Sigachi Indust. Q2 FY27 Earnings Call — Analysis (NSE: SIGACHI)

Sigachi cut its FY27 revenue guidance from ₹650 Cr to ~₹600 Cr as the 12,000 MT Dahej MCC expansion was deferred to Q2FY28, while H1 FY27 revenue reached ₹250+ Cr with Q2 EBITDA margins at 14.72%.

5 Nov 2026 · Analysis by Alpha Inflection

Result quality: stable — Results context unavailable. Management sentiment: optimistic.

The take

Q2FY27 Total Operating Income ₹130.45 Cr . Guidance cut — FY27 fy27 consolidated revenue ~₹600 Cr . But walked back — Capacity expansion as growth catalyst .

Results

Q2FY27 operating income stood at ₹130.45 Cr with EBITDA of ₹19.2 Cr (14.72% margin) and PAT of ₹8.78 Cr (6.82% margin).

Financial highlights

Guidance

Full-year FY27 revenue revised to ~₹600 Cr (down from ₹650 Cr) with H2 EBITDA margins guided at ~18%, while FY28 revenue is targeted to cross ₹800 Cr upon commissioning Dahej capacity.

What management committed to

• [Sigachi Industries] consolidated revenue in FY27 will be approximately ₹600 Cr (revised from ₹650-675 Cr). — ~₹600 Cr, FY27
• [Sigachi's] H2 FY27 EBITDA margin will be at least 18%, to balance the full year towards 18%. — ≥18%, H2 FY27
• Insurance claim for [Hyderabad facility incident] will be settled by December 2026 (with an estimated 5-10% discount). — ~₹44 Cr, Q3FY27
• [Sigachi's] co-processed and special-grade MCC sales mix will increase by 50% from the existing ~20% level during H2 FY27.

Key themes

Capacity deferral, product mix enrichment, and safety retrofits

Operational commentary

• Expanded PureCoat film coating portfolio with 4 new variants: PureCoat Flavor (odor masking), PureCoat TiO2 Free, PureCoat Pearl (iron oxide + silica), and PureCoat NP (pullulan-based natural polymer).
• Capacity utilization across existing plants was ~80% in H1 (Dahej ~79.91%, Jhagadia ~79%) due to phased shutdowns for safety equipment retrofitting on FBDs and dryers following past Hyderabad incident; utilization to rise by 10% in mid-November 2026.
• 12,000 MT MCC expansion and CCS facility at Dahej SEZ deferred to Q2FY28; combined project capex estimated at ~₹200 Cr (~₹100 Cr MCC, ~₹90 Cr CCS), with ~₹29-30 Cr incurred to date.
• Cancelled the ₹200 Cr promoter preferential equity issue originally priced at ₹26.40/share after stock appreciated to ~₹39; management is re-evaluating capital raising mix across debt, equity, and internal accruals.
• API vertical operating with 100 kL capacity, with high-margin molecules (sparsentan and bempedoic acid) moving into commercial dispatches during H2 FY27.

Analyst Q&A

• Q. Feasibility of meeting revised ₹600 Cr FY27 target given H1 was only ₹250+ Cr, requiring ~40% growth in H2.

  Management stated H2 will benefit from an immediate 10% capacity utilization bump post mid-November safety retrofits, shifting product mix toward co-processed grades (3-4x pricing), and API dispatches deferred from Q2.

• Q. Reasons for cancelling the ₹200 Cr promoter preferential issue and future capex funding structure.

  Preferential allotment at the SEBI floor of ₹26.40 was deemed too dilutive once the market price reached ₹39; funding will now rely on internal cash, insurance proceeds (~₹45 Cr), and fresh debt/equity announcements.

• Q. Why utilization remained capped at ~80% despite robust customer demand and the loss of the Hyderabad plant.

  Management explained that facilities underwent phased equipment shutdowns to install specialized safety equipment on dryers/FBDs, but full capacity utilization will resume after the final installation in November.

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