ALFA Finder
| Indicative Investment | ₹2,000 CrProposed Project |
|---|---|
| Market Cap | ₹5,712.7 CrChemicals Sector |
| P/E Ratio (TTM) | 57.24Industry: 35.09 |
| 1-Year Return | -27.07%Price Performance |
Key highlights
- Non-binding MoU signed with Andhra Pradesh Economic Development Board for a giga factory
- Proposed manufacturing capacity of up to 5 GWh per annum in Visakhapatnam
- Indicative investment estimated at approximately ₹2,000 crore for the facility
- Project to be executed through a Special Purpose Vehicle with potential technology partners
- Strategic leverage of previous investment in Offgrid Energy Labs and its July 2026 pilot plant
A ₹2,000 Crore Battery Energy Ambition in Visakhapatnam
Archean Chemical Industries Limited has announced the signing of a non-binding Memorandum of Understanding with the Andhra Pradesh Economic Development Board to explore the creation of a battery energy storage giga factory. Located in Visakhapatnam, the proposed facility is designed to reach a manufacturing capacity of up to 5 GWh per annum. The project carries an indicative investment of approximately ₹2,000 crore and is expected to be executed through a Special Purpose Vehicle.
This vehicle may involve additional collaborations with technology or financial partners as the company seeks to diversify its specialty chemical foundation into the high-growth domestic battery manufacturing landscape.
Leveraging Chemistry Expertise and Offgrid Energy Synergy
- Leverages strategic investment in Offgrid Energy Labs for advanced chemistry-based storage
- Offgrid Energy successfully commenced pilot plant operations in July 2026
- Focus on stationary and long-duration energy-storage applications for the domestic market
- Project remains subject to feasibility assessments and technology validation milestones
- The MoU is non-binding and does not constitute a firm immediate investment commitment
Broadening the Horizon: From Chemicals to Semiconductors
This MoU aligns with Archean Chemical's broader strategy of pivoting toward advanced manufacturing and infrastructure. In May 2026, the company’s subsidiary, SiCSem, executed a ₹2,067 crore agreement for India’s first approved Silicon Carbide semiconductor facility in Bhubaneswar. Additionally, in January 2026, the firm signed an MoU with the Gujarat government for a 7 MMTPA captive salt jetty.
These capital-intensive initiatives, including the proposed Visakhapatnam battery giga factory, signify a transition from a pure commodity chemical play to an integrated technology and industrial infrastructure company, backed by a TTM revenue base of ₹1,180.07 crore.
Financial Performance and Market Position
- Q2 FY27 revenue reached ₹297.36 crore, up 27.52% on a year-on-year basis
- Net profit for the September 2026 quarter grew 10.21% YoY to ₹32.06 crore
- Operating profit margin for the latest quarter stood at 23.61%
- Promoter holding remains stable at 53.43% with 22.84% of holdings pledged
- Stock is trading at a P/E of 57.24, significantly higher than the industry average of 35.09
| Date | Announcement | Amount |
|---|---|---|
| 11 May 2026 | Fiscal Support Agreement executed by subsidiary SiCSem with India Semiconductor Mission (ISM) for setting up India's first approved Silicon Carbide (SiC) semiconductor fab and ATMP facilitySource: BSE filing | ₹2,067.00 Cr |
| 30 Jan 2026 | Memorandum of Understanding signed with Government of Gujarat for development of 7 MMTPA captive salt jetty and associated infrastructureSource: scanx.trade | – |
| 29 Jan 2025 | Partnership with IIT Bhubaneswar to establish the Silicon Carbide Research and Innovation Center (SiCRIC) joint laboratorySource: archeanchemicals.com | ₹65.00 Cr |
| 22 Jan 2025 | First Amendment and Restated Stockholders Agreement and Stock Subscription Agreement executed to acquire a 21% stake in Offgrid Energy Labs Inc.Source: archeanchemicals.com | ₹100.00 Cr |
| 27 Oct 2024 | Investment Agreement and Share Purchase Agreement executed with Clas-SiC Wafer Fab Limited (UK) for equity stake and exclusive technology licensingSource: zerodha.com | ₹160.00 Cr |
What to watch next
- Completion of feasibility assessment and technology validation for the Visakhapatnam site, H1 2027
- Execution of definitive agreements and identification of financial partners for the SPV, 2027
- Commissioning updates for the ₹2,067 crore SiC semiconductor project in Bhubaneswar, May 2027
- Third-quarter financial results announcement, January 2027
| Share price | ₹462.7 |
|---|---|
| Market capitalisation | ₹5,712.70 Cr |
| Revenue (annual) | ₹1,081.05 Cr |
| Net profit (annual) | ₹106.86 Cr |
| Revenue (latest quarter) | ₹297.36 Cr-9.12% vs previous quarter |
| Net profit (latest quarter) | ₹32.06 Cr+4.51% vs previous quarter |
| P/E (TTM) | 57.24×Sector 29.33× |
| Promoter holding | 53.43%0.00% QoQ |
| FII holding | 10.4%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Archean Chemical Industries Ltd announcing a non-binding MoU for a battery energy storage giga factory. Market figures from a third-party data provider.
