Detailed Narrative
Strong Q1 FY27 Financial Performance
Himadri Speciality Chemical Limited delivered robust financial results for Q1 FY27. Consolidated revenue grew 28% year-on-year to INR 1,432 Crores, while consolidated EBITDA saw a 33% increase to INR 313 Crores, achieving a healthy margin of 22%. Profit After Tax (PAT) also surged by 27% year-on-year to INR 228 Crores, with a 16% margin, reflecting strong operational discipline and a strategic shift towards higher-value segments.
Innovation-Led Growth with New Products
The company announced two significant innovation-driven initiatives. Himadri successfully developed indigenous Carbon Nanotube (CNT) technology, with a 200 MTPA manufacturing facility targeted for commissioning in Q4 FY27, involving a capex of approximately INR 70 Crores. Additionally, Himadri is entering the Super Speciality Carbon Black segment, converting 6,000 MTPA of existing capacity with a capex of INR 170 Crores, expected to start by FY28. These products are designed for high-performance applications and are expected to deliver premium realizations.
Advancing New Energy Materials for Li-ion Batteries
Himadri is strategically positioning itself in the new energy materials sector, particularly for lithium-ion batteries. Its 200 MTPA anode material facility at Mahistikry was commissioned in April 2026, built entirely on in-house research with INR 120 Crores already spent. For LFP cathode chemistry, an initial 2,000 MTPA capacity is expected to be commissioned in Q3 FY27, forming the first milestone of a 40,000 MTPA Phase 1 expansion (INR 1,125 Crores capex) with a broader long-term vision to scale to 200,000 MTPA.
Birla Tyres Turnaround Progress and Expansion
The turnaround of Birla Tyres continues to make steady progress, with commercial operations recommencing on May 29, 2025. The company is strategically converting existing Truck and Bus Bias (TBB) tyre capacity towards Off-the-Road (OTR) tyre production. Birla Tyres aims to achieve an EBITDA breakeven this financial year and targets a top line of INR 3,000 Crores within the next 4-5 years, supported by new product launches and an expanding distribution network.
Disciplined Capital Allocation and Strategic Investments
Himadri has announced a total capex of INR 2,000 Crores, with INR 1,000 Crores planned for FY27 and another INR 1,000 Crores for FY28. This entire capex program is self-funded, with no incremental debt. The company also increased its stake in International Battery Company (IBC) and is a strategic investor in Sicona, which secured AUD 45 million funding, reinforcing its commitment to the battery value chain and leveraging partnerships for technology commercialization.
Sustainability and Market Positioning
Sustainability is deeply embedded in Himadri's operations, with all plants operating on a zero-liquid discharge basis, contributing to its EcoVadis Platinum rating. The company's strategy focuses on building a self-reliant, scalable platform, leveraging its backward integration from feedstock to materials. Himadri aims to capture a 2-3% share of the global LFP market with its 200,000 MTPA capacity in 5-6 years, emphasizing its unique positioning and cost advantages against competitors like China.
Challenges and Outlook
The 'other segment' experienced a significant EBIT decline from INR 25 Crores to INR 1 Crore due to mining operations being on hold pending licensing. The company also faced negative forex impact in Q1 FY27 due to high currency volatility🌐, though management expects this to be a one-off📎 event. Despite these challenges, Himadri remains optimistic, maintaining its PAT target of INR 1,100 Crores for FY27 and projecting capacity utilization in its base business to exceed 90% during the year.