Archean Chemical Industries Limited discussed its Q3 FY26 performance, highlighting a challenging operating environment offset by stable salt pricing. The company welcomed Mr. Rampraveen Swaminathan as the new Managing Director. Key strategic updates included strong progress in the Semiconductor (SiCSem) venture and continued development in the Energy Storage sector via Offgrid Energy Labs. Management also addressed operational constraints in the Bromine business and provided outlooks for its specialized derivatives.
Q3 FY26 Performance Summary
Archean Chemical Industries Limited reported its financial performance for the quarter ending December 31, 2025. On a standalone basis for Q3 FY26, Total Income stood at INR2,608.1 million, marking a 2.4% year-on-year increase. EBITDA for the quarter was INR698.6 million, reflecting a 27% decline YoY, primarily due to increased logistics and overhead costs associated with new units. Net Profit for Q3 was approximately INR343 million.
For the 9-month period ending December 31, 2025, total revenue reached INR7,840 million (7.4% YoY growth), while Net Profit saw a marginal 1.6% decline to INR1,246 million.
Key Personnel Change
The company announced a significant change in senior management: the Board appointed Mr. Rampraveen Swaminathan as the new Managing Director. Mr. Pendurthi expressed gratitude to the outgoing colleague, Mr. Kannan, who will support the leadership transition. Mr. Pendurthi noted his own role will transition to become more strategic, focusing on guiding the new MD and leading strategic initiatives.
Segmental Operational Updates
Elemental Bromine and Derivatives
Elemental Bromine contributed 23% of standalone Q3 revenue, with sales volumes reverting to a quarterly run rate of over 1 million tons for Industrial Salt. The Bromine business faced challenges due to feedstock quality changes driven by erratic weather in the first half of the year, impacting throughput. Management expects operational stability to return in Q4. Demand for bromine remains strong, with India being a net importer during the first 9 months.
Regarding Bromine Derivatives (Acume), operations are currently running at 30% to 40% utilization. The focus is on expanding the product portfolio to approximately 15 products currently in trials to pivot towards better-yielding products. The goal is to scale utilization up to 60% to 70% by FY ’27.
Industrial Salt (SOP)
Industrial Salt contributed approximately 77% of standalone Q3 revenue. Pricing was stable in the quarter, a positive trend compared to prior periods. The company confirmed that pilot stage trials for SOP are complete, and plant scale trials are expected to commence soon, with meaningful contributions anticipated in the latter half of FY ’27.
Strategic Initiatives Progress
Semiconductor Business (SiCSem)
The semiconductor initiative, SiCSem, remains on track, being one of the 10 projects approved under the Indian Semiconductor Mission. The 25-acre site in Bhubaneshwar has been allotted, and site preparatory work (groundbreaking survey, land levelling) is complete. Finalization of the fiscal support agreement is underway.
Energy Storage
The investment in Offgrid Energy Labs, a zinc bromide battery innovator, is progressing. The company successfully acquired 18.14% stake in May 2025. Offgrid Energy Labs plans to establish a 10-megawatt hour demo manufacturing facility in the U.K., with R&D underway for next-generation stationary energy solutions.
Outlook and Discussion Points
Management reiterated that while short-term impacts stemmed from operational issues and pricing mix, the long-term fundamentals remain robust. The current Bromine backlog of approximately 6,500 tons is spread across various contracts, and pricing recovery is expected to be trailing over the next couple of quarters.
Regarding capacity targets, management confirmed the goal is to reach an 18,000-ton run rate next year, with expansion work planned to move towards the 25,000-ton level thereafter, contingent on derivative scaling.
Source: BSE
