Despite recent market volatility, Himadri Specialty Chemicals delivered robust financial results for the first half of FY27. The company reported a 29% year-on-year rise in consolidated net profit to ₹460 crore, while revenue from operations increased 43% YoY to ₹3,123 crore. According to the latest earnings report, Q2FY27 revenue stood at ₹1,691 crore, up 57.93% YoY from ₹1,071 crore. The company's EBITDA for Q2FY27 was ₹303 crore, reflecting a 27.48% increase YoY from ₹238 crore, with net profit for the quarter rising 31.33% YoY to ₹231 crore from ₹176 crore.
Shares of Himadri Specialty Chemicals have experienced their worst weekly performance in nearly two decades, declining over 25% for the truncated week ending October 23. According to reports from CNBC TV18, this represents the most significant weekly decline since January 2009, when the stock had fallen 29% in a single week. The stock has extended losses for the sixth consecutive session on Friday, October 23, crashing 6% to ₹492, marking its lowest level since April. The company has also declined in seven out of the last 10 trading sessions and the heavy losses have wiped out the stock's gains for the year, with shares falling 40% from their peak this year.
The company's Q2FY27 results revealed significant margin pressure due to accelerated input cost inflation. Revenue from operations reached ₹1,542.67 crore, marking a 44.12% increase YoY from ₹1,070.41 crore, while also growing 21.06% sequentially from ₹1,274.26 crore in Q1FY27. However, material costs surged 55.25% YoY to ₹1,048.83 crore from ₹675.60 crore in the year-ago quarter, with sequential growth of 30.42% from ₹804.17 crore in Q1FY27. This outpaced revenue growth, resulting in EBITDA increasing 26.98% YoY to ₹308.19 crore but with margins contracting 2.7 percentage points to 20% from 22.7% a year earlier. Net profit grew 28.32% YoY to ₹239.77 crore but net profit margin declined 1.9 percentage points to 15.5% from 17.5% in Q2FY26.
The carbon materials and chemicals segment remains the primary growth engine, contributing ₹1,539.02 crore to consolidated revenue in Q2FY27, up from ₹1,067.21 crore in the year-ago period. The power segment also witnessed healthy growth, with revenue rising to ₹33.32 crore from ₹22.90 crore YoY. Looking ahead, the company has outlined significant expansion plans with ₹1,125 crore investment in lithium iron phosphate (LFP), ₹248 crore in specialty chemicals, ₹70 crore in carbon nanotubes, and ₹170 crore in super specialty carbon black, according to its investor presentation for Q2FY27. The company is aggressively diversifying into high-growth sectors, particularly advanced battery materials and specialty chemicals, with multiple expansion projects underway.
