Archean Chemical Industries (ACI) Q4 25/26 earnings summary

Executive summary

• FY26 revenue grew 3% year-on-year to Rs. 11,080 million, with Q4 showing mixed demand: muted industrial salt and strong bromine/bromine derivatives in most geographies.

• Exports comprised 78% of FY26 revenue, impacted by geopolitical disruptions and higher freight costs.

• Key milestones included signing a Fiscal Support Agreement for the semiconductor project, groundbreaking for the SiC fab in Odisha, and strategic acquisitions in semiconductors and energy storage.

• Board recommended a final dividend of Rs. 2.50 per equity share for FY26 and implemented leadership changes.

• Strategic focus remains on consolidating core salt and bromine, scaling derivatives, and investing in advanced materials and technology sectors.

Financial highlights

• Consolidated FY26 revenue was Rs. 11,080 million, up 3% year-on-year; consolidated PAT was Rs. 1,054 million, down 35% year-on-year.

• Standalone FY26 EBITDA was Rs. 3,080 million, down 17% year-on-year; PAT at Rs. 1,544 million, down 16% year-on-year.

• Q4 FY26 total income: INR 304.7 crores, down 9% year-on-year; EBITDA: INR 66.4 crores, down 34.3% year-on-year.

• Exceptional loss of Rs. 4,018.27 lakhs due to cyclone-related industrial salt stock loss in Gujarat, with insurance claim in process.

• EPS (consolidated) for FY26 was Rs. 8.66, down from Rs. 13.13 in FY25.

Outlook and guidance

• Medium-term demand outlook for core products remains positive; margin recovery expected as external cost pressures ease.

• Bromine production targeted to grow 15%-20% annually, aiming for 25,000 tons next year and up to 40,000 tons over time.

• Bromine Derivatives business expects breakeven in FY27, supported by improved capacity utilization and new products.

• Sulphate of Potash business expected to contribute meaningfully in H2FY27 after process re-engineering.

• Semiconductor project in Odisha expected to take 24-30 months from July to reach production.