Himadri Speciality Chemical Achieves Record Profits, Expands into Battery Materials

Himadri Speciality Chemical Ltd. has achieved its highest-ever consolidated EBITDA, reaching ₹1,006 crore, and posted a Profit After Tax (PAT) of ₹755 crore for the fiscal year ended March 31, 2026. The company also successfully commissioned its first 200 MTPA anode material facility for lithium-ion batteries on April 23, 2026.

Financial Highlights and Battery Material Launch

Himadri Speciality Chemical announced its financial results for Q4 and the full fiscal year 2026, highlighting strong performance in its core businesses and its entry into the battery materials sector. The company invested ₹120 crore in research and development, largely focused on lithium-ion chemistry, which supports the operational commencement of its first 200 MTPA anode material facility for lithium-ion batteries at Mahistikry, West Bengal, on April 23, 2026. Existing capacities have also expanded, with specialty carbon black reaching 130,000 MTPA and coal-tar pitch capacity at 600,000 MTPA.

Strategic Pivot to New Energy

This dual achievement signifies Himadri's strategic pivot towards high-growth new energy markets while consolidating its leadership in legacy chemical segments. The commissioning of the anode material facility positions Himadri as a domestic player in the EV battery value chain, a sector poised for exponential growth in India. The record profits underscore the strength and resilience of its core businesses, providing a solid financial base for future expansions.

Building Future Capabilities

Himadri has been systematically building its presence in battery materials. The company acquired full ownership of Birla Tyres Limited by April 2025, targeting ₹3,000 crore in revenue from this segment within four years. It is also investing ₹4,800 crore over the next five to six years for LFP cathode active material production. The new anode facility is the result of over a decade of in-house R&D. Future expansions, including specialty carbon black production to reach 130,000 MTPA, are planned to be funded by internal accruals.

Key Developments for Investors

Himadri is now a direct participant in the EV battery value chain, manufacturing critical components for lithium-ion batteries for both domestic and global markets. This diversifies its revenue streams, adding battery materials alongside established coal tar pitch, carbon black, and the tyre segment. Management's target to double FY25 PAT to over ₹1,100 crore by FY28 is supported by these new ventures and ongoing capacity enhancements. The record profits also strengthen its financial profile, providing internal accruals for planned capital expenditures and reducing reliance on debt.

Potential Risks

The company noted forex losses from currency hedging as a factor in increased other expenses. Additionally, geopolitical developments in West Asia could impact energy pricing and logistics stability.

Competitive Landscape

Himadri competes with players like PCBL Limited and Goa Carbon in the carbon black segment. In the broader specialty chemical and coal tar pitch space, Rain Industries and Epsilon Carbon are notable competitors.

Key Operational Metrics

Specialty carbon black capacity stands at 130,000 MTPA, with further expansion planned. Coal-tar pitch capacity is 600,000 MTPA. The initial anode material facility has a capacity of 200 MTPA. The company achieved a Return on Capital Employed (ROCE) of 32%.

Looking Ahead

Investors will track progress on the ₹1,125 crore cathode project and its commissioning timeline. Key areas also include the execution of the ₹3,000 crore revenue target for Birla Tyres, and the company's ability to sustain EBITDA margins, with management confident of long-term 20% levels. Monitoring the mitigation of forex volatility and geopolitical supply chain impacts will be crucial, as will be advancements in R&D for advanced battery materials, including silicon-based anodes and cathode technologies. Management indicates future funding plans for expansions will rely on internal accruals.