Himadri Speciality Q2 Results (October 16): Profit Up 31% to ₹231 Crore as Revenue Jumps 58%

Himadri Speciality Chemical says its first half of FY27 set a new benchmark for the company, and the September quarter did a lot of the lifting on the top line. In the Himadri Speciality Q2 results, consolidated profit after tax rose 31.33% year-on-year to ₹231 crore, from ₹176 crore in Q2 FY26, while revenue from operations climbed 57.93% to ₹1,691 crore from ₹1,071 crore. The numbers were filed on Friday, October 16, and the company’s investor release followed on Saturday.

Read past the headline, though, and there’s a gap between how fast sales grew and how fast profit grew. That gap is the story of this quarter.

Himadri Speciality Q2 results: sales ran ahead of profit

EBITDA, or operating profit before interest, tax, depreciation and amortisation, rose 27.48% to ₹303 crore from ₹238 crore, according to the company’s investor release filed with BSE. That is healthy growth on its own. But revenue grew more than twice as fast as EBITDA.

Do the division and the margin story shows up. By our arithmetic from the release, EBITDA was about 17.9% of revenue this quarter, against about 22.2% in the same quarter last year. So the company earned more in absolute rupees, but less on each rupee of sales.

The sequential picture says the same thing. Moneycontrol’s results page shows revenue up 18.13% over the June quarter, but net profit up only 1.27%. Taking the half-year totals in the release (₹3,123 crore of revenue and ₹616 crore of EBITDA) and subtracting the September quarter, we get roughly ₹1,432 crore of revenue and ₹313 crore of EBITDA for Q1. On those rounded figures, Q2 EBITDA was slightly lower than Q1’s even though sales rose by about 18%.

The half-year in numbers

• H1 FY27 revenue from operations: ₹3,123 crore, up 43% year-on-year.
• H1 FY27 EBITDA: ₹616 crore, up 30%.
• H1 FY27 profit after tax: ₹460 crore, up 29%.

In the release, chairman, managing director and CEO Anurag Choudhary put the improvement down to a better product mix, growth in the core businesses and a widening range of speciality and advanced materials.

What else the company flagged

Two strategic moves got space in the release. The first is the proposed merger of the Birla Tyres business into Himadri, which the company describes as a step towards an integrated tyre value chain, from feedstock and speciality carbon black to manufacturing. The second is battery materials. Sicona Battery Technologies, where Himadri has an investment, has completed the full acquisition of US-based Advano and secured AUD 45 million of funding from the Australian Renewable Energy Agency, the company said.

Neither of these shows up much in a single quarter’s profit. They are, however, why the company now pitches itself as much more than a carbon black maker.

What to watch from here

For us, the margin is the number to track over the next couple of quarters. A business growing sales at nearly 58% can live with a thinner margin for a while, especially if newer products are still scaling up. But if EBITDA keeps lagging revenue, the profit growth investors are paying for will be harder to deliver. Results season is busy this week too, so it’s worth comparing Himadri’s margin trend with other materials names such as India Cements’ Q2 results. If you want a framework for reading these filings yourself, our guide on how to analyse quarterly results walks through it step by step.

Disclaimer: This article is for information only and is not investment advice or a recommendation to buy or sell any security. Figures are from the company’s exchange filing and the results page linked above. Consult a SEBI-registered investment adviser before making investment decisions.