Himadri Special Q1 FY27 Earnings Call — Analysis (NSE: HSCL)
Himadri posts 28% revenue growth and 33% EBITDA jump in Q1FY27, unveils capex for indigenous CNT technology and super speciality carbon black, reaffirms FY28 PAT target.
The take
Q1FY27 Consolidated Revenue ₹1,432 Cr ( +28% YoY ) . New guidance — FY31 birla tyres revenue ₹3,000 Cr . New story: Innovation-led product upscaling .
Results
Consolidated revenue ₹1,432 Cr +28% YoY; EBITDA ₹313 Cr +33% YoY (margin 22%); PAT ₹228 Cr +27% YoY (margin 16%).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue | ₹1,432 Cr | +28% | yoy · Q1FY27 |
| Consolidated EBITDA | ₹313 Cr | +33% | yoy · Q1FY27 |
| Consolidated PAT | ₹228 Cr | +27% | yoy · Q1FY27 |
| Consolidated EBITDA Margin | 22% | point_in_time · Q1FY27 | |
| Consolidated PAT Margin | 16% | point_in_time · Q1FY27 | |
| Standalone Revenue | ₹1,274 Cr | +16% | yoy · Q1FY27 |
| Standalone EBITDA | ₹301 Cr | +29% | yoy · Q1FY27 |
| Standalone PAT | ₹223 Cr | +22% | yoy · Q1FY27 |
Guidance
FY28 PAT target of ₹1,100 Cr reaffirmed; total capex of ₹2,000 Cr planned over FY27–28 with no incremental debt.
What management committed to
- 200 MTPA Carbon Nanotube (CNT) manufacturing facility will be commissioned in Q4FY27 with a planned capex of approximately ₹70 Cr. — 200 MTPA, ₹70 Cr, Q4FY27
- [Super Speciality Carbon Black] conversion of 6,000 MTPA of existing capacity will be completed by FY28 with a capex of ₹170 Cr. — 6,000 MTPA, ₹170 Cr, FY28
- Initial 2,000 MTPA LFP cathode capacity will be commissioned in Q3FY27. — 2,000 MTPA, Q3FY27
- Phase-1 LFP cathode capacity of 40,000 MTPA will be operational in FY28. — 40,000 MTPA, FY28
- Long-term vision to scale LFP cathode capacity to 200,000 MTPA by FY31 (5 years from now). — 200,000 MTPA, FY31
- FY28 PAT target of ₹1,100 Cr remains intact; all assumptions are positive. — ₹1,100 Cr, FY28
- Passenger Car Radial (PCR) facility of [Birla Tyres] will be commissioned by FY28. — FY28
- Birla Tyres will achieve EBITDA breakeven and become cash positive in FY27. — EBITDA breakeven, FY27
- Birla Tyres top-line target of ₹3,000 Cr in the next 4–5 years (by FY31). — ₹3,000 Cr, FY31
- Initial 2,600 MTPA capacity of [anthraquinone and carbazole] plant will commission in Q2FY27; balance 2,700 MTPA to be added in Q2FY28. — 2,600 MTPA (Q2FY27), 2,700 MTPA (Q2FY28), Q2FY27
- Total capex over FY27 and FY28 will be ~₹2,000 Cr, with ~₹1,000 Cr in FY27 and ~₹1,000 Cr in FY28; no incremental debt will be taken for this capex. — ₹2,000 Cr total (₹1,000 Cr each year), no incremental debt, FY28
- Coal tar distillation capacity utilisation will be 90%+ during FY27. — 90%+, FY27
Key themes
New material capex, battery ecosystem integration, value mix shift
How the narrative shifted
- Innovation-led product upscaling: Company is moving up the value chain with in-house developed CNT and super speciality carbon black, describing them as game-changing high-margin products that deepen its speciality chemicals footprint.
- Battery materials integration: Himadri is building a self-reliant, fully integrated anode-cathode-silicon carbon platform for the global energy transition, leveraging pitch-based feedstock and in-house R&D to create a unique supplier position outside China.
