Himadri Speciality Chemical Ltd
NSE: HSCLCompany page on Cofacto
Open the Himadri Speciality Chemical Ltd page

Himadri Speciality Chemical Ltd (HSCL) Q2 FY27 Results Analysis: Revenue Surges 58%, Margin Compresses 428 bps

Cofacto Research Published October 16, 2026 2 min read
Neutral

Himadri Speciality Chemical Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,691.43 Cr (+57.93% YoY) and PAT growth of +31.33% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details
Results dateOctober 16, 2026
QuarterQ2 FY 2026-2027
Revenue (Q2)Rs. 1,691.43 Cr (+57.93% YoY)
PAT (Q2)Rs. 231.32 Cr (+31.33% YoY)
EBITDA margin17.93% (-428 bps YoY)
EPS (Q2)Rs. 4.60 (+28.50% YoY)
Market capRs. 33,372.46 Cr
CMPRs. 660.70

Quarter Snapshot

Revenue grew 57.9% YoY to Rs.1,691.43 Cr and PAT 31.3% YoY to Rs.231.32 Cr, aided by newly acquired Birla Tyres adding Rs.144.14 Cr of revenue. EBITDA margin compressed to 17.93% from 22.21% YoY as material costs grew 60.9% YoY, missing the company's 20%+ core margin target, while H1 operating cash flow was negative Rs.154.35 Cr and borrowings rose 50.7% in six months to fund the Rs.1,000 Cr FY27 capex programme.

Key Investment Insights

Key Positives

  • Revenue grew 57.9% YoY to Rs.1,691.43 Cr (+18.1% QoQ), the highest quarterly figure in the table's history
  • PAT grew 31.3% YoY to Rs.231.32 Cr; basic EPS rose to Rs.4.60 from Rs.3.58
  • Birla Tyres contributed Rs.144.14 Cr of revenue versus near-zero in Q2FY26
  • Carbon materials & chemicals revenue grew 44.2% YoY and 20.3% QoQ to Rs.1,539.02 Cr
  • Power segment revenue grew 45.5% YoY to Rs.33.32 Cr at an 89.56% segment margin
  • Net worth rose 9.1% in six months to Rs.5,135.22 Cr with debt-equity at 0.22x
  • Board approved (21 September 2026) a scheme to demerge DBRL's Tyre Business into HSCL

Risk Factors

  • EBITDA margin compressed to 17.93% from 22.21% YoY (~430 bps) and 21.87% QoQ (~394 bps); management EBITDA fell 3.2% QoQ to Rs.303.22 Cr despite 18% revenue growth
  • Cost of materials consumed grew 60.9% YoY, outpacing revenue growth of 57.9%; carbon segment margin fell to 16.35% from 20.53% in Q1FY27
  • Finance costs rose 87.5% YoY to Rs.27.72 Cr; total borrowings increased 50.7% in six months to Rs.1,155.84 Cr and ISCR fell to 12.87x from 18.18x
  • H1FY27 operating cash flow was negative Rs.154.35 Cr (CFO/PAT −0.34x) on working-capital outflows of Rs.686.25 Cr
  • Birla Tyres ('Others') margin fell to 0.03% from 0.80% in Q1FY27, remaining short of the FY27 EBITDA breakeven target
  • Subsidiaries were a net drag of Rs.7.45 Cr on PAT to owners in Q2FY27, reversing a Rs.6.10 Cr addition in Q1FY27
Share on X · LinkedIn · WhatsApp

Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.

Powered by Cofacto — AI research platform for Indian stocks, every claim cited from primary filings

Login Now