# 1. Financial Performance ## A. Key Figures * **Q2 FY26 Revenue:** ₹1,070 Cr stand-alone · ₹1,071 Cr consolidated (-6% YoY) * **Q2 FY26 EBITDA:** ₹243 Cr stand-alone (+21%) · ₹238 Cr consolidated (+17%) * **Q2 FY26 PAT:** ₹187 Cr stand-alone (+39%) · ₹176 Cr consolidated (+30%) * **H1 FY26 Revenue:** ₹2,171 Cr stand-alone · ₹2,189 Cr consolidated * **H1 FY26 EBITDA:** ₹477 Cr stand-alone (+23%) · ₹473 Cr consolidated * **H1 FY26 PAT:** ₹369 Cr stand-alone (+43%) · ₹356 Cr consolidated (+38%) ## B. Revenue Trends * **Top-Line Pressure from Commodity Lows & Timing:** Revenue decline primarily driven by **13–15% lower raw material prices** year-on-year and **deferred export recognition to Q3**, not volume or demand weakness. * **Consolidation Impact Explained:** Consolidated revenue reduction reflects **elimination of inter-subsidiary transactions** due to accounting compliance, not weaker external sales. * **Product Mix Shift:** Strategic pivot toward **high value-added products** is weighing on reported turnover but enhancing margins. ## C. EBITDA & PAT * **Record Profitability Amid Revenue Headwinds:** Strong double-digit EBITDA and PAT growth driven by **value-added product mix** and **operational efficiency**, with margins expanding over six consecutive quarters. * **Margin Drivers Quantified:** **65–70%** of margin improvement attributed to **high-value specialty materials**, **30%** to **yield gains, energy efficiency, and waste heat recovery**. * **Accelerated Profit Target Delivery:** H1 PAT of ₹369 Cr puts company on track to **exceed three-year profitability target (₹800 Cr by FY27) ahead of schedule**, with potential for upside in FY27. ## D. Balance Sheet * **Self-Funded Growth & Net Debt Light:** Expansion fully funded via **internal accruals**; **no external leveraging**, with expectation to turn **net debt positive by March**. * **Short-Term Borrowings Non-Leverage:** ₹300 Cr increase in borrowings reflects **commercial papers against bank deposits**, not debt-funded capex. ## E. Cash Flow * **Working Capital Discipline:** Working capital maintained at **31% of revenue**, expected to remain stable over next **2–3 quarters**, supporting cash conversion. --- # 2. Product & Segment Performance ## A. Key Figures * **EBITDA per kg:** **₹17** (up from ₹15 YoY) * **Sellable Capacity:** **150,000 MT** carbon black (80% of total) * **Tyre Sales:** **₹26 Cr** this quarter (+420% QoQ) ## B. Carbon Black * **Margin Resilience:** EBITDA per kg improved amid global margin compression, driven by **strategic focus on specialty products** and high-quality niche applications. * **Structural Advantage:** Lower exposure to volatile tyre-grade carbon black insulates performance, enabling stable operations despite smaller scale versus global peers. * **Demand & Competition:** Robust demand persists with full order book in key regions; competitive landscape remains stable with no new entrants and limited specialty focus from Korean rivals. * **Cost Leadership:** Indian producers maintain international cost advantage over China due to cheaper feedstock, enhancing export competitiveness. ## C. Coal Tar Pitch * **Export Expansion:** Strategic capacity enhancement supported by new liquid-pitch export terminals at Mangalore port, reinforcing leadership in global aluminium and electrode supply chains. * **Demand Diversification:** Despite muted domestic aluminium growth, 60% of incremental demand absorbed into carbon black production, underpinning utilization. ## D. Tyre Business * **Revival Momentum:** Tyre sales surged to ₹26 Cr this quarter from ₹5 Cr previously, dispelling concerns of decline and reflecting successful commercial traction. * **Product Roadmap:** Production to span BIAS, OTR/OHT, and EV-focused passenger car radials within next 12 months, signaling diversified and future-ready portfolio rollout. --- # 3. Capacity & Expansion ## A. Key Figures * **Specialty Carbon Black Capacity:** **130,000 MT/year** (more than double) by end-Q3 FY26 * **Total Carbon Black Capacity:** **250,000 MT/year** by end-Q3 FY26 * **LFP Cathode Capacity (Phase 1):** **40,000 MT/year** commercial plant to start Q3 FY27 * **LFP Cathode Total Target Capacity:** **200,000 MT/year** * **Coal Tar Pitch Distillation Capacity:** **600,000 MT/year** (from 