Himadri Speciality Chemical: LFP plant Q3 FY27

Himadri Speciality Chemical Ltd has set out a multi-year growth plan that links its core carbon materials business with downstream bets in lithium-ion battery materials and tyres. Recent updates point to a sharper push on capacity additions in specialty carbon black, export infrastructure for coal tar derivatives, and a phased entry into lithium iron phosphate (LFP) cathode materials. Alongside, Birla Tyres, now part of a Himadri-led consortium, is being positioned for specialty and electric vehicle (EV) tyre segments.

The strategy matters for investors because the company is tying new investments to internal accruals, while management has also indicated an intent to double profit (PAT) again by FY28 from the FY25 base. Execution on commissioning timelines and ramp-up pace across new assets will shape near-term operating leverage.

Quarter performance: profitability ahead of revenue

For the nine months ended 31 December 2025, Himadri reported revenue of ₹3,300 crore, with total sales volumes up about 3% year on year to 428,572 tonnes. Profit after tax (PAT) for the nine months rose to ₹560 crore, and EBITDA increased to ₹730 crore, supported by margin expansion and a tilt towards higher value-added products.

In the December quarter, consolidated EBITDA rose about 12% year on year to ₹250 crore, while PAT increased 36% to ₹190 crore. The company attributed the trend to stronger operating leverage and continued progress on strategic investments, even as revenue was described as softer.

Separately, Q1 FY26 reporting also highlighted the same theme: profits rising faster than revenue. Net profit after tax was reported at ₹179.36 crore, EBITDA at ₹235.25 crore, sales volume at 1,40,090 MT, and revenue from operations at ₹1,118.29 crore, with the revenue dip linked to raw material price corrections.

Specialty carbon black: trial production and capacity scale-up

Himadri has commenced trial production at its brownfield specialty carbon black expansion project at Mahistikry. Once fully operational, the project is expected to lift total specialty carbon black capacity to 130,000 tonnes per annum, described as positioning the site as the world’s largest single-site facility for specialty carbon black.

The estimated capital expenditure for this project is ₹220 crore. The stated intent is to focus on premium applications including plastics, inks, coatings and other niche segments. In another update, the company also indicated that total carbon black capacity is targeted to reach 250,000 metric tonnes.

Management has positioned Himadri’s carbon black strategy as largely insulated from tyre-cycle volatility, noting that less than 25% of its carbon black sales go to tyre manufacturers.

Coal tar derivatives: Mangalore port export corridor

To reduce logistics concentration risk and improve export flexibility, Himadri commissioned a high-temperature liquid coal tar pitch terminal at New Mangalore Port, creating a second export corridor alongside Haldia. During the quarter ended 31 December 2025, the company executed its first export shipment of 3,600 tonnes of liquid pitch to the Middle East.

The company has also referenced export-led growth opportunities for coal tar derivatives, with incremental coal tar pitch demand noted from the Middle East.

Battery materials: LFP cathode capacity build-out

A key strategic pillar is lithium-ion battery materials, where Himadri is focusing on Lithium Iron Phosphate (LFP) cathode active material, positioned as safe and cost-effective. The stated capacity plan is 200,000 metric tonnes per annum, with the first phase of 40,000 tonnes targeted for Q3 FY27.

Himadri has also highlighted its carbon chemistry capabilities to develop synthetic and natural graphite anodes. In addition, the company has partnered with Sicona Battery Technologies for silicon-carbon anode technology in India.

Investments and partnerships supporting the battery roadmap

The company disclosed an investment of USD 4.43 million for a 16.24% stake in International Battery Company, Inc. (IBC). It also acquired a 40% stake in Invati Creations for ₹45.16 crore, focused on R&D in lithium-ion electrode materials.

The broader narrative from management and company communication is a continued focus on in-house innovation and R&D, supported by collaborations.

Birla Tyres: specialty focus and an EV angle

Birla Tyres is the next strategic pillar in the group’s growth plans. The integration strategy outlined a focus on OTR (Off-the-Road) and OHT (Off-Highway) tyres used in mining, agriculture, and industrial sectors, with an intent to enter the EV and SUV passenger car tyre segment in the future.

In one quarterly update, the tyre segment reported ₹60 crore in revenue for the quarter. Another operational update reported Q2 sales of ₹26 crore, with 29 distributors and 350+ dealers.

Management also discussed a passenger car radial (PCR) strategy oriented towards EVs, with commissioning targeted in the next 24 months, and an installation timeline mentioned as starting within 12 months.

Capex plan and funding approach

Himadri has outlined multiple capex lines across platforms. Alongside the ₹220 crore specialty carbon black expansion, the company cited forward integration into specialty chemicals such as anthraquinone and carbazole with planned capex of ₹120 crore.

Management has also stated that upcoming growth and factory builds are intended to be funded through internal accruals, with no plan to take on heavy debt or dilute equity.

Promoter allotment and shareholding change

During the quarter ended 31 December 2025, upon receipt of ₹240 crore in balance consideration from promoters, Himadri allotted one crore equity shares to the promoters. Following the allotment, promoter shareholding increased to 52.5%.

Key numbers at a glance

Market impact: what investors are tracking

The company’s reported margin expansion, despite softer revenue in parts of the period, puts focus on product mix and operating leverage. Commissioning and ramp-up of the Mahistikry specialty carbon black expansion is a key swing factor because it targets premium applications.

The second export corridor at Mangalore adds redundancy to the export chain and is tied to the first shipment of 3,600 tonnes of liquid pitch to the Middle East. For battery materials, the Q3 FY27 milestone for the 40,000-tonne LFP phase is central, alongside the longer-term ambition to scale to 200,000 MTPA.

In tyres, the revenue base is still small relative to the chemicals business, but management’s emphasis on OHT, OTR, and EV-focused PCR products suggests a differentiated positioning rather than a broad commodity play.

Analysis: why the strategy is structured this way

Himadri is using its established base in carbon chemistry and coal tar derivatives to fund and de-risk adjacent moves. The emphasis on internal accruals indicates a preference for balance-sheet discipline as the company funds multiple projects in parallel.

The combination of a higher-value carbon black portfolio, export infrastructure, and battery materials targets can diversify earnings drivers. At the same time, each platform has distinct execution risk: commissioning schedules, qualification cycles in battery materials, and distribution-led ramp-up in tyres.

Management has also indicated an intention to double PAT by FY28 from the FY25 base, which places added importance on project timelines and utilization rates.

Conclusion

Himadri Speciality Chemical’s recent updates show a coordinated expansion plan across specialty carbon black, coal tar derivative exports, lithium-ion battery materials, and Birla Tyres. The most visible near-term milestones include full-scale operations from the Mahistikry expansion and progress toward the Q3 FY27 commissioning target for the first 40,000 MTPA LFP phase, alongside a gradual tyre ramp-up with an EV-oriented PCR roadmap.