Company Overview

Chemfab Alkalis Limited (Scrip Code: BSE 541269, NSE: CHEMFAB) submitted its investor presentation for the quarter ended June 30, 2026 (Q1FY27) to BSE Limited and National Stock Exchange of India Limited on July 30, 2026. This was a voluntary submission for information and records purposes.

Management Commentary

Mr. V.M. Srinivasan, Chief Executive Officer, provided the management commentary. In the Chlor-Alkali business, Q1FY27 witnessed an improvement in ECU realisations supported by a rise in global caustic prices between mid-March and mid-April 2026, though prices retraced to pre-war levels by end-April. ECU realisation improved sequentially from ₹39,100 per MT to ₹39,600 per MT. The 10 MW Captive Hybrid Power supply commenced on May 25, 2026, expected to deliver significant long-term cost savings.

In the OPVC segment, demand remained significantly impacted by the continued absence of fund flows under the Jal Jeevan Mission. Almost all states and Union Territories have signed the revised JJM MoU and are complying with its terms, with fund releases expected to improve from Q2FY27. OPVC pipes are now being included across various schemes in multiple states, both under JJM and beyond it. The BIS approved the inclusion of OPVC pipes for sewage applications during the quarter, opening a new application segment.

The consolidated outlook remains positive with improving cost efficiencies in Chlor-Alkali, ramp-up of captive hybrid power, and anticipated revival in OPVC order booking expected to drive meaningful improvement through the year.

Financial Performance (Consolidated)

Profit & Loss Statement (₹ in Crores)

| Particulars | Q1FY27 | Q4FY26 | Q-o-Q Change | Q1FY26 | Y-o-Y Change |

| Revenue from Operations | 73.16 | 74.78 | (2.17%) | 91.54 | (20.08%) |

| Operational EBITDA | 10.13 | 8.52 | 18.90% | 11.30 | (10.35%) |

| Operational EBITDA Margin % | 13.85% | 11.39% | 245 bps | 12.34% | 150 bps |

| Other Income | 2.08 | 2.80 | (25.71%) | 1.36 | 52.94% |

| Finance Cost | 2.21 | 2.14 | 3.27% | 1.57 | 40.76% |

| Depreciation | 7.78 | 7.95 | (2.14%) | 6.39 | 21.75% |

| Profit Before Tax | 2.22 | 1.23 | 80.49% | 4.70 | (52.77%) |

Segment-wise Performance

Chemical Segment (₹ in Crores)

| Particulars | Q1FY27 | Q4FY26 | Q-o-Q Change | Q1FY26 |

| Revenue from Operations | 67.41 | 61.67 | 9.31% | 52.84 |

| Operational EBITDA | 7.74 | 6.42 | 20.56% | 0.62 |

| Operational EBITDA Margin % | 11.48% | 10.41% | 107 bps | 1.17% |

| Other Income | 1.75 | 1.80 | (2.78%) | 1.15 |

| Finance Cost | 0.85 | 0.97 | (12.37%) | 0.35 |

| Depreciation | 4.81 | 4.99 | (3.61%) | 4.34 |

| Profit Before Tax | 3.82 | 2.27 | 68.28% | (2.92) |

OPVC Segment (₹ in Crores)

| Particulars | Q1FY27 | Q4FY26 | Q-o-Q Change | Q1FY26 | Y-o-Y Change |

| Revenue from Operations | 5.75 | 13.11 | (56.14%) | 38.70 | (85.14%) |

| Operational EBITDA | 2.39 | 2.10 | 13.81% | 10.68 | (77.62%) |

| Operational EBITDA Margin % | 41.57% | 16.02% | 2,555 bps | 27.60% | 1,397 bps |

| Other Income | 0.33 | 1.00 | (67.00%) | 0.21 | 57.14% |

| Finance Cost | 1.36 | 1.17 | 16.24% | 1.22 | 11.48% |

| Depreciation | 2.97 | 2.96 | 0.34% | 2.05 | 44.88% |

| Profit Before Tax | (1.60) | (1.04) | 53.85% | 7.62 | (121.00%) |

Company Overview

Chemfab Alkalis Limited operates two business segments: Chlor-Alkali division producing caustic soda and related chemicals, and OPVC Pipes division serving India's water infrastructure projects. The company has 2 manufacturing units, 250+ team members, Chlor-Alkali capacity of 65,700 TPA, and OPVC Pipes capacity of 20,000 TPA. Revenue contribution in FY26 was 68% from Chlor-Alkali and 32% from OPVC Pipes.

Strategic Initiatives and Milestones

The company has completed several strategic initiatives:

  • Technology modernization investment of ~₹56 crore completed in Q3FY26
  • Power efficiency project investment of ~₹15 crore with supply started in Q1FY27
  • 10 MW Captive Hybrid Power supply commenced on May 25, 2026
  • OPVC capacity expansion from 14,000 TPA to 20,000 TPA in FY26
  • Commissioned Lines 5 and 6 increasing OPVC capacity
  • Forward integration into Anhydrous Aluminium Chloride plant at Karaikal under WOS Chemfab Alkalis Karaikal Limited, commissioned in February 2024
  • Bricks from brine sludge entered commercial production in 2024

Market Outlook and Growth Drivers

Jal Jeevan Mission

  • Launched August 15, 2019, extended until 2028
  • ₹67,000 crore allocated for 2026-27
  • 81.88% rural households covered so far (15.84 crore households)
  • 4 states and 3 Union Territories achieved 100% coverage

AMRUT 2.0

  • FY27 budget allocation of ₹8,000 crore
  • 1.26 lakh km of new & replacement water pipelines approved
  • 34,548 km of sewer lines approved
  • 178 lakh new household tap connections approved

OPVC Market Opportunity

  • OPVC pipes market valued at ₹225 crore in FY26
  • Projected to expand to ₹1,000 crore by FY29
  • BIS approval for sewage applications obtained in Q1FY27