Archean Chemical Industries (ACI) Q2 26/27 earnings summary

Executive summary

• Consolidated Q2 FY27 revenue from operations was ₹29,735.90 lakh and PAT was ₹3,133.16 lakh; revenue grew 25.9% YoY.

• Consolidated H1 revenue from operations rose to ₹62,455.71 lakh, while EBITDA fell 5.1% and PAT declined to ₹6,168.60 lakh.

• Bromine and derivatives drove Q2 growth; exports contributed 79% of operating revenue, with freight costs and transit times elevated.

• SiCSem site construction commenced following required approvals.

Financial highlights

• Consolidated Q2 EBITDA was ₹74.5 crore, up 7.9% YoY; PAT was ₹3,133.16 lakh versus ₹2,900 lakh YoY.

• Consolidated H1 EBITDA was ₹147.3 crore, down 5.1% YoY; PAT was ₹6,168.60 lakh versus ₹6,920 lakh.

• Standalone Q2 revenue from operations was ₹29,071.89 lakh versus ₹22,076.01 lakh YoY; PAT was ₹4,319.53 lakh versus ₹3,846.27 lakh.

• Standalone H1 revenue was ₹60,665.22 lakh versus ₹49,939.00 lakh YoY; PAT was ₹8,372.30 lakh versus ₹9,031.12 lakh.

• Consolidated basic and diluted EPS were ₹2.60 in Q2 and ₹5.08 in H1, versus ₹2.36 and ₹5.61 YoY.

Outlook and guidance

• Bromine FY27 volume guidance remains 18,000–20,000 tons, with delivery expected near the lower end; salt volume outlook is 4.2–4.3 million tons, with efforts to exceed 4.5 million.

• SOP FY27 volume expectation was reduced to 3,500–4,000 tons from 9,000–10,000; meaningful contribution is expected in H2 as process changes continue.

• Stronger salt shipments and improved logistics are expected in H2; customer deferrals, demand and fuel costs remain uncertain.

• Flame-retardant bromine project is under evaluation and expected to come on stream over the next 12–18 months.

• Management expects renewal of the Gujarat land lease; SiCSem may qualify for fiscal support of up to 75% of eligible capital expenditure, subject to agreement terms.