Himadri Speciality Chemical (500184) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 and FY25 saw record EBITDA and PAT, driven by high-value product sales, operational efficiencies, and strategic expansion in specialty carbon black, battery materials, and tyres.

• Diversification into battery materials, including LFP cathode and anode technologies, and global integration through acquisitions in Sicona, IBC, and Invati Creations.

• Sustainability and ESG leadership recognized with global awards, including EcoVadis Platinum and CDP 'B' rating.

• Several new subsidiaries, including Birla Tyres Limited, were consolidated during the quarter.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2025 were approved with no material misstatements.

Financial highlights

• FY25 revenue was Rs. 4,595.8 Cr, up 9.82% YoY; Q1 FY26 consolidated revenue was INR 1,118 crore, down from INR 1,200 crore YoY due to lower raw material prices.

• Q1 FY26 EBITDA rose 25% YoY to INR 235 crore; PAT increased 46% YoY to INR 179 crore; ROCE at 32% (excluding investments and CWIP).

• Standalone net profit after tax for Q1 FY26 was INR 182.57 crore, up from INR 123.45 crore YoY; basic EPS was INR 3.70.

• Net positive cash balance of Rs. 371.2 Cr as of March 31, 2025; standalone debt-equity ratio at 0.21.

• Sales volume for Q1 FY26 was 140,090 MT, up 1% YoY.

Outlook and guidance

• Net profit expected to double from FY24 to FY27; significant sustainable growth in profitability projected over the next two years.

• Specialty carbon black capacity to more than double by Q3 FY26, making it the largest site globally.

• LFP cathode plant (40,000 MT/year) on track for Q3 FY27 commissioning, targeting 200,000 MTPA capacity over 5-6 years.

• Forward integration into anthraquinone and carbazole to be completed by Q2 FY27.

• Effective 1 April 2025, migrated to lower tax regime under section 115BAA, impacting deferred tax calculations.