500,000 MT) ## B. Specialty Carbon Black * **Global Leadership Expansion:** More than doubled specialty carbon black capacity to become the **world’s largest single-site producer**, supported by **60+ new grades** enhancing product leadership. * **Integrated Cost Advantage:** Use of **clean, self-produced carbon black oil** provides superior quality control and a strategic edge in high-purity applications. * **Volume Growth Inflection:** New capacity and de-bottlenecking to drive volume growth starting **Q4 FY26**, ending a multi-year plateau due to full utilization. ## C. LFP Cathode Plant * **Pioneering Battery Materials Play:** Establishing **India’s first commercial-scale lithium-ion battery material plant**, positioning as the **first non-Chinese global-scale LFP cathode manufacturer**, aligned with Atmanirbhar Bharat. * **Execution on Track:** Pilot plant nearing completion with operations expected **next quarter**, while 40,000 MT commercial line remains on schedule for **Q3 FY27**. * **Strong Market Validation:** Battery chemicals receiving **very encouraging feedback** from customers, reinforcing confidence in CAPEX rollout. ## D. Durofresh Scaling * **Brand-Led Forward Integration:** Launched proprietary **Durofresh mothball brand** with positive early market response, now scaling up production. * **Near-Term Capacity Ramp:** Larger Durofresh production facility to begin operations within **3–4 months** post-equipment installation. ## E. De-bottlenecking Projects * **Capacity Constraints Resolved:** Multi-quarter volume stagnation at ~135,000–140,000 MT due to **peak utilization**, now being addressed through targeted de-bottlenecking. * **PCR Plant Timeline:** Machinery installation to begin within **12 months**, with commissioning date to follow. --- # 4. Customer & Geography Mix ## A. Key Figures * **Export Demand Visibility:** **40,000 MT** incremental coal tar pitch demand from export markets, primarily Middle East * **Global Reach:** Operations in **54 countries** with sustained demand momentum in Q2 and strong H2 outlook * **Distributor Network:** **29 distributors** and **>350 dealers** across India, with plans for significant expansion * **Dealer Scalability:** Target to increase dealer count per distributor from **10–12 to 30–40** * **Customer Milestone:** Supplies **80% of US-based Willert’s** naphthalene ball requirements ## B. Export Markets * **Strategic Global Expansion:** Strengthened international footprint through participation in global platforms and enhanced brand visibility in Specialty Chemicals and new energy materials. * **New Export Capacity Online:** First shipment of liquid coal tar pitch expected from newly commissioned Mangalore terminal in November, enabling scalable global supply. * **Robust Export Demand:** Clear visibility on incremental demand of **40,000 MT** of coal tar pitch from the Middle East, where large smelters are import-dependent. * **Resilient Export Performance:** Exports and profits continue growing amid peer stagnation, supported by diversified geographic exposure and supply flexibility. ## C. Distributor Network * **Network Scaling Underway:** Current base of 29 distributors to be expanded, with each targeted to support **30–40 dealers** versus current 10–12, indicating a tripling of coverage potential. ## D. Key Customer Approvals * **Premium Brand Partnership:** Birla Tyre named official tyre partner of Asia Cup 2025, reinforcing brand alignment with performance and trust via 'Rolling with Champions' campaign. * **Customer Validation in New Energy:** IBC launched Prabal 1000 cell using NMC material and will launch Prabal 2000 with **Himadri’s LFP cathode**, following strong demo-scale feedback. * **Elite Manufacturing Recognition:** Holds **platinum rating**—achieved by only **1% of global manufacturers**—enhancing credibility and competitive differentiation. --- # 5. Technology & Integration ## A. Key Figures * **Strategic Stakeholdings:** **6%** in Sicona · **2%** in International Battery Company · **40%** in Invati Creations * **Technology Edge:** **>20% higher energy density** and **~40% reduction in charging time** via Sicona partnership * **Sustainability Tenure:** **15+ years** of focused sustainability initiatives · **12–13 years** of lithium-ion