Synopsis: Shares of Sigachi Industries Limited surged to a 20% upper circuit after the Telangana High Court granted bail to the MD & CEO in the June 2025 fire incident case, easing legal overhang concerns.
The shares of this company, which is one of the largest manufacturers of cellulose-based excipients and manufactures MCC in several distinct grades ranging from 15 microns to 250 microns, had its shares in momentum today after the court granted bail to the management members of the firm in the June 2025 factory fire incident.
With the market cap of Rs 906 crore, the shares of Sigachi Industries Ltd have hit the 20% upper circuit and reached a high at Rs 24.74, compared to the previous day’s closing price at Rs 20.62. The shares are trading at a PE of 15, whereas its industry PE is at 29.
About the Fire Incident
A fire incident had taken place on June 30, 2025, at approximately 9:20 AM in the vicinity of Sigachi Industries’ Hyderabad manufacturing facility at Pashamylaram, Telangana. The fire incident had unfortunately led to the loss of human life and had also resulted in some people getting injured.
The fire incident had also resulted in some damage to the auxiliary equipment and civil structures, which had forced Sigachi to temporarily halt operations at its Hyderabad manufacturing facility for a period of 90 days to facilitate repairs. This particular manufacturing facility contributed 6,000 MTPA of MCC capacity to the company’s total installed capacity of 21,700 MTPA, although the company’s Gujarat facilities were operating to partially mitigate the effect. The particular manufacturing facility was fully insured, and claims had been initiated.
Latest news on the Case
After the fire incident at the Hyderabad plant on June 30, 2025, legal action was taken as part of the investigation into the incident. On February 4, 2026, the Telangana High Court granted bail to the Managing Director & CEO, Amit Raj Sinha, in relation to this legal action. The incident was left under judicial review, with investigations being carried out as per due process.
The company reported that it continued to cooperate with the investigating agencies and the judicial system. The company also reported that it was taking steps to improve safety measures at its facilities.
The shares of Sigachi Industries Limited touched the 20% upper circuit, as the Telangana High Court has granted bail to the MD & CEO in connection with the June 2025 incident, which eased the overhang concerns and resulted in aggressive buying interest.
Financials
The revenue from operations for the company stood at Rs 110 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 125 crores, down by about 12 per cent YoY. Similarly, the net profit stood at Rs 11 crore in Q2 FY26, down compared to the Rs 21 crore profit in Q2 FY25.
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