Sigachi Industries shares plunge for 2nd session after deadly reactor explosion at Hyderabad plant

Shares of Sigachi Industries tumbled 7 percent in intra-day trading on Tuesday, July 1, following an 11.5 percent plunge the previous day after a catastrophic explosion rocked the company’s pharmaceutical plant in the Pasamailaram industrial area of Sangareddy district. The accident, caused by a reactor blast early Monday morning, led to a major fire and partial collapse of the building housing the reactor unit, severely impacting the company’s operations and investor sentiment.

According to official disclosures, the explosion occurred around 9:20 AM (IST) on June 30, 2025, at Sigachi’s Hyderabad plant located at Plot No. 20-21, IDA Pashamylaram, Phase 1, Medak District, Telangana. The blast triggered a fierce fire and caused partial structural damage to the reactor unit’s building. Tragically, the incident resulted in the loss of lives and injuries to approximately 34 workers, many of whom sustained critical burns. Rescue teams have been actively searching for people feared trapped under the debris as the situation remains grim.

In an exchange filing, Sigachi expressed deep sorrow over the loss of life and extended heartfelt condolences to the families of the deceased. The company emphasized that the well-being of its personnel remained the highest priority and pledged full support to those affected. It also reported damage to ancillary equipment and civil structures within the plant and announced that a thorough on-ground assessment was underway in coordination with relevant authorities to ensure safety protocols were strictly followed.

Sigachi Industries operates three manufacturing plants for Microcrystalline Cellulose (MCC), a key product in its portfolio. The Hyderabad facility, where the blast occurred, contributes about 6,000 metric tonnes per annum (MTPA) out of the company’s total operating capacity of 21,700 MTPA. The remaining capacity is supplied by two other plants located in Gujarat, which continue to operate normally. The company said that production at the Hyderabad unit will be suspended temporarily for approximately 90 days to allow for replacement and restoration of the damaged infrastructure and equipment. Meanwhile, management is working to optimize output from the Gujarat plants during this interim period to mitigate disruption.

The stock reacted sharply to the incident, falling as much as 7 percent on Tuesday to ₹47.86 after losing 11.5 percent on Monday. The current price is now over 31 percent below its 52-week high of ₹69.75, reached in August 2024. The share had touched a 52-week low of ₹34.51 in February 2025.

In terms of monthly trends, the stock declined nearly 8 percent in June following a strong 26.4 percent rally in May and an 18.7 percent rise in April. Before this recent surge, Sigachi’s shares had been in a downtrend for four consecutive months.

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