battery R&D ## B. Backward Integration * **Core Differentiation:** Fully integrated carbon black oil production ensures **consistent raw material quality** and superior yield, eliminating supply variability. * **Sustainable Operations:** Operations powered by **100% in-house clean energy** and zero liquid discharge systems reinforce long-term efficiency and stakeholder trust. ## C. R&D Advancements * **Battery Materials Focus:** Multi-year R&D in **natural, synthetic, and silicon-integrated anodes** supports India’s energy independence and positions Himadri as a technology leader. * **Validation & Legacy:** ISCC-Plus certification and decade-plus public commitment to battery innovation underscore deep technical credibility and foresight. ## D. Strategic Partnerships * **India-Exclusive Tech Access:** Partnership with Sicona grants exclusive rights to commercialize advanced silicon carbon anode tech, enabling leapfrog in performance metrics. * **Full Value Chain Play:** Strategic investments establish presence across **anode, cathode, and cell manufacturing**, positioning Himadri as an integrated advanced materials player in India’s EV/ESS ecosystem. --- # 6. Risks & Market Factors ## A. Raw Material & Market Dynamics * **Full Cost Pass-Through Shields Margins:** Raw material price volatility is fully transferred to customers in both domestic and export markets, ensuring **absolute margins remain unaffected**; only top-line and margin percentages fluctuate. * **Sustainable Margin Environment:** Current margin strength is underpinned by pricing clarity, long-term customer relationships, and **100% effective pass-through mechanism**, with no anticipated pricing pressures or supply overhangs. * **Resilient Export Position:** US tariffs have had **no material financial impact**, as duties are structured to preserve margins, while high product quality sustains demand in affected markets. ## B. Sustainability & Certification Milestones * **Leadership in Sustainable Manufacturing:** Mahistikry plant secured **ISCC-Plus certification**, affirming circular economy integration and responsible production standards. * **Top-Tier ESG Recognition:** Achieved **'A' rating in CDP's Suppliers assessment**, validating strong environmental performance and sustainable supply chain practices. ## C. New Venture & Competitive Landscape * **No Near-Term EV/Battery Commercialization:** **No contracts with EV makers or OEMs** have been finalized; revenue contribution from PCR plant remains contingent on commissioning within the next 12 months. * **Barriers to Entry Protect Market Position:** **Absence of new entrants** in coal tar pitch expected due to **2-year quality establishment timeline**, reinforcing Himadri’s competitive moat. --- # 7. Guidance & Outlook ## A. Key Figures * **PAT Target:** **₹411 Cr** FY24 base, targeting **doubling by FY27** * **Battery Chemicals Revenue:** **₹2,500–2,700 Cr** at 100% capacity (timeline not specified) * **Capacity Utilization:** **10%** current, targeting **30–40%** next year ## B. Revenue Projections * **Growth Resumption:** Double-digit revenue growth expected by FY27, driven by new capacity ramp-ups and a large export order in Q3. * **Business-Specific Trajectories:** Himadri poised for significant top- and bottom-line expansion over 3–4 years; Durofresh to see stable revenue with high incremental profitability. * **Start-up Phase Dynamics:** Tyre business remains in early stage with no material revenue expected in current year. ## C. Profitability Targets * **Accelerated Earnings Growth:** Himadri is ahead of schedule on its path to doubling PAT by FY27, reinforcing confidence in outperformance versus initial targets. * **No Near-Term EBITDA Guidance:** Despite tyre segment potential, management has not provided specific EBITDA forecasts. ## D. Timeline for New Business * **Near-Term Commercialization:** Anode technology commercialization expected in a few quarters, followed by CAPEX announcement. * **Phased Capacity Impact:** Partial contribution from new facilities expected in Q4 FY26, with full ramp-up by Q1 FY27. * **Strategic Roadmap to FY28:** Growth to be fueled by specialty carbon black, Birla Tyres, specialty chemicals, and lithium-ion materials, marking transition into high-value segments.