- Feedstock security and cost advantage: The coal tar pitch backbone provides secure, low-cost feedstock for advanced materials; the company stresses it is not dependent on China or West Asia, underpinning margin resilience.
- Capital discipline and self-funded growth: All new capex (CNT, SSCB, LFP, Birla) will be funded from internal accruals without incremental debt; capex is calibrated to avoid over-leverage while executing transformation.
- Birla Tyres turnaround and ramp-up: The acquired tyre business is ramping up volumes, expanding distribution, and modernising capacity; management expects EBITDA breakeven in FY27 and sees a path to ₹3,000 Cr revenue in 4–5 years.
- China+1 and global supply chain shift: With 100% of LFP cathode capacity currently in China, Himadri positions itself as a non-China integrated anode-cathode supplier, aiming to capture share as global OEMs diversify.
Operational commentary
- Developed indigenous Carbon Nanotube (CNT) technology; planned 200 MTPA facility to be commissioned in Q4FY27 with ₹70 Cr capex, targeting high-growth applications across batteries, semiconductors, aerospace.
- Entry into Super Speciality Carbon Black (SSCB) by converting 6,000 MTPA of existing commodity capacity with ₹170 Cr capex; commissioning targeted by FY28, targeting premium niche markets with significantly higher realizations.
- Commissioned 200 MTPA anode material pilot facility at Mahistikry in April 2026; built on in-house pitch-based precursor technology with feedstock flexibility; sampling process with global OEMs and cell manufacturers underway.
- LFP cathode Phase 1: 2,000 MTPA capacity expected to be commissioned in Q3FY27, first step toward 40,000 MTPA by FY28 and long-term target of 200,000 MTPA by FY31.
- Strategic partnership with International Battery Company (IBC) deepened; Himadri’s LFP anode/cathode materials to be used in IBC’s Prabal cell series; IBC setting up 7 GWh manufacturing in India, operation targeted by Q4FY27.
- Anthraquinone & carbazole forward integration progressing: initial 2,600 MTPA capacity to commission in Q2FY27, balance 2,700 MTPA in Q2FY28, creating India’s first commercial plant of its kind.
- Birla Tyres ramp-up: quarterly revenue touched ₹127 Cr, distribution across 49 distributors and 1,000+ dealers; new agriculture SKUs launched; EBITDA breakeven expected in FY27, target revenue of ₹3,000 Cr in 4–5 years; PCR facility planned by FY28.
- Speciality carbon black portfolio now 130,000 MTPA (out of 250,000 MTPA total), over 70 grades; company continues shift toward higher value-added mix.
Analyst Q&A
Q. Why did EBIT in the 'other' segment drop sharply from ₹25 Cr to ~₹1 Cr QoQ?
Mining operations were halted this quarter pending licensing; revenue stayed stable because Birla Tyres revenue ramped up, offsetting the mining contribution.
Q. What is the approach for CNT market, the competitive benchmarking, and the revenue potential vs speciality carbon black?
CNT is a global play, first in India; 200 MT plant will target global customers; realisation is significantly higher; for super speciality carbon black, management declined to share technical details due to competitive reasons but disclosed market size of 300,000 MT.
Q. What gives confidence that LFP cathode will be profitable while competing with Chinese players?
Management stated cost advantage due to in-house raw material sources, but refused to disclose cost details or lithium carbonate sourcing, calling it confidential and saying 'it is not possible for you to calculate my cost on Excel sheet.'
Q. What is the timeline and revenue potential for the 200 MT anode pilot plant?
Revenue potential ₹120–130 Cr; no bigger capacity announced yet; approval process takes 1.5–2 years; commercial plant will help secure approvals ahead of expansion.
Q. Will you raise further stake in IBC? What is the use of your product there?
No further stake increase planned; Himadri’s LFP/anode materials integrated into IBC’s Prabal 2000/3000 cells, with hybrid anode including silicon carbon; IBC plant in India targeting Q4FY27 start.
Research and educational content only. Not investment advice.