Archean Chemical sees Q2 revenue dip, H1 profit surge amid strategic moves

Archean Chemical Industries Limited reported total revenue of INR2,317.8 million for Q2 FY26, an 8% decline year-on-year, with net profit at INR384.6 million. For H1 FY26, total revenue reached INR5,232.3 million, a 10% increase year-on-year, and net profit after exceptional items grew 28% to INR903.1 million. The company noted challenges from a prolonged monsoon season impacting production and transportation, particularly for industrial salt, which contributed 67% to Q2 revenue. Bromine contributed 33% with sales of 3,160 metric tons.

The company highlighted key strategic developments, including receiving India Semiconductor Mission approval for its SiCSem project, with an outlined investment of INR2,067 crores in the first phase. Site work has commenced for a sulphate of potash (SOP) plant, with pilot trials successful and plant trials expected in Q4 FY26, aiming for commercial production post-monsoon next year. Bromine derivatives operations are running at 30-35% capacity utilization, with an expected increase to at least 50% by the end of the financial year.

Archean Chemical also provided updates on its acquisition of Oren Hydrocarbon (renamed Idealis Mudchemie), noting delays in revenue contribution due to regulatory challenges and lower global crude prices, but expressed confidence in its robust business fundamentals and net debt-free status.