Archean Chemical Industries has presented its financial results for the second quarter and the first half of fiscal year 2027. The company reported a 26% YoY growth in total revenue for Q2FY27, reaching Rs. 302 crores, driven by an improved product mix. The presentation also highlights significant growth in Bromine and Bromine Derivatives segments and outlines strategic diversification into silicon carbide and energy storage solutions.
Archean Chemical Industries – Q2 & H1 FY27 Performance Highlights
Archean Chemical Industries Limited has announced its financial and operational performance for the second quarter (Q2FY27) and the first half (H1FY27) of the fiscal year 2027. The company reported a robust 26% year-on-year growth in its total revenue for Q2FY27, which amounted to Rs. 302 crores. This growth was primarily attributed to an improved product mix.
Exports continued to be a significant contributor, accounting for nearly 79% of the total operating revenue in Q2FY27. However, export performance was moderately impacted by global supply chain challenges, leading to extended transit times and higher freight costs.
Segmental Performance
The Industrial Salt segment saw its revenue grow by 9% YoY to Rs. 161 crores in Q2FY27. Sales volumes were moderated to 0.8 million tons due to logistical issues stemming from road development activities, which have now been resolved with the road infrastructure becoming fully operational.
Bromine revenues experienced a substantial surge of 76% YoY to Rs. 127.5 crores in Q2FY27. This increase was supported by higher sales volumes of 4,086 tons, improved realisations, and steady enhancements in production throughput.
The Bromine Derivatives business, operated by Acume Chemicals, demonstrated strong growth, increasing by 81% in Q2FY27 to Rs. 36 crores, led by sales of organic bromides. The company has also been proactive in launching new products and developing additional ones on a campaign basis.
Furthermore, the SiCSem project is progressing well, with necessary approvals obtained and construction work commencing on-site.
Financial Overview (Standalone)
In Q2FY27, Archean’s standalone total income stood at Rs. 305.4 crores, compared to Rs. 231.8 crores in Q2FY26. EBITDA for the quarter was Rs. 89.3 crores, up from Rs. 76.0 crores in the previous year. Profit after Tax (PAT) for Q2FY27 was Rs. 43.2 crores, an increase from Rs. 38.5 crores in Q2FY26. Earnings Per Share (EPS) was Rs. 3.50 for Q2FY27.
For H1FY27, the standalone total income was Rs. 637.4 crores, with a PAT of Rs. 83.7 crores and an EPS of Rs. 6.78.
Consolidated Performance
On a consolidated basis, total income for Q2FY27 grew by 25.9% to Rs. 301.6 crores. EBITDA saw a growth of 7.9% to Rs. 74.5 crores. Profit before Tax increased by 14.6% to Rs. 45.7 crores.
For H1FY27, consolidated total income rose by 17.5% to Rs. 634.4 crores. EBITDA was Rs. 147.3 crores, while Profit before Tax stood at Rs. 89.9 crores.
Diversification and Strategic Initiatives
Archean Chemical Industries is actively pursuing a diversification strategy with natural synergy, focusing on Bromine, Industrial Salt & SOP, Bromine Derivatives, Speciality Mud Chemicals, Silicon Carbide (SiC) Power Devices, and Energy Storage Solutions.
The company has made a strategic investment in the Silicon Carbide Foundry by acquiring a 21.33% stake in Clas-SiC Wafer Fab Limited, UK. This investment provides exclusive access to SiC technology for the Indian market and supports domestic semiconductor manufacturing.
Furthermore, Archean is acquiring Offgrid Energy Labs, a US-based company developing patented battery technology in the energy storage sector. This acquisition aligns with the company’s strategy to enter the energy storage market and leverages synergies with its bromine business.
The company is also developing a Zinc Bromide based battery chemistry and has inaugurated a pilot manufacturing facility in the UK.
Investor Information
The investor relations advisor for Archean Chemical Industries Ltd. is Strategic Growth Advisors Pvt. Ltd.
Source: BSE
