Hyderabad-based pharma penny stock under Rs 50: Company Reports 19% Revenue Decline in Q2 FY26, Focuses on Post-Fire Recovery and Expansion

Sigachi Industries Ltd. announced its financial results for the second quarter of FY26, along with updates on its operational transformation following the fire incident at its Pashamylaram unit on June 30, 2025. The company stated that the preliminary internal review, supported by independent experts, indicated the fire resulted from a dust explosion near the spray dryer chamber. A government-led investigation into the incident is currently ongoing.

To maintain business continuity, Sigachi shifted production to its Dahej and Jhagadia units, which continue to operate without disruption. The company has also initiated a series of operational and cultural transformation measures to strengthen its long-term resilience and profitability. New safety initiatives include enhanced dust hazard analysis in line with NFPA 660 standards, upgraded pressure venting systems with rupture discs and inter-lock mechanisms, and stricter environmental controls.

In Q2 FY26, revenue stood at Rs 113 crore compared to Rs 139.5 crore in Q2 FY25, marking a 19 per cent decline year-on-year. EBITDA was Rs 7.5 crore, down 74.40 per cent from Rs 29.3 crore a year earlier, while net profit (PAT) dropped 50 per cent to Rs 10.5 crore from Rs 21 crore. The EBITDA margin was 6.78 per cent, reflecting a decline of 1,460 basis points year-on-year. Managing Director and CEO Amit Raj Sinha described the quarter as a phase of careful rebuilding and steady progress.

Looking ahead, the company expects a stronger performance in the second half of FY26, supported by improved capacity utilization and portfolio rebalancing. The 12,000 MTPA capacity expansion at Dahej SEZ has been fast-tracked, with civil work already underway. This will raise the company’s total Microcrystalline Cellulose (MCC) production capacity to 30,000 MTPA. In addition, the Hyderabad API R&D center has become fully operational, consolidating key API development and analytical functions. Sigachi is also focusing on high-margin, demand-resilient products to enhance profitability.

Sigachi Industries Limited, a publicly traded pharmaceutical company listed on NSE and BSE, is a global leader in providing high-quality excipients, vitamin-mineral nutrient blends, APIs, and O&M services. With over 35 years of industry expertise, Sigachi has built a strong reputation as a trusted partner for pharmaceutical and nutraceutical companies worldwide. They specialise in innovative solutions for food stability, fortification, and nutrition, offering tailored blends of vitamins, minerals, and other ingredients to meet the evolving needs of consumers. By utilising advanced technologies like blending, encapsulation, and spray drying, Sigachi empowers food manufacturers to create products with superior taste, quality, and nutritional value, contributing to a healthier and happier world.

The company opened an R&D Centre in Hyderabad on July 28, 2025, to boost its scientific capabilities. The centre will focus on developing high-value Active Pharmaceutical Ingredients (APIs) for global markets. A team of 32-35 scientists will manage the entire API development process, from initial research to commercialisation and regulatory filings. The new facility will help Sigachi expedite product development for regulated markets, targeting key therapeutic areas and enhancing its competitive edge.

Disclaimer: The article is for informational purposes only and not investment advice.