Sigachi Dividend Nears Amid Plant Blast Fallout

Shares of Sigachi Industries Ltd, a small-cap pharma and specialty chemicals company, are in focus after the board fixed September 16, 2025 as the record date for its final dividend for FY25. The announcement comes at a time when the company is navigating both strong financial growth and the aftermath of a tragic industrial accident.

Company Background

Founded in 1989, Sigachi Industries manufactures microcrystalline cellulose (MCC) and other cellulose-based excipients used in pharmaceuticals, nutraceuticals, food, and cosmetics. The company operates certified facilities in Telangana and Gujarat and exports to multiple international markets.

The company is led by CEO Amit Raj Sinha.

What’s Driving the News?

Dividend Record Date: The board has recommended a final dividend of ₹0.10 per share (10% of face value) for FY25. Shareholders holding the stock as of September 16, 2025, will be eligible.

Q4 FY25 Results:

• Revenue rose 23% YoY to ₹128.2 crore.
• Net profit declined 11% YoY to ₹13.26 crore, mainly due to higher costs.
• Operational Disruption: On June 30, 2025, a major explosion at the Hyderabad (Pashamylaram) plant caused heavy damage and resulted in 46 fatalities. The company has shifted production partly to its Gujarat units while restoration is underway.

Current Share Price & Market Metrics

• As of September 11, 2025, Sigachi shares (NSE: SIGACHI / BSE) trade at ₹36.48, up +15.6% intraday.
• 52-week range:₹30.51 – ₹60.50.
• Market cap: Between ₹1,216 – ₹1,390 crore, depending on the source.Also Read: Dev Accelerator IPO Oversubscribed on Day 1: Retail Portion Booked 3.5x

Recent Financial & Strategic Developments

Strong FY25 Performance

• EBITDA up 2% YoY to ~₹112 crore.
• Revenue up 4%to ~₹500.3 crore.
• Company targets 25% CAGR till FY28via capacity expansion, API growth, and regulatory approvals.

API Expansion & Diversification

• Scaling API production through subsidiary Trimax Biosciences.
• Plans to file six new European CEP dossiers.
• Expanding footprint beyond India, the U.S., and Europe into Latin America, Southeast Asia, and the Middle East.

Operational Disruption: Hyderabad Plant Explosion

Incident Details

• On June 30, 2025, a blast in the spray dryer unit at the Pashamylaram plant killed 46 workers, injured over 33, and left several missing.
• Around 143 workers were inside at the time.
• Operations are suspended for ~90 days.

Company Response & Compensation

• Sigachi clarified that the incident was not due to a reactor explosion.
• Production rerouted to Dahej and Jhagadia (Gujarat)
  
• Compensation paid so far:
  • ₹10 lakh each to families of 15 deceased (₹1.5 crore).
  • ₹15 lakh each to families of 8 missing workers.
  • ₹1 lakh each to 25 injured.
  • Total payout ~₹2.70 crore out of ₹5.80 crore committed.

Financial Impact & Market Reaction

• In Q1 FY26, the company swung to a loss of ₹101 crore(vs profit of ₹13 crore YoY), even though revenue rose ~34% to ₹128 crore.
• Stock fell 8–15%in sessions immediately after the plant accident but has since rebounded on the dividend news, gaining over 15% in a day.

Market Analysis

• Dividend Trigger: Dividend eligibility ahead of the record date is driving short-term buying interest.
• Mixed Fundamentals: Revenue growth remains strong, but margins and profitability are under pressure due to higher costs and operational disruption.
• Investor Focus: Recovery of full production capacity and margin stabilization will be key for sentiment in the coming quarters.

Summary

Sigachi Industries finds itself at a crossroads: strong FY25 revenue growth and a dividend announcement have boosted near-term investor interest, but the Hyderabad plant explosion continues to weigh heavily on operations and profitability. The company’s ability to deliver on expansion plans while managing operational risks will decide its longer-term trajectory.

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Sigachi Industries