Himadri Speciality targets ₹2,000 cr battery materials spend
Record Q1 revenue up 28%; lithium-ion battery materials and Birla Tyres turnaround anchor the five-year roadmap.
— 2 earlier stories on Himadri Speciality Chemical Ltd. →What's new
- Q1 revenue hits ₹1,432 cr, up 28%; EBITDA rises 33% to ₹313 cr.
- ₹2,000 cr capex plan for LFP cathode, carbon nanotubes, and anode pilot.
- Birla Tyres turnaround targets ₹3,000 cr revenue in 4-5 years.
Why this matters
The ₹2,000 cr capex signals a decisive shift from speciality chemicals to battery materials. If successful, it could double the company's addressable market. However, LFP cost competitiveness versus Chinese producers remains an open question; management declined to share proprietary cost data. Margins at 22% EBITDA margin (₹313 cr) are healthy, but execution risk on a self-funded plan of this scale is material given the P/E of 45.5.
What we're watching
- LFP cathode commercial production timeline and cost structure.
- Birla Tyres revenue progression towards ₹3,000 cr target.
- Any debt raise given the self-funded claim vs. capex size.
The full read
Himadri Speciality Chemical posted a record quarter: ₹1,432 cr in revenue, up 28%, and EBITDA of ₹313 cr, up 33%. The real story is the ₹2,000 cr two-year capex plan for battery materials, including LFP cathode, carbon nanotubes, and an anode pilot. That is a big bet. The plan is self-funded, but the economics remain opaque. Management refused to share LFP cost data, leaving the comparison to Chinese producers unanswered. The Birla Tyres turnaround adds another ₹3,000 cr revenue target over four to five years. The market already absorbed the headline numbers from earlier disclosures. What the concall reinforces is the strategic direction: a speciality chemicals company transforming into a battery materials play. The plan is clear; the proof will be in the cost curves.
Questions answered
- How does the ₹2,000 cr capex compare to HSCL's current financial capacity?
- With trailing EBITDA of about ₹1,252 cr (₹313 cr x 4) and net profit of ₹912 cr (₹228 cr x 4), the plan is ambitious but management claims it is self-funded. Debt/equity at 0.16 gives headroom.
- What is the status of the anode and CNT facilities?
- A 200 MT anode pilot is already operational; a 200 MT CNT plant is slated for Q4 FY27. These are part of the broader battery materials push.
- Are the Q1 results already known to the market?
- Yes, these record results were pre-announced. The concall provides additional context on capex and strategy but no material new surprise.
- Why did management decline to share LFP cost details?
- Proprietary cost data was cited. This leaves investors without a clear comparison to Chinese producers, a key competitive concern.
- What is the Birla Tyres turnaround plan?
- Target of ₹3,000 cr revenue in 4-5 years, with the company already seeing progress. No specific timeline or margin targets were given.
- Is the stock expensive at a P/E of 45.5?
- The valuation reflects growth expectations from battery materials. Execution on the capex plan will determine if the premium is justified.
Himadri Speciality Chemical Ltd.
Latest quarter · Jun 2026
Strength & growth
Story so far
All notes on HSCL →- 16 Jul 2026 · 5:37 PM IST Himadri Speciality targets ₹2,000 cr battery materials spend
- 1d ago Himadri Speciality notches record Q1 revenue, margins at 22%
- 1d ago Himadri Speciality Chemical posts 28% revenue growth, approves ₹368 cr capex