Himadri Speciality Chemical Limited — Q4 FY26 earnings call

Call held 27 Apr 2026

Management summary

Himadri Speciality Chemical Ltd reported strong financial performance in Q4 and FY26, with consolidated PAT growing 36% YoY to INR 755 crores and EBITDA up 19% YoY to INR 1,006 crores. The company made significant strides in capacity expansion, commissioning its first anode material plant and increasing carbon black capacity. While facing some forex headwinds, management expressed confidence in sustainable growth and margin expansion, driven by new capacities and value-added products.

Highlights

  • Consolidated PAT for FY26 grew 36% YoY to INR 755 crores from INR 555 crores in FY25.

  • Consolidated EBITDA for FY26 grew 19% YoY to INR 1,006 crores from INR 847 crores in FY25.

  • Commissioned first anode material manufacturing facility with an initial capacity of 200 metric tons per annum.

  • Total speciality carbon black capacity increased to 130,000 metric tons per annum (overall 250,000 MTPA) in FY26.

  • Net positive cash balance of INR 121 crores as of March 31, 2026, and ROCE of 32% for FY26.

Concerns

  • Net cash declined from INR 392 crores to INR 122 crores despite record PAT.

  • Forex loss impacted other expenses due to sharp rupee depreciation, leading to hedging losses.

Key financials

2 periods

Q4 FY26

  • Consolidated Revenue
    ₹1,288 Cr
    YoY +14%
  • Consolidated EBITDA
    ₹280 Cr
    YoY +21%
  • Consolidated PAT
    ₹208 Cr
    YoY +34%

FY26

  • Consolidated Revenue
    ₹4,661 Cr
  • Consolidated EBITDA
    ₹1,006 Cr
    YoY +19%
  • Consolidated PAT
    ₹755 Cr
    YoY +36%
  • R&D Spend
    ₹120 Cr
  • ROCE
    32%

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

high confidence
  • Capex Capex disclosed Future expansion will use internal accruals, debt will be low portion
    • First anode material manufacturing facility (initial capacity)
    • Additional speciality carbon black facility
    • Debottling of coal-tar pitch distillation capacity
    • Liquid coal-tar pitch export terminals at Haldia and Mangalore
    • LFP cathode active material project (Phase 1, total 40,000 MTPA) ₹1,125 Cr
    • Anthraquinone and carbazole project
    • Passenger Car Radial (PCR) tyre manufacturing
    For our future expansion, our plan is to use internal accrual only for all the expansion. In any case, if we take debt also, that will be very significantly low portion and will be just timing gap, not much. We don't want to be heavy on debt.
  • Debt Net ₹121 Cr
    • New borrowing Increase in borrowing due to utilizing bank limits, taking at lower rate and providing back at higher rate.
    As of 31st March 2026, we hold a net positive cash balance of INR 121 crores, which gives us ample flexibilities to pursue growth opportunities while maintaining a prudent approach to capital allocation.
  • M&A Sicona Battery Technologies Joint venture · Signed

    Exclusive technology licensing agreement for silicon-carbon anode technology (SiCx®) in India for the world.

    Through an exclusive technology licensing agreement, Himadri has secured right to access, localize, commercialize Sicona's proprietary silicon-carbon anode technology- SiCx® in India for the world.
  • M&A International Battery Company (IBC) Acquisition · Signed

    Strategic investment to enable real-world validation and early commercial deployment of lithium-ion battery materials.

    Further advancing our strategic roadmap, we have made a strategic investment in IBC, International Battery Company, a U.S. headquarter developer and manufacturer of chemistry-agnostic prismatic lithium-ion cells.
  • M&A Invati Creations Joint venture · Signed

    Collaboration for focused research efforts across advanced lithium-ion electrode materials.

    Alongside this, our collaboration with Invati Creations continues to progress steadily, with focused research efforts underway across advanced lithium-ion electrode materials.
  • Liquidity Cash ₹121 Cr Net positive cash balance as of 31st March 2026.
    As of 31st March 2026, we hold a net positive cash balance of INR 121 crores, which gives us ample flexibilities to pursue growth opportunities while maintaining a prudent approach to capital allocation.

Guidance & targets

Profitability

  • Consolidated PAT Profitability · by FY28 · High confidence INR 1,100+ crores

    From INR 555 crores today

    We have committed to double this PAT in next three years in FY28 to INR 1,100 plus crores.

    — Anurag Choudhary

  • Top Line and Bottom Line Growth Profitability · FY27 · Medium confidence Growth
    Maybe few percent but now the real top line growth starts. FY27, you will see a top line growth also and bottom line growth also.

    — Anurag Choudhary

Revenue

  • Birla Tyres Top Line Revenue · next 4 years · High confidence INR 3,000 crores

    From INR 187 crores today

    Birla Tyres top line contribution for this year was INR 187 crores, and we expect to be around INR 3,000 crores of top line from this business in next 4 years.

    — Anurag Choudhary

Capacity Utilization

  • Speciality Carbon Black Capacity Utilization Capacity Utilization · FY27 · High confidence 85%-90%
    We expect to have around 85%-90% capacity utilization for our newly announced capacities for FY27.

    — Anurag Choudhary

Capacity

  • LFP Cathode Active Material (Phase 1) First Milestone Capacity · Q3 FY27 · High confidence 2,000 metric tons
    As part of this phased execution, the first milestone capacity of 2,000 metric tons is targeted for commissioning by Q3 FY27.

