Archean Chemical Industries (ACI) Q4 25/26 earnings summary

Executive summary

• Q4 FY 2026 saw mixed demand: muted industrial salt demand and strong bromine/bromine derivatives demand, with pricing pressure on salt and positive pricing for bromine.

• FY26 total revenue grew 3% YoY to Rs. 11,080 million; Q4FY26 revenue declined 13% YoY due to Industrial Salt moderation.

• Exports made up 78% of FY26 revenue, impacted by geopolitical disruptions and higher freight costs.

• Board recommended a final dividend of Rs. 2.50 per equity share for FY26.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026 were approved, with unmodified audit opinions from statutory auditors.

Financial highlights

• Q4 FY 2026 total income was INR 304.7 crores, down 9% year-on-year; EBITDA at INR 66.4 crores, down 34.3% year-on-year; EBITDA margin at 21.79%.

• Consolidated FY26 EBITDA fell 24% YoY to Rs. 2,657 million; PAT dropped 35% YoY to Rs. 1,054 million.

• Standalone FY26 EBITDA was Rs. 3,080 million, down 17% YoY; PAT at Rs. 1,544 million, down 16% YoY.

• Exceptional loss of Rs. 4,018.27 lakhs due to cyclone-related industrial salt stock loss in Gujarat, with insurance claim in process.

• EPS (consolidated) for FY26 was Rs. 8.66, down from Rs. 13.13 in FY25.

Outlook and guidance

• Strategic priorities: consolidate core salt and bromine, scale up derivatives and SOP, invest in advanced materials.

• Bromine Derivatives business expects breakeven in FY27, supported by improved capacity utilization and new products.

• Sulphate of Potash business expected to contribute meaningfully in H2FY27 after process re-engineering.

• Semiconductor project in Odisha expected to take 24-30 months from July to production.

• Management expects no material adverse impact from ongoing income tax proceedings and is confident in the renewal of key land leases.