Earnings Call Transcript

Archean Chemical reported Q4 FY '26 total income of INR 304.7 crores (down 9% YoY) and EBITDA of INR 66.4 crores (down 34.3% YoY), with full-year FY '26 revenue of INR 1,088.8 crores (up 2% YoY) and EBITDA of INR 308 crores (down 17% YoY). The company faced significant headwinds from the US-Iran conflict, which impacted bromine supply-demand dynamics, increased global freight costs by 18-20%, and drove industrial fuel prices up ~50%. Road construction in Gujarat doubled transportation distance for salt operations, adding ~INR 14-15 crores to logistics costs. Bromine production has recovered to historical levels (~55 tons/day), with Q4 volumes at 3,731 tons. The company renegotiated the majority of its long-term bromine contracts upward. Key growth initiatives include the SiCSem semiconductor project (groundbreaking from July, 24-30 months to production), scaling up bromine derivatives at Acume Chemicals (45% capacity utilization), and commissioning three plants at Idealis Mudchemie.