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Business Standard
28-07-2025
- Business
- Business Standard
Sigachi Industries reports dismal Q1 outcome
Sigachi Industries reported a standalone net loss of Rs 100.35 crore in Q1 FY26 as against a net profit of Rs 13.16 crore posted in Q1 FY25. However, revenue from operations jumped 34% year on year to Rs 128.25 crore in Q1 FY26. The company reported profit before exceptional items and tax of Rs 20.01 crore in Q1 FY26, compared to Rs 16.39 crore recorded in the same period a year ago. The firm reported exceptional loss items of Rs 121.01 crore during the quarter. EBITDA stood at Rs 24.1 crore in Q1 FY26, up 14.76% YoY. EBITDA margin declined to 18.79% in Q1 FY26 from 21.94% in Q1 FY25. Total expenses rallied 38.51% to Rs 112.18 crore in Q1 FY26, compared to Rs 80.99 crore reported in Q1 FY25. The cost of materials consumed stood at Rs 61.62 crore (up 47.28% YoY), and employee benefit expenses were at Rs 19.55 crore (up 29.13% YoY) during the period under review. Sigachi Industries has reset its strategic priorities after a recent fire at its Pashamylaram plant in Hyderabad. The company said its quick response helped minimize disruption to operations. It has now begun a strategic review with a renewed focus on safety, sustainability, and long-term growth. Meanwhile, the production of microcrystalline cellulose (MCC) from the affected plant has been shifted to Sigachis units in Dahej and Jhagadia, Gujarat. The company said restoration work at the Hyderabad plant will begin soon, with phased recommissioning to follow. Amit Raj Sinha, managing director and chief executive officer of Sigachi Industries, said, Q1 FY26 has been an emotionally and operationally challenging quarter for us. The tragic incident led to the loss of lives and injuries among our workforce, and we extend our deepest condolences to all affected. Our immediate focus was on supporting families, ensuring medical care, and cooperating fully with authorities. The incident disrupted manufacturing operations, damaged plant infrastructure and inventory, and delayed shipments, impacting revenue and margins. We activated emergency protocols, launched a detailed safety audit, and have initiated phased restoration. While insurance claims have been filed, no deferred income has been accounted for. This event has prompted a comprehensive review of our operational controls and risk governance. Looking ahead, we are committed to a decisive reset, prioritizing safety, accelerating cost improvements, focusing on margin-led portfolios, and rebuilding with global standards, resilience, and transparency. With the lessons behind us and our resolve strengthened, we are confident in our ability to deliver sustainable growth and improve EBITDA margins. Sigachi Industries is one of the leading manufacturers of microcrystalline cellulose (MCC) in the domestic as well as the international market, supplying essential molecules for pharma excipients, nutraceuticals, cosmetics, and food industries. Shares of Sigachi Industries rose 0.87% to Rs 39.46 on the BSE.
Time of India
25-07-2025
- Business
- Time of India
Sigachi Inds plunges into losses after Hyd plant explosion leaves 46 dead
Hyderabad: Sigachi Industries, whose Hyderabad plant was rocked by an explosion on June 30, 2025, that left 46 dead and several others critically injured or missing, plunged into losses of ₹101 crore for the first quarter ended June 3, 2025 (Q1FY26), as against a net profit of ₹13 crore in the first quarter of FY25. The company, which claims to be one of the largest global manufacturers of microcrystalline cellulose (MCC) used as a binding or bulking agent in pharma, food, and personal care sectors, said it slipped into losses despite a 34% jump in revenues to ₹128 crore in Q1FY26 compared to nearly ₹96 crore in Q2FY25. The company said it has reallocated MCC production of the Pashamylaram plant in Hyderabad across its Dahej and Jhagadia units in Gujarat and will be commencing restoration and phased recommissioning at the Hyderabad unit. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad Terming Q1FY26 as an emotionally and operationally challenging quarter, Sigachi Industries managing director & CEO Amit Raj Sinha said the incident disrupted manufacturing operations, damaged plant infrastructure and inventory, and delayed shipments, impacting revenue and margins. "We activated emergency protocols, launched a detailed safety audit, and initiated phased restoration. While insurance claims were filed, no deferred income was accounted for. This event has prompted a comprehensive review of our operational controls and risk governance." He said the company was undergoing a strategic review to realign operations with a renewed focus on safety, sustainability and growth.
