Intimation of Earnings Call Transcript

Archean Chemical Industries Limited held its Q1 FY27 Earnings Conference Call on August 03, 2026, following the announcement of its financial results for the quarter ended June 30, 2026. The call was moderated and included presentations from management followed by a Q&A session with analysts.

Management Participants:

  • Mr. Rampraveen Swaminathan – Managing Director
  • Mr. R. Natarajan – Chief Financial Officer
  • Mr. Rajeev Kumar – Deputy General Manager Finance and Strategy
  • Members of the finance team and SGA Investor Relations Advisors were also present.

The transcript was filed with the exchanges pursuant to Para A Part A Schedule III of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, via a letter dated August 07, 2026. The transcript is available on the company's website at www.archeanchemicals.com.

The call contained forward-looking statements based on the company's beliefs and opinions as of the date of the call, with the disclaimer that they are not guarantees of future performance.

Financial Performance Highlights (Standalone):

  • Revenue: INR 3,321 million (up 14% YoY; up 9% QoQ)
  • EBITDA: INR 839 million (Errata corrected from INR 888.7 million; margin 25.3%)
  • Profit After Tax (PAT): INR 405.3 million (up 36% QoQ)

Financial Performance Highlights (Consolidated):

  • Revenue: INR 3,328.1 million (up 10.7% YoY; up 8.6% QoQ)
  • EBITDA: INR 728.7 million (up 48.5% QoQ)
  • Profit After Tax (PAT): INR 303.5 million (Errata corrected from INR 300.5 million; more than double QoQ)
  • Basic EPS: INR 2.48

Business Segment Performance:

  • Bromine: Revenue of INR 1,333 million (up 58% YoY) on volumes of 4,175 tons. Realizations were strong, nearing INR 300 per kg.
  • Industrial Salt: Revenue of INR 1,713 million on volumes of 982,000 tons (down 12% YoY). Dispatches were impacted by logistics challenges and order deferments.
  • Bromine Derivatives (Acume): Turned EBITDA positive with INR 19 million vs. a loss of INR 27 million in Q1 FY26. Revenue was up 28% YoY.
  • Sulphate of Potash (SOP): Revenue of INR 113 million vs. INR 35 million in FY26. Sales volume was 1,952 tons. Phase 2 trials are targeted for completion by December 2026.
  • Oilfield Chemicals (Idealis): Revenue remained muted at INR 3.5 million with an EBITDA loss of INR 13.4 million.
  • Semiconductor (SiCSem) & Other Ventures: Revenue of INR 0.4 million with an EBITDA loss of INR 5.6 million, as these businesses are in the investment phase.

Key Operational Updates:

  • Bromine production was impacted by a 3.5-day grid power shortage and planned maintenance shutdowns but still showed a 7% YoY improvement.
  • Industrial salt profitability was severely impacted by a 60% YoY increase in High-Speed Diesel (HSD) prices and extended haul distances due to ongoing road construction from the Hajipir plant to Jakhau, Mundra, and Kandla ports. This construction is on track for completion by end-September 2026.
  • Sea freight costs increased 30-35%, affecting landed costs in East and South Asia.
  • The brine field expansion (Phase 1) is on schedule, with commissioning expected post-monsoon. Land lease extension discussions with the Gujarat government are ongoing and expected to close in the coming months.
  • A 10 MWh zinc bromide battery pilot facility was inaugurated in the UK by an investee company.
  • For the semiconductor project (SiCSem), execution is proceeding per schedule following the fiscal support agreement with the Government of India. Construction is expected to start in late August/early September 2026.

Guidance and Outlook:

  • Management expects salt volumes to normalize from Q3 FY27 as highway work completes and fuel prices ease.
  • The company aims to hold its guidance on bromine volumes and maintain most of the implemented price increases.
  • The derivatives business is expected to continue scaling up and building on its break-even status.
  • The SOP scale-up is targeted for completion by the end of FY27.
  • The exit run rate for bromine volumes is expected to be 20,000-25,000 tons per annum.

Compliance Statement:

The transcript is a record of the discussion held. The company's presentation and results are available on its website and the stock exchanges.

Additional Notes Section

The document is a verbatim transcript of the earnings conference call, edited only for factual errors. The audio recording is the definitive record and was uploaded to the stock exchange on August 03, 2026. The transcript was filed as a regulatory disclosure.