Archean Q2 revenue rises 26%, while H1 EBITDA falls 5%

Archean Chemical Industries Limited reported consolidated total income of Rs 301.6 crore in Q2FY27, up 25.9% year on year, driven by a 76% rise in bromine revenue to Rs 127.5 crore. However, Archean’s H1FY27 consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) declined 5.1% to Rs 147.3 crore.

Why did Archean’s Q2FY27 revenue rise 26%?

Archean’s Q2FY27 consolidated income rose because bromine and bromine-derivative revenue increased faster than the decline in industrial-salt sales volume. Consolidated total income reached Rs 301.6 crore in Q2FY27, compared with Rs 239.6 crore in Q2FY26, while standalone total income was Rs 305.4 crore versus Rs 231.8 crore a year earlier.

Bromine produced the largest disclosed product-line revenue increase in the quarter. Bromine revenue rose by Rs 55.1 crore to Rs 127.5 crore from Rs 72.4 crore, while volume increased to 4,086 tonnes from 3,160 tonnes. Archean attributed the gain to higher sales volumes, improved realisations and a steady improvement in production throughput.

Industrial Salt revenue increased 9% to Rs 161 crore in Q2FY27 from Rs 147.7 crore, despite volume falling to 8,11,297 tonnes from 8,89,193 tonnes. Archean said road-development activity had created logistical and transportation challenges, and stated that the affected road infrastructure was fully operational. Exports contributed nearly 79% of Q2FY27 operating revenue, although supply-chain issues lengthened transit times and increased freight costs.

Which product lines changed most in Q2FY27?

Archean’s bromine and Bromine Derivatives lines recorded the largest year-on-year revenue increases in Q2FY27, whereas Industrial Salt recorded lower tonnage but higher revenue. Bromine Derivatives revenue rose to Rs 35.7 crore from Rs 19.7 crore, and volume increased to 2,115 tonnes from 1,357 tonnes.

The Acume Chemicals bromine-derivatives business reported Rs 36 crore of Q2FY27 revenue in the consolidated business breakup, compared with Rs 20.4 crore in Q2FY26. Archean said this 81% growth was led by organic bromides. The company also said products launched earlier supported the business and that further products were under development on a campaign basis.

The H1FY27 comparison shows that bromine growth did not fully offset lower Industrial Salt revenue. Industrial Salt revenue declined to Rs 332.3 crore from Rs 341.7 crore as volume decreased to 17,93,377 tonnes from 20,05,390 tonnes. In contrast, bromine revenue rose to Rs 260.7 crore from Rs 156.8 crore, with volume increasing to 8,262 tonnes from 7,128 tonnes.

Bromine Derivatives also expanded in the first half, with revenue rising to Rs 65.1 crore from Rs 42.8 crore and volume reaching 3,585 tonnes from 3,135 tonnes. This product mix shift coincided with consolidated H1FY27 total income growth of 17.5% to Rs 634.4 crore from Rs 540.2 crore, even though H1 industrial-salt revenue was lower year on year.

Why did Archean’s H1FY27 EBITDA fall?

Archean’s H1FY27 consolidated EBITDA fell because EBITDA improvements at the main operating company and Acume were more than offset by larger losses at Idealis and Neun and wider consolidation eliminations. Consolidated EBITDA was Rs 147.3 crore in H1FY27, compared with Rs 155.3 crore in H1FY26, despite the Rs 94.2 crore increase in total income.

At Archean’s standalone business, H1FY27 EBITDA was Rs 173.2 crore, marginally above Rs 171.8 crore a year earlier. Acume reported EBITDA of Rs 0.9 crore, compared with a loss of Rs 4.6 crore. Idealis reported an EBITDA loss of Rs 2.7 crore against a Rs 1.2 crore loss, while Neun reported a Rs 2.3 crore loss against a Rs 0.1 crore loss.

Consolidation eliminations widened to Rs 21.7 crore in H1FY27 from Rs 10.6 crore in H1FY26. The presentation notes that Idealis Mudchemie and SiCSem are consolidated into Idealis and Neun, respectively. These business-level losses and eliminations explain why group EBITDA fell even as standalone EBITDA increased by Rs 1.4 crore.

The consolidated income statement also recorded higher operating-cost lines in H1FY27. Cost of materials consumed rose to Rs 82.6 crore from Rs 46.7 crore, employee cost increased to Rs 38.7 crore from Rs 35.6 crore, and other expenses rose to Rs 395.3 crore from Rs 323.3 crore. Inventory change was negative Rs 29.5 crore, compared with negative Rs 37.3 crore in H1FY26.

What happened to Archean’s profit and balance sheet?

Archean’s consolidated profit after tax increased in Q2FY27 but declined in H1FY27. Q2FY27 profit after tax rose to Rs 31.3 crore from Rs 29 crore, while H1FY27 profit after tax fell to Rs 61.7 crore from Rs 69.2 crore. Basic earnings per share were Rs 5.08 in H1FY27, compared with Rs 5.61 in H1FY26.

Quarterly profit before tax rose 14.6% to Rs 45.7 crore from Rs 39.9 crore and was above the Rs 44.2 crore reported in Q1FY27. Q2FY27 depreciation was Rs 23.9 crore, compared with Rs 23.6 crore a year earlier, while finance cost declined to Rs 4.9 crore from Rs 5.5 crore.

At September 2026, Archean’s consolidated total assets stood at Rs 2,827.5 crore, up from Rs 2,683.6 crore at March 2026. Non-current borrowings increased to Rs 188 crore from Rs 126.7 crore, and current borrowings rose to Rs 295.9 crore from Rs 278.4 crore. Total equity was Rs 1,963.3 crore at September 2026, compared with Rs 1,934.4 crore at March 2026.

Capital work in progress increased to Rs 120.5 crore at September 2026 from Rs 71.5 crore at March 2026, while inventories rose to Rs 246.4 crore from Rs 214.9 crore. Cash and cash equivalents increased to Rs 48.2 crore from Rs 41.2 crore over the same period. The presentation does not provide a project-level allocation for the increase in capital work in progress.

Conclusion

Archean’s Q2FY27 outcome was led by bromine, whose Rs 55.1 crore year-on-year revenue increase supported consolidated income growth of Rs 62 crore. Industrial Salt contributed Rs 13.3 crore of quarterly revenue growth despite lower volume. Across H1FY27, however, lower Industrial Salt revenue, losses at Idealis and Neun, and larger eliminations coincided with a Rs 8 crore decline in consolidated EBITDA.

The next disclosed developments to watch are Industrial Salt volumes after the road infrastructure became fully operational, the campaign-based development of additional bromine-derivative products, and SiCSem’s construction progress. Archean said approvals required at the current stage for SiCSem had been received and construction work had commenced, but the presentation gave no completion date or revenue target for the project.