Himadri Special Q2 FY27 Earnings Call — Analysis (NSE: HSCL)

Himadri Speciality Chemical reported 58% YoY consolidated revenue growth and reaffirmed its FY28 target of ₹1,100+ Cr PAT, supported by multiple advanced battery materials and specialty chemical commissioning milestones across FY27–FY28.

28 Oct 2026 · Analysis by Alpha Inflection

Result quality: watch — Margin pressure. Management sentiment: optimistic.

The take

Q2FY27 Consolidated Revenue from Operations ₹1,691 Cr ( +57.89% YoY ) . Guidance cut — FY?? mining revenue ~₹500 Cr . New story: Innovation-led product upscaling .

Results

Consolidated Q2 FY27 revenue rose 57.9% YoY to ₹1,691 Cr, EBITDA grew 27% YoY to ₹303 Cr, and PAT increased 31% YoY to ₹231 Cr, with EBITDA/MT at ~₹21,000.

Financial highlights

Guidance

Reaffirmed guidance of ₹1,100+ Cr PAT by FY28, funded via internal accruals with ₹800–900 Cr capex planned for FY27.

What management committed to

• Carbon Nanotube (CNT) 200 TPA facility will be commissioned in Q4 FY27. — Q4 FY27, FY27 Q4
• Super Speciality Carbon Black 6,000 TPA capacity will be commissioned in Q4 FY28. — Q4 FY28, FY28 Q4
• LFP cathode active materials initial 2,000 TPA capacity will be commissioned in Q3 FY27. — Q3 FY27, FY27 Q3
• LFP cathode 40,000 TPA capacity will be commissioned next year (FY28). — FY28, FY28
• Anthraquinone and carbazole full capacity of 5,300 TPA will be commissioned together in Q4 FY27. — Q4 FY27, FY27 Q4
• Mining operations will become operational in Q3 FY27 after receiving environmental clearance. — Q3 FY27, FY27 Q3
• Mining business will generate around INR 500 crores in annual revenue on a broader basis. — ~INR 500 Cr, FY??
• EBITDA per metric ton will be in the sustainable range of INR 20,000 to INR 25,000. — INR 20,000-25,000, future quarters
• Carbon black capacity utilisation will be in the range of 88% to 95% going forward. — 88-95%, future quarters
• New products (CNT, SSCB, LFP, anthraquinone, carbazole) will be margin accretive from the start of operations. — margin accretive, FY28 onward

Key themes

Battery materials scale-up and specialty expansion

How the narrative shifted

• Innovation-led product upscaling: No reframing; the story is progressing from R&D to commercialisation.
• Battery materials integration: Silicon carbon anode technology emphasized as next-gen with 10x capacity.
• Feedstock security and cost advantage: No change, less airtime.
• Capital discipline and self-funded growth: Capex guidance reduced to ₹800-900 Cr for FY27 but still within overall plan.
• Birla Tyres turnaround and ramp-up: Merger proposal reframes Birla Tyres as a integrated mobility platform.
• China+1 and global supply chain shift: Still present but not a standalone focus.
• Mining business restart and revenue opportunity: New thread; previously mining was a drag, now turned positive.
• Global commercial expansion via Dubai subsidiary: New thread; reflects need for global reach as product portfolio expands.

Operational commentary

• Carbon Nanotube (CNT) 200 TPA facility remains on schedule for commissioning in Q4 FY27.
• LFP cathode active material 2,000 TPA pilot plant targeted for Q3 FY27 commissioning to support qualification; large-scale 40,000 TPA phase planned for FY28 end.
• Combined 5,300 TPA Anthraquinone and Carbazole capacity execution accelerated to commission both phases together in Q4 FY27 to prevent a 3-month shutdown.
• Super Speciality Carbon Black 6,000 TPA plant remains targeted for commissioning in Q4 FY28.
• Proposed merger of Birla Tyres demerged business into Himadri approved by Board, integrating carbon materials R&D with tire manufacturing.
• Sicona Battery Technologies completed 100% acquisition of US-based Advano and secured AUD 45M from ARENA for silicon carbon anode development.
• Bengal sand mining business obtained environmental clearance in October 2026 and will resume operations in Q3 FY27 with ~₹500 Cr annual revenue potential.
• Incorporated wholly owned subsidiary Ardent Impex FZCO in Dubai Airport Free Zone to expand global marketing and strategic procurement across MEA and Europe.

Analyst Q&A

• Q. What drove the sequential moderation in gross margin and EBITDA/MT from ~₹22,750 to ~₹21,000?

  Management stated margins grew year-on-year from ₹17,910/MT to ₹20,990/MT. Sequential softening was due to a lag in passing on month-end raw material price increases and elevated global container freight rates as export share rose to 33%.

• Q. What is the timeline and capital expenditure plan for the Silicon Carbon Anode capacity?

  The product achieved strong qualification feedback, and detailed engineering is underway. A formal capex and timeline announcement will be made once engineering is finalised.

• Q. Why did consolidated PAT dip below standalone PAT in Q2 FY27, and what is the status of the mining segment?

  Consolidated PAT was ₹231 Cr vs standalone ₹240 Cr due to unabsorbed fixed costs in the non-operational mining entity. Environmental clearance was received in October 2026, and mining operations will restart in Q3 FY27 targeting ~₹500 Cr annual revenue.

• Q. Will international customer IBC consume 100% of Himadri's battery materials?

  IBC is a technology and EPC partner for gigafactories rather than a direct consumer; while Himadri materials automatically qualify for IBC projects, sales will be diversified across Indian and global OEMs.

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