Himadri Speciality Chemical: Q1 FY27 mixes strong earnings with a bigger advanced materials push

Himadri Speciality Chemical Limited entered FY27 with a strong set of consolidated numbers and a clear effort to reposition the portfolio toward higher value materials. For the quarter ended 30 June 2026 (Q1 FY27), consolidated revenue rose to INR 1,431.88 crore, up 28.04% year on year. EBITDA increased to INR 313.11 crore, up 33.10% year on year, and profit after tax (PAT) came in at INR 228.43 crore, up 27.36% year on year.

Management attributed the performance to operational discipline and an ongoing shift in product mix toward higher value segments. The quarter also carried a clear strategic message: Himadri wants to be more than a coal tar derivatives company and is building new growth platforms in advanced materials, speciality chemicals, and battery materials.

Q1 FY27 performance: revenue up, profitability holds

While the company’s standalone sales volumes (as reported in the presentation) declined compared to last year, revenue and profits still grew, suggesting favourable pricing and improved mix. Management also noted that raw material prices moved up, lifting finished product prices, but reiterated that the portfolio shift remains a structural driver.

The presentation provides both standalone and consolidated financial statements. The consolidated numbers best reflect the overall picture, including the contribution from subsidiaries.

A notable swing in the quarter was the forex line. On the consolidated statement, foreign exchange fluctuation was a loss of INR 25.20 crore. Management attributed this to currency volatility and said it does not expect further negative impact from next quarter, while also stating there was no change in hedging policy.

Core platform: carbon complex scale with a shift toward speciality

Himadri’s core remains its integrated carbon platform. In the presentation, the company highlights its coal tar pitch leadership with 65% domestic market share and 600,000 MTPA coal tar distillation capacity. It also states it operates eight zero liquid discharge plants across India and China and maintains a heated tanker fleet.

In speciality carbon black, the company positions itself as a scaled, technology-led player with around 250,000 MTPA carbon black capacity and around 130,000 MTPA speciality carbon black capacity. The portfolio is said to include 70+ speciality grades across tyres, rubber, plastics, coatings, inks, and advanced materials. The presentation also lists its speciality carbon black brand series, including ENERGEX, ONYX, JETEX, KLAREX, ELECTRA, COLORX, BARONX, VIRTEX, and TERVION.

Management repeatedly described the approach as lab-first, plant-later, meaning capacity additions are intended to follow customer validation and application development.

Coal tar pitch remains the anchor business. The company also described forward integration into higher value speciality molecules like anthraquinone and carbazole, along with value-added products such as naphthalene and branded naphthalene balls under Durofresh.

New growth bets: CNT, super speciality carbon black, and battery materials

The most visible step-up in the narrative comes from the new initiatives announced around advanced materials and battery materials.

Carbon Nano Tube: first commercial plant in India

The company announced it has developed indigenous Carbon Nano Tube technology through in-house R&D and plans a 200 MTPA manufacturing facility. The capex is stated at INR 70 crore, with commissioning targeted for Q4 FY27. Management positioned CNT as a global-play product with applications across lithium-ion batteries, semiconductors, electronics, sensors, coatings, aerospace and automotive. On the call, management described the current India market as small and said the initial phase will be focused on global customers.

Super Speciality Carbon Black: conversion to a niche premium segment

Himadri also announced entry into Super Speciality Carbon Black (SSCB). The plan is to convert 6,000 MTPA from existing carbon black capacity into SSCB, with capex of INR 170 crore. Commissioning is targeted for Q4 FY28. Management called this a niche, high value segment and stated the market is about 300,000 tons. They did not disclose margins and avoided technical specifics, citing competitive reasons.

Battery materials: anode and LFP cathode scale-up

The presentation states the company has commissioned a 200 MTPA anode material facility at Mahistikry, and on the call management said it was commissioned in April 2026. Management also stated that INR 120 crore has already been spent for this anode facility and clarified that no further capex for a larger anode capacity has been announced yet. The plant is described as supporting customer approvals, with management noting the typical approval process can take 1.5 to 2 years.

On LFP cathode active materials, the company has outlined a much larger investment plan. It disclosed capex of INR 1,125 crore for Phase 1 capacity of 40,000 MTPA, with a 2,000 MTPA milestone expected to commission in Q3 FY27. On the call, management said the full 40,000 MTPA Phase 1 is expected to be operational in FY28 and reiterated a longer-term ambition to scale capacity to 200,000 MTPA.

Management also made an industry claim that global commercial LFP capacity currently sits fully in China, dominated by the top five to six players. Himadri’s stated approach is to build technology and supply chain capabilities outside China.

Capital allocation, partnerships, and execution watchpoints

Management emphasised that the capex program is self-funded and stated it does not plan to take incremental debt for the newly announced capex. On the call, management indicated total announced capex of around INR 2,000 crore, including INR 1,125 crore for LFP, INR 368 crore for CNT and SSCB combined, and about INR 500 crore capex in Birla Tyres. The company expects about INR 1,000 crore of capex in FY27 and about INR 1,000 crore in FY28.

The company also highlighted strategic investments in the battery ecosystem, including International Battery Company (IBC) and Sicona, and described IBC as a way to enable commercial validation of Himadri’s materials in battery cells. Management clearly stated it does not plan to enter cell manufacturing itself.

On Birla Tyres, management described the turnaround progress, distribution scale-up, and a plan to commission a Passenger Car Radial facility by FY28. It also stated a longer-term target of reaching INR 3,000 crore top line in Birla Tyres over 4 to 5 years and expects EBITDA breakeven and cash positivity in the current financial year.

The near-term watchpoints are also clear from the call. Forex volatility hit this quarter. Mining operations were paused due to licensing and environmental clearance, and management said timing is uncertain. And across battery materials, commercialization depends on customer qualification timelines.

Takeaways

Himadri’s Q1 FY27 numbers show strong earnings and a continuation of the profitability trend highlighted in the presentation’s multi-year financials. At the same time, the company is trying to compress a longer transformation into a shorter window by adding new advanced material platforms, including CNT and SSCB, and building out battery materials capacity.

The next few quarters will be about execution against the stated commissioning roadmap. Management has provided clear timelines for several projects, but the outcomes will hinge on approvals, customer qualification cycles, and the ability to scale specialty products without diluting financial discipline.