Himadri Speciality Chemical Ltd Q3 FY26 Earnings Call Summary

Summary

Himadri Speciality Chemical Ltd - Q3 FY26 Earnings Call Summary Wednesday, January 21, 2026 04:30 PM IST

Event Participants

Executives 3 Anurag Choudhary (Chairman, MD and CEO), Kamlesh Agarwal (CFO), Somesh Satnalika (EVP, Tyre and Strategy)

Analysts 8 Animesh Jain, Devanshi Shah, Dhruvin Kadakia, Disha, Divyansh Thakur, Ishani Jain, Pratik Shah, Priti Agarwal, Rohan Baranwal, Smaran, Viraj Sanghvi, Yashwanth Gottipati

Financials & KPIs

Geographic & Segment Commentary

• Speciality Carbon Black: Commenced trial production at the expansion project, creating the world’s largest single-site facility at 130,000 MTPA. Management expects capacity utilization to reach 85% in FY27, targeting high-value applications in plastics, coatings, and EV tyres.
• Coal Tar Pitch & Exports: Commissioned the Mangalore port terminal, establishing a second export corridor for the Middle East. Liquid coal tar pitch deliveries have commenced, leveraging proximity to the world’s largest aluminum manufacturing base outside China.
• Birla Tyres: Achieved ₹60+ crores revenue in Q3 FY26 with a distribution network of 640+ dealers. Strategic focus is shifting toward OTR (Off-the-Road) and OHT (Off-Highway) segments, with future plans for EV and SUV-specific passenger car radials.
• Lithium-ion Battery Materials: Targeting 200,000 MTPA LFP Cathode capacity; Phase 1 (40,000 MTPA) is on track for Q3 FY27. Ongoing R&D for synthetic and silicon-carbon anodes is supported by collaborations with Sicona and IBC.

Company-Specific & Strategic Commentary

• Capacity Debottlenecking: Expanded coal tar distillation by 1 lakh MT and Speciality Carbon Black to 1.3 lakh MT to remove growth constraints. These expansions provide the headroom required for the next phase of volume growth starting Q1 FY27.
• Vertical Integration: Leveraging 100% internal power generation through waste heat recovery systems. This sustainability initiative supports the platinum EcoVadis rating and insulates margins from rising energy costs.
• Promoter Commitment: Promoters converted 1 crore warrants into equity at ₹316 per warrant, increasing their stake to 52.5%. This move signals confidence in the “Himadri Reloaded” growth phase.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

LFP & Battery Materials Timeline

• Question: When will the cathode facility see significant utilization? (Animesh Jain)
• Answer: Significant utilization will begin in FY28, with FY29 targeted for full capacity utilization. (Anurag Choudhary)

Financial Guidance

• Question: How do you envision scaling up towards 2028? (Divyansh Thakur)
• Answer: Management expects PAT to double between FY25 and FY28. Previous guidance to double PAT in 3 years was achieved in 2 years. (Anurag Choudhary)

Technology & R&D Strategy

• Question: How does Himadri compete with established Chinese players in LFP? (Devanshi Shah)
• Answer: Himadri has 18 years of experience in carbon chemistry. Strategic stakes in Sicona and IBC provide access to cell manufacturing facilities in South Korea for real-world testing. (Anurag Choudhary)

Capital Allocation

• Question: Will future growth be debt-funded or accrual-driven? (Pratik Shah)
• Answer: All growth for the next 3-4 years will be funded via internal accruals with no planned dilution. (Anurag Choudhary)

Key Takeaway

Himadri Speciality Chemical Ltd delivered a robust Q3 FY26, with PAT growing 36% YoY to ₹192 crores and 9M FY26 performance already surpassing the previous full fiscal year. The company is transitioning from a capacity-constrained phase to an expansion phase, marked by the trial production of its 130,000 MTPA speciality carbon black facility and the commissioning of the Mangalore export terminal. Strategically, Himadri is positioning itself as a global leader in the lithium-ion ecosystem, targeting 200,000 MTPA of LFP cathode capacity with Phase 1 completion due in Q3 FY27. Management maintains a disciplined 34% ROCE and a strict non-dilution policy, funding its ₹1,125 crore battery material capex through internal accruals. While traditional segments like coal tar pitch remain cash cows, the company’s future pivot toward high-margin battery materials and specialized OTR tyres is expected to double PAT by FY28.