9 million metric tons in Q2, slightly below the 1 million ton guidance, primarily due to monsoon impact on production and transportation. The company is confident in exporting 4.5 million tons of industrial salt in FY26.
Sulphate of Potash (SOP) Development
Pilot trials for Sulphate of Potash (SOP) have been successful, and plant modifications are underway. The company is preparing for plant trials in Q4 FY26 and expects commercial production to commence post-monsoon next year. SOP is anticipated to be a significant business driver, leveraging an installed capacity of 130,000 tons per annum, with strong market demand for this specialty fertilizer.
Bromine Derivatives and Oren Hydrocarbon Revival
Bromine derivatives operations are currently at 30-35% capacity utilization, with a target to reach at least 50% by the end of FY26. The Flame Retardant project is expected to come online in the next 12-18 months. The revival of Idealis Mudchemie (formerly Oren Hydrocarbon), acquired via NCLT, has faced delays due to regulatory challenges, lower global crude prices, and slow rig activity, with meaningful revenue contribution expected from FY27.
Energy Storage Battery Business (Offgrid Energy Labs)
Archean Chemical acquired an 18.14% stake in Offgrid Energy Labs, a Zinc Bromide battery innovator, in May 2025. The company plans to set up a 10 megawatt-hour demo manufacturing facility in the U.K., with the pilot plant expected to take 12-18 months. This investment aims to commercialize patented ZincGel batteries and scale up to a giga-factory, leveraging Archean's expertise in electrolyte production.
Income Tax Search and Seizure Operation
The income tax department conducted a search and seizure operation at various company locations and subsidiaries from September 4 to September 9, 2025, under Section 132 of the Income Tax Act, 1961. The company confirmed full cooperation with the authorities and continues to do so.