Financial Highlights

Q2 FY27 Performance (Quarter Ended September 30, 2026)

  • Revenue: INR821 crores, representing 11% YoY growth (vs INR739 crores in Q2 FY26) and 3% QoQ growth (vs INR798 crores in Q1 FY27)
  • EBITDA: INR202 crores, representing 16% YoY growth (vs INR175 crores in Q2 FY26) but declined from INR233 crores in Q1 FY27
  • EBITDA Margin: 24.7% (vs 23.7% in Q2 FY26 and 29% in Q1 FY27)
  • Profit Before Tax (before exceptional items): INR172 crores, representing 19% YoY growth (vs INR145 crores in Q2 FY26)
  • PAT: INR127 crores (vs INR107 crores in Q2 FY26 and INR151 crores in Q1 FY27)

H1 FY27 Performance (Half Year Ended September 30, 2026)

  • Revenue: INR1,619 crores, representing 4% growth (vs INR1,562 crores in H1 FY26)
  • EBITDA: INR435 crores, representing 9% growth
  • EBITDA Margin: 26.9% (vs 25.6% in H1 FY26)
  • PAT: INR278 crores (vs INR252 crores in H1 FY26)

Exceptional Item

Q1 FY27 included an exceptional gain of INR40 crores net of taxes arising from one-time settlement by ESOS Trust.

Cash Flow and Balance Sheet

  • H1 FY27 Cash Flow Generation: INR360 crores
  • Capital Allocation:
  • Capex: INR68 crores
  • Dividend Payment: INR110 crores
  • Borrowing Repayment: INR13 crores
  • Working Capital Increase: INR217 crores (primarily due to higher inventory and trade receivables amid supply chain disruptions)
  • Net Cash Outflow: INR48 crores for H1 FY27
  • Net Cash Surplus: INR1,070+ crores as of September 30, 2026

Operational and Strategic Updates

Project Commissioning

  • Vacuum Salt Plant: Successfully commenced commercial production during Q2 FY27
  • Bromine Plant: Commenced commercial production subsequent to quarter close (October 2026)

Capacity Ramp-up Expectations

  • Vacuum Salt: Expected to reach intended capacity by end of FY27
  • Bromine: Expected to reach intended capacity by next financial year (FY28)

Capex and Expansion Projects

  • Salt Works Expansion: Developing new salt works at Zara Zumara with existing salt works capacity expansion
  • Total Investment: ~INR450 crores
  • Timeline: 2-3 years for complete optimization
  • Expected additional production: 3 lakh tonnes of extra salt
  • Railway Siding: Board approved capex of INR88 crores for infrastructure development
  • Purpose: Better control over raw material, reduced truck dependence, cost savings
  • Greenfield Soda Ash Project:
  • Status: Land acquisitions and government approvals pending
  • Timeline: ~3-3.5 years from zero date to complete setup, plus ~1 year stabilization
  • Project Cost: INR4,200 crores for 0.5 million tonne phase; INR6,800-7,000 crores for full 1.1 million tonne project

Market and Industry Context

Global Soda Ash Market

  • Market remains oversupplied with elevated inventory levels in certain regions
  • Demand holding steady across most user industries
  • Lithium sector showing strong momentum
  • Middle East conflict disrupting material flows and adding cost pressure
  • Chinese synthetic plants (Solvay-based) operating below cost

Indian Soda Ash Market

  • Q2 FY26 demand growth: Only 1%+ (vs 9% last year)
  • Weak demand from detergent segment; stable glass demand
  • Import pressure keeping realizations soft
  • Government imposed minimum import price on clear float glass for 1 year to safeguard domestic manufacturers

Demand Outlook

  • Solar glass capacity expected to increase from 15GW to 35GW in next 6 months
  • Expected soda ash demand growth of 4-5% in FY27-28
  • Import consolidation expected from 6 countries to 3 major countries (US, Turkey, China)

Management Commentary and Guidance

Q3 FY27 Outlook

  • Expects margins to be lower than Q2 due to:
  • Annual shutdown reducing production (estimated 3-4% quarterly production impact)
  • Tapering benefit of low-cost raw material and energy inventories
  • Recently implemented small price increase (~1.5-2% sequentially)
  • Q3 numbers expected to be better than same quarter last year

FY27 Full Year Outlook

  • Expects performance similar to or slightly better than FY26
  • Incremental EBITDA from vacuum salt and bromine to aid performance
  • FY27-28 expected to be better than FY26-27

Financial Discipline

  • Focus on operational excellence, cost control, and efficient financial discipline
  • Maintained position as lowest cost soda ash producer
  • 10-year average EBITDA margin: 29-30%; current margin: 25%
  • Committed to shareholder returns (distributed 79-80% of cash generation to shareholders last year)