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Himadri Speciality Chemical Posts 2% Gain Amid Broader Market Pressure

Shares of Himadri Speciality Chemical ended Thursday's trade with a nearly 2% gain at ₹590 apiece, despite the broader market experiencing pressure. The company's shares have been attracting investor interest lately, driven by multiple positive developments.

Key Investment in Sicona Battery Technologies

Himadri Speciality Chemical has announced a further investment in Australia-based Sicona Battery Technologies through the subscription of Compulsorily Convertible Notes (CCNs). The company has invested an additional AUD 25.59 lakh in cash towards the subscription of 25.59 lakh CCNs with a face value of AUD 1 each. This additional investment brings the company's cumulative holding in Sicona to 1.67 crore CCNs, as per the company's filing.

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| Comparison of Himadri's Investment in Sicona Battery Technologies | | --- | --- | | Initial Investment | AUD 1.41 crore | | Additional Investment | AUD 25.59 lakh | | Total Holding | 1.67 crore CCNs |

The company clarified that since the investment is being made in the form of CCNs, it has not acquired any additional voting rights or control in Sicona at present. The CCNs will be convertible into shares of Sicona as per agreed terms.

Strong Performance in March Quarter

Himadri Speciality Chemical's shares have continued to attract investor interest lately, driven by a better-than-expected performance in the March quarter. The company reported a 13.5% year-on-year (YoY) increase in consolidated revenue to ₹1,288 crore. EBITDA rose 21.15% YoY to ₹280 crore, with operating margins expanding to 21.74%. Net profit surged 33.5% YoY to ₹207.53 crore.

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| Financial Performance (March Quarter) | | --- | --- | --- | | Revenue | ₹1,288 crore | 13.5% YoY increase | | EBITDA | ₹280 crore | 21.15% YoY increase | | Net Profit | ₹207.53 crore | 33.5% YoY increase |

For the full FY26, the company reported revenue of ₹4,660.70 crore and EBITDA of ₹755.07 crore, reflecting marginal 1% YoY revenue growth and a strong 36% YoY rise in EBITDA, according to the company's earnings filing.

Strategic Focus on Value-Added Products

Himadri Speciality Chemical's strategic focus on value-added products has continued to support profitability growth. The company's stable volumes combined with higher margins drove the company's strong performance during the year.

Commissioning of Anode Material Production Facility

In late April, the company announced the commissioning of its first anode material production facility at Mahistikry, West Bengal, with an initial capacity of 200 MTPA. The backward integration, along with proprietary process know-how, is expected to enable a fully integrated and self-reliant manufacturing ecosystem across the anode material value chain.

Shares Recover 40% from Recent Lows

The company's shares staged a strong rebound in April, with a 38% surge, after delivering muted returns over the previous three months. The rally has also helped push its year-to-date returns to 21%. Earlier this year, the stock touched a low of ₹421 apiece and has since rebounded by 40% at current levels, marking a sharp turnaround from a 17% decline in CY25.

| Historical Performance | | --- | --- | --- | | 2021 | | | | 2022 | | | | 2023 | 207% gain | Best-performing year | | 2024 | | | | 3-Year Return | 385% | | | 5-Year Return | 1084% | |