1. At a Glance – The Chemical King Playing EV Startup
There are two types of companies in India:
- Those quietly minting cash
- Those loudly announcing “we are entering EV battery materials”
Himadri Speciality Chemical is doing both… simultaneously.
On one side, this is a boring, cash-generating chemical beast — coal tar pitch, carbon black, naphthalene… the kind of stuff that doesn’t trend on Twitter but quietly feeds aluminium, tyres, and industrial supply chains.
On the other side… it’s suddenly pitching itself as a future EV battery materials giant, talking about LFP cathodes, anodes, recycling, silicon-carbon tech, and global battery supply chains.
And here’s the twist:
They’re not just talking.
- ₹1,006 Cr EBITDA
- ₹755 Cr PAT
- New carbon black capacity commissioned
- First anode facility already live
- ₹4,800 Cr+ battery capex pipeline
- Promoters increasing stake
Sounds like a dream?
Now let’s inject reality:
- Battery business = zero meaningful revenue today
- Birla Tyres = turnaround gamble
- Capex = massive
- Execution timeline = long and uncertain
- Industry = brutally cyclical
So the real question is:
Is this India’s next specialty chemical compounder… or a classic “too many ambitions at once” story?
2. Introduction – From Coal Tar to Clean Tech Drama
Himadri started as a coal tar derivatives company.
Yes, coal tar. Not exactly the sexiest business.
But over time, it quietly built dominance:
- #1 coal tar pitch manufacturer in India
- Major carbon black player
- Integrated operations (raw material → finished product)
This is important.
Because in chemicals, integration = margin power.
And guess what?
That’s exactly what management has been milking.
From FY22 to FY26:
- Revenue grew modestly
- But profitability exploded
Why?
Because they shifted from:
“Sell commodity chemicals”
→ “Sell value-added specialty chemicals”
Management literally admitted this in concall:
“profitability led by value-added mix”
Classic playbook.
But then they got ambitious.
Instead of stopping at specialty chemicals, they said:
“Let’s enter the lithium-ion battery value chain.”
And suddenly:
- Stakes in battery startups
- Anode material plant
- LFP cathode plans
- EV ecosystem narrative
It’s like a chemical company woke up one day and said:
“Why not become Tesla’s supplier?”
But here’s the catch…
Battery materials is not just a new segment.
It’s a completely different game.
So the big question becomes:
Are they building the future… or overextending into hype?
3. Business Model – WTF Do They Even Do?
Let’s simplify this.
Himadri basically has 3 layers of business:
1. Old Reliable Engine (Cash Machine)
- Coal tar pitch
- Carbon black
- Naphthalene
- SNF chemicals
Used in:
- Aluminium
- Tyres
- Paints
- Plastics
This is where all current profits come from.
2. Value-Added Upgrade (Margin Booster)
- Specialty carbon black
- High-grade chemicals
- Advanced materials
This is why margins went up.
Management clearly focused on premium products over volume dumping.
3. Future Fantasy / Opportunity (Battery Materials)
- LFP cathode material
- Anode materials
- Battery recycling
Ambition:
- 200,000 MTPA capacity
- Serve EV + energy storage
Reality (as per concall):
“Don’t expect any ramp-up… in the next 1.5 years.”
So currently:
