Himadri Special

Himadri Speciality Chemical Ltd reported its strongest financial performance to date in FY26. Consolidated revenue reached INR 4,661 crores, while EBITDA stood at INR 1,006 crores, representing a 19% year-on-year growth from INR 847 crores in FY25. Profit after Tax (PAT) saw a significant increase of 36% year-on-year, reaching INR 755 crores compared to INR 555 crores in FY25. The company also achieved a robust 32% Return on Capital Employed (ROCE) for the year, reflecting strong operational discipline and value-added portfolio.

The company made pivotal advancements in the lithium-ion battery materials value chain. It successfully commissioned its first anode material manufacturing facility in Mahistikry, West Bengal, with an initial capacity of 200 metric tons per annum. For the LFP cathode active material project, Phase 1 targets a total capacity of 40,000 metric tons per annum, with the first 2,000 metric tons expected to be commissioned by Q3 FY27. The full 40,000 MTPA capacity is projected to be operational by FY29, requiring a total capex of INR 1125 crores.

Himadri significantly expanded its carbon black and coal tar pitch capacities in FY26. An additional 70,000 metric tons of speciality carbon black capacity was commissioned, bringing the total speciality carbon black capacity to 130,000 metric tons per annum and overall carbon black capacity to 250,000 metric tons per annum. The coal-tar pitch distillation capacity was debottled to 600,000 metric tons per annum, supported by new liquid coal-tar pitch export terminals at Haldia and Mangalore. Management expects 85%-90% capacity utilization for the newly added carbon black capacities by FY27.

FY26 marked the first half-year of operations for the revived Birla Tyres business, contributing INR 187 crores to the top line. The company is focusing on a disciplined revival strategy, prioritizing product-market fit, channel strength, and brand repositioning. Management has an ambitious target to achieve a top line of approximately INR 3,000 crores from the Birla Tyres business within the next four years. This growth is expected to be driven by new SKUs like AgriPlus and AgriWin and an expanding distribution network of 43 distributors and over 1,000 dealers.

Management articulated a clear shift towards achieving both top line and bottom line growth, stating that 'real top line growth starts' in FY27. This is a departure from previous years where growth was primarily margin-led due to value-added product mix. The company reiterated its commitment to double its FY25 PAT of INR 555 crores to over INR 1,100 crores by FY28. This confidence is underpinned by new capacities coming online and a resilient business model that allows for effective pass-through of raw material price increases.

Himadri invested INR 120 crores in R&D during FY26, highlighting its foundational role in driving innovation. This commitment has led to the in-house development of its anode material technology. The company also engaged in strategic collaborations, including an exclusive technology licensing agreement with Sicona Battery Technologies for silicon-carbon anode technology and a partnership with Invati Creations for advanced lithium-ion electrode materials. A strategic investment in IBC (International Battery Company) aims to validate and accelerate commercial deployment of its battery materials.

The company experienced some impact from forex volatility in Q4 FY26, with sharp rupee depreciation leading to hedging losses. Despite a decline in net cash from INR 392 crores to INR 122 crores, management clarified that increased borrowings were primarily for utilizing bank limits to generate income. For future expansions, the company plans to rely predominantly on internal accruals, maintaining a low-debt approach and focusing on prudent capital deployment to ensure robust ROCE.