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Sigachi Industries has announced the initiation of civil works for its next phase of capacity expansion¡Xan advanced 12,000 MTPA Microcrystalline Cellulose (MCC) project at its Dahej SEZ unit in Gujarat. This strategic move aligns with Sigachi¡¦s long-term vision of operational resilience, safety-first design, and continued global leadership in the excipient industry.
The company said, 'While the investigation committee continues its work on the recent tragedy at Sigachi¡¦s Pashamylaram unit, the Company is actively building forward. The Dahej MCC Project reflects Sigachi¡¦s determination to rise stronger, with smarter systems, globally benchmarked safety features, and capacity augmentation focused on uninterrupted supply to its valued global clientele.
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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 Sigachi’s 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.