Sigachi Industries Ltd. Following the fire incident in its Pashmayalaram unit on 30 June 2025, recorded a net loss of ₹ 1,010 million in the first quarter of Financial Year 26. Revenue for Q1 FY26 was ₹ 1,282 million, showing an increase of 33.99 percent year-on-year. The company has launched strategic reelinements, focusing on security, sustainability and growth.
| Particulars | Q1 FY26 | Q1 FY25 | Yoy (percent) |
|---|---|---|---|
| Revenue | 1,282 | 957 | 33.99% |
| Gross profit | 547 | 477 | 14.67% |
| Gross margin (percent) | 42.64% | 49.79% | |
| Ebitda | 241 | 210 | 14.76% |
| Ebitda Marjin (percent) | 18.79% | 21.94% | |
| Net Profit / (loss) | (1,010) | 128 |
Financial Performance
In Q1 FY26, Sigachi Industries experienced a significant increase in revenue, which reached ₹ 1,282 million, Q1 FY25 increased by 33.99 percent compared to ₹ 957 million. However, the company recorded a net loss of ₹ 1,010 million, which is completely opposite to a net profit of ₹ 128 million in the same quarter last year. The gross profit increased by 14.67 percent and declined from 49.79 percent to 42.64 percent. Ebitda was ₹ 241 million, with Ebitda margin of 18.79 percent.
Operational highlights
Operations were temporarily suspended on June 30, 2025 due to fire incident in the Pasharamayalaram unit, resulting in an estimated ₹ 600 million revenue loss. To continue the business, the production has been relocured in other units including Dahej and Jhagadia. The company has started full safety audit on all manufacturing sites and has started phase restoration of the affected unit. People affected by the incident have been given payment of financial compensation and medical assistance.
Strategic reelinement
Following the fire incident, Sigachi Industries is making a strategic review to renew the operations, focusing renewed on safety, sustainability and growth. This includes capacity rebalansing, margin and portfolio optimization and strategic growth initiatives like the new API R&D Center in Hyderabad. The company is giving priority to high-margin products and expanding MCC Export and CCS Commercialization.
Management commentary
Amit Raj Sinha, MD and CEO of Sigachi Industries Limited, commented on the challenging quarter, saying, “Q1 FY26 has been an emotional and operationally challenging quarter for us. Due to the tragic incident, people of our workforce lost their lives and many people have been injured, and we all have their deepest people. Care was on ensuring and fully cooperating with authorities … looking forward, we are committed to a decisive reset, prioritizing security, accelerating cost improvements, focusing on margin-leg portfolio and rebuilding with global standard, resilience and transparency. “
Hyderabad Unit Accident Business Impact
On June 30, 2025, 46 people were killed and several injured as a result of dust exploration in a spray drawing machine at Hyderabad unit. Operations in the affected unit have been temporarily suspended, and the assessment of damage continues. The approximate revenue loss due to the closure is ₹ 600 million. Sigachi has filed an insurance claim to cover the loss los during the closure period.
ESG Performance
Sigachi Industries continues to focus on Environmental, Social and Governance (ESG) Initiative. In the financial year 24-25, the company managed 99.98 percent sustainable of the total waste through recycling, reuse, recovery or authorized disposal. Social initiatives include focusing on blood donation drives and Employees Well-Being. The company also emphasizes corporate governance with 100 percent average board meeting attendance and 50 percent independent board directors.