Sigachi Industries said the June 30th fire at its manufacturing unit in Pashamylaram, Hyderabad that left 46 people dead and 25 injured was caused by dust explosion in the spray drying machine and estimated to result in a revenue loss of ₹60 crore.
Eight people remain missing after the incident. The report of an expert committee constituted by the government to investigate the incident is awaited. Sources say the committee has submitted the report.
The company said operations at the 6,400 TPA facility were temporarily halted, impacting short-term production volumes. Preliminary estimates indicate a revenue impact of ₹60 crore over the affected period.
“Loss of profit during the closure period will be covered by business interruption policy. Sigachi is adequately insured for loss of profits. Insurance claims have been filed,” it said on Friday after the Board meeting on the June quarter financial performance.
The company, which operates in the pharmaceutical sector, reported a consolidated loss of almost ₹101 crore for the first quarter as against a consolidated profit of nearly ₹13 crore in the corresponding period of previous fiscal. Total income increased to ₹132.18 crore (₹97.38 crore).
Sigachi said a full safety audit has been launched across all its manufacturing sites. Damage assessment and phased restoration are underway at the Hyderabad unit. Production has been reallocated to other units, with operations at Dahej and Jhagadia continuing without disruption.
The company has commenced making payments towards financial compensation and medical assistance for those affected by the incident, it said.
MD and CEO Amit Raj Sinha said: “Q1 FY26 has been an emotionally and operationally challenging quarter for us. The tragic incident led to the loss of lives and injuries among our workforce. Our immediate focus was on supporting families… The incident disrupted manufacturing operations, damaged plant infrastructure and inventory, and delayed shipments, impacting revenue and margins. We activated emergency protocols, launched a detailed safety audit, and have initiated phased restoration.”
Published – July 25, 2025 09:29 pm IST
