ICICI Securities has issued a HOLD rating on Himadri Speciality Chemical with a target price of ₹470 in its research report dated January 22, 2026. According to the brokerage's analysis, the company's Q3FY26 performance showed volume growth of 11.3% YoY while EBITDA per kg declined 1.3% YoY to ₹15.9, likely due to pressure on specialty carbon black spreads. The target price represents a reduction from the previous target of ₹500, reflecting revised valuation metrics.
The company is currently undergoing significant capacity expansion with plans to increase coal tar distillates by 20% to 600ktpa, carbon black by 40% to 250ktpa, and specialty oil products. As reported by ICICI Securities, Himadri has already seen initial revenue from Birla Tyres and may expand products and distribution in coming quarters. Other capital expenditure projects, including the LFP facility, are progressing as scheduled while the company awaits announcements regarding capex in anode materials.
ICICI Securities has cut EBITDA estimates by 5-7% for FY26/27 and adjusted the sum-of-the-parts (SoTP) based target price to ₹470 from ₹500. According to the brokerage's analysis, they have lowered the EV/EBITDA multiple to 12x from 16x for the core business while rolling over valuations to FY28E. The revised estimates reflect the company's current operational challenges and market conditions affecting specialty chemical spreads.
