Shares of Himadri Speciality Chemicals Ltd experienced a significant surge, climbing over 45% in the past month to reach a 52-week high on Monday. This impressive rally was fueled by the company's strong quarterly earnings report for Q4 FY26 and ambitious expansion strategies, although profit booking later pushed the stock into the red.
Stock Performance and Q4 Highlights
The specialty chemicals stock jumped 5.75% on Monday, hitting a 52-week high of Rs 642.60 before paring gains to close at Rs 587.40. Over the last month, the stock has soared more than 45% from its March 30 close of Rs 441.60, and nearly 30% since the start of 2026. The company's market capitalization currently stands between Rs 30,000-31,000 crore.
For the fourth quarter of fiscal year 2026, Himadri Speciality Chemicals reported a 29% year-on-year (YoY) increase in net profit, reaching Rs 200.8 crore. Revenue also saw a healthy rise of 13.5% YoY to Rs 1,287.75 crore. EBITDA grew by 21% YoY to Rs 280 crore, with margins at 18.8%. The company also declared a final dividend of Rs 0.80 per share for FY26.
Aggressive Expansion and Diversification
Himadri Speciality Chemicals is pursuing an aggressive growth strategy designed to diversify its business beyond traditional carbon materials and significantly boost revenue and profitability by FY28. Key initiatives include:
- Expanding speciality carbon black production capacity.
- Entering the electric vehicle (EV) battery materials sector with a new LFP cathode plant expected by FY27.
- Establishing facilities for anthraquinone and carbazole to reduce reliance on imports.
- Ramping up production at Birla Tyres across commercial, off-highway, and passenger vehicle segments, including EV applications.
Backed by strong R&D and disciplined capital allocation, the company aims to build resilient revenue streams and achieve long-term profitable growth. It also boasts an improved balance sheet, with a net cash position of Rs 100 crore, enabling investment in battery material plants without excessive leverage.
Analyst Views and Target Prices
ICICI Securities noted Himadri's strong Q4 FY26 performance, particularly the gross profit growth, despite an EBITDA impact from forex loss. They anticipate FY27 performance to benefit from the ramp-up of the newly commissioned specialty carbon black plant and a new chemicals plant expected in Q3 FY27. ICICI Securities maintains a 'hold' rating with a target price of Rs 550, raising their FY27/28E EBITDA by 16-25%.
Technical analysts also show optimism. Aakash Shah of Choice Broking highlighted a decisive breakout above falling trendline resistance, indicating a positive shift in momentum. He suggested a rally to Rs 650-680 if the stock holds above Rs 620, with immediate support at Rs 580.
Muthuselvaraj M of Mirae Asset ShareKhan pointed to a breakout from a weekly symmetrical triangle pattern and positive crossovers in MACD and RSI, predicting an upside towards Rs 680-750 in the short to medium term, provided it stays above Rs 550.
Jigar S Patel of Anand Rathi Share and Stock Brokers identified immediate support at Rs 575 and resistance at Rs 625. He suggested that a breakout above Rs 625 could push the stock towards Rs 650, but advised caution at higher levels due to overextended momentum oscillators, recommending partial profit booking in the short term.