Sigachi Industries boosts Q4 growth through strategic expansions

Sigachi Industries Ltd., a renowned manufacturer of microcrystalline cellulose (MCC), has reported a notable 46.21% increase in year-over-year EBITDA, reaching ₹1,120 million, and a 25.42% rise in revenue to ₹5,003 million. The company is set on achieving a compound annual growth rate of 25% through FY28, driven by strategic capacity expansions and market diversification. The acquisition of Trimax Biosciences is a pivotal move, enabling scaling in advanced intermediates and active pharmaceutical ingredients (APIs). Sigachi plans to file six additional European CEP dossiers and enhance capacity utilisation, marking significant advancements in API development.

In line with its growth strategy, Sigachi is broadening its market reach beyond India, the U.S., and Europe. The company is actively penetrating markets in Latin America, Southeast Asia, and the Middle East through new distribution alliances and turnkey operations. Recent MCC commissioning at Jhagadia and Dahej, coupled with CCS project expansions, is expected to unlock an additional 8,800 MTPA, potentially driving a revenue increase of 20%-30% in excipients. New product launches in Pharma Coatings are anticipated to be key growth catalysts over the coming years.

Operational efficiencies remain a priority, with Sigachi implementing digital analytics and energy efficiency initiatives aimed at reducing operating costs by 100-150 basis points annually. Additionally, the company's plant management outsourcing contracts in the Middle East, currently accounting for 10% of revenues, are set to expand. Amit Raj Sinha, MD & CEO, highlighted the company's achievements over the past year, noting, "This past year has been pivotal for Sigachi, with strong financial results and strategic advancements in excipients and APIs. Our Hyderabad API R&D centre is set to launch in Q1 FY26, regulatory approvals are steadily coming in, and we are making strides in global market presence. We are well-positioned for sustainable, high-margin growth."