Archean Chemical Industries Limited has released the transcript of its Q2 and H1 FY27 earnings conference call, held on November 03, 2026. The document details the company’s performance for the quarter and half-year ended September 30, 2026. It covers operational commentary across its businesses including industrial salt, bromine, and derivatives, alongside financial highlights, future strategies, and responses to investor queries.
Archean Chemical Industries Q2 & H1 FY27 Earnings Call Transcript Released
Archean Chemical Industries Limited has provided the transcript of its Q2 and H1 FY27 earnings conference call. The call, which took place on November 03, 2026, focused on the financial results for the quarter and half-year ending September 30, 2026. The company’s management shared insights into the prevailing market conditions, operational performance across its key segments, and strategic initiatives for the upcoming periods.
Operational Highlights and Segment Performance
During the call, Mr. Rampraveen Swaminathan, Managing Director, provided an overview of the external environment, noting continued uncertainty and volatility in the global chlor-alkali industry, with pressures on caustic soda and chlorine prices due to increased ethylene prices. The company highlighted a rebound expected in PVC pricing in the current quarter.
Industrial Salt revenue for Q2 FY27 saw an increase of 9% year-on-year to INR161 crores, although volumes decreased by 9% to 812,000 tons. Efforts to expand the customer base in other regions, including Vietnam and Oman, showed success. The logistics segment faced challenges with high costs but saw improvements through better route management and fleet expansion.
The Bromine business reported a revenue of INR127 crores for Q2 FY27, a 76% increase year-on-year, with volumes up 29% to 4,100 tons. Despite production being impacted by local power cuts, the company is on schedule with its Bromine capacity debottlenecking program, aiming for a run rate of around 25,000 tons next year. For the first half, Bromine volumes were up 18% year-on-year.
The Acume (Derivatives) business delivered strong growth, with revenue at INR36 crores for the quarter, an 81% increase year-on-year. Finished derivatives stood at 2,115 tons, up 56% year-on-year, driven by clear brine fluids. While volume growth was strong, an unfavorable mix and one-time costs resulted in an EBITDA loss of INR1 crore for the quarter, though the business remained EBITDA positive on a half-yearly basis.
Financial Performance
On a standalone basis, ACI reported total income of INR305.4 crores for Q2 FY27, a 32% increase year-on-year. EBITDA stood at INR89.3 crores, up 17.5% year-on-year, and profit after tax was INR43.2 crores, up 12.2% year-on-year. For the first half, total income grew by 21.8% to INR637.4 crores.
On a consolidated basis, total income for Q2 was INR301.6 crores, up 26% year-on-year. Consolidated EBITDA was INR74.5 crores, up 8% year-on-year, with profit after tax at INR31.3 crores, up 8% year-on-year.
Future Outlook and Strategic Priorities
The company outlined its priorities for the remainder of FY27, focusing on expanding market share in salt, driving operational excellence, efficient resource utilization, and technology adoption. Key initiatives include accelerating the Acume business and ensuring effective capital allocation. Management expressed confidence in a strong second half of the year, leveraging improved momentum and expanded infrastructure.
Capital Expenditure and Projects
The semiconductor project in Bhubaneswar is projected to require approximately $240 million in capital, with a significant portion funded by the FSA from the ISM. Archean Chemical plans to invest an additional INR1,000 crores to INR1,100 crores, largely through debt, over the next two years. The company also provided updates on its brine field expansion and SOP plant modification, which constitute INR80 crores of its chemicals business capital expenditure.
Regarding the SOP volumes, the company has revised its guidance downwards to approximately 3,500 tons for the year due to trial delays and lower KTMS production, from an initial estimate of 9,000 to 10,000 tons. For FY28, higher throughput is expected.
Source: BSE
