GHCL Limited (GHCL)
₹390.75 +1.40% last close, 16 Oct
Q2 FY27 results
📅 Next results: 31 Oct 2026 (board meeting)GHCL Limited's board meets on 31 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, GHCL's revenue was ₹774 Cr (-2.7% year on year, -2.1% on the previous quarter), and net profit ₹191 Cr (+31.8% year on year); the operating margin was 27.0%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹774 | -2.7% | -2.1% |
| Operating profit | ₹209 | +6.0% | +18.7% |
| Net profit | ₹191 | +31.8% | +59.3% |
| EPS (₹) | 21.04 | +39.6% | +61.2% |
| Operating margin | 27.0% | — | — |
GHCL delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 55.32% of the GHCL shares traded on NSE were taken to delivery, against the stock's own 20-session average of 58.48%. That is close to its usual level.
Delivery in the last 5 sessions: 51.7% · 59.0% · 68.3% · 51.9% · 55.3%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
GHCL Limited has commenced commercial production of a new product, 'Liquid Bromine (Br2)', effective October 12, 2026. The new plant is located at Village Kathivadar, Taluka Rajula, District Amreli, Gujarat, with an annual capacity of 2,800 MT. The product targets both domestic and international markets within the commodity chemicals space. This allows GHCL (TTM revenue Rs 3,065 Cr) to diversify its product portfolio beyond core soda ash and salt operations.
- Commercial production of Liquid Bromine commenced on October 12, 2026
- Annual production capacity stands at 2,800 MT
- Facility situated at Village Kathivadar, District Amreli, Gujarat
- Product will cater to both domestic and international markets
GHCL Limited has submitted its quarterly confirmation certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate was issued by MUFG Intime India Private Limited, the company's Registrar and Share Transfer Agent, on October 3, 2026. It confirms the processing of dematerialisation requests received during the quarter. This is a mandatory and purely administrative compliance disclosure.
- Compliance certificate submitted under Regulation 74(5) of SEBI Regulations, 2018
- Pertains to the quarter ended September 30, 2026
- Issued by RTA MUFG Intime India Pvt. Ltd. dated October 3, 2026
GHCL Limited has been declared the 'Preferred Bidder' in an e-auction by the Government of Gujarat for a Composite License for the Kadaya limestone block. The awarded block covers 6.8797 hectares with estimated mineral reserves of 5,67,337 metric tonnes. The Letter of Intent (LOI) will be granted subject to GHCL submitting performance security within 45 days. This secures critical raw material supply for its soda ash operations.
- Declared Preferred Bidder for Kadaya limestone block in Junagadh, Gujarat
- Block encompasses an area of 6.8797 hectares
- Estimated limestone mineral reserves stand at 5,67,337 metric tonnes
- Grant of LOI requires submission of Performance Security within 45 days
GHCL responded to an NSE clarification query regarding the absence of consolidated financial results for the quarter ended June 30, 2026. The company stated that its only non-operational wholly owned subsidiary, Dan River Properties LLC, was voluntarily closed effective February 18, 2026. Consequently, GHCL operates strictly as a standalone entity effective April 1, 2026, and is no longer required to file consolidated results. The company also confirmed that the original June 2026 results submitted on August 1, 2026, were in a machine-readable format.
- Wholly owned subsidiary Dan River Properties LLC voluntarily closed effective February 18, 2026
- GHCL Limited operates strictly as a standalone entity starting FY27 (April 1, 2026)
- No further consolidated financial reporting required from April 1, 2026 onwards
- Company re-submitted machine-readable results originally approved on August 1, 2026
GHCL Limited has commenced commercial production of a new food-grade product, 'Vacuum Salt', effective August 31, 2026. The plant has an annual capacity of 1.7 Lakh MT and is integrated into its existing Soda Ash manufacturing site at Sutrapada, Gujarat. The facility is designed to utilize surplus energy from the soda ash operations and will serve both domestic and international markets. This aligns with GHCL's stated strategy to expand its consumer products and salt portfolio alongside its core chemical operations.