    — Anurag Choudhary

  • LFP Cathode Active Material (Phase 1) Full Operations Capacity · FY29 · High confidence 40,000 metric tons
    The balance Phase 1 capacity will be progressively brought onstream over the subsequent 12 months, closely aligned with customer approvals and demand visibility, with FY29 envisaged as the year for full Phase 1 operations.

    — Anurag Choudhary

Exports

  • Coal Tar Pitch Exports from New Capacity Exports · by FY28 · High confidence 50,000 tons
    See, by FY28, we expect the new commissioning capacity of 100,000 tons, which gives us 50,000 tons of coal tar pitch that will be completely exported to the global market.

    — Anurag Choudhary

Commissioning

  • Passenger Car Radial (PCR) Tyres Commissioning · next 24 months · High confidence Commissioning
    PCR, we target to commission in next 24 months.

    — Anurag Choudhary

  • Anthraquinone and Carbazole Project Commissioning · Q2 FY27 · High confidence Commissioning
    Looking ahead, our anthraquinone and carbazole project is progressing as planned and expected to commission in Q2 FY27, helping address a significant import dependency in India.

    — Anurag Choudhary

What to watch in Q1 FY27

Anode Business Specifics

In due course of time (implied next few quarters)
Current Still working on figures for investment and time frame.
Target Specific figures for investment and timeline for anode business.

Why it matters

Anode is a key new segment, and concrete plans are needed for investor confidence and to assess future capital allocation.

So for the anode business, we are still working on it. And in due course of time, we'll come up with the figures and the investment required and the time frame.

Risks & concerns

  • Forex Volatility

    medium

    Sharp rupee depreciation impacted imports and led to hedging losses this quarter, despite a general policy of keeping positions open.

    Both acknowledged

  • Geopolitical Volatility in West Asia

    low

    Business is resilient and not dependent on West Asia for feedstock or operations; shipments can be diverted to other geographies.

    Management downplayed

Q&A highlights

3 direct, 1 evasive
Anode Business Growth Trajectory and Economics Partial
So for the anode business, we are still working on it. And in due course of time, we'll come up with the figures and the investment required and the time frame. ... See, cathode and anode together constitute an integral and important raw material for lithium-ion batteries. In terms of cost, it is 65% of the cell, lithium-ion cell cathode anode together. And in the ratio suppose for lithium-ion cell, anode and cathode is used in the ratio of 1:2.

Provides initial strategic direction and cost structure for a key new business segment, though specific numbers are pending.

Asked by Sanjesh Jain

Birla Tyres Revenue Contribution and Future Scale-up Direct
Birla Tyres top line contribution for this year was INR 187 crores, and we expect to be around INR 3,000 crores of top line from this business in next 4 years.

Quantifies the initial impact and ambitious growth target for a recently revived business, indicating its potential contribution to overall revenue.

Asked by Rahil S

Overall Top Line and Bottom Line Growth Outlook Partial
Maybe few percent but now the real top line growth starts. FY27, you will see a top line growth also and bottom line growth also. ... I don't want to give any growth numbers.

Signals a shift from margin-led growth to both top line and bottom line growth, crucial for a company entering new capital-intensive segments, despite management's reluctance to provide specific numbers.

Asked by Rahil S

Forex Impact on Other Expenses and Hedging Policy Direct
Yes. As you know, there was sharp depreciation in rupees which impacted us on the import side. And export side also, we hedged something, but generally we keep our position open. Because of this huge volatility, we hedged. Because of the hedging, we had to incur losses this time.

Highlights a specific financial headwind and management's approach to currency risk, which impacted current quarter results.

Asked by Sagar Jethwani

Total Capex for LFP Cathode Phase 1 Capacity Direct
INR 1125 crores.

Provides concrete figures for a major strategic investment, including capacity and cost, which is critical for future growth.

Asked by Vignesh S.B.K.

Binding Offtake Agreements for LFP Supply Evasive
See, any MOUs or LOIs which we have signed, we have NDA. We cannot disclose this now. At the right point of time, it will be disclosed. For our Phase 1, the capacity, depending on the product approval, these LOIs will be affected.

Indicates that while capacity is being built, firm customer commitments are still under wraps, which is a key de-risking factor for such a large investment.

Asked by Yash Mehta

Net Cash Decline and Borrowing Strategy Partial
See, the increase in borrowing is basically we have significant bank limits. We need to utilize this limit to keep our limits intact. We take at a lower rate and provide back to the bank at a higher rate. That gives a delta also, which is part of our income. For our future expansion, our plan is to use internal accrual only for all the expansion.

Addresses concerns about cash flow and debt management, clarifying the company's capital allocation philosophy for future growth.

Asked by Yash Mehta

3 min read 7 chapters

Detailed narrative

Strong Financial Performance and Growth in FY26

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.

Strategic Entry and Expansion in Lithium-Ion Battery Materials

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.

Enhanced Carbon Black and Coal Tar Pitch Capacities

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.

Birla Tyres Revival and Future Outlook

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.

Commitment to Top Line and Bottom Line Growth

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.

R&D, Innovation, and Strategic Partnerships

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.

Forex Impact and Prudent Capital Management

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.

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