Himadri Speciality Chemical Limited — Q3 FY26 earnings call

Call held 28 Jan 2026

Management summary

Himadri Speciality Chemical Limited reported strong Q3 and 9M FY26 results, with 9M PAT growing 41% YoY, surpassing FY25 full-year PAT. The company achieved significant milestones including the trial production of its speciality carbon black expansion, commissioning a new export terminal for coal tar pitch, and maintaining its EcoVadis Platinum rating. Strategic investments in battery materials, particularly LFP Cathode Active Material, are progressing as planned, reinforcing the company's commitment to high-value, sustainable growth.

Highlights

  • 9M FY26 PAT grew 41% YoY to INR 564 crores, surpassing full year FY25 PAT of INR 558 crores.

  • Speciality carbon black expansion trial production commenced, establishing the world's largest single-site plant with 130,000 metric tons/annum capacity.

  • Mangalore port terminal commissioned, facilitating 3,600 metric tons of coal tar pitch export to the Middle East, enhancing logistics flexibility.

  • Awarded EcoVadis Platinum medal for the second consecutive year, placing in top 1% globally for ESG.

  • LFP Cathode Active Material Phase 1 (40,000 metric tons per annum) remains on track for Q3 FY27.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹1,184 Cr
  • Consolidated EBITDA
    ₹253 Cr
    YoY +12%
  • Consolidated PAT
    ₹192 Cr
    YoY +36%

9M

  • FY26 Consolidated Revenue
    ₹3,373 Cr
  • FY26 Consolidated EBITDA
    ₹726 Cr
    YoY +18%
  • FY26 Consolidated PAT
    ₹548 Cr
    YoY +37%
  • FY26 Sales Volume
    4,28,572 metric tons
    YoY +3%
  • FY26 EBITDA per metric ton
    ₹16,934
    YoY +15%

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.

Capital allocation

medium confidence
  • Capex ₹1,125 Cr internal accruals
    • LFP Cathode Active Material Phase 1 ₹1,125 Cr
    And how much are we owed in the capex that we are spending for Phase 1? INR1,125 crores. ... So, the entire growth which is going to come for the next 3, 4 years are from internal accruals. ... And there will be no debt, which will be taken. It will be internal accruals.
  • M&A Sicona Acquisition · Integrated

    Enhanced technological depth, accelerated innovation pipeline

    Our commitment to innovation is further strengthened through strategic investments in Sicona, IBC and Invati, which have enhanced our technological depth, accelerated our innovation pipeline.
  • M&A International Battery Company (IBC) Acquisition · Integrated

    Enhanced technological depth, accelerated innovation pipeline, facility in Australia, state-of-art AI-based research and development center in California and a manufacturing facility in South Korea for cell manufacturing

    Our commitment to innovation is further strengthened through strategic investments in Sicona, IBC and Invati, which have enhanced our technological depth, accelerated our innovation pipeline. ... We have taken a stake in International Battery Company headquartered in California, having a state-of-art AI-based research and development center in California and a manufacturing facility in South Korea for cell manufacturing, and they are working on Himadri components for making cells.
  • M&A Invati Acquisition · Integrated

    Enhanced technological depth, accelerated innovation pipeline

    Our commitment to innovation is further strengthened through strategic investments in Sicona, IBC and Invati, which have enhanced our technological depth, accelerated our innovation pipeline.

Guidance & targets

Profitability

  • PAT Profitability · FY28 · High confidence Double FY25 PAT (~INR 1,116 crores)
    So now, FY '25, we had a PAT of around INR 558 crores. With all these projects coming in, with new capacities coming in, value-added products coming in, we are confident that the profit will again double from FY '25 to FY '28, so in 2 years from now.

    — Anurag Choudhary

  • Return on Capital Employed (ROCE) Profitability · Ongoing · High confidence >30%
    So, capital allocation is very, very critical and important metrics for us in Himadri. So we do not allocate capital to any business where ROCE is less than 30%.

    — Anurag Choudhary

Capacity

  • LFP Cathode Active Material Phase 1 Commercialization Capacity · Q3 FY27 · High confidence Commercial operations
    The first commercial phase of 40,000 metric tons per annum remains on track for Q3 FY '27, positioning Himadri at the heart of e-mobility ecosystem as the first commercial LFP Active Material plant globally outside China...

