Himadri Chemical Stock Gains 50% on Battery Materials Pivot, Global Expansion

Shares Climb on Strategic Shift

Himadri Speciality Chemical’s stock gained 50% over the last six months. This performance contrasts with a 4% decline in the Sensex equity benchmark during the same period. Over three years, the shares delivered 150% gains, while five-year returns reached 1,375%. Analysts attribute this surge to the company’s strategic pivot.

Himadri is transforming into an advanced and battery materials company. This shift drives investor sentiment, according to market observers.

Earnings and Revaluation

The company reported strong Q1 FY27 results. Consolidated revenue grew 28% year-on-year to ₹1,432 crore. EBITDA increased 33% to ₹313 crore, achieving a 22% margin. Profit after tax (PAT) rose 27% to ₹228 crore. Seema Srivastava, Senior Research Analyst at SMC Global Securities, noted that these earnings and a revaluation of long-term growth profile underpin the rally.

The market now values Himadri’s move from commodity-linked products to niche, high-purity materials, she added. This change supports expectations for improved margins.

Investment and Global Footprint

Himadri aims to become a global advanced materials company. The firm targets ₹30,000 crore from its battery materials business within the next six years. To achieve this, Himadri plans substantial capital expenditure. It will invest ₹1,300 crore in Lithium Iron Phosphate (LFP), Carbon Nano Tube, and other advanced products in FY27.

Another ₹1,500 crore investment cycle is planned for FY28. Anurag Choudhary, Himadri’s Managing Director and CEO, stated the focus is on high-value speciality products, changing company dynamics.

Expanding Battery Ecosystem Role

The company’s global ambitions extend to strategic partnerships. Himadri recently increased its stake in US-headquartered International Battery Company, Inc. (IBC). It also boosted investment in Australia-based Sicona Battery Technologies in May this year. Additionally, Himadri incorporated Ardent Impex FZCO, a wholly-owned subsidiary, in Dubai on 31 August.

This Dubai entity provides a foothold in a key commercial corridor. These moves position Himadri to become a significant player in the electric vehicle (EV) battery supply chain over the next five years.

Ravi Singh, Chief Research Officer at Master Capital Services, suggests the market is pricing in the future potential of these battery material ventures before their revenues materialise.