Himadri Speciality Chemical reported a 26% rise in quarterly net profit to ₹230 crore on the back of record revenue. The company also announced ₹240 crore in new capital spending for Carbon Nano Tubes and Super Speciality Carbon Black facilities to expand its advanced materials portfolio.
Himadri Speciality Chemical has reported strong financial growth for the June quarter, with consolidated net profit rising by 26.3% year-on-year to ₹230 crore. The company’s total revenue grew by 28% to ₹1,432 crore, marking its highest-ever quarterly revenue. While operational performance remained robust, the EBITDA margin moderated to 20% compared to 22% in the same quarter last year, reflecting the costs associated with its ongoing expansion and business scaling.
Investments in Advanced Materials
The company is aggressively moving into high-value chemical segments. The board has approved a ₹70 crore capital investment to build India’s first Carbon Nano Tubes (CNT) facility in West Bengal. This plant, which relies on technology developed in-house, is expected to have an annual capacity of 200 metric tonnes and aims for commissioning by the fourth quarter of fiscal year 2027. Additionally, Himadri is diversifying into Super Speciality Carbon Black by reallocating 6,000 metric tonnes per annum of its existing capacity. This project requires an investment of ₹170 crore and is targeted for completion by the fourth quarter of fiscal year 2028.
Strategic Focus and Future Monitorables
These initiatives are part of a broader strategy to move toward higher-value products and reduce reliance on traditional carbon black markets. The company’s management has indicated that the improvement in product mix was a key driver for the recent financial performance. Investors should track the progress of the upcoming Anthraquinone and Carbazole facility, which has a planned capacity of 5,300 MTPA. This project is significant because it targets a reduction in domestic import reliance for dyes and pigments.
While the company is funding these projects through internal cash, the total capital spending of ₹240 crore over the next few years will be a key area for investors to monitor regarding cash flow. The final benefits of these expansions will depend heavily on the company's ability to maintain its profit margins during the construction phase, as well as the successful market adoption of its new speciality products. Market observers will also watch whether the company can sustain its revenue growth momentum while managing the operational complexities of these new advanced material lines.