- Commenced commercial production of food-grade Vacuum Salt on August 31, 2026
- Annual manufacturing capacity established at 1.7 Lakh MT
- Located at the existing Soda Ash plant at Sutrapada, Gujarat, utilizing surplus energy
- Caters to both domestic and international markets
The National Green Tribunal (NGT) Western Zone Bench, Pune, has pronounced an order on August 21, 2026, in favour of GHCL, dismissing all three appeals challenging the Environmental Clearance (EC) and Forest Clearance for its greenfield Soda Ash Project. The project is situated at village Bada, Mandvi, in Kutch, Gujarat. This removes a significant legal overhang on GHCL's planned 5.5 lakh MTPA (~40% capacity expansion) greenfield project.
- NGT Western Zone Bench dismissed all 3 appeals challenging environmental and forest clearances on August 21, 2026.
- The clearances were issued by MOEF & CC and the State of Gujarat for the greenfield project at Bada, Mandvi, Kutch.
- Removes a major hurdle for the planned 5.5 lakh MTPA expansion (~40% addition to existing ~13.75 lakh MTPA capacity).
- Detailed written judgment is expected to be uploaded on the NGT website shortly.
GHCL Limited has scheduled a series of 1x1 and group meetings with institutional investors at the EMKAY Confluence 2026 in Mumbai on August 13, 2026. This interaction comes at a time when the company is navigating industry-wide pricing pressure, with TTM Operating Profit Margins (OPM) declining to 22.5% in FY26 from 27.5% in FY25. Investors will likely seek updates on the company's 5.5 lakh MTPA (40% capacity) greenfield expansion project. The stock has faced significant pressure, with a 12-month price return of -21.5%.
- Investor conference scheduled for August 13, 2026, at Hotel Grand Hyatt, Mumbai.
- Interaction format includes a mix of 1x1 and group meetings with institutional investors.
- Company is currently managing a TTM revenue of ₹3,065 Cr with a low Debt/Equity ratio of 0.02.
- Management focus remains on a 40% capacity expansion in the soda ash segment (5.5 lakh MTPA).
GHCL reported a steady Q1 FY27 with revenue of Rs 798 Cr and an improved EBITDA margin of 29.1%, though management cautioned this is not a sustainable 'new normal' due to transient cost benefits. The company expects commercial production from its Vacuum Salt and Bromine projects in Q2 FY27, targeting Rs 150-160 Cr in annual revenue at 40-45% margins by FY28. Despite global pricing pressure in Soda Ash, GHCL maintains a strong balance sheet with over Rs 1,000 Cr in net cash. The major 5.5 lakh MTPA Greenfield expansion remains delayed due to land acquisition hurdles.
- EBITDA margin improved to 29.1% in Q1 FY27 from 23.9% in the sequential previous quarter.
- Vacuum Salt and Bromine projects to start commercial production in Q2 FY27.
- New projects expected to generate Rs 150-160 Cr revenue at 40-45% EBITDA margins by FY28.
- Net cash surplus stands at over Rs 1,000 Cr as of June 30, 2026.
- Greenfield Soda Ash expansion (5.5 lakh MTPA) delayed due to land acquisition issues with no clear start date.
GHCL Limited has released the audio recording of its Investors' Conference call held on August 3, 2026, following its Q1 FY27 performance. The company, which reported a TTM revenue of ₹3,065 Cr and a PAT of ₹473 Cr, is currently navigating industry-wide pricing pressures and cheap imports. Management commentary in such calls typically focuses on the progress of the 5.5 lakh MTPA soda ash capacity expansion (a ~40% increase) and the performance of the consumer products (salt) segment. The filing is a standard regulatory requirement under SEBI LODR Regulation 30.
- Audio recording of the Investors' Conference held on August 3, 2026, is now publicly available.
- The call pertains to the Q1 FY27 period; the company reported revenue of ₹796 Cr in the preceding June 2025 quarter.
- Management is overseeing a major 40% capacity expansion in soda ash (5.5 lakh MTPA) with construction starting in Q3FY25.
- The company maintains a low Debt-to-Equity ratio of 0.02 with a net worth of ₹3,552 Cr.
GHCL Limited has released the audio recording of its Q1 FY27 investor conference call held on August 3, 2026. The company is currently navigating a period of pricing pressure, with TTM revenue at ₹3,065 Cr and OPM declining to 22.5% from 27.5% in FY25. Management commentary in such calls typically focuses on the progress of the 5.5 lakh MTPA soda ash expansion (a 40% capacity increase) and the impact of cheap imports on domestic realizations. With a P/E of 8.9 and a low debt-to-equity ratio of 0.02, the company remains focused on its chemical segment following the textile demerger.
