Archean Chemical Industries Ltd

Encumbrance creation on promoter shares

• Creation of pledge on 3,88,000 promoter shares (0.314% of capital).
• Encumbrance in favor of Piramal Finance Limited and Piramal Trusteeship Services Private Limited.
• Creation of pledge on 6,99,500 promoter shares (0.567% of capital).
• Encumbrance in favor of JM Financial Credit Solutions Limited.
• Promoter: Chemikas Speciality LLP.
• Post-event encumbered shares: 1,43,68,010 and 1,50,67,510.
• Promoter encumbrance as % of total share capital: 11.32% and 11.64%.
• Reasons: collateral for loans.
• Date of encumbrance: 17/09/2026.

Encumbrance details

• Creation of pledge on 30,000 promoter shares as collateral for loans.
• Date of encumbrance: 01/09/2026; encumbered shares represent 0.024% of total capital and 0.080% of promoter holding.
• Lender/beneficiary: Piramal Finance Limited and Piramal Trusteeship Services Private Limited.
• Promoter: Chemikas Speciality LLP.

Archean Chemical Industries Limited — Trading window closed from Oct 01, 2026 in connection with unaudited financial results for the quarter and half year ending September 30, 2026

Promoter shares encumbrance details

• Creation of pledge on 3,88,000 shares for loans; in favour of Piramal Trusteeship Services Private Limited; date 17/09/2026.
• Post-creation encumbrance total: 1,43,68,010 shares (11.64%).
• Promoter already encumbered before: 1,39,80,010 shares (11.32%).
• Creation of pledge on 6,99,500 shares for loans; in favour of JM Financial Credit Solutions Limited; date 17/09/2026.
• Post-creation encumbrance total: 1,50,67,510 shares (12.20%).
• Total promoter holding: 3,76,93,219 shares (30.53%).
• Promoter: Chemikas Speciality LLP.
• Target company: Archean Chemical Industries Limited.

Encumbrance Details

• Creation of pledge: 30,000 Archean shares pledged by Chemikas Speciality LLP.
• In favour of Piramal Trusteeship Services Private Limited as collateral for loans.
• Date of encumbrance: 01/09/2026; encumbrance: 0.080% of Chemikas LLP holdings.
• Share capital impact: 0.024% of Archean's total share capital.
• Post-pledge encumbered shares: 11.32% of total share capital.
• Promoter holding of Archean: 30.53% via Chemikas Speciality LLP.

Financial Performance

• Standalone PAT INR405.3 million, up 36% sequentially.
• Standalone EBITDA INR839 million, margin 25.3%.
• Consolidated revenue INR3,328.1 million, up 10.7% YoY.
• Consolidated EBITDA INR728.7 million, up 48.5% QoQ.
• Consolidated PAT INR303.5 million.

Segment Update

• Bromine revenue INR1,333 million, up 58% YoY; volumes 4,175 tonnes.
• Industrial Salt revenue INR1,713 million; volumes 982,000 tonnes; down 12% YoY.
• Bromine derivatives EBITDA positive at INR19 million; revenue up 28% YoY; 40% capacity utilisation.
• Acume revenue ~INR300 million; EBITDA positive INR19 million.
• Idealis revenue INR3.5 million; EBITDA loss INR13.4 million.
• SiCSem revenue INR0.4 million; EBITDA loss INR5.6 million.

Projects and Capex

• Semicon capex USD 249 million; 15–20% incurred; 60–65% in current year; 40–45% next year.
• SiCSem FSA signed 11 May; environmental clearance needed; construction to start after clearance.
• Zinc bromide off-grid: 10 MWh pilot; scale-up planned post pilot.

Outlook and Guidance

• Salt volumes to normalize from Q3 as highway work completes.
• Bromine volumes FY27 guidance 20,000–25,000 tonnes; exit run-rate ~4,500 t/quarter.
• SOP scale-up to be completed by year-end; Phase 2 SOP trials by Dec FY27.
• Derivatives to continue break-even and scale up volumes; ongoing cash flow discipline.

Q&A Highlights

• Q1 bromine volume 4,175 t; two-quarter performance influenced by power outages and planned shutdowns.
• Pricing: 60–70% long-term contracts; 30–35% spot; blended pricing expected to hold.
• Kandla port shipments being added to reduce port constraints; three-port strategy underway.
• Gujarat lease renewal: expected in coming months; government rent increases accepted.
• Salt logistics: sea freight up 30–35%; road distance widened; 60–70% customer-nominated vessels.

Risks and Watchpoints

• Volatile freight and diesel costs; end of highway work could affect margins.
• Salt and bromine supply disruptions due to Middle East conflict and logistics constraints.

Encumbrance details

• Target company: Archean Chemical Industries Limited.
• Encumbrance: release of pledged promoter shares by Chemikas Speciality LLP.
• Encumbrance type: pledge; existing for loan in favor of JM Financial Products Limited.
• Promoter: Chemikas Speciality LLP; shares encumbered before: 3,76,93,219 shares (30.53%).
• Encumbered shares after: 1,39,47,010 shares (~17.30%).
• Event: Release of pledge upon repayment of loan.
• Date: 22 July 2026.
• Lender: JM Financial Products Limited.
• End use: loan repayment.
• Post-event encumbrance: 17.30% of total share capital.
• Facility size: not disclosed.
• Governance impact: no control change indicated.

Standalone results highlights

• Quarter ended Jun 30, 2026; standalone revenue from operations Rs 31,593.33 lakh.
• Standalone total income Rs 33,207.47 lakh; PAT Rs 4,052.77 lakh; EPS Rs 3.28.
• YoY revenue up ~13.4%; PAT down ~21.8%.
• Unaudited standalone results; reviewed by the Audit Committee.

Consolidated results highlights

• Quarter ended Jun 30, 2026; consolidated revenue from operations Rs 32,719.81 lakh.
• Consolidated total income Rs 33,280.52 lakh; PAT Rs 3,035.44 lakh.
• EPS Basic Rs 2.48; Diluted Rs 2.41.
• YoY: consolidated revenue up ~11.9%; PAT down ~24%.

Audit status & disclosures

• Independent auditor PKF Sridhar & Santhanam LLP issued Limited Review Report.
• Audit Committee reviewed standalone and consolidated unaudited results.
• Full format results filed with stock exchanges and on company website.

Meeting Details

• Date and time: Monday, August 3, 2026 at 11:00 AM IST.
• Type and mode: Earnings call, virtual/group format.
• Organizer: Archean Chemical Industries Limited with Strategic Growth Advisors Pvt. Ltd.
• Purpose: Discuss Q1 FY27 operational and financial performance.

Participants

• Managing Director to participate.
• Chief Financial Officer to participate.
• DGM Finance to participate.