Himadri Speciality Chemical Ltd (HSCL) Q1 FY27 Earnings Call: Reaffirms Rs. 1,100 Crore FY28 PAT Target, Unveils Rs. 2,000 Crore Expansion Capex

Himadri Speciality Chemical Ltd held its Q1 FY27 earnings call on July 15, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Consolidated Revenue Crosses Rs.1,400 Crore Mark

• Consolidated revenue of Rs.1,432 crores in Q1 FY27, up 28% YoY from Rs.1,118 crores in Q1 FY26.
• Consolidated EBITDA at Rs.313 crores (margin 22%), up 33% YoY from Rs.235 crores.
• Consolidated PAT at Rs.228 crores (margin 16%), up 27% YoY from Rs.179 crores.
• Standalone revenue of Rs.1,274 crores (up 16% YoY), with EBITDA at Rs.301 crores (margin 24%) and PAT at Rs.223 crores (margin 18%).
• Other segment EBITDA fell to ~Rs.1 crore from Rs.25 crores in Q4 FY26, driven by mining being non-operational pending licensing.
• Other expenses declined to Rs.148 crores from Rs.172 crores in Q4 FY26, aided by lower export freight and cost optimization.
• Forex losses impacted both Q4 FY26 and Q1 FY27 due to currency volatility; management expects the impact to end from Q2 FY27.

New Energy Storage Portfolio Takes Shape

• LFP cathode: 2,000 MTPA demo capacity expected Q3 FY27, as first milestone of the 40,000 MTPA Phase 1 plan; long-term vision of 200,000 MTPA (by FY 2030-2031), targeting 2–3% of the global LFP market.
• Anode material: 200 MTPA facility commissioned at Mahispat in April 2026 (Q1 FY27), built on proprietary engineered pitch; company produces natural and synthetic anodes, with a partner producing silicon carbon for future integration.
• Carbon nano tubes (CNT): 200 MTPA plant (first in India) with commissioning target Q4 FY27, capex ~Rs.70 crores; Sample B supplied to multiple global and Indian customers; approval cycle typically 1.5–2 years.
• Super specialty carbon black: 6,000 MTPA from existing capacity, capex Rs.170 crores, start guided for FY28, targeting a global niche market of ~300,000 MT with "significantly higher margins" than specialty carbon black.
• Anthraquinone/carbazole: Phase 2,600 MTPA commissioning in Q2 FY27, balance 2,700 MTPA in Q2 FY28.
• R&D spend of Rs.125+ crore in FY26 (2.65% of revenue); similar run rate continues in FY27.

Rs.2,000 Crore Investment Programme Underway

• Total capex announced of Rs.2,000 crores, with Rs.1,000 crores expected to be spent in FY27 and Rs.1,000 crores in FY28, covering LFP (Rs.1,125 crores), super specialty carbon black (Rs.170 crores), CNT (~Rs.70 crores), and Birla Tyres (Rs.500 crores in FY27).
• LFP Phase 1 (40,000 MT) capex of Rs.1,125 crores; full 40,000 MT operational in FY28; additional Rs.4,800 crores planned for the 200,000 MT long-term vision.
• Coal tar pitch distillation capacity maintained at 6 lakh tonnes (600,000 MTPA) with no additional capex planned; combined capacity utilization currently at 80%, guided to 90%+ during FY27.
• All capex fully funded by free cash flow in FY27, with no incremental debt required; management confirmed the balance sheet remains debt-free for core capex.
• Birla Tyres modernization capex spread over the next three years, with Rs.500 crores allocated for the current fiscal year.
• Mining segment remained non-operational in Q1 FY27; environmental clearance application pending, expected to take ~6 months (period unspecified).

Birla Tyres Turnaround and Lithium-Ion Supply Chain Stakes

• Birla Tyres: Q1 FY27 sales of Rs.127 crores (recognized via subsidiary); management targets Rs.3,000 crores top line over the next 4–5 years; not yet EBITDA positive but expected to reach EBITDA break-even and turn cash positive during FY27.
• IBC partnership: Himadri's LFP, anode, and silicon carbon materials are being used in IBC's new cells (Prabal 2000 and Prabal 3000); IBC is setting up a 7 GW lithium-ion cell manufacturing facility in India using Himadri raw materials, expected commencement by Q4 FY27.
• IVS stake increased to ~19% in Q1 FY27, described as a strategic (not financial) investment with no plans to increase further.
• Sicona secured AUD 45 million in funding to commercialise silicon-carbon anode technology; Himadri holds a strategic investment.
• IBC formed a strategic partnership after LFP sample approval; Sample A approved, Sample B trial to commence once the 2,000 tonne capacity is live (expected Q3 FY27).
• No plans for battery cell manufacturing; management confirmed the company remains a raw material and component supplier, with IBC serving as a commercial validation partner.

Core Margins Deemed Sustainable; New Ventures Shroud Profitability

• Core business (coal tar pitch and carbon black) margins deemed sustainable, with management noting the company supplies at the lowest global prices.
• New capex targets niche products with "significantly higher margins" than current operations, per management; direct margin comparisons with existing business were termed irrelevant.
• Management declined to provide EBITDA margin guidance for new businesses (C&T, SSCB, LFP, anode), stating "data will speak at the right time" and directing analysts to calculate based on future financial results.
• For LFP cathode, management declined to disclose lithium carbonate sourcing or cost details, calling external spreadsheet-based margin calculations inaccurate but reaffirming confidence in profitability.
• Other income expected to vary 30–40% QoQ due to mark-to-market fluctuations on IBC, Sicona, and other investments.
• Management does not provide quarterly or annual guidance; the company's stated philosophy is to let financial results speak for themselves.

Rs.1,100 Crore Bottom-Line Target Reaffirmed

• FY28 bottom-line target of Rs.1,100 crores reaffirmed with no changes to underlying assumptions; management also cited a "revenue target of Rs.1,100 crores for FY27-28 (by calendar 2028)" in a separate segment.
• Revenue potential from new capacities at current prices: 40,000 MT LFP — Rs.3,000 crores; anthraquinone/carbazole — Rs.250–300 crores; super specialty carbon black — ~Rs.500 crores; CNT (200 MT) — Rs.50–70 crores; anode (200 MT) — Rs.120–130 crores.
• Revenue guidance of Rs.30,000 crores over the next 5–6 years for the lithium-ion component segment, covering 100 GW capacity across anode, cathode, and silicon carbon.
• Global lithium-ion battery demand projected by management to rise from 1.6 TWh in 2025 to 6.8 TWh by 2035, with 70% of growth in LFP chemistry.
• Competitive positioning vs Chinese LFP players: in-house technology (Gen 1/2/3 progression) and cost advantage from Indian raw material sourcing, allowing pricing at par with China while maintaining margins.
• Headwinds: forex volatility impacted recent quarters; mining segment remains non-operational; management declined to provide profitability guidance for new ventures, creating uncertainty for near-term margin trajectory.