Archean Chemical Industries Limited is a leading specialty chemicals manufacturing company with a large presence in India and globally . It has an integrated manufacturing plant in the country to produce Industrial Salt, Bromine and Sulfate of Potash. The company is consistently delivering quality products to its trusted customers around the globe having built an excellent reputation as one of the best in the chemical industry. Archean Chemical is a ‘Green Organisation’ from start to finish with the processes used to convert the brine from the Arabian sea into core products causing minimal environmental harm. It identifies and eliminate sources of environmental damage to achieve the goal of being as Green as possible. Archean Chemicals is proud in being India’s largest producer and exporter of Bromine and Industrial Salt and the manufacturing portfolio also consists of Potassium Sulfate (SOP). Bromine is a reactive halogen with a wide range of uses from fire retardants to disinfectants . On the other hand , Industrial salt is a base chemicals which is largely used across industries from glass manufacturing to case-hardened steel.
The chemical industry remains quite challenging on the back of the current macroeconomic conditions and uncertainties. Despite all this , Archean Chemicals remains confident about its long term trajectory and growth vision . Global markets such as China, Europe and the US are facing challenges in domestic consumption and demand resulting in an oversupply of certain chemicals , feedstocks along with aggressive pricing from major suppliers. While the average realisation from the chemical industry as a whole have been under pressure for quite some time , industry analysts are expecting a partial recovery in both demand and pricing . But the impact of the ongoing tariff changes happening to global trade will definitely have a major impact around the world including the chemical industry .
The company’s order book has been healthy on the back of onboarding of new clients and confidence of existing satisfied customers . The company announced its consolidated third quarter financial results with net sales at Rs 242.29 crores , net profit of 47.97 crores and EBITDA at Rs 88.80 crores for the same quarter . The moderation in the realisation of bromine and decline in the volume of Industrial salt was aggravated by the delayed contribution in bromine derivative and Oren Hydrocarbon which led to the weak performance in Q3FY25.
Exports and imports stood at 76% and 24% respectively for the third quarter of FY2025 . Bromine contributed around 38% of the operating revenue while industrial salt contributed around 61% of the total revenue . Archean Chemicals has taken several strategic initiatives by investing a whopping sum of Rs 3000 crores in a compound semiconductor manufacturing facility in Bhubaneswar, Odisha . The State government of Odisha has allotted 14.32 acres of land for this project which integrates wafer fabrication for key industries such as consumer appliances , data centres , industrial tools , fast chargers , energy storage and electric vehicles .
It has also made a commitment of $12 million in a US based company specialising in bromide battery technology . This would align the company’s broader strategy to enter the energy storage segment , particularly focusing on renewable energy and industrial storage applications. The company management is quite bullish on the new ventures as it should show significant growth for the company in the future with increasing focus on sustainable energy and storage solutions in India and abroad. The Archean Chemical Industries stock is quoting at Rs 485 on the bourses and industry analysts and fund managers are extremely bullish on the scrip for long term portfolio investment .
However, analysts tracking the chemical sector believe that the worst is behind and Archean Chemical is on a recovering path from here on as the bromine derivative business along with with Oren Hydrocarbon is gearing up for a decent start in the next two quarters on the back of improving volume in the Industrial salt segment . The Archean Chemicals stock can be accumulated for solid long term gains .Investors are advised to check with their financial advisors before buying any share and do their own due diligence before committing to any stock investment .