Why Did Himadri Speciality Chemical Experience a Revenue Decline?
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Synopsis
In a surprising turn of events, Himadri Speciality Chemical Limited has reported a significant revenue decline in Q1 FY26. Discover the factors behind this drop and how the company is navigating the challenges in the specialty chemicals sector while maintaining a focus on sustainability and profitability.
Key Takeaways
- Himadri Speciality Chemical reported a year-on-year revenue decline of 6.84 percent.
- Total revenue fell to Rs 1,118.29 crore in Q1 FY26.
- Net profit increased by 46.08 percent to Rs 179.36 crore.
- Total expenses decreased by 12.63 percent.
- The company is focusing on sustainability and expanding product offerings.
Mumbai, July 15 (NationPress) The Kolkata-headquartered Himadri Speciality Chemical Limited announced a year-on-year (YoY) revenue drop of 6.84 percent, with total revenue decreasing to Rs 1,118.29 crore in Q1 FY26 from Rs 1,200.41 crore in Q1 FY25.
On a quarter-on-quarter (QoQ) basis, revenue also saw a decline of approximately 1.44 percent, from Rs 1,134.64 crore in Q4 FY25, as per the company's stock exchange disclosure.
Moreover, the total income for the company, led by Anurag Choudhary, experienced a decline of about 5.61 percent YoY, falling to Rs 1,144.97 crore compared to Rs 1,213.05 crore in the corresponding period last year.
Nevertheless, a significant cut in expenses bolstered profitability. Himadri's total expenses for the quarter were Rs 903.75 crore, marking a decrease of around 12.63 percent from Rs 1,034.37 crore in the same quarter of the previous fiscal year.
The company reported a net profit of Rs 179.36 crore in Q1 FY26, reflecting an impressive increase of nearly 46.08 percent from Rs 122.78 crore in the same quarter last year.
On Tuesday, shares ended the trading session at Rs 511.5, down by Rs 5.15 or 1 percent on the National Stock Exchange (NSE).
Himadri Speciality Chemical Limited operates in the specialty chemicals domain, renowned for its commitment to innovation, research, and sustainability.
The company is a prominent producer of coal tar-derived chemicals, carbon black, and advanced materials utilized in lithium-ion batteries.
It caters to multiple industries, including electric vehicles, tires, plastics, paints, aluminum, and construction.
With a robust presence in both domestic and international markets, particularly in Europe and the US, Himadri is dedicated to expanding its portfolio of high value-added products with a strong emphasis on eco-friendly practices.
Additionally, the company is involved in the production of lithium-ion battery anode materials in India, playing a vital role in the nation's green energy initiatives.
Point of View
It’s crucial to recognize the broader context. While the decline in revenue raises eyebrows, the company's focus on reducing expenses and enhancing profitability reflects resilience in a competitive market. Himadri's commitment to sustainability and innovation positions it favorably for future growth, aligning with national efforts towards green energy.
NationPress
16/07/2025
Frequently Asked Questions
What caused the revenue decline at Himadri Speciality Chemical?
The revenue decline of 6.84 percent in Q1 FY26 was attributed to various market conditions and a decrease in total income compared to the previous fiscal year.
How did Himadri manage to increase its net profit?
Himadri Speciality Chemical achieved a net profit increase of 46.08 percent due to significant cuts in expenses, which stood at Rs 903.75 crore.
What industries does Himadri supply?
Himadri supplies to diverse industries, including electric vehicles, tires, plastics, paints, aluminum, and construction.
What is the company's focus moving forward?
The company emphasizes sustainability and eco-friendly practices while expanding its range of high value-added products.
Where does Himadri have a strong market presence?
Himadri has a robust presence in both domestic and international markets, especially in Europe and the US.
