Himadri Speciality Chemical Ltd: FY26 record profits, carbon black scale-up, and a phased battery materials build

Himadri Speciality Chemical Ltd closed FY26 with its strongest profitability to date, backed by higher margins and a steady execution tempo on capacity additions. On a consolidated basis, revenue from operations came in at Rs 4,660.70 crore for FY26, while EBITDA reached Rs 1,005.70 crore and profit after tax rose to Rs 755.07 crore. Management also highlighted that the company remained net cash positive at around Rs 121 crore.

The March quarter extended that momentum. Consolidated Q4 FY26 revenue from operations was Rs 1,287.76 crore, up 13.50% year on year, while EBITDA increased 21.15% to Rs 279.87 crore. PAT rose 33.49% to Rs 207.53 crore. The company attributed the year’s performance to stable volumes, improved margins, and continued mix shift towards value-added products.

Financial performance: growth led by margins

While the topline was largely stable year-on-year for FY26, profitability expanded meaningfully. Gross profit rose to Rs 1,760.82 crore on a consolidated basis in FY26, compared with Rs 1,465.60 crore in FY25. EBITDA grew to Rs 1,005.70 crore from Rs 846.74 crore, and PBT increased to Rs 1,000.90 crore from Rs 806.17 crore.

The company’s multi-year trend also indicates a step-change in operating leverage. Over FY22 to FY26, consolidated revenue increased from Rs 2,791 crore to Rs 4,661 crore, while EBITDA climbed from Rs 163 crore to Rs 1,006 crore and PAT from Rs 39 crore to Rs 755 crore.

Metric (Consolidated)	FY26 (Rs Cr)	FY25 (Rs Cr)	YoY change
Revenue from operations	4,660.70	4,612.63	1.04%
EBITDA	1,005.70	846.74	18.77%
PBT	1,000.90	806.17	24.15%
PAT	755.07	555.09	36.03%
Net cash (management disclosure)	121	392	NA

Core platform: speciality carbon black and coal tar derivatives

A central theme in the FY26 communication was scale and integration in the carbon value chain.

The company commissioned a 70,000 MTPA speciality carbon black line at Mahistikry, West Bengal. With this addition, total carbon black capacity stands at 250,000 MTPA, including 130,000 MTPA of speciality carbon black. Management positioned Mahistikry as the world’s largest single-location speciality carbon black facility.

On the earnings call, management guided for a utilisation ramp in FY27, stating expectations of around 85% to 90% utilisation for the newly announced capacities. It also cited an average EBITDA per metric ton of around Rs 17,000 across the portfolio, with the new speciality capacity expected to be higher given its mix and end-use applications.

On coal tar pitch, the company highlighted its intention to strengthen exports in liquid coal tar pitch, supported by commissioning of high-temperature liquid pitch terminals at Haldia and Mangalore ports. In the concall, management stated that by FY28 it expects a new capacity of 100,000 tons to enable exports of about 50,000 tons of coal tar pitch to global markets.

Battery materials: anode commercial validation and phased LFP build

FY26 also marked a notable milestone in advanced materials. Himadri commissioned its first anode material production facility with an initial capacity of 200 MTPA at Mahistikry in April 2026. The company described this as an outcome of more than a decade of in-house R&D and highlighted a key differentiator: the use of specially engineered high-purity coal tar pitch produced entirely in-house.

Management was explicit that the 200 MTPA facility is primarily for commercial validation and customer sampling, and that revenue contribution from this plant will not be material at current scale. It also stated that it will announce capex, capacity and timelines for a larger commercial-scale anode plant once finalised.

The larger investment thesis sits with LFP cathode active material. The company reiterated its long-term vision to reach 200,000 MTPA of LFP cathode active material in a phased manner over 5 to 6 years. Near term, Phase 1 is the defined project: a total of 40,000 MTPA with capex of Rs 1,125 crore. The first milestone capacity of 2,000 MTPA is targeted for commissioning by Q3 FY27, with the balance Phase 1 capacity to be commissioned over the subsequent 12 months and FY29 envisaged as the year of full operations.

In the call, management also provided a key project-level metric, stating an asset turn expectation of about 2x for the cathode segment. It repeatedly linked the ramp schedule to customer approvals and demand visibility, positioning this as a disciplined capital allocation approach aimed at protecting ROCE.

Alongside internal programs, the company highlighted strategic equity stakes and collaborations across the battery ecosystem: an investment in Sicona Battery Technologies (exclusive technology licensing for SiCx anodes in India), a stake in International Battery Company (IBC), and a 40% stake in Invati Creations.

Birla Tyres: early ramp and a longer runway

The tyre acquisition remains another major pillar of the growth narrative. The investor presentation noted the Birla Tyres acquisition as achieved in Q1 FY26 with an investment of Rs 306 crore, with additional capex expected over the next three years for upgradation, modernisation and full capacity commencement.

In the earnings call, management disclosed that Birla Tyres contributed about Rs 187 crore topline in FY26. It also shared an expectation of around Rs 3,000 crore topline from this business over the next four years, while stating it does not provide year-on-year guidance.

The company also discussed a passenger car radial unit commissioning timeline, stating it targets commissioning in the next 24 months and will focus on EV-oriented tyres.

What investors should watch

Two themes stood out as operational watchpoints. First is forex volatility. FY26 included a consolidated foreign exchange fluctuation loss of about Rs 43.56 crore, with Q4 loss of Rs 38.13 crore. Management attributed this to volatility and hedging decisions, noting its general policy is to keep positions open because exports and imports are largely in parity.

Second is capital intensity and cash flow. Consolidated investing cash flow was negative Rs 963.81 crore in FY26, reflecting the scale of investments and expansion. Management maintained that future expansions are planned primarily through internal accruals, with debt used only for timing gaps if required.

Closing view

Himadri’s FY26 communication is built around a clear sequence: record profitability from a maturing core platform, scale-up in speciality carbon black, and a carefully staged move into battery materials and downstream consumer exposure through tyres. The next major operational milestones are visible on the timeline, including LFP Phase 1 commissioning starting Q3 FY27 and anthraquinone and carbazole commissioning targeted by Q2 FY27. The core question for the next two years will be whether these projects translate into sustained topline growth while preserving the profitability and ROCE profile management has highlighted.