Haldia Petrochemicals is diversifying its feedstock to include condensate and LPG by 2027 to prevent production gaps caused by Middle East supply issues. The company, which recently narrowed its quarterly losses, is focusing on operational stability while managing debt-funded expansions. Investors are monitoring the project execution and the proposed listing of its subsidiary, Adperma.
Haldia Petrochemicals Limited is changing its raw material sourcing strategy to protect its factory operations from global supply chain disruptions. The company plans to start processing condensate and liquefied petroleum gas (LPG) alongside its traditional naphtha supplies by 2027. This move is designed to ensure that its cracker facility in West Bengal continues to run smoothly, even if imports from the Middle East are blocked or delayed.
In recent years, geopolitical tensions in the Middle East have repeatedly impacted the company’s supply chain. These disruptions forced Haldia Petrochemicals to operate its production lines at 10% to 15% below their full potential on at least two separate occasions. By integrating new raw materials into its production cycle, the company aims to reduce this dependency and maintain consistent output for its 1 million-ton polymer capacity.
The operational shift comes as the company works to improve its financial position. In the quarter ended June 2026, Haldia Petrochemicals reported a standalone net loss of ₹53.90 crore, which was a significant improvement compared to the ₹204.40 crore loss recorded in the same period a year ago. Revenue for the quarter rose to ₹4,509 crore, reflecting an increase of 182.22% compared to the previous year.
While the financial performance shows signs of recovery, the company continues to carry significant debt. A large portion of this debt is tied to funding expansion projects, including a major phenol-acetone plant being developed by its subsidiary, Adperma. The credit rating agency India Ratings and Research revised the outlook on the company’s debt to 'Stable' in October 2026, keeping its ratings at 'IND A+' and 'IND A1'. This reflects a level of confidence in the company's ability to manage its financial obligations, though the debt-funded nature of these projects remains a factor that investors track closely.
The company is also looking to expand its footprint in the chemical sector through Adperma. Management is exploring a public listing for this subsidiary, which could potentially happen in the second half of 2027. This strategy is part of a broader goal to stabilize the parent company’s finances while growing its specialized chemical business.
Going forward, the key items for investors to track include the progress of the infrastructure upgrades needed to process the new feedstock and the timeline for the Adperma project. Additionally, while the company has seen an improvement in its quarterly results, the business remains sensitive to the cyclical nature of the petrochemical sector, fluctuations in global product prices, and foreign exchange risks. The actual benefit of the new feedstock strategy will depend on the successful implementation of these upgrades by 2027.