    — Anurag Choudhary

  • LFP Cathode Active Material Full Year Operation Capacity · FY29 · High confidence Full year of operation
    And regarding the capacities for lithium-ion phosphate, so we expect FY '29 to be the full year of operation for lithium-ion phosphate.

    — Anurag Choudhary

  • LFP Cathode Active Material Capacity (Long-term Vision) Capacity · Long-term vision · Medium confidence 200,000 metric tons per annum
    Our long-term vision is to build 200,000 metric ton of LFP Cathode Active Material capacity in phases, catering to approximately 100 gigawatt hour of battery energy demand.

    — Anurag Choudhary

  • Speciality Carbon Black Capacity Utilization Capacity · Next year · High confidence ~85%
    So for the next year, you can look at around 85% capacity utilization for speciality carbon.

    — Anurag Choudhary

Market Share

  • Birla Tyres Presence in OTR and OHT segments Market Share · Next 3 to 5 years · Medium confidence Significant presence
    So the idea is that over the next 3 to 5 years, we will have significant presence from Birla Tyres in these two segments.

    — Anurag Choudhary

Efficiency

  • Asset Turn for LFP Efficiency · At full capacity utilization · High confidence 2 plus
    And asset turn of around, I think you said 2 -- more than 2x, right? 2, 2 plus, 2 plus.

    — Anurag Choudhary

What to watch in Q4 FY26

Speciality Carbon Black Capacity Utilization

Next year (FY27)
Current Trial production started, ramp-up over next 2-3 quarters.
Target ~85% capacity utilization

Why it matters

Verifies the successful ramp-up and commercialization of the expanded speciality carbon black capacity, a key growth driver.

So for the next year, you can look at around 85% capacity utilization for speciality carbon.

Q&A highlights

8 direct
PAT doubling guidance and timeline Direct
So now, FY '25, we had a PAT of around INR 558 crores. With all these projects coming in, with new capacities coming in, value-added products coming in, we are confident that the profit will again double from FY '25 to FY '28, so in 2 years from now.

Clarifies the ambitious PAT doubling target and its revised timeline, indicating strong confidence in upcoming projects.

Asked by Divyansh Thakur

Cathode capacity target and market share strategy Direct
So it's not that we are going to capture a huge market share. FY '30, the global lithium-ion cell capacity will be 8,000 plus. And by that time, we are only targeting 100, which is absolutely nothing in terms of global demand. So actually, first time Himadri is going to be in a product where demand will not be a constraint.

Explains that Himadri's LFP capacity is small relative to global demand, implying demand will not be a constraint, and growth will depend on their ability to expand.

Asked by Smaran

Equity dilution and funding for future growth Direct
So, the entire growth which is going to come for the next 3, 4 years are from internal accruals. So, there is going to be no dilution as far as Himadri is concerned. ... And there will be no debt, which will be taken. It will be internal accruals.

Provides clarity on the company's capital structure strategy, emphasizing reliance on internal accruals for future growth and no further equity dilution or new debt.

Asked by Pratik Shah

LFP Cathode facility ramp-up and full utilization timeline Direct
So next 1 or 2 years, there will not be significant ramp -- utilization. I see utilization coming in -- some utilization will be there in FY '28. But yes, big utilization will come in FY '29.

Gives a detailed timeline for the LFP plant's capacity ramp-up and full utilization, managing expectations for initial years.

Asked by Animesh Jain

Lithium price fluctuations and pass-through model Direct
See, the kind of fluctuation, which is there in lithium, it can never be absorbed. So all the customers will be having a pass-through model in which the pricing, up and down, will be transferred to the customer. Same business model we follow with our existing products also like for coal tar pitch or carbon black. So same will follow for lithium also.

Confirms a critical risk mitigation strategy for raw material price volatility, ensuring margin protection for the new battery materials business.

Asked by Animesh Jain

Anode demand expectations and Himadri's positioning Direct
So, anode demand is very strong in India and globally. ... anode remains constant throughout this chemistry, whichever chemistry is being used.

