Himadri Speciality Chemical share price: Why did this multibagger stock suffer its biggest weekly fall since 2008?
A Ksheerasagar
The sell-off in Himadri Speciality Chemicals extended into its sixth straight session on Friday, October 23, with the stock crashing another 6% to ₹492 apiece, its lowest level since April. The stock, which rode the bull wave in the first half of 2026, is now caught in a downward spiral as investor sentiment has been dented following the company’s September-quarter results.
Meanwhile, the broader market sell-off also fuelled the selling pressure, dragging the stock down 25.5% for the week and marking its worst weekly decline since 2008, when it plunged 34.5%. The heavy losses have also wiped out the stock’s gains for the year, while its share price has fallen 40% from its peak this year.
The company reported revenue from operations of ₹1,542.67 crore in Q2 FY27, marking a 44.12% increase from ₹1,070.41 crore in Q2 FY26. Revenue also rose 21.06% sequentially from ₹1,274.26 crore in Q1 FY27, indicating strong growth in the September quarter.
However, the growth in revenue was accompanied by a sharper increase in the cost of materials consumed. Material costs surged 55.25% year-on-year to ₹1,048.83 crore from ₹675.60 crore in the year-ago quarter. Sequentially, material costs increased 30.42% from ₹804.17 crore in Q1 FY27, outpacing the 21.06% growth in revenue.
EBITDA increased 26.98% year-on-year to ₹308.19 crore from ₹242.71 crore in Q2 FY26. However, EBITDA growth lagged revenue growth by approximately 17.1 percentage points. Consequently, the EBITDA margin declined to 20% from 22.7% a year earlier, a contraction of around 2.7 percentage points.
On a sequential basis, EBITDA rose just 2.27% from ₹301.36 crore in Q1 FY27, despite revenue increasing 21.06%.
Net profit increased 28.32% year-on-year to ₹239.77 crore from ₹186.85 crore. However, net profit growth remained well below the 44.12% increase in revenue. The net profit margin declined to approximately 15.5% from 17.5% in Q2 FY26, a contraction of around 1.9 percentage points.
Meanwhile, the company plans to invest ₹1,125 crore in lithium iron phosphate (LFP), ₹248 crore in Speciality chemicals, ₹70 crore in carbon nanotubes and ₹170 crore in super speciality carbon black, according to its investor presentation for the July-September quarter.
Despite the recent crash, Himadri Speciality Chemicals shares are still up 787% over the past five years, supported by strong gains accumulated between 2021 and 2024, when the stock delivered positive annual returns in each of those years.
In 2022 and 2023, the stock delivered multibagger returns of 123% and 207%, respectively. The rally continued in 2024, with shares surging another 90%.
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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