Sigachi Industries Q2 Results: Profit halves to ₹10.5 crore amid 19% YoY decline in revenue

Sigachi Industries, a prominent player in the pharmaceutical excipients and active pharmaceutical ingredients (APIs) sector, has announced its financial results for the second quarter of the fiscal year 2025-26.

Sigachi reported a revenue of ₹1,130 million for Q2 FY26, marking a 19% year-over-year decline from ₹1,395 million in Q2 FY25. The gross profit also saw a decrease of 15.72%, amounting to ₹397.31 million compared to ₹471.45 million in the previous year.

The company's EBITDA stood at ₹75 million, a substantial drop from ₹293 million in the same quarter last year, resulting in an EBITDA margin of 6.78%, down from 21.38%. Net profit for the quarter was ₹105 million, a 50% decrease from ₹210 million in Q2 FY25.

The company is navigating a transformative phase following a significant fire incident at its Pashamylaram unit on June 30, 2025. This incident has prompted Sigachi to accelerate its strategic and operational transformation to ensure long-term resilience and profitability, according to an exchange filing.

The company has maintained business continuity by reallocating production to its Dahej and Jhagadia units. This strategic move has been crucial in sustaining operations and meeting customer demands without significant disruptions. Sigachi's management has emphasised the importance of reinforcing safety systems and fostering a culture of responsibility among employees to prevent future incidents.

It is noteworthy that no deferred income from insurance claims has been considered in the reported results, which could potentially impact future financial statements.

Capex Plans

In response to the challenges posed by the fire incident, Sigachi has fast-tracked its capacity expansion plans. The company is advancing its 12,000 MTPA capacity expansion at the Dahej SEZ, with civil works already underway. This expansion is expected to elevate Sigachi's total microcrystalline cellulose (MCC) capacity to 30,000 MTPA, positioning the company for stronger performance in the second half of FY26. Additionally, the Hyderabad API R&D center is now fully operational, consolidating critical API developments and analytical efforts under one roof, which is expected to enhance the company's product pipeline and innovation capabilities.

Sigachi's strategic focus remains on execution discipline, stakeholder trust, and sustainable growth. The company is prioritizing high-margin, demand-resilient products while deprioritizing low-throughput SKUs to optimize its portfolio and margins. This approach is aimed at ensuring efficient resource use and reducing supply chain pressures during the recovery phase. The company is also committed to expanding its MCC exports and commercializing its cross-linked cellulose (CCS) products, which are expected to contribute to its growth trajectory.

The company's leadership, including Managing Director and CEO Amit Raj Sinha, has expressed confidence in Sigachi's ability to emerge stronger and more competitive. “Q2 FY26 has been a period of careful rebuilding and steady progress for Sigachi. Our teams have demonstrated dedication and care in maintaining seamless operations and supporting our customers. These efforts have reinforced our commitment to resilience, trust, and sustainable growth as we move into the second half of the year,” Raj said.

Disclaimer: This article was generated using AI tools and has undergone editorial review for clarity and coherence.