Highlights the robust demand outlook for anode materials, which is a key strategic area for Himadri, and its consistent demand across different battery chemistries.

Asked by Rohan Baranwal

LFP EBITDA margins and ROCE Direct
See, for looking at Himadri, I'll give you a very basic thumb rule, what we look at in our company at Board level that we have -- what is the return on capital employed. If you look at my existing business, the return on capital employed is 34%. ... So we do not allocate capital to any business where ROCE is less than 30%.

Reveals the company's internal hurdle rate for capital allocation (ROCE > 30%), indicating a disciplined approach to new investments like LFP.

Asked by Disha

Himadri's cost structure, technology roadmap vs Chinese players, and competitive moat Direct
And I have been personally engaged, and very closely monitoring the development of raw material component of this industry over the last many, many years. So, I have very strong relationship and very strong team, which is working on it, and we are absolutely confident. We'll be very strong in terms of our quality of the product, specific cases to meet the requirement of the customers and very much competitive. Plus, we have the India advantage compared to our peers in the other geography.

Management articulates their competitive advantages, including long-standing expertise, strong R&D, customer relationships, and the 'India advantage' in the battery materials space.

Asked by Devanshi Shah

2 min read 7 chapters

Detailed narrative

Speciality Carbon Black Expansion & Milestone

Himadri commenced trial production of its speciality carbon black expansion project, establishing the world's largest single-site plant with a total capacity of 130,000 metric tons per annum. This milestone underscores the company's focus on high value-added solutions and marks a new phase of growth. Management expects ~85% capacity utilization for this segment next year, with full results coming from the next financial year.

Coal Tar Pitch & Export Expansion

The company achieved a key milestone by commissioning a Mangalore port terminal, successfully delivering 3,600 metric tons of liquid coal tar pitch to the Middle East. This establishes a second export corridor alongside Haldia, significantly enhancing logistics flexibility and opening access to new global markets. Himadri aims to cater to rising international demand while offering best-in-class quality and competitive prices.

Sustainability & ESG Leadership

Himadri was awarded the EcoVadis Platinum medal for the second consecutive year, placing it among the top 1% of over 150,000 companies globally assessed on ESG parameters. This recognition reflects the company's deeply embedded approach to sustainability, strong governance, climate-conscious operations, ethical business practices, and responsible supply chain management. The company also highlighted being certified as a Great Place to Work.

Battery Materials & Future Growth

Himadri's entry into battery materials is a transformational chapter. The first commercial phase of 40,000 metric tons per annum for LFP Cathode Active Material is on track for Q3 FY27, with full-year operation expected by FY29. The long-term vision is to build 200,000 metric tons of LFP capacity. On the anode side, the company is developing a comprehensive spectrum of anode solutions, leveraging its strong legacy in carbon chemistry and backward integration.

R&D and Innovation Ecosystem

Himadri's R&D is embedded in its DNA, with a global R&D ecosystem including PhDs and experts from various countries. Strategic investments in Sicona, IBC, and Invati have enhanced technological depth and accelerated the innovation pipeline. These collaborations are developing a sustainable growth engine for innovative products built on cutting-edge technologies, with a focus on high-performance and high-value-added applications.

Financial Performance & Profitability Drivers

For 9M FY26, Himadri reported a PAT growth of 41% YoY to INR 564 crores, exceeding the full-year PAT of FY25. Consolidated revenue for Q3 FY26 stood at INR 1,184 crores with EBITDA of ~INR 253 crores (12% growth), and PAT of INR 192 crores (36% growth). EBITDA per metric ton improved by 15% to INR 16,934 in 9M FY26, driven by a product mix increasingly focused on high value-added offerings. The company aims to double its FY25 PAT by FY28.

Birla Tyres Expansion & Strategic Focus

Birla Tyres is strengthening its footprint across India and international markets, supported by an expanding distribution network. The company plans to achieve a significant presence in the OTR (Off-the-Road) and OHT (Off-Highway Tyres) segments within the next 3 to 5 years, with modernization initiatives progressing well. Future plans include launching passenger car tyres, specifically targeting EV and SUV installations.

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