Archean Chemical surges 12%, stock hits highest level in CY25; here's why

Archean Chemical stock rallies after the government approves the proposal of SiCSem, its subsidiary, under India Semiconductor Mission to set-up a Silicon Carbide based Compound Semiconductor fab.

Archean Chemical Industries share price today

 

Shares of Archean Chemical Industries (ACIL) surged 12 per cent to ₹727.80 on the BSE in Wednesday’s intra-day trade amid heavy volumes after the government approved the proposal of SiCSem Private Limited, a subsidiary of the company, under India Semiconductor Mission (ISM) to setup a Silicon Carbide (SiC) based Compound Semiconductor fab.

 

The stock price of the smallcap specialty chemicals company traded at its highest level in the calendar year 2025. It had hit a 52-week high of ₹831 on August 22, 2024. 

 

At 10:38 AM; ACIL was quoting 9 per cent higher at ₹713 on the BSE. In comparison, the BSE Sensex was up 0.27 per cent at 80,453. The average trading volumes at the counter jumped multi-fold; with a combined 1.81 million shares changing hands on the NSE and BSE.  READ STOCK MARKET LIVE UPDATES TODAY

 

Cabinet approves 4 semiconductor manufacturing units with an outlay of ₹ 4,600 crore

 

The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved four more semiconductor projects under India Semiconductor Mission (ISM) at an investment of ~₹4600 crore, taking total approved projects to 10 with cumulative investments of about ₹1.60 trillion crore across six states. 

 

The newly approved projects include SiCSem (Odisha) - in collaboration with Clas-SiC Wafer Fab (UK), will set up India’s first commercial Silicon Carbide (SiC) compound semiconductor fab with annual capacity of 60,000 wafers and 96 million packaged units. The proposed products will have applications in Missiles, Defence equipment, Electric Vehicles (EVs), Railway, Fast Chargers, Data Centre racks, Consumer Appliances, and Solar Power Inverters.

 

Given the growing demand of semiconductors in telecom, automotive, datacentres, consumer electronics and industrial electronics, these four new approved semiconductors projects would significantly contribute to making Atmanirbhar Bharat.  ALSO READ | What to do with Suzlon Energy post Q1? Brokerages decode stock strategy

Market overview – ACIL

 

The management in Q1FY26 earnings conference call said they are witnessing mixed trends across the chemical industry with early signs of recovery in select segments. Inquiry levels are steadily improving, indicating a more favourable business environment in the coming quarters and years ahead. However, the recent tariff uncertainties have obviously held many global MNCs from making decisions while re-evaluating sourcing and investment strategies.

 

The Indian specialty chemicals industry, nevertheless, is poised for significant long-term growth supported by rising domestic consumption, supply chain diversification and government led incentives, etc. Recently, NITI Aayog has released a report in July 2025 outlining a roadmap for India to become a global chemical powerhouse with potential to reach $1 trillion by 2040, ACIL said.

 

The management said they are confident and seeing consistent demand and expect gradual improvement in volumes over the coming quarters.  ALSO READ | Paytm stock hits 43-mth high on RBI nod to PPSL; brokerages decode strategy

Company Overview

 

Archean Chemical Industries Limited (ACIL) is a specialty chemicals manufacturing company that produces and supplies marine chemicals. The company is engaged in the production and supply of industrial salt, liquid bromine, sulphate of potash (SOP). ACIL serves a range of industries, including agriculture, pharmaceutical, water treatment, aluminium, glass, and textiles.