The Hindu
25-07-2025
- Business
- The Hindu
Sigachi pegs revenue loss after fire at Hyderabad unit to be ₹60 crore, posts net loss of ₹101 crore in Q1
Sigachi Industries said the June 30th fire at its manufacturing unit in Pashamylaram, Hyderabad that left 46 people dead and 25 injured was caused by dust explosion in the spray drying machine and estimated to result in a revenue loss of ₹60 crore. Eight people remain missing after the incident. The report of an expert committee constituted by the government to investigate the incident is awaited. Sources say the committee has submitted the report. The company said operations at the 6,400 TPA facility were temporarily halted, impacting short-term production volumes. Preliminary estimates indicate a revenue impact of ₹60 crore over the affected period. 'Loss of profit during the closure period will be covered by business interruption policy. Sigachi is adequately insured for loss of profits. Insurance claims have been filed,' it said on Friday after the Board meeting on the June quarter financial performance. The company, which operates in the pharmaceutical sector, reported a consolidated loss of almost ₹101 crore for the first quarter as against a consolidated profit of nearly ₹13 crore in the corresponding period of previous fiscal. Total income increased to ₹132.18 crore (₹97.38 crore). Sigachi said a full safety audit has been launched across all its manufacturing sites. Damage assessment and phased restoration are underway at the Hyderabad unit. Production has been reallocated to other units, with operations at Dahej and Jhagadia continuing without disruption. The company has commenced making payments towards financial compensation and medical assistance for those affected by the incident, it said. MD and CEO Amit Raj Sinha said: 'Q1 FY26 has been an emotionally and operationally challenging quarter for us. The tragic incident led to the loss of lives and injuries among our workforce. Our immediate focus was on supporting families... The incident disrupted manufacturing operations, damaged plant infrastructure and inventory, and delayed shipments, impacting revenue and margins. We activated emergency protocols, launched a detailed safety audit, and have initiated phased restoration.'
Time of India
03-07-2025
- Time of India
Dust explosion, not reactor blast, likely cause of Sigachi factory accident: CEO Amit Raj, Sigachi Industries
HYDERABAD: The accident at the factory of Sigachi Industries at Pashamylaram in Sangareddy was not caused by a reactor blast but could have been triggered by a dust explosion in the dryer section, a top official of the Hyderabad-based company said on Wednesday. "As we await the results of the investigation, we would like to clarify that the accident was not caused by a reactor explosion at the plant...," Sigachi said in a regulatory filing on Wednesday morning. However, while interacting with mediapersons at the accident site later in the evening, Sigachi Industries managing director & CEO Amit Raj Sinha said: "It (accident) has nothing to do with any reactor blast. We don't use any solvents here. I believe a dust explosion took place in the dryer section, though the investigation is still on." You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad Sinha clarified that though initially the company put out a death toll of 40 and 33 injuries in intimation to stock exchanges, the fatalities stood at 38 as of Wednesday evening. Sigachi announced an ex-gratia of ₹1 crore to families of the deceased and said those injured would receive full medical and rehabilitation support. Sinha said the company has roped in an external expert to study the site. The company said plant operations will remain temporarily suspended for approximately 90 days.
The Hindu
02-07-2025
- Health
- The Hindu
Operating the Sigachi plant for 35 years without a single incident, says MD
Two days after a deadly explosion at Sigachi Industries' manufacturing unit in Pashamylaram, Hyderabad, which claimed at least 40 lives and left many injured, the cause of the blast remains unclear. The company on Wednesday denied that a reactor explosion was to blame. Highly placed sources in the State government, citing preliminary assessments, pointed to multiple safety lapses: a lack of adequate entry and exit points for workers, poor ventilation and alleged violations of setback norms, with the company reportedly utilising almost the entire land parcel. A senior official said the company was under the scanner and a government department had issued notices as recent as December 2024. The official, however, did not elaborate on whether the company responded or took any corrective action. Labour Minister G. Vivekanand told The Hindu that the government would convene a meeting with representatives of pharma companies to review safety protocols in the wake of the explosion. The focus now is to ensure that all Red Category industries have adequately trained personnel handling each department, he said. In a written response to The Hindu's queries, Sigachi Industries maintained that it had all the required permissions and permits to operate. 'We have been operating this plant for 35 years without a single incident,' the company stated. On government officials' observations as well as the FIR in the case highlighting alleged laxity on the part of the company to upgrade to new equipment, the company said the unit is one of the earliest plants that Sigachi commissioned. 'Over the years, Sigachi has continuously invested in retrofitting, equipment upgrades, structural reinforcements and compliance-based audits to ensure the facility meets both national and international safety standards. We are devastated by this [incident], given this record,' the company said. The Hyderabad unit has been certified ISO 45001:2018 international standard for occupational health and safety management systems that helps businesses create a safer and healthier workplace. As part of the certification, regular audits are conducted. 'There were no mission-critical non-conformities found that could lead to safety concerns or issues,' Sigachi said without mentioning when the last audit was conducted. It said an internal safety review has been initiated and Sigachi remains committed to cooperating with all legal, safety, and regulatory audits to strengthen safety norms. All learnings will be incorporated to reinforce and redesign the safety framework, it said. Speaking to media at the site, Sigachi MD and CEO Amit Raj Sinha said the plant building is old but the equipment inside are being constantly upgraded. On the cause behind the incident, he said it seems to be dust explosion in dryer section. The company has three such facilities in the country and no solvents were used in them, he added. thanked Chief Minister Reddy and Health, Labour and Industries Ministers, the local MLA, District Collector and officials for their 'unconditional support'. To queries, he said there were 143 employees at the plant during the incident and the company is in the process of collating the number of contract workers. The company is paying hospital bills of those injured and its executives were stationed at all the hospitals to provide assistance to the families of those deceased and injured, he said.
