Himadri earnings for the second quarter of fiscal 2027 showed revenue growth of 58% year over year, supported by higher selling prices and an 11% increase in volume. In its October 22, 2026 earnings discussion, the specialty-chemicals company also outlined new-material commissioning plans, while reporting pressure on gross margins and working capital.
Key Takeaways
- Higher realizations and value-added products amplified the effect of volume growth on revenue.
- EBITDA per tonne improved year over year but declined from the preceding quarter.
- Management plans to fund its roughly Rs 1,500 crore investment program entirely through internal accruals.
Table of Contents
- Himadri earnings reflect pricing as well as volume growth
- Margin pressure complicates the stronger sales picture
- Internal funding plans depend on cash conversion
- New-material projects approach planned production dates
- Mining clearance opens another planned revenue stream
- Conclusion
Himadri earnings reflect pricing as well as volume growth
Consolidated revenue exceeded Rs 3,000 crore in the first half of FY27, with EBITDA above Rs 600 crore and profit after tax of Rs 450 crore. Those half-year figures are distinct from the 58% revenue increase reported for the second quarter.
Chairman and Chief Executive Anurag Choudhary attributed quarterly growth to higher volumes and increased finished-product and raw-material values across segments. A greater emphasis on value-added products supported selling prices. Revenue therefore rose substantially faster than the quantity of products sold.
The company discussed the performance in its October earnings call. Himadri’s regulatory earnings-call disclosures provide access to recordings and transcripts of quarterly discussions.
| Item | Details |
|---|---|
| Initial LFP capacity | 2,000 metric tonnes; production targeted for Q3 FY27. |
| Larger LFP expansion | 40,000 metric tonnes per annum; commissioning planned by end-FY28. |
| Specialty-chemicals project | Full 5,300-metric-tonne capacity targeted for Q4 FY27 in a single phase. |
| Carbon nanotubes | Production targeted to start in Q4 FY27. |
Margin pressure complicates the stronger sales picture
Gross margin contracted by almost 500 basis points from a year earlier. Management cited delays in passing through raw-material price increases and higher freight costs associated with increased exports.
Choudhary emphasized absolute EBITDA per metric tonne rather than percentage margins. That measure stood at about Rs 21,000, compared with roughly Rs 17,900 a year earlier, but below approximately Rs 22,800 in the preceding quarter.
The distinction matters because changing input prices can lift revenue while reducing the percentage margin, even when earnings per tonne improve. Management expressed confidence in sustaining EBITDA above Rs 20,000 per tonne, although that remains guidance rather than an achieved future result.
Internal funding plans depend on cash conversion
Himadri spent roughly Rs 250 crore on capital expenditure during the quarter. Management expects spending of Rs 800–900 crore in FY27 within a broader investment program of approximately Rs 1,500 crore, which it intends to finance without debt.
Working capital remains an important constraint on that plan. Net working capital represented 37% of sales in Q2 FY27, down from 41% in the preceding quarter but above 31.3% a year earlier. Trade receivables increased to 65 days from 63 days sequentially.
Choudhary expects working capital to normalize over the next two quarters and operating cash flow to be positive for the full year. Those expectations are relevant to the internal-funding strategy, but do not establish that cash conversion has already normalized.
New-material projects approach planned production dates
The expansion roadmap spans lithium iron phosphate cathode material, carbon nanotubes and specialty chemicals. Initial LFP production is intended to supply plant-scale samples to global vehicle manufacturers and Indian customers before the larger commercial expansion.
Management targets more than 50% utilization in the larger LFP plant’s first year and more than 90% in the following year. These are operating assumptions for the planned capacity, not current utilization rates.
Engineering is also underway for silicon-carbon anode technology, but management described the capital-expenditure announcement as still forthcoming. That project should therefore be distinguished from facilities with stated commissioning targets.
Mining clearance opens another planned revenue stream
Management said environmental clearance had been received for sand-mining operations in Bengal serving the construction industry. The business recorded negative EBITDA in the reported quarter while clearance was pending.
Operations were expected to begin in the quarter underway at the October call. Choudhary guided to approximately Rs 500 crore in annual revenue from mining; that figure is a prospective annual contribution, not revenue already recorded.
Conclusion
The next stated milestone for Himadri earnings is initial LFP production in Q3 FY27. Alongside that launch, working-capital normalization and cash generation will show whether the company is progressing toward its internally funded expansion plan.
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