Himadri Speciality Chemical Ltd – Investor Presentation Summary

Key Operational Highlights

  • Sales volume figures are reported on a standalone basis
  • Speciality Carbon Black capacity: ~130,000 MTPA
  • Coal tar distillation capacity: 600,000 MTPA
  • 8 zero discharge plants across India & China
  • 292 heated-tanker fleet
  • 49 Distributors (40 Domestic + 9 Global) & 1300+ Dealers for Birla Tyres
  • 160+ SKUs across tyre segments

Key drivers of operational performance: R&D-led innovation, integrated feedstock manufacturing, shift from commodity to specialty, geographic expansion into global markets.

Segment-wise Performance

  • Speciality Carbon Black: ~250,000 MTPA carbon black capacity; ~130,000 MTPA speciality carbon black; diversified portfolio of 70+ speciality grades
  • Coal Tar Pitch: 65% domestic market share; world's largest single location fully integrated carbon complex
  • Naphthalene: ~67% domestic market share; used in phthalic anhydride, dyes, resins, and agrochemical intermediates
  • New Energy Materials: 200 MTPA anode material facility at Mahistikry, West Bengal; LFP cathode targeted capacity: 200,000 MTPA

Explanation of significant changes in segment performance: Growth driven by expansion into high-value specialty products, forward integration into anthraquinone & carbazole, and entry into battery materials market.

Financial Highlights

Revenue: Rs. 1,691.43 Cr (Consolidated Q2 FY27)

EBITDA: Rs. 303.22 Cr (Consolidated Q2 FY27)

PAT: Rs. 231.32 Cr (Consolidated Q2 FY27)

YoY/QoQ comparison: Consolidated Q2 FY27 revenue grew 57.93% YoY and 18.13% QoQ; PAT grew 31.33% YoY and 1.27% QoQ

Drivers of financial performance: Higher revenue growth, expansion into high-margin specialty products, operational efficiencies from integrated manufacturing.

Key Risks: Raw material price fluctuations, regulatory risks in new energy sector, global market competition.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified in detailed breakdown

Balance Sheet Snapshot

Net Debt/Equity: Not explicitly specified

Reserves: Consolidated equity of Rs. 5,188.39 Cr as of Sep'26

Current Assets/Liabilities: Current Assets Rs. 3,029.24 Cr vs Current Liabilities Rs. 1,461.60 Cr (Consolidated Sep'26)

Financial Health Insights: Strong equity base, increased borrowings from Rs. 762.11 Cr to Rs. 1,152.26 Cr (Consolidated), working capital changes showed outflow of Rs. 686.25 Cr (Consolidated H1FY27).

Capex & Cash Flow Health

Capital Expenditure: Rs. 1,125 Cr for LFP, Rs. 248 Cr for Speciality Chemicals, Rs. 70 Cr for Carbon Nano Tube, Rs. 170 Cr for Super Speciality Carbon Black

Free Cash Flow: Not explicitly specified

Operating Cash Flow: Net cash used in operating activities Rs. (154.35) Cr (Consolidated H1FY27)

Net Debt Movement: Increased borrowings evident from balance sheet movement

Investment Rationale: Focus on capacity expansion in high-growth new energy materials, technology upgrades in specialty chemicals, and market diversification.

Strategic & R&D Initiatives

Investments in Innovation: LFP cathode active materials, carbon nano tubes, silicon-carbon anode technology through Sicona, nanotech-enabled formulation platforms through Invati Creations

Expected impact on growth: LFP Phase 1 capacity of 40,000 MTPA provides strong headroom to scale with growing market demand; first 2,000 MTPA milestone by Q3FY27

Strategic Rationale: Expanding into high-growth battery materials market, reducing import dependence, creating export potential, and building competitive advantages through integrated manufacturing.

Industry Trends & Business Environment

Macro/Industry Trends: Global energy transition driving demand for battery materials; global battery consumption projected to rise from ~1.6 TWh in 2025 to ~6.8 TWh by 2035; LFP emerging as preferred chemistry for mass-market EVs

Impact on Company: Positioning Himadri as credible supplier to India's factory ecosystem and global battery markets; creating opportunities in EV components, energy storage systems, and advanced materials.

Management Commentary & Growth Outlook

Strategic Outlook: "The future will belong to the companies that can continuously reload themselves - execute, reinvest, and scale again"

FY Guidance: Speciality Carbon Black expansion full year of operations; Birla Tyres capacity ramp-up in OHT & CV segment; Forward integration to produce Anthraquinone & Carbazole (5,300 MTPA) to be completed by Q4FY27; Phase 1 commercial plant for LFP Cathode Active Material operational in Q3FY27; Carbon Nano Tube, 200 MTPA in Q4FY27; Super Speciality Carbon Black, 6,000 MTPA in Q4FY28

Risks and Opportunities: Climate scenario assessments across five scenarios; alignment of 41% of organisational objectives with climate-action priorities; path to Net Zero by 2050 with specific reduction targets for Scope 1, 2, and 3 emissions.

ESG Updates

The TCFD Report FY2025-26 marks a significant step forward with alignment to IFRS S2 framework and reasonable assurance from TÜV SÜD. Sustainability objectives include: Vision Zero Accident with Lost Time Injury Frequency Rate below 1; Reduce energy intensity per metric tonne by -20% by 2026; Reduce Scope 1 & 2 CO2e emission intensity by -30% by 2026; Reduce scope 3 CO2e emission intensity by -10% by 2026; All plants operating with Zero Liquid Discharge status.