Sigachi industries: growth, expansion, and incident recovery in Q2

Sigachi Industries reported a total operating income of Rs.110.5 crores for Q2 FY2025-26, with an EBITDA of Rs.7.5 crores (6.78% margin) and a net profit of Rs.10.5 crores (9.59% PAT margin). The MCC segment contributed Rs.66.4 crores, O&M Rs.13.17 crores, and API Rs.18.41 crores. Capacity utilization was 82.08% overall, with plans to reach 90% by year-end. The company is fast-tracking a 12,000 MTPA MCC capacity expansion at its Dahej SEZ facility, expected to be commissioned by Q3 FY27, increasing total MCC capacity to 30,000 MTPA and projected to generate around Rs.250 crores in peak revenue.

The company is addressing a localized dust explosion incident at its Pashamylaram facility, relocating production to Dahej and Jhagadia to ensure supply continuity. Sigachi expects to receive approximately Rs.70 crores in insurance claims for fixed assets loss (Rs.51.48 crores), stock loss, and business interruption. The Hyderabad facility's operational resumption is anticipated by the end of Q3.

Sigachi is also focusing on strengthening margins through portfolio optimization, expanding its export footprint, and introducing new value-added products. The new API R&D Center in Hyderabad is fully operational, supporting expansion into regulated markets. The company is actively pursuing European Directorate of Quality and Medicine approvals, with nearly nine certificate of suitability filings underway.