ACI
Micro CapArchean Chemical Industries Limited
Industrials
Archean Chemical Industries Limited is a leading Indian manufacturer and exporter of specialty marine chemicals, primarily Bromine and Industrial Salt. The company is diversifying into high-growth areas like Silicon Carbide (SiC) power devices, energy storage solutions, bromine derivatives, and specialty mud chemicals.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -13% YoY · PAT -78% YoY · margin compression · +18% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹301 Cr | -13.0% | +18.0% |
| EBITDA | ₹44 Cr | -50.0% | -18.5% |
| Operating margin | 15.0% | -1100 bps | -600 bps |
| PAT | ₹12 Cr | -77.8% | -50.0% |
| PAT margin | 4.0% | -1162 bps | -542 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
FY26 revenue grew 3% YoY to Rs. 11,080 mn, but Q4FY26 revenue declined 13% YoY. Consolidated EBITDA and PAT saw significant YoY declines, impacted by moderation in Industrial Salt, technical downtime in Bromine, and logistics challenges.
The core business performance is mixed, with declining profitability in FY26. While strategic diversification into semiconductors and energy storage is promising, these are early-stage ventures with execution risks and no immediate financial contribution. Logistics issues and technical downtime further pressured results.
Silicon Carbide (SiC) Power Devices
Integrated facility for SiC-based compound semiconductors, first commercial fab in India, 60,000 wafers/year capacity.
Energy Storage Solutions
Investment in Zinc Bromide battery technology, plans for pilot UK facility and India giga-factory.
Bromine Derivatives
Targeting breakeven in FY27, launched new products, with additional products under development.
Specialty Mud Chemicals
Commercial operations commenced at initial scale, customer trials progressing, 5 plants.
SiCSem Facility
Annual capacity of 60,000 wafers and packaging capacity of 96 million units.
Bromine Derivatives
Flame Retardant Bromine project expected to come on stream over next 12-18 months.
Specialty Mud Chemicals
Successfully commissioned three plants.
Brine Field Expansion
Undertaken a brine field expansion project within premises to significantly improve overall volumes.
Strong Industrial Salt Demand
Healthy demand for Industrial Salt, partly negating Q4 logistics challenges.
Semiconductor Mission Support
SiCSem executed Fiscal Support Agreement with India Semiconductor Mission for eligible fiscal support.
Growing Energy Storage Market
Global demand for stationary energy storage expected to exceed $30 billion by 2030.
Increasing Bromine Demand
Driven by various industries, stringent safety standards, and expanding industrial applications.
Geopolitical Disruptions
Impacted exports (78% of revenue) with higher transit time and elevated freight costs.
Logistics Cost Increase
Gujarat government circular on road repairs and rising fuel prices led to a 50% effective impact on per litre fuel cost.
Bromine Production Downtime
Production impacted by technical downtime during the year, though corrective measures are implemented.
Bromine Derivatives Slower Growth
Business grew slower than expected in FY26.
Execution Risk for New Ventures
Semiconductor, Energy Storage, Bromine Derivatives, and Specialty Mud Chemicals are in early stages or facing delays.
Geopolitical & Logistics Disruptions
Ongoing geopolitical issues and domestic logistics challenges could continue to impact export-oriented business and costs.
Customer Concentration
Top 10 customers contributed 87% of FY26 revenue, indicating high reliance on a few clients.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is essential for understanding the underlying performance of seasonal businesses like Industrial Salt and for annual trends. QoQ is relevant for assessing sequential momentum, especially for new projects and the recovery from technical downtime in Bromine.
Total Revenue (Consolidated)
FY26: Rs. 11,080 mn (+3% YoY); Q4FY26: Rs. 3,063 mn (-13% YoY).
EBITDA (Consolidated)
FY26: Rs. 2,657.3 mn (-24.3% YoY); Q4FY26: Rs. 490.8 mn (-48.9% YoY).
PAT (Consolidated)
FY26: Rs. 1,054.1 mn (-35% YoY); Q4FY26: Rs. 122.3 mn (-77.2% YoY).
Industrial Salt Volume
FY26: 4.25 Mn tons (+22.1% YoY); Q4FY26: 1.18 Mn tons (-7.2% YoY).
Bromine Derivatives
Targeting breakeven in FY27, supported by improved capacity utilization.
Sulphate of Potash (SOP)
Meaningful business expected to contribute in H2FY27 after re-engineering product and manufacturing process.
SiCSem Project
Positioned as the first commercial compound fab in the country.
Offgrid Energy Labs
Intention to establish a giga-factory in India in the near future to scale Zinc Bromide battery production.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Bromine Derivatives Breakeven | Grew slower than expected in FY26. | Achievement of breakeven in FY27 and improved capacity utilization. |
| SOP Business Contribution | Re-engineering product and manufacturing process. | Meaningful business contribution in H2FY27. |
| SiCSem Project Progress | Fiscal Support Agreement executed, groundbreaking ceremony in Nov 2025. | Construction progress, commissioning timelines, and initial production. |
| Logistics Cost Mitigation | Own fleet trips impacted, working with third-party logistics partners. | Effectiveness of mitigation strategies on logistics costs and transit times. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
48Neutrallabel neutral
Technical chart
ACIweekly · 1Y-14.5%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 48.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 48 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 24% off 52W high · 13% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 10/15 to the score.
- Growth contributes 14/25 to the score.
Main drags
- Fair-value margin of safety is negative at -39.7%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 2/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 17th percentile of the scored universe and 13th percentile within Industrials. Main check: results consistency is weak at 17/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: 5 recent quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 13th pctile, median 68 · Micro: 11th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
Trust risks
- ▸5 recent quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 7.7%.
- ▸ROE is low at 5.6%.
- ▸ROCE trend is -7.6%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 61.70
- P/B
- 3.28
- EV/EBITDA
- 20.54
- Market Cap
- 6353.00Cr
Profitability
- ROE
- 5.42%
- ROCE
- 7.41%
- ROA
- 3.94%
- Dividend Y
- 0.49%
Growth (CAGR)
- Revenue 5Y
- 18.00%
- EPS 5Y
- 18.00%
- Revenue 3Y
- -9.00%
- EPS 3Y
- -35.00%
Balance Sheet
- Debt/Equity
- 0.25
- Interest Coverage
- 9.19×
- Altman Z
- 6.68
- Book Value
- 157.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 3/5
- OCF
- 140.00 Cr
- EPS TTM
- 8.66
Shareholding
- Promoter Hold
- 53.43%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 13%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.