Sigachi Q2 FY26 results impacted by fire, operational realignment underway

Sigachi Industries Limited reported its Q2 FY26 financial results, with total income at INR 8,643.55 Lakhs (standalone) and INR 11,297.53 Lakhs (consolidated) for the quarter ended September 30, 2025. This reflects a 19.34% year-over-year decrease in revenue from operations. Net profit for the period stood at INR 1,176.15 Lakhs (standalone) and INR 1,053.28 Lakhs (consolidated), down 50% from Q2 FY25. The company’s EBITDA margin for Q2 FY26 was 6.78% (standalone) and 6.78% (consolidated), a notable reduction from 21.38% in the prior year.

These results reflect the impact of a fire incident at the Hyderabad Pashamylaram unit on June 30, 2025, which caused a loss of INR 116.33 crores. In response, Sigachi has reallocated production to its Dahej and Jhagadia units, accelerated a 12,000 MTPA capacity expansion at Dahej SEZ, and operationalized its Hyderabad API R&D center. The company also rolled out interim compensation and financial support packages for affected employees and implemented enhanced safety measures.

The net IPO proceeds allocation includes INR 2,815.82 Lakhs for capacity expansion at Dahej, INR 2,924.13 Lakhs for Jhagadia, and INR 3,229.87 Lakhs for establishing a CCS project at Dahej. Additionally, INR 16,000.00 Lakhs was designated for API manufacturing facility acquisition/expansion, with INR 9,291.24 Lakhs incurred by September 30, 2025, as part of the preferential issue through convertible warrants.