Himadri Speciality Chemical (500184) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly and half-yearly EBITDA and PAT in Q2 and H1 FY26, with strong year-over-year profitability growth despite revenue declines from lower raw material prices and deferred export sales.

• Strategic focus on high-value specialty and advanced materials, with robust R&D, capacity expansion, and global collaborations driving margin improvement.

• Strategic investments and expansions in battery materials, specialty chemicals, and tyres are underway to drive future growth.

• Product mix remains focused on high value-added products, with export orders executed during the quarter to be recognized in the next quarter.

• Unaudited standalone and consolidated financial results for the quarter and six months ended 30 September 2025 were approved and reviewed by the Board and auditors, with no material misstatements identified.

Financial highlights

• Standalone Q2 FY26 revenue was INR 1,070 crore (down from INR 1,135 crore YoY), with EBITDA of INR 243 crore (up 21% YoY) and PAT of INR 187 crore (up 39% YoY).

• H1 FY26 standalone revenue was INR 2,171 crore (down 7% YoY); EBITDA INR 477 crore (up 23% YoY); PAT INR 369 crore (up 43% YoY).

• Consolidated Q2 FY26 revenue was INR 1,071 crore; EBITDA INR 238 crore (up 17% YoY); PAT INR 176 crore (up 30% YoY).

• Cash and cash equivalents at ₹63.56 crore (standalone) and ₹69.10 crore (consolidated) as of Sep 2025.

• Operating margin improved to 22.67% standalone and 22.21% consolidated for Q2 FY26.

Outlook and guidance

• Specialty carbon black expansion to double capacity to 130,000 MTPA by end of Q3 FY26; total carbon black capacity to reach 250,000 MTPA.

• Double-digit growth anticipated in FY27 with capacity additions and margin improvements seen as sustainable.

• Full impact of specialty carbon black and new chemical facilities expected from Q1-Q2 FY27.

• Commercial LFP cathode active material plant to be operational by Q3 FY27, targeting 200,000 MTPA capacity in phases.