Sigachi pushes Hyderabad recovery to mid-2027, gives mixed FY27 guidance
The fire-damaged plant's commercialization is now 12 months later than guided. The company still expects 35% revenue growth next year.
— 2 earlier stories on Sigachi Industries Ltd. →What's new
- Dahej's 1,800-ton CCS plant is delayed to Q1 FY28, a year past its original Q3 FY27 target.
- Insurance payouts for the June 2025 fire-hit Hyderabad plant are now expected late June 2026.
- Management guided for ₹650-675 cr in FY27 revenue and an 18-20% EBITDA margin recovery.
Why this matters
The delays mean two key recovery drivers are off the table for the next year. The company is betting on its newer Dahej expansion to fill the gap, but the timeline push extends the cash-cost burden from the Hyderabad incident.
What we're watching
- Whether the 12,000 MT Dahej expansion can actually hit its commissioning timeline.
- Actual EBITDA margin in Q1-Q2 FY27 as safety costs are supposed to stabilize.
- The final insurance payout amount and its impact on the balance sheet.
The full read
Sigachi Industries is hitting the snooze button on its recovery. The commercialization of its key Dahej CCS plant is now pushed to Q1 FY28, a full 12 months later than the original Q3 FY27 target. Separately, the clock on insurance payouts for the June 2025 Hyderabad fire has moved to late June 2026. Management's plan to bridge this gap is a new 12,000 MT expansion at Dahej, which underpins guidance for ₹650-675 cr in FY27 revenue, a 35% jump. They also expect margins to recover to 18-20% by year-end. The guidance is aggressive for a company still navigating a major facility outage, and it hinges on flawless execution at the new site.
Questions answered
- What was the key delay announced on the call?
- The commercialization of the 1,800-ton CCS plant at Dahej has been pushed to Q1 FY28. It was previously scheduled for Q3 FY27.
- How does the Hyderabad fire recovery timeline look now?
- Management now expects to receive ad-hoc insurance payments for the fire-damaged Hyderabad facility by late June 2026. This is a critical cash inflow to fund the rebuild.
- What is the growth plan despite these setbacks?
- The company is relying on commissioning 12,000 MT of new capacity at Dahej to drive a 35% revenue jump to ₹650-675 cr in FY27. This new capacity is meant to offset the continued downtime at Hyderabad.
- What's the target for profitability?
- Management expects EBITDA margins to recover to 18-20% by the end of FY27. This assumes safety-related costs from the fire incident stabilize and new production volumes scale up.
Story so far
All notes on SIGACHI →- 30 May 2026 · 5:37 PM IST Sigachi pushes Hyderabad recovery to mid-2027, gives mixed FY27 guidance
- today Sigachi guides for ₹650-675 cr revenue in FY27 as margins target recovery
- 6d ago Sigachi's FY26 loss of ₹82.8 cr confirms the fire's full financial toll