Himadri Speciality Chemical Limited — Q1 FY27 earnings call

Call held 16 Jul 2026

Management summary

Himadri Speciality Chemical Limited reported strong Q1 FY27 results with significant revenue and profit growth, driven by operational discipline and a shift towards higher-value products. The company announced strategic investments in Carbon Nanotubes and Super Speciality Carbon Black, alongside progress in New Energy Materials like anode and LFP cathode. While facing challenges in its mining segment and forex volatility, Himadri remains confident in its innovation-led growth trajectory and disciplined capital allocation, targeting INR 1,100 Crores PAT for FY27.

Highlights

  • Consolidated Revenue of INR 1,432 Crores, up 28% YoY, reflecting strong operational discipline.

  • Consolidated EBITDA of INR 313 Crores, up 33% YoY, with margin expanding to 22%.

  • Consolidated PAT of INR 228 Crores, up 27% YoY, with a 16% margin.

  • Commissioned 200 MTPA anode material facility in April 2026, built on in-house research.

  • Birla Tyres turnaround progressing, aiming for EBITDA breakeven this financial year and INR 3,000 Crores top line in 4-5 years.

Concerns

  • EBIT for the 'other segment' fell from INR 25 Crores last quarter to INR 1 Crore this quarter due to mining operations being on hold pending licensing.

  • Experienced negative forex impact in Q1 FY27 due to high currency volatility, though management expects no further negative impact.

Key financials

  1. Consolidated Revenue ₹1,432 Cr +28.1%YoY
  2. Consolidated EBITDA ₹313 Cr +33.2%YoY
  3. Consolidated EBITDA Margin 22%
  4. Consolidated PAT ₹228 Cr +27.4%YoY
  5. Consolidated PAT Margin 16%

What they filed

Q1 FY27: revenue up 15.8%, net profit up 21.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,135 1,132 1,129 1,100 1,070 −6%1,133 +0%1,101 −2%1,274 +16%
EBITDA206 218 234 244 238 +16%239 +10%214 −9%276 +13%
Net profit134 142 158 183 187 +40%195 +37%186 +18%223 +22%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Other Segment
    ₹1 Cr EBIT
  • Birla Tyres
    — Revenue

Capital allocation

high confidence
  • Capex ₹2,000 Cr New plan — Total capex announced for new initiatives and Birla Tyres · entirely self-funded without incremental debt
    • Carbon Nanotube (CNT) manufacturing facility (200 MTPA) ₹70 Cr
    • Super Speciality Carbon Black capacity conversion (6,000 MTPA) ₹170 Cr
    • Anode material facility (200 MTPA) ₹120 Cr
    • LFP cathode Phase 1 expansion (40,000 MTPA) ₹1,125 Cr
    • Birla Tyres investments ₹500 Cr
    Further to our letters dated 13 July 2026 and 16 July 2026 and pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations") read with Schedule III of the SEBI Listing Regulations and other applicable provisions of the SEBI Listing Regulations, we are enclosing herewith the transcript of earnings conference call for Financial Performance for the 1st Quarter ended 30 June 2026 held on Thursday, 16 July 2026 at 04:00p.m. (IST). ... Yes, total capex we have announced is around INR2,000 Crores, INR1,125 Crores for LFP, INR368 Crores announced yesterday. So that brings to around INR1,500 Crores of capex, plus INR500 Crores of capex this year in Birla Tyres. So total INR2,000 Crores. Out of this, we expect around INR1,000 Crores of capex happening this year and INR1,000 Crores next year.
  • M&A Sicona Joint venture · Integrated

    Accelerate next-generation silicon carbon anode technology commercialization

    Secured AUD45 million funding for Sicona

    Sicona, in which Himadri is a strategic investor, secured AUD45 million funding to accelerate its next-generation silicon carbon anode technology commercialization.
  • M&A International Battery Company (IBC) Acquisition · Integrated

    Reaffirming confidence across battery value chain, from materials to validation and deployment; strategic investment to enable commercial play of Himadri's products

    Increased stake in IBC; IBC developed prismatic cell lithium-ion cell technology and is setting up a 7 gigawatt facility in India where Himadri raw material will be used.

    Additionally, we have increased our stake in International Battery Company (IBC), reaffirming our confidence across battery value chain; from materials to validation and deployment. ... We supplied our LFP sample to IBC, and they were so encouraged by seeing the quality of the LFP we supplied that they came to us and we formed a strategic partnership because this will put IBC in a unique position where technology is developed outside China with supply chain positioned outside China.
  • Liquidity Liquidity disclosed Planned capex will be covered by free cash flow, indicating strong internal liquidity.
    Yes, definitely, the free cash flow will cover that. There is no question of any incremental debt.

Guidance & targets

Profitability

  • PAT Profitability · FY27 · High confidence INR 1,100 Crores
    I'll remain at INR1,100 Crores for next year and let the quarter speak of itself what happens.

    — Anurag Choudhary

  • Birla Tyres EBITDA Profitability · this financial year · High confidence Breakeven
    We reach EBITDA breakeven in this financial year only. We will be cash positive.

