Sigachi Industries posted a consolidated net loss of Rs 82.80 crore for FY26, down from a profit of Rs 70.46 crore in FY25, following the severe fire at its Pashamylaram unit. Revenue dipped to Rs 486.08 crore. While the incident caused significant operational disruption and a 29% capacity suspension, management confirms core operations remain profitable and expects insurance claims to provide relief in the coming year. The company is pushing ahead with capacity expansion at Dahej to restore growth.
Sigachi Industries FY26 Results Impacted by Pashamylaram Fire
Net Loss: Rs 82.80 crore | Revenue: Rs 486.08 crore
Reader Takeaway: Fire disruption hits bottom line heavily, but management maintains a strong balance sheet for future capacity expansion.
What just happened
Sigachi Industries faced a challenging fiscal year 2026, driven primarily by the fire incident at its Pashamylaram manufacturing unit on June 30, 2025. The company swung to a consolidated net loss of Rs 82.80 crore compared to a profit of Rs 70.46 crore in the previous year. Revenue from operations also contracted to Rs 486.08 crore from Rs 508.76 crore in FY25.
Why this matters
The fire led to the suspension of approximately 29% of the company's total installed capacity. While operations were reallocated to other facilities to manage client commitments, the incident created significant financial and operational strain. Management emphasized that the reported loss is heavily influenced by exceptional items related to the fire, noting that the core business remains profitable once these one-time costs are set aside.
What changes now
Following the incident, the company has undertaken a major safety overhaul, aligning its facilities with NFPA 660 standards and implementing rigorous new safety protocols. Insurance claims have been filed, and management expects disbursements to support cash flows in the current fiscal year. Despite the setback, the company is continuing its capital expenditure programs.
Growth and Strategy
Sigachi remains committed to its expansion in Dahej. The site is expected to add 12,000 MTPA of Microcrystalline Cellulose (MCC) capacity and a new 1,800-ton Croscarmellose Sodium (CCS) facility by Q2 FY2028. These moves are designed to diversify revenue and transition into higher-value product segments.
Risks to watch
Investors should monitor the timeline for insurance claim settlements and the pace of recovery in capacity utilization. The transition to higher-margin products and the successful commissioning of the Dahej plant are critical to meeting the management's FY27 revenue target of Rs 650-675 crore.
Context Metrics
The company maintains a conservative leverage profile, with a Net Debt-to-Equity ratio of 0.21x and zero long-term debt, providing a cushion for ongoing investment.