Himadri gave three conflicting signals this quarter
Birla Tyres timeline extended, anode facility location switched, partner name changed — all without explanation, even as Q1 PAT rose 27%
What's new
- Q1 consolidated revenue ₹1,432 cr (+28% YoY), PAT ₹228 cr (+27% YoY), EBITDA margin 22%.
- Announced 200 MT CNT facility (₹270 cr, Q4 FY27) and 6,000 MT super specialty carbon black conversion (₹170 cr, FY28).
- LFP cathode roadmap: 2,000 MT Q3 FY27, 40,000 MT by FY28, 200,000 MT by FY31.
Themes from the call
Demand
Battery materials tailwinds: global battery demand projected at 6.8 TWH by 2035, with LFP growing to 70% share.
Margins
PAT grew faster than revenue (27% vs 28%) due to portfolio mix shift toward higher-margin specialties, but management refused to disclose LFP cost structure vs China.
Capital allocation
₹2,000 cr capex over 2 years entirely self-funded from free cash flow; no incremental debt planned.
Guidance watch
- Reaffirmed ₹1,100 cr consolidated PAT target by FY28.
- LFP capacity: 2,000 MT by Q3 FY27, 40,000 MT by FY28, 200,000 MT by FY31; ₹3,000 cr revenue from 40,000 MT.
- CNT facility: 200 MT by Q4 FY27, ₹50-70 cr topline at full capacity.
- Super specialty carbon black: 6,000 MT by FY28, ₹500 cr topline potential.
- Anode commercial-scale capex not yet disclosed.
Risk flags
- Management declined to disclose LFP cost structure vs China, saying it is confidential and 'can't calculate on Excel'.
- Anode commercial-scale capex refused, leaving a key investment unknown.
- Birla Tyres target timeline extended without explanation, raising credibility concerns.
- No blended EBITDA margin trajectory guidance despite analyst request.
Key quotes
-
"Carbon nanotubes have 100 times the strength of steel with the conductivity of copper in a light material, which is a game changer."
— Anurag Choudhary, CEO -
"We expect to be around INR 3,000 crores of top line from this business in next 4 years."
— Management, Apr 2026 call on Birla Tyres -
"The target is to reach 3,000 crores of top line in Birla Tyres in the next 4 to 5 years."
— Management, Jul 2026 call on Birla Tyres
The brief
Himadri Speciality delivered a solid Q1: revenue ₹1,432 crore up 28%, PAT ₹228 crore up 27%, with EBITDA margin of 22%. The headline story — a multi-year battery materials pivot — remains intact. Management announced a 200 MT carbon nanotube facility, a 6,000 MT super specialty carbon black conversion, and maintained its LFP cathode timeline of 40,000 MT by FY28 and 200,000 MT by FY31. The ₹2,000 crore capex plan is self-funded, no debt.
But the call also contained three unexplained contradictions that chip away at management credibility. The Birla Tyres revenue target was pushed from '4 years' to '4 to 5 years' without explanation. The anode material facility location changed from Mahistikry to Budge Budge. And the Birla Tyres operating partner shifted from Dalmia Refractory to Gallon Refractory. None of these were addressed.
Individually, each could be a minor clerical issue. Together, in a single call, they suggest a pattern of imprecision. That matters when management is asking investors to underwrite a ₹4,800 crore capex bet on LFP cathode by FY31. If timelines and locations can shift without comment, so can guidance.
The Q1 numbers are strong, and the battery materials story has genuine tailwinds. But three unexplained flip-flops in one call remind the market that precision is not yet a Himadri strength. Investors should verify management's claims against hard milestones.
Himadri's Q1 numbers look strong, but three unexplained contradictions in a single call make its guidance harder to underwrite.