    — Anurag Choudhary

Capacity

  • CNT manufacturing facility commissioning Capacity · Q4 FY27 · High confidence 200 MTPA
    our upcoming 200 ΜΤΡΑ CNT manufacturing facility targeted for commissioning in Q4FY27

    — Anurag Choudhary

  • Super Speciality Carbon Black capacity start Capacity · FY28 · High confidence 6,000 MTPA
    And we have given FY28 as when we'll start the capacity.

    — Anurag Choudhary

  • LFP cathode initial capacity commissioning Capacity · Q3 FY27 · High confidence 2,000 MTPA
    Our initial 2,000 MTPA capacity is expected to be commissioned in Q3FY27

    — Anurag Choudhary

  • LFP cathode Phase 1 expansion operational Capacity · FY28 · High confidence 40,000 MTPA
    That will be operational in FY '28.

    — Anurag Choudhary

  • LFP cathode long-term vision Capacity · Medium confidence 200,000 MTPA
    which forms part of our broader long-term vision to scale capacity to 200,000 ΜΤΡΑ.

    — Anurag Choudhary

  • Anthraquinone and Carbazole initial phase commissioning Capacity · Q2 FY27 · High confidence 2,600 MTPA
    Initial phase capacity of 2,600 MTPA is set to commission in Q2FY27

    — Anurag Choudhary

  • Anthraquinone and Carbazole full commissioning Capacity · FY28 · High confidence 5,300 MTPA
    with full commissioning targeted by FY28.

    — Anurag Choudhary

Revenue

  • Birla Tyres top line Revenue · in 4-5 years · Medium confidence INR 3,000 Crores
    in next 4 years to 5 years the target is to reach INR3,000 Crores of top line in Birla tyres.

    — Anurag Choudhary

Capex

  • Total Capex for FY27 Capex · FY27 · High confidence INR 1,000 Crores
    Out of this, we expect around INR1,000 Crores of capex happening this year and INR1,000 Crores next year.

    — Anurag Choudhary

  • Total Capex for FY28 Capex · FY28 · High confidence INR 1,000 Crores

    — Anurag Choudhary

Revenue Potential

  • Anode (200 MTPA) Revenue Potential · Medium confidence INR 120-130 Crores
    So revenue potential for 200 metric tons will be INR120 Crores, INR130 Crores...

    — Anurag Choudhary

  • CNT (200 MTPA) Revenue Potential · Medium confidence Less than INR 100 Crores
    Yes, in that kind of, not INR100 Crores, less than INR100 Crores.

    — Anurag Choudhary

  • Anthraquinone/Carbazole Revenue Potential · Medium confidence INR 250-300 Crores
    For anthraquinone, carbazole, depending on the value, it can give you anything between INR250 Crores to INR300 Crores of top line.

    — Anurag Choudhary

  • LFP (40,000 MTPA) Revenue Potential · Medium confidence INR 3,000 Crores
    See, 40,000 tons as per the today's value will give you will give you a INR3,000 Crores top line.

    — Anurag Choudhary

Capacity Utilization

  • Base business capacity utilization Capacity Utilization · during the year · High confidence 90%+

    From 80% today

    80% capacity utilization. Looking forward during the year, we will be at 90% plus.

    — Anurag Choudhary

Other Income

  • Other income variability Other Income · quarter-on-quarter · Medium confidence 30-40%
    This will vary 30% to 40% quarter-on-quarter.

    — Anurag Choudhary

Market context

  • Global LFP market share Market Share · in 5-6 years · Medium confidence 2-3%
    So actually, we are targeting at 2% to 3%, which is hardly anything.

    — Anurag Choudhary

What to watch in Q2 FY27

Birla Tyres EBITDA Breakeven

next quarter / FY27
Current Not yet breakeven
Target Breakeven this financial year (FY27)

Why it matters

Indicates the success of the Birla Tyres turnaround strategy and its contribution to overall profitability.

We reach EBITDA breakeven in this financial year only. We will be cash positive.

Risks & concerns

  • Forex volatility impacting profitability

    high

    High currency volatility led to negative FX impact in Q1 FY27, but management expects no further negative impact from next quarter.

    Management downplayed

  • Mining operations halted due to licensing delays

    medium

    EBIT for the 'other segment' dropped significantly from INR 25 Crores to INR 1 Crore as mining operations are awaiting licensing.

    Management acknowledged

  • Competition from Chinese players in LFP cathode market

    medium

    Analysts questioned Himadri's ability to compete on pricing with Chinese LFP producers, but management asserted cost advantages from unique sourcing and India-based production.

    Analyst acknowledged

Q&A highlights

7 direct
EBIT decline in 'other segment' despite stable revenue Direct
So other segment last time consists of mining profit, which this quarter didn't took place. That was the reason of fall. ... So this quarter, we did not operate the mines. We're waiting for some licensing to happen. Post that, the mining operation will start. That was the reason. ... Revenue, because the Birla Tyres revenue has gone up. Last quarter, if you see the Birla quarter revenue, revenue was significantly low. And with the ramping up of capacity in Birla Tyres, the revenue is going up. So that's the reason you don't find change in revenue, but you find change in the profitability.

