Q3 FY26 Performance Overview
Himadri Speciality Chemical Ltd (HSCL) delivered a steady operating performance in Q3 FY26, supported by volume growth, capacity additions, and a favorable product mix. The company continues its strategic transition toward higher-value specialty products while investing in new growth platforms linked to energy storage and advanced materials.
Revenue Growth and Demand Trends
Consolidated revenue from operations stood at Rs 1,184 crore in Q3 FY26, reflecting a year-on-year growth of around 4 percent compared with Rs 1,141 crore in Q3 FY25. Sequential revenue growth was stronger, driven by improved capacity utilization and incremental contribution from recently commissioned assets. Demand remained stable across domestic and export markets, particularly for specialty carbon black and coal tar-based products.
Profitability and Margin Expansion
Profitability outpaced topline growth during the quarter. Net profit rose to Rs 192 crore from Rs 141 crore in Q3 FY25, marking a year-on-year increase of over 35 percent. The improvement was driven by operating leverage, better realizations in niche applications, and disciplined cost control. EBITDA margins expanded, supported by a richer product mix, higher specialty volumes, and reduced volatility in key raw material prices.
Capacity Expansion and Operational Developments
Q3 FY26 marked an important operational milestone with the commencement of trial production at the specialty carbon black expansion at the Mahistikry facility in December. Upon full ramp-up, this facility is expected to become the world’s largest single-location specialty carbon black plant, with total capacity of approximately 130,000 tonnes per annum. The expansion enhances HSCL’s positioning in high-performance applications such as plastics, coatings, inks, and lithium-ion battery components.
Logistics and Export Infrastructure Strengthening
The company strengthened its logistics and export capabilities by commissioning a new terminal at Mangalore Port. During the quarter, HSCL completed its first export shipment of liquid coal tar pitch to the Middle East from this location. This development provides a third export route after Haldia, improving supply chain flexibility and service levels for international customers.
Diversification into New Growth Platforms
Business diversification remains a key strategic priority. Himadri is investing in forward integration and new chemistries beyond traditional coal tar derivatives. The company is progressing with lithium-ion battery material projects, including lithium iron phosphate (LFP) cathode active materials, aligned with long-term growth in electric vehicles and energy storage. Commercial operations for the LFP project are expected to commence in phases from FY27.
Expansion into Specialty Chemicals and Downstream Segments
In parallel, HSCL is expanding into specialty chemicals such as anthraquinone and carbazole to enhance margin stability and reduce earnings cyclicality. The acquisition and turnaround of Birla Tyres further extends the company’s downstream presence into off-highway and commercial vehicle segments.
Overall Assessment and Outlook
Overall, Q3 FY26 reflects consistent execution across core operations and strategic initiatives. While revenue growth remained modest, strong profit growth and margin expansion underscore improving business quality. With multiple capacity additions, export infrastructure upgrades, and diversification initiatives underway, Himadri is positioning itself for structurally higher earnings over the medium term, albeit with elevated capital expenditure in the near term.