Financial Performance Highlights

Full Year FY26 (Year-ending March 31, 2026):

  • Total Income: INR 393.1 crores, representing a growth of 44.62% year-on-year
  • Profit After Tax (PAT): INR 28.49 crores, showing a growth of 360.9% over FY25
  • EBITDA: INR 66.38 crores, a 159% increase over FY25
  • EBITDA Margin: 16.89%, an improvement of 747 basis points year-on-year
  • Caustic Soda Volume: 84,690 metric tons, up 29.7% over FY25

Q4 FY26 (Quarter-ending March 31, 2026):

  • Total Income: INR 97.75 crores, up 22.3% year-on-year
  • PAT: INR 4.39 crores, up 68.64% over Q4 FY25
  • EBITDA: INR 13.72 crores
  • EBITDA Margin: 14.03%, showing improvement of 247 basis points quarter-on-quarter
  • Caustic Soda Volume: 20,935 metric tons, up 8.72% year-on-year

Balance Sheet Position (as of March 31, 2026)

  • Shareholders' Funds: INR 242.52 crores (up from INR 181.67 crores a year ago)
  • Total Assets: INR 478.7 crores
  • Long-term Debt: INR 96.37 crores
  • Short-term Borrowings: INR 65.58 crores
  • Debt-to-Equity Ratio: Approximately 0.67x
  • Capital Work-in-Progress: INR 43.85 crores

Renewable Energy Initiatives

The company has made significant progress in renewable energy integration:

  • Power and fuel costs reduced from 61% of production cost structure in FY25 to approximately 42% in FY26
  • 16 MW solar plant in Bikaner and 10 MW hybrid wind-solar group captive project in Jaisalmer are operational
  • 21 MW solar plant expected to become operational by mid-June 2026
  • Post-commissioning, total captive renewable capacity will be 37 MW plus 10 MW from group captive project
  • Renewable energy share expected to reach 40-45% of total power requirements

Capacity Expansion and Capex

  • Total capex outlay of INR 315 crores across FY24 to FY27-28
  • First phase of INR 150 crores completed (90 TPD caustic soda expansion, 16 MW solar plant, equity infusion into 10 MW hybrid project)
  • Second phase includes 21 MW captive solar plant, CPW capacity expansion from 50 to 100 tons per day, and further 100 TPD expansion of caustic soda plant
  • Post-expansion total installed capacity: 360 tons per day (after decommissioning old 40-ton plant)
  • Projects funded through mix of internal accruals and debt

Operational and Market Commentary

  • Demand growth driven by key end-user sectors: aluminum, paper, textiles, pharmaceuticals
  • Company serves North Indian market with structural competitive advantage due to freight economics
  • Indian caustic soda industry has 6.4 million tons annual capacity, accounting for 5-6% of global capacity
  • India has transformed from net importer to net exporter of caustic soda
  • Current utilization rate: approximately 80%

Management Outlook for FY27

  • Optimistic about demand environment with improving realizations quarter-on-quarter
  • Focus on three priorities: operational excellence, energy cost reduction through renewables, and disciplined capital allocation
  • Expects renewable power infrastructure commissioning to contribute meaningfully to margin stability and long-term competitiveness

Q&A Session Highlights

  • The company addressed a shortfall of 97 lakh units from consortium energy supply, expected to be resolved with project completion by June 2026
  • Sulfuric acid capacity expansion deferred due to volatile sulfur prices and geopolitical situation
  • Current blended power cost: grid rate ~INR 8.2-8.3 per unit
  • Average cost of debt: ~8%
  • Raw material costs: Salt constitutes 11-12% of production cost (yearly contract), other purification chemicals saw 20-30% price inflation
  • North Indian market capacity: ~1,600 TPD total, company currently has 20% market share expected to increase to 26-27%