Clarified the reason for the sharp EBIT drop in the 'other segment' and how Birla Tyres compensated for overall revenue.

Asked by Sanjesh Jain

Differentiation and market size for CNT and Super Speciality Carbon Black (SSCB) Direct
Carbon nanotube is a unique product where graphene is rolled into seamless cylinder that forms carbon nanotube. ... it is 100x the strength of steel with the conductivity of the copper. ... Today, it is around 30,000 metric tons, which is growing every year. ... Coming to super speciality, the market is around 300,000 metric tons. ... Speciality runs into 1 million, so more than 1 million. That's our normal market.

Provided clarity on the unique properties and applications of CNT, and the market size and value proposition of SSCB compared to existing speciality carbon black.

Asked by Sanjesh Jain

LFP cathode market, competition, and Himadri's competitive edge Direct
100% global capacity of LFP rests in China and is mainly dominated by top 5 to 6 players in China. ... And market, if you look at today, we are at 1.5 TWH, 1.6 TWH. And in that, you can say probably 50% is LFP. ... What makes Himadri unique is that -- see, it's not that everyone is talking about lithium ion, so Himadri has also started talking about lithium ion. This has been our vision since last more than 10, 12 years. We have worked very hard on this to make it happen. ... We are the first company in the world to supply the precursor from pitch to the who's who of anode in China, like I don't want to name, any top 5 players in China before China could make coal tar-based precursors, we made it and we supplied to them.

Explained the competitive landscape of the LFP market, China's dominance, and Himadri's long-term strategic positioning and backward integration as a key differentiator.

Asked by Sanjesh Jain

Client commitments and approval process for LFP cathode Direct
Yes. Definitely, see, the clients are very encouraged by our samples. And that is one of the reasons. The best example for all of that is the IBC. We supplied our LFP sample to IBC, and they were so encouraged by seeing the quality of the LFP we supplied that they came to us and we formed a strategic partnership because this will put IBC in a unique position where technology is developed outside China with supply chain positioned outside China. ... So that's the reason instead of setting up 40,000 in the beginning, we have set up 2,000 so that the capex is deferred. And we don't have to wait for the orders for the plant to commission. So by the time we have 40,000 metric ton plant, we have all the approvals because the commercial grade plant is operational and then 40,000 plant is up and running in full stream.

Addressed concerns about market acceptance and client validation for the new LFP cathode product, highlighting the strategic partnership with IBC and the phased capacity expansion approach.

Asked by Sagar Jethwani

Impact of forex changes on profit/loss Direct
No, there is no change in the hedging policy because of the huge volatility in the currency, this happened. And this is done with. If you see last quarter also, there was a loss. This quarter, again, there's a loss. From next quarter, there will not be any impact on account of FX negative impact. So this is the last quarter for this because of so much of volatility in the currency, this happened. But looking forward, it's not going to happen.

Explained the reason for the negative forex impact in Q1 FY27 and provided forward-looking guidance that such impacts are not expected in subsequent quarters.

Asked by Isha Agarwal

Drivers for increased other income Direct
So this quarter, if you see 2, 3 factors. One, we have deployed a lot of fund in terms of interest in FDs. We have borrowed from bank and CPs and deployed in FDs, so which gives us a delta. So that helps to have interest earning on our investments. Plus, we have made investment in mutual funds. So that is part of it. Other than this, we have made investment in IBC, Sicona, NCDs of Birla Tyres. So mark-to-market of that is also helping us to that was the reason for other income.

Clarified the multiple components contributing to the higher 'other income' this quarter, including interest earnings and mark-to-market gains from strategic investments.

Asked by Isha Agarwal

LFP cathode pricing competitiveness against China and raw material sourcing Partial
So in terms of technology, we have developed our in-house technology towards for LFP through years of research and development. ... In terms of pricing, we are trying to price our product as same as China. But base is that, we are trying to develop and set up the business. ... So see, economics works, basically, we are not dependent on China for anything in this. We are not dependent on raw material. We are not dependent on anything. So our raw material source is different. Our production base is India. So we have cost advantage compared to China in many particular aspects. And given the technology that we are using, have some cost advantage altogether. So that will put us in an advantageous position compared to Chinese players.

Addressed concerns about pricing and cost competitiveness against Chinese players, emphasizing Himadri's unique raw material sourcing, India-based production, and technological advantages.

Asked by Tanvi Warekar

Traction for anode pilot plant and customer confidence Direct
Definitely. There's a huge traction from the customer traction. Because of the quality of what we are producing, there is great interest from customers in India and globally. ... First of all, no one is doing this product before Himadri. Himadri is a pioneer in this. So there's no other plant in India who has pilot plant before Himadri. So Himadri has set up 200 ton plant now, but pilot plant is there for last many, many years. And we have done -- and we are doing it on different types of raw material. So our raw material is one of it, other raw materials.

Confirmed strong customer interest and traction for Himadri's anode material, highlighting its pioneering role and ability to use diverse raw materials.

Asked by Bhavika

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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.

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