- Audio recording of the Q1 FY27 conference call made available on August 3, 2026
- Company is pursuing a 5.5 lakh MTPA greenfield expansion, representing a 40% capacity increase
- TTM Revenue stands at ₹3,065 Cr with a PAT of ₹473 Cr
- Promoter holding is relatively low at 19.87% as of March 2026
- Debt remains minimal at ₹83 Cr against a net worth of ₹3,552 Cr
GHCL reported a 32% YoY increase in standalone Net Profit to ₹191 cr for Q1 FY27, despite a 3% decline in revenue to ₹798 cr. The profit growth was driven by improved realizations and lower input costs, which helped expand margins even as the global soda ash market faced surplus supply. Management confirmed that Bromine and Vacuum Salt projects are in advanced stages and scheduled for commercial operations in Q2 FY27. However, the company noted 'slow progress' on its major greenfield soda ash expansion project.
- Net Profit increased 32% YoY to ₹191 cr from ₹145 cr in the previous year's quarter
- EBITDA grew 4% to ₹233 cr despite a 3% decline in Net Revenue to ₹798 cr
- Bromine and Vacuum Salt projects are scheduled to commence commercial operations in Q2 FY27
- Standalone revenue of ₹798 cr represents approximately 26% of the TTM revenue of ₹3065 cr
- Maintained soda ash production capacity of 1.2 million tons per annum at the Sutrapada facility
GHCL reported a resilient Q1 FY27 with revenue of ₹798 Cr, a marginal 3% YoY decline, but achieved a significant 32% YoY growth in PAT to ₹191 Cr. The bottom line was bolstered by a ₹40 Cr (net of tax) exceptional gain from an ESOS Trust settlement. Operational efficiency and lower input costs drove EBITDA margins to 29.1%, up from 27.3% YoY. Management highlighted that Bromine and Vacuum Salt projects are in advanced stages for Q2 FY27 commissioning, though the major greenfield Soda Ash expansion is progressing slowly.
- EBITDA grew 4% YoY to ₹233 Cr despite a 3% decline in revenue, reflecting improved operational execution.
- PAT of ₹191 Cr includes a one-time exceptional gain of ₹40 Cr (net of tax) from an ESOS Trust settlement.
- Bromine and Vacuum Salt projects are scheduled to commence commercial operations in Q2 FY27.
- EBITDA margins expanded by 520 basis points sequentially (QoQ) to reach 29.1%.
- Greenfield Soda Ash project (5.5 lakh MTPA) is currently making 'slow progress' according to management.
GHCL's board has approved the standalone unaudited financial results for the quarter ended June 30, 2026. The company reported a total financial indebtedness of ₹167.68 Cr, which remains low at approximately 4.7% of its net worth (₹3552 Cr). Crucially, the company reported zero defaults on its loan or revolving credit facilities. This filing marks the formal conclusion of the quarterly review by the board and statutory auditors.
- Total financial indebtedness reported at ₹167.68 Cr as of June 30, 2026.
- Zero defaults (₹0.00) on all bank loans and revolving credit facilities.
- No deviations or variations reported in the utilization of funds from any public or rights issues.
- Board meeting concluded in 1 hour 45 minutes, approving the standalone Ind-AS compliant results.
GHCL Limited has released its standalone financial results for the quarter ended June 30, 2026. The board meeting concluded on August 1, 2026, approving the un-audited figures which follow a fiscal year (FY26) where the company reported a TTM revenue of ₹3,065 Cr and a PAT of ₹473 Cr. Investors should evaluate these results against the previous quarter's (Mar 2026) revenue of ₹791 Cr and EPS of ₹12.58 to determine if the downward trend in pricing power is stabilizing. The company remains the second-largest domestic soda ash manufacturer, currently navigating industry-wide pricing pressures from cheap imports.
- Board approved un-audited standalone financial results for the quarter ended June 30, 2026
- The board meeting was conducted over a duration of 1 hour and 45 minutes (11:30 AM to 1:15 PM)
- Company is currently operating with a TTM Operating Profit Margin of 22.5% as of the last reported full year
- GHCL maintains a low Debt-to-Equity ