Himadri Speciality Chemical Ltd Overview
Himadri Speciality Chemical is India's largest coal-tar distiller and dominant domestic producer of coal tar pitch — the binder used in aluminium smelting and graphite electrodes — with ~70% domestic market share and a 500,000 MTPA distillation base. On that integrated carbon backbone it has built a fast-growing speciality carbon black franchise (130,000 MTPA speciality capacity within 250,000 MTPA total carbon black) that management says places it among the top five global speciality carbon black producers, operating from Mahistikry, West Bengal — described as the world's largest single-location speciality carbon black site. The company is now pivoting toward "advanced materials": LFP cathode active material, anode materials, silicon-carbon anode technology (via Sicona), carbon nanotubes, super-speciality carbon black, and high-value coal-tar derivatives such as anthraquinone and carbazole. Through the Birla Tyres turnaround it has also entered tyre manufacturing. FY26 delivered record PAT of ₹755 crore at a ~21% EBITDA margin, with a net cash balance sheet.
What the company does
Himadri is a vertically integrated carbon-chemistry company. Its core feedstock is coal tar — a by-product of metallurgical coke ovens operated by steel producers. Himadri distils coal tar into a family of fractions and converts them into a portfolio of downstream products:
Coal tar pitch (CTP): the heaviest fraction, sold as binder pitch to aluminium smelters (for anodes) and graphite electrode manufacturers, and increasingly into battery anode precursors and specialty carbons. Himadri is India's largest CTP producer with roughly 70% market share (company description reproduced by Revelio Labs). It also sells liquid CTP for export; in Q3 FY26 it commissioned a Mangalore port terminal and shipped 3,600 tonnes of liquid CTP to the Middle East (Q3 FY26 earnings call transcript, 21 January 2026).
Carbon black: produced from carbon black feedstock oil (a coal-tar fraction), sold as rubber-grade carbon black to tyre and mechanical rubber goods makers and as speciality carbon black to plastics, inks, paints, coatings, and conductive/battery applications.
Naphthalene and derivatives: refined/high-purity naphthalene, naphthalene balls, and SNF (sulphonated naphthalene formaldehyde) and PCE superplasticisers for construction chemicals and agrochemical/dye intermediates. Screener describes the company as the largest player in naphthalene and SNF in India.
Speciality oils: creosote and other oils for wood preservation, carbon black feedstock, and industrial uses.
Advanced coal-tar derivatives (new): anthraquinone, carbazole and fluorene, being manufactured for the first time in India through forward integration of existing distillates.
Battery / new-energy materials (new): LFP cathode active material, anode materials (initial 200 MTPA plant inaugurated April 2026), and silicon-carbon anode technology licensed from Sicona.
Advanced carbon (new): carbon nanotubes (indigenous technology; 200 MTPA plant planned) and super-speciality carbon black.
Tyres (new): through Birla Tyres (off-highway/OHT, passenger, commercial vehicle, EV, and agricultural tyres), restarted after insolvency acquisition.
Clean power: captive/co-generation power from carbon black tail gas, reported as a separate "Power" segment.
Other: logistics and a consumer business ("Durofresh") referenced in FY27 growth commentary (Autocar Pro, May 2026).
Business and revenue model
Revenue is overwhelmingly product sales (B2B industrial chemicals and materials sold on contract and spot basis). There is no material service, subscription, or licensing revenue disclosed; Himadri is a licensee (of Sicona's silicon-carbon anode technology), not a licensor. Pricing in the legacy businesses is largely cost-plus/pass-through: carbon black and CTP prices typically track feedstock (coal tar, carbon black feedstock oil) with a lag, so reported revenue can fall even as margins rise — exactly the FY26 pattern, when revenue grew only ~1% while PAT rose 36% because raw material prices fell and mix shifted toward speciality grades.
Value chain position
Himadri sits in the mid-stream conversion layer of the carbon value chain: upstream are steel companies' coke ovens (coal tar suppliers) and refiners; downstream are aluminium smelters, graphite electrode makers, tyre makers, plastics compounders, ink/paint formulators, construction chemical firms, and (prospectively) lithium-ion cell manufacturers. Its strategic thrust is to move further downstream and up the value curve — from bulk pitch and rubber black into speciality black, battery materials, and finished tyres.
Customer types and end-markets
Per company and ICRA descriptions, end-markets include aluminium, graphite electrodes, tyres, mechanical rubber goods, plastics, inks, paints and coatings, dyes, agrochemicals, defence, construction chemicals, and lithium-ion batteries. Geographically, exports were 26.79% and domestic sales 73.21% of revenue in FY25 (Sustainability Report FY24-25, filed 17 December 2025).
Company self-description vs. independent characterisation
The company describes itself as "a global speciality chemical conglomerate with a strong focus on research and development, innovation and sustainability" (FY26 press release), and in Q1 FY27 commentary as working toward becoming a global advanced-materials and application-driven solutions company. PTI's newswire characterised it as a "clean-tech company" (April 2026).
Independent characterisation: Economically, Himadri remains today a coal-tar distillation and carbon black company whose earnings are dominated by its Carbon Materials & Chemicals segment (₹1,278.90 crore of Q1 FY27 revenue). The "advanced materials" narrative is real in terms of capital commitment and R&D, but the battery, CNT and anode businesses are pre-revenue or at pilot/initial scale (200 MTPA anode; 2,000 MTPA LFP targeted for Q3 FY27 versus a 200,000 MTPA long-term vision). The investment case therefore rests on (a) continued margin expansion from speciality carbon black and value-added derivatives, which is proven, and (b) option value on battery materials, which is unproven at commercial scale.
Strategy
Stated strategic themes (company language, paraphrased)
- Transition from a coal-tar derivative business to a global advanced-materials and application-driven solutions company.
Innovation-led growth: built on in-house R&D (indigenous CNT technology; decade-plus anode chemistry work).
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Position India as a "China Plus One" source of lithium-ion battery materials.
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Sustain EBITDA margins above 20% with further upside from capacity expansion and operational improvements (FY26 earnings commentary).
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Become one of the top three global suppliers of coal tar pitch outside China, double revenues, and accelerate exports (FY26 annual report themes as reported by Multibagg).
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FY26 framed by management as a year where ambition met execution, with record results described as a foundation rather than a peak.
Initiative register (last 24 months)
| Initiative | Investment | Target date | Status (Oct 2026) |
|---|---|---|---|
| Speciality carbon black expansion 70,000 MTPA (Mahistikry) | ₹220 cr (ICRA) | Q3 FY26 | Commercial ops 24 Feb 2026 |
| Anthraquinone & carbazole Phase I 2,600 MTPA | ₹120 cr | Q2 FY27 | On schedule per Q1 FY27 |
| Anthraquinone & carbazole expansion to 5,300 MTPA | ₹128 cr | — | Approved 15 July 2026 |
| Carbon nanotube plant 200 MTPA | ₹70 cr | Q4 FY27 | Approved 15 July 2026 |
| Super Speciality Carbon Black | ₹170 cr | Q4 FY28 | Approved 15 July 2026 |
| LFP CAM commercial facility 2,000 MTPA | — | Q3 FY27 | Under construction |
| LFP long-term programme 200,000 MTPA | ₹4,800 cr over 5–6 years | Phased | Long-term vision |
| Anode material plant 200 MTPA | — | FY26 | Inaugurated April 2026 |
| Coal tar pitch debottlenecking (~1,00,000 t) | — | — | Referenced in FY26 AR |
| Mangalore liquid CTP terminal | — | Q3 FY26 | Commissioned |
| Birla Tyres restart and scale-up | — | FY26–FY27 | Operating; product launches |
| DBRL tyre business demerger into Himadri | Share swap 1:260 | Subject to approvals | Board approved 21 Sep 2026 |
| Sicona Si-C anode licence and investment | ₹138.34 cr | — | Localisation |
| IBC stake | ~USD 6.1 m cumulative | — | 20.47% held |
| Lithium extraction / battery recycling | — | — | Exploratory |
| Guangzhou subsidiary | — | — | Approved |
Total capex approved on 15 July 2026: ₹368 cr.
Medium-term targets and guidance
EBITDA margin: >20% sustained (FY26 commentary).
PAT: earlier target of doubling PAT by FY27 was achieved early during FY26 (CompoundingAI preview); an earlier-reported ambition of >₹800 cr PAT by FY27 (ChemIndigest) is close to the TTM run-rate (~₹803 cr derived through Q1 FY27).
Utilisation: 85–90% FY27 guidance referenced by CompoundingAI (product scope not fully specified).
Battery materials: ₹20,000 cr revenue potential from ₹4,800 cr LFP investment at full scale (management, December 2023).
Products & Services
The company's FY26 annual-report product list (as summarised by Screener) comprises: LFP Cathode Active Material, Anode Materials, Silicon Carbon for Anodes, Carbon Black, Speciality Carbon Black, OHT/PCR/EV/CV and other speciality tyres, Coal Tar Pitch, High-purity Naphthalene, Carbazole, Anthraquinone, Speciality oils, SNF/PCE, Naphthalene balls, Clean power, and Resource Extraction.
Carbon Materials & Chemicals
| Product | Description & applications | Capacity / specs (latest verified) | Target customers | Status / latest | Pricing model |
|---|---|---|---|---|---|
| Coal tar pitch (binder pitch) | Distillation residue used as binder for aluminium smelter anodes and graphite electrodes | 500,000 MTPA coal tar distillation (largest in India per ICRA); ~1,00,000 t additional capacity from debottlenecking referenced | Aluminium smelters, graphite electrode makers | Mature; export push to become top-3 global CTP supplier outside China | Contract/formula, feedstock-linked |
| Liquid coal tar pitch | Pitch shipped in heated liquid form | Mangalore port terminal commissioned Jan 2026 | Middle East smelters | First 3,600 t shipment Q3 FY26 | Contract |
| Advanced carbon material / impregnating & special pitches | Higher-spec pitches for graphite, specialty carbons, anode precursors | — | Graphite and battery-material makers | Screener: only Indian manufacturer of advanced carbon material | — |
| Rubber-grade carbon black | Reinforcing filler for tyres and rubber goods | Part of 250,000 MTPA total CB capacity (~120,000 MTPA non-speciality) | Tyre and MRG makers | Mature | Feedstock-linked |
| Speciality carbon black | Pigment and conductive grades | 130,000 MTPA after Feb 2026 expansion; 70+ speciality grades (Q1 FY27 call) | Plastics, masterbatch, inks, paints, coatings, conductive applications, batteries | Expansion commercialised 24 Feb 2026 | Grade-based premium |
| Super Speciality Carbon Black (SSCB) | Premium high-performance speciality black | ₹170 cr capex; COD Q4 FY28 | Premium coatings/inks/conductive markets | Approved 15 July 2026 | — |
| High-purity / refined naphthalene | Intermediate for SNF, dyes, agrochemicals | — | Chemicals and construction chemicals | Mature; Screener: largest in India | Market |
| Naphthalene balls | Consumer/household product | — | Distributors/retail | Mature | Market |
| SNF / PCE | Concrete superplasticisers | Capacity tracked in annual report; not extracted | Construction chemicals, ready-mix concrete | Mature | Market |
| Speciality oils | Creosote and related oils | — | Wood preservation, industrial users | ICRA: speciality oil sales supported volume growth | Market |
| Anthraquinone | Intermediate for dyes, paper pulping, hydrogen peroxide, agriculture | Phase I 2,600 MTPA (COD Q2 FY27); expansion to 5,300 MTPA (₹128 cr approved July 2026) | Dye, H2O2, paper, agro sectors in India, Europe, US | First Indian producer per company | — |
| Carbazole | Intermediate for pigments, pharma, electronics | Combined with anthraquinone capacity above | Pigment/pharma/electronics | Same as above | — |
| Fluorene | Intermediate for optical/electronic materials | — | Speciality chemical users | Referenced in Singur forward-integration plan | — |
| Carbon nanotubes (CNT) | Conductive additive (battery electrodes, polymers) | 200 MTPA; ₹70 cr; COD Q4 FY27; in-house technology; described as India's first CNT plant | Battery and polymer makers | Approved 15 July 2026 | — |
New Energy / Battery Materials
| Product | Description | Capacity / timeline | Status |
|---|---|---|---|
| LFP cathode active material | Lithium iron phosphate cathode for EV and storage cells | Long-term vision 200,000 MTPA (~100 GWh) over 5–6 years, ₹4,800 cr; original Phase I 40,000 MTPA (₹1,125 cr); 2,000 MTPA commercial facility targeted Q3 FY27 | Pre-commercial; customer sampling and cell trials |
| Anode materials | Graphitic anode materials from in-house chemistry | 200 MTPA initial plant at Mahistikry, inaugurated April 2026 | Initial operations |
| Silicon-carbon anode | Next-generation anode technology | Exclusive Sicona technology licence for India | Localisation stage; cell trials pairing Himadri LFP with Sicona Si-C across EV, grid storage, drones, e-aviation, defence, AI data centres |
| Resource extraction / lithium extraction & battery recycling | Forward-looking bets | No capacity disclosed | Exploratory (TradeBrains, July 2026) |
Tyres (Birla Tyres)
| Product line | Description | Status |
|---|---|---|
| OHT (off-highway) tyres | Farm, construction, earth-moving | Restarted; exports targeted to Middle East, Australia, South Africa (2024 commentary) |
| Agricultural / tractor tyres | AgriPlus and AgriWin series | Launched Q4 FY26 |
| PCR, CV, EV and other speciality tyres | Passenger, commercial, EV tyres | Listed in FY26 portfolio |
| Distribution | 43 distributors, 1,000+ dealers (end FY26) | Scaling |
Power and Others
| Offering | Description |
|---|---|
| Clean power | Co-generation from carbon black off-gas; ₹31.88 cr Q1 FY27 segment revenue |
| Logistics | Reported within "Others" from Q1 FY27 |
| Durofresh | Consumer-facing business named in FY27 growth plans; details not disclosed |
Financial Narrative
Primary sources: company FY26 results release (23 April 2026); Screener consolidated financials (compiled from annual reports FY22–FY25).
Income statement (consolidated)
Notes: FY25 company EBITDA of ~₹845 cr is implied from the reported ~19% YoY growth to ₹1,006 cr in FY26 (FY26 release); treat as derived. DPS for FY22–FY25 is derived from Screener's dividend-payout ratios applied to EPS and should be confirmed against annual reports; FY26 final dividend of ₹0.80 (80% of face value) is reported. FY26 PBT of ₹1,001 cr is company-reported consolidated; Screener shows ₹991 cr for FY26 (likely a standalone/definitional difference) — discrepancy noted.
Margins and growth
Revenue CAGR FY22–FY26: ~13.7% (derived). Net profit CAGR FY22–FY26: ~110% (off a depressed FY22 base; derived). Screener reports 5-year sales CAGR of 21% and 3-year profit CAGR of 111% (to FY25).
Balance sheet (consolidated, INR crore)
Interim data point (30 September 2025): equity ₹4,069 cr; borrowings ₹864 cr; CWIP ₹443 cr; investments ₹723 cr; total assets ₹5,518 cr (Screener) — illustrating the H1 FY26 capex and strategic-investment build. Management stated the company ended FY26 as net cash with cash of ₹121 cr (Autocar Pro, May 2026).
Cash flow (consolidated, INR crore)
No share buybacks have been reported in the period.
Ratios (derived unless stated)
ROIC and net debt/EBITDA: net debt was low/negative by FY25–FY26 (borrowings ₹313 cr at FY25 against substantial liquid investments; net cash at FY26), so net debt/EBITDA is approximately zero or negative.
Commentary on trends and inflections
FY22 trough. FY22 revenue surged 66% on higher realisations as coal tar and oil-linked feedstocks inflated, but operating margin collapsed to 5.6% because Himadri could not pass through costs fast enough. Payable days ballooned to 127, masking working-capital strain. ICRA downgraded the company in November 2021 on weaker debt protection.
FY23–FY24 margin reset. FY23 revenue rose a further 50% with margin recovering to ~10%. The decisive inflection came in FY24: revenue was flat (₹4,185 cr) but operating profit rose 62% to ₹645 cr as feedstock costs eased and speciality carbon black gained mix. Borrowings fell from ₹842 cr to ₹605 cr, and equity rose sharply (₹2,280 cr → ₹3,045 cr) through retained earnings and promoter capital infusion.
FY25–FY26 compounding on flat revenue. FY25 revenue rose 10% and PAT 35%; FY26 revenue rose only ~1% but PAT jumped 36% to ₹755 cr, EBITDA crossed ₹1,000 cr for the first time, and the EBITDA margin moved above 21%. This is a mix-driven earnings model: lower raw material prices compress revenue while speciality grades and better conversion widen spreads. The working-capital cycle has lengthened (CCC 90 days in FY25, Screener flags working-capital days rising to ~69), largely because payable days fell from 69 to 28 — a reflection of a stronger balance sheet paying suppliers faster, but also a drag on cash conversion (CFO/OP 70–77%).
Q1 FY27 — growth returns. Q1 FY27 revenue rose 28% YoY to ₹1,431.88 cr, EBITDA was ₹313.11 cr and PAT ₹228–230 cr (sources differ slightly: ₹228.43 cr total PAT per EquityBulls; ₹229.52 cr attributable to owners per CompoundingAI; company rounded ₹228 cr). The company reports a 22% EBITDA margin; CompoundingAI computes 20.11% (–180 bps YoY) on its own definition — the discrepancy likely stems from other-income treatment and the consolidation of lower-margin Birla Tyres revenue. Basic EPS was ₹4.55 (+23.6% YoY). Cost of materials consumed rose to ₹1,003.34 cr from ₹725.68 cr, and employee costs to ₹58.27 cr from ₹41.12 cr, reflecting tyre consolidation and new capacity.
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Segment Overview
| Segment | Contents | Notes |
|---|---|---|
Carbon Materials & Chemicals | Coal tar pitch, carbon black (rubber & speciality), naphthalene & derivatives, SNF/PCE, speciality oils, advanced carbon materials, new coal-tar derivatives, battery materials (early stage) | Core earnings engine |
Power | Clean power generated from carbon black process tail gas | Small, high-margin |
Others (new from Q1 FY27 reporting) | Birla Tyres (tyre business) and logistics | Reported as a separate segment for the first time in Q1 FY27 (CompoundingAI results note) |
Revenue by Segment and Segment Margins & Growth (%)
| Metric | Q1FY26 | Q1FY27 |
|---|---|---|
Carbon Materials & Chemicals revenue (INR Cr) | 1,112.85 | 1,278.90 |
Carbon Materials & Chemicals segment result PBIT (INR Cr) | 198.47 | 262.56 |
Carbon Materials & Chemicals segment margin (%) | 17.8 | 20.5 |
Power revenue (INR Cr) | 25.54 | 31.88 |
Power segment result PBIT (INR Cr) | 22.14 | 28.10 |
Others revenue incl. Birla Tyres and logistics (INR Cr) | — | 143.89 |
Segment Margins & Growth (%)
| Metric | Q1FY27 |
|---|---|
Carbon Materials & Chemicals YoY revenue growth (%) | 14.9 |
Power YoY revenue growth (%) | 24.8 |
Revenue by Segment
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
Consolidated revenue from operations (INR Cr) | 4,185 | 4,613 | 4,661 |
Standalone revenue from operations (INR Cr) | — | — | 4,405 |
Birla Tyres revenue, H2 only (INR Cr) | — | — | 187 |
Q4 Carbon Materials & Chemicals revenue (INR Cr) | — | — | 1,124 |
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View Subscription PlansGroup Entities
| Entity | Relationship | Status / notes |
|---|---|---|
Birla Tyres Ltd | Subsidiary (after OCD conversion, March 2025 board approval) | Tyre manufacturing, Balasore (Odisha) |
Himadri Birla Tyre Manufacturer Pvt Ltd | Group entity referenced in BTL restructuring | Per March 2025 board outcome |
Himadri Future Material(s) (name partially verified) | Wholly owned subsidiary vehicle for LFP project | Referenced in Chemical Weekly, Dec 2023 |
Guangzhou (China) step-down WOS | Approved April 2026 | — |
Trancemarine | Subsidiary | Sold 34% of Sturdy Niketan in Sept 2026, retaining 65% |
Sturdy Niketan | Non-material subsidiary (via Trancemarine) | 65% held post-sale |
Invati Creations | 40% associate | Per Autocar Pro, May 2026 |
Sicona Battery Technologies (Australia) | Strategic investee (~19–22% post-conversion entitlement) | Technology licensing partner |
International Battery Company (USA) | 20.47% associate (June 2026) | Battery cell company |
Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue from operations (INR Cr) | 2,791 | 4,172 | 4,185 | 4,613 | 4,661 |
Total income incl. other income (INR Cr) | — | — | — | 4,664 | 4,832 |
Operating expenses (INR Cr) | 2,635 | 3,773 | 3,540 | 3,758 | — |
Operating profit before other income (INR Cr) | 156 | 399 | 645 | 854 | — |
EBITDA as reported by company (INR Cr) | — | — | — | 845 | 1,006 |
Other income (INR Cr) | -17 | -2 | 43 | 52 | — |
Interest expense (INR Cr) | 36 | 66 | 64 | 45 | — |
Depreciation (INR Cr) | 50 | 51 | 50 | 55 | — |
Profit before tax (INR Cr) | 53 | 280 | 574 | 806 | 1,001 |
Net profit (INR Cr) | 39 | 216 | 411 | 555 | 755 |
EPS basic (INR) | 0.98 | 4.99 | 8.34 | 11.25 | 15.08 |
EPS diluted (INR) | — | — | — | 11.17 | 15.02 |
Dividend per share (INR) | 0.20 | 0.25 | 0.50 | 0.60 | 0.80 |
Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating margin pre-other-income (%) | 5.6 | 9.6 | 15.4 | 18.5 | — |
EBITDA margin company basis (%) | — | — | — | 18.3 | 21.6 |
PBT margin (%) | 1.9 | 6.7 | 13.7 | 17.5 | 21.5 |
Net margin (%) | 1.4 | 5.2 | 9.8 | 12.0 | 16.2 |
Revenue growth YoY (%) | 66.2 | 49.5 | 0.3 | 10.2 | 1.0 |
Net profit growth YoY (%) | -17.0 | 453.8 | 90.3 | 35.0 | 36.0 |
Balance Sheet
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Equity share capital (INR Cr) | 42 | 43 | 49 | 49 | — |
Reserves (INR Cr) | 1,826 | 2,237 | 2,996 | 3,672 | — |
Total equity (INR Cr) | 1,868 | 2,280 | 3,045 | 3,721 | — |
Total borrowings (INR Cr) | 587 | 842 | 605 | 313 | — |
Other liabilities (INR Cr) | 999 | 555 | 798 | 621 | — |
Total assets (INR Cr) | 3,454 | 3,678 | 4,449 | 4,656 | — |
Net fixed assets (INR Cr) | 1,546 | 1,515 | 1,534 | 1,605 | — |
Capital work in progress (INR Cr) | 77 | 94 | 67 | 185 | — |
Investments (INR Cr) | 113 | 132 | 478 | 582 | — |
Other assets incl. working capital and cash (INR Cr) | 1,718 | 1,938 | 2,371 | 2,283 | — |
Cash balance per company (INR Cr) | — | — | — | — | 121 |
Key Financials and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Cash flow from operations (INR Cr) | 331 | 54 | 405 | 447 | — |
Cash flow from investing (INR Cr) | -28 | -397 | -405 | -235 | — |
Cash flow from financing (INR Cr) | -182 | 377 | 7 | -271 | — |
Net cash flow (INR Cr) | 121 | 34 | 7 | -60 | — |
CFO to operating profit (%) | 226 | 26 | 77 | 70 | 74 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
ROE on average equity (%) | 2.1 | 10.4 | 15.4 | 16.4 |
ROCE per Screener (%) | 5 | 13 | 19 | 22 |
ROA on average assets (%) | 1.2 | 6.1 | 10.1 | 12.2 |
Debt to equity (x) | 0.31 | 0.37 | 0.20 | 0.08 |
Interest coverage EBIT over interest (x) | 2.5 | 5.2 | 10.0 | 18.9 |
Asset turnover revenue over total assets (x) | 0.81 | 1.13 | 0.94 | 0.99 |
Debtor days | 66 | 44 | 57 | 50 |
Inventory days | 125 | 61 | 85 | 68 |
Payable days | 127 | 39 | 69 | 28 |
Cash conversion cycle (days) | 65 | 66 | 73 | 90 |
Revenue by Region (%) and Revenue by Region
| Metric | FY2025 |
|---|---|
Domestic share of revenue (%) | 73.21 |
Export share of revenue (%) | 26.79 |
Implied domestic revenue on consolidated base (INR Cr) | 3,377 |
Implied export revenue on consolidated base (INR Cr) | 1,236 |
Valuation Snapshot
| Metric | Value | Date / source |
|---|---|---|
Share price | ₹672.55 | 8 Sep 2026, Anand Rathi |
Market cap | ~₹33,935 cr | 8 Sep 2026 |
52-week high / low | ₹819.50 / ₹420.00 | As of 8 Sep 2026 |
TTM PAT (derived) | ~₹803 cr | FY26 ₹755 cr + Q1 FY27 ₹229.5 cr – Q1 FY26 ~₹182 cr |
P/E on TTM (derived) | ~42x | At ₹33,935 cr m-cap |
P/E on FY26 (derived) | ~45x | — |
EV/EBITDA on FY26 (derived, net cash) | ~34x | m-cap less ~₹121 cr cash over ₹1,006 cr EBITDA |
EV/Sales on FY26 (derived) | ~7.3x | — |
Dividend yield | ~0.12% | ₹0.80 / ₹672.55 |
Capital Markets
| Metric | 1Y | 3Y |
|---|---|---|
Total price return to 8 Sep 2026 (%) | 49.2 | 151.6 |
Per-Share Data and Returns & Leverage Ratios (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Dividend per share (INR) | 0.20 | 0.25 | 0.50 | 0.60 | 0.80 |
Dividend payout per Screener (%) | 20 | 5 | 6 | 5 | — |
Credit Ratings
| Agency | Instrument | Rating | Outlook | Date |
|---|---|---|---|---|
ICRA | Fund/non-fund based working capital ₹1,980.86 cr | [ICRA]AA / [ICRA]A1+ | Stable | 10 Jul 2026 |
ICRA | Commercial paper ₹500 cr | [ICRA]A1+ | — | 10 Jul 2026 |
India Ratings | Commercial paper ₹100 cr | IND A1+ | — | 20 Mar 2026 |
Moody's / S&P / Fitch | — | Not rated | — | — |
Analyst Conclusions
Management guidance
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EBITDA margin above 20% sustained.
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Project milestones: anthraquinone/carbazole Phase I in Q2 FY27; LFP 2,000 MTPA in Q3 FY27; CNT 200 MTPA in Q4 FY27; SSCB in Q4 FY28.
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Utilisation target of 85–90% in FY27.
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Continued scale-up of Birla Tyres and consolidation via the DBRL demerger.
Bull case
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Speciality-led earnings compounding: a full year of 130,000 MTPA speciality black plus new derivatives can sustain 20%+ EBITDA margins on a growing base, as Q1 FY27 (+28% revenue, record PAT) suggests.
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Battery-materials optionality: if the 2,000 MTPA LFP plant qualifies with cell makers, the path toward the 200,000 MTPA vision and ₹20,000 cr revenue potential re-rates the company toward a materials platform.
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Balance-sheet capacity: net cash and ICRA AA allow self-funded growth without dilution.
Bear case
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Valuation: ~42x TTM earnings prices in successful battery execution that is not yet commercial.
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Commodity cyclicality: FY26's 1% revenue growth demonstrates exposure to feedstock price cycles; a feedstock spike could compress spreads.
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Scale gap and capital intensity: Chinese LFP incumbents dominate cost curves; a ₹4,800 cr programme with uncertain offtake could depress returns.
Key catalysts and monitorables (next 12 months)
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Q2 FY27 results (expected late October 2026) and ramp of anthraquinone/carbazole.
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LFP 2,000 MTPA commissioning (Q3 FY27) and any customer qualification announcements.
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CNT plant commissioning (Q4 FY27).
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DBRL demerger approvals and Birla Tyres profitability.
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Working-capital trend and cash conversion.
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Promoter holding and encumbrance changes.
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Credit rating trajectory and capex funding mix.
Analyst verdict
Himadri Speciality Chemical has completed one of the more convincing turnarounds in Indian mid-cap chemicals. From a loss-making, levered coal-tar processor a decade ago and a near-breakeven FY22, it has built a business that earned ₹755 crore in FY26 at a margin above 21%, with a net cash balance sheet and a two-notch credit upgrade to ICRA AA. The engine is clear and evidenced: integration from India's largest coal-tar distillation base into speciality carbon black, where capacity has more than doubled to 130,000 MTPA, and into higher-value coal-tar derivatives. Q1 FY27 showed the next leg — 28% revenue growth and record profits as new capacity filled.
The harder question is what investors are paying for. At roughly 42 times trailing earnings and over 30 times EV/EBITDA, the market is capitalising not only the speciality-carbon franchise but a substantial share of the battery-materials vision. That vision remains early: a 200 MTPA anode line and a 2,000 MTPA LFP plant targeted for Q3 FY27 are pilot-to-commercial steps against a 200,000 MTPA ambition, in a segment where Chinese producers enjoy scale and cost leadership. Minority stakes in Sicona and International Battery Company provide technology and channel optionality, not revenue.
The tyre business adds a further layer of execution risk outside the company's core competence, though the DBRL demerger at least simplifies the structure.
On balance, the core business quality is high and improving, and management has delivered on stated milestones (speciality black expansion, anode plant, Mangalore terminal) broadly on time. The risk-reward from here depends on the LFP and CNT commissioning in FY27 and on whether revenue growth can persist beyond the one-time capacity step-up. Investors should treat Himadri as a high-quality carbon-materials compounder with expensive, unproven battery optionality — attractive on execution evidence, demanding on valuation, and best monitored against concrete FY27 commissioning and customer-qualification milestones.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Notes |
|---|---|---|
Anurag Choudhary | Chairman, Managing Director & CEO (CMD & CEO) | Promoter; holds 43,317,676 shares (8.59%) per 31 March 2026 shareholding pattern; architect of battery-materials and Birla Tyres strategy |
Monika Saraswat | Company Secretary & Compliance Officer (ACS 29322) | Signatory on exchange filings 2023–2026 |
Governance Detail
| Category | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
Promoter and promoter group (%) | 51.61 | 51.57 | 52.50 | 52.50 | 52.49 |
FII (%) | 5.19 | 5.74 | 5.75 | — | 6.8 |
Total institutions (%) | — | — | 8.84 | 9.18 | 10.13 |
Mutual funds (%) | 2.77 | 1.15 | 1.07 | — | — |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Positioning vs Himadri |
|---|---|---|
Carbon black (India) | PCBL Chemical Ltd (formerly Phillips Carbon Black) | India's largest carbon black producer; larger scale, expanding speciality and battery chemicals |
Carbon black (India/global) | Birla Carbon (Aditya Birla Group) | Global top-tier; private within group |
Carbon black (India) | Continental Carbon India; Epsilon Carbon (private) | Domestic rubber-black competition; Epsilon also integrates coal-tar distillation |
Speciality carbon black (global) | Cabot Corporation (US) | Global leader in speciality and conductive black |
Speciality carbon black (global) | Orion S.A. (Orion Engineered Carbons) | Global speciality black major |
Coal tar pitch (global) | Rain Industries / Rain Carbon | Large global CTP and calcined coke producer |
Coal tar pitch (global) | Koppers Holdings (US) | Carbon materials and chemicals |
Coal tar pitch (India) | Epsilon Carbon | Integrated coal-tar distiller in Karnataka |
Battery materials (India) | Epsilon Advanced Materials; Gujarat Fluorochemicals (LFP plans); Tata Chemicals | Competing for Indian cell-maker offtake |
Battery materials (global) | Chinese LFP leaders (e.g., Hunan Yuneng, Shenzhen Dynanonic) | Incumbents with massive scale and cost advantage |
Tyres | MRF, Apollo Tyres, CEAT, JK Tyre, Balkrishna Industries (OHT) | Far larger incumbents; Birla Tyres is a niche re-entrant |
Competitor Detail
| Metric | Himadri FY26 |
|---|---|
Revenue | ₹4,661 cr |
Revenue growth | ~1% |
EBITDA margin | ~21.6% |
