FIIs increase stake in this pharma stock: How Sigachi is Rebuilding its Global Footprint Through Strategic Resilience?

With over 36 years of expertise, Sigachi Industries Limited (SIL) has established itself as a global leader in the pharmaceutical excipient and API markets. Operating across 65+ countries, the company’s reputation for quality is anchored in its multi-locational manufacturing footprint across Telangana, Gujarat, and Karnataka. However, recent developments have presented a complex landscape of operational setbacks and strategic organisational rebuilding.

In June 2025, a significant fire incident at Sigachi’s Hyderabad facility resulted in the loss of nearly 30% of its total installed capacity. This unit previously contributed approximately 20% of the company's consolidated revenue. The immediate impact was felt in H1FY26, with the company reporting a net loss of Rs 90.44 crore due to exceptional provisions for compensation, plant damage, and inventory loss.

Consequently, CARE Ratings Limited has revised Sigachi’s credit rating from CARE A- to CARE BBB+, maintaining a "Rating Watch with Negative Implications." This downgrade reflects the short-to-medium-term pressure on liquidity and the increased leverage expected as the company issues Rs 125 crore in Non-Convertible Debentures (NCDs) to bridge the gap while awaiting insurance claims of approximately Rs 51 crore.

Despite these headwinds, Sigachi’s management has pivoted quickly to stabilise operations. Production has been shifted to the Dahej and Jhagadia units in Gujarat. To regain lost ground, the company is implementing debottlenecking strategies to raise capacity to 18,000 MTPA by Q4FY26.

Furthermore, Sigachi is looking toward a robust future with a Rs 493 crore capex plan over the next 2–3 years. This includes:

• A major 12,000 MTPA expansion at the Dahej SEZ.
• The development of a Croscarmellose Sodium (CCS) facility.
• The inauguration of a new R&D Centre in Hyderabad (July 2025), housing over 30 scientists to accelerate API development for regulated markets.

Recognising that human capital is vital to navigating such transitions, Sigachi recently appointed Atul Dhavle as Chief People Officer. With three decades of experience at firms like Dr Reddy’s and Granules India, Dhavle is tasked with aligning the company’s talent strategy with its long-term growth objectives, ensuring cultural resilience during this recovery phase.

While the fire incident has created a temporary financial dip, Sigachi’s strong fundamentals—evidenced by a 22% revenue growth in FY25—and its aggressive expansion into high-value nutrition and API segments suggest a company focused on long-term value creation and market leadership.

On Friday, shares of Sigachi Industries Ltd plunged 1.86 per cent to Rs 29.58 per share from its previous closing of Rs 30.14 per share with an Intraday high of Rs 30.12 per share and an intraday low of Rs 29.42 per share. The company has a market cap of over Rs 1,100 crore with promoters holding 40.48 per cent stake in the company. The shares of the company have a 52-week high of Rs 59.50 per share and a 52-week low of Rs 29.42 per share. As of September 2025, FIIs have increased their stake to 3.10 per cent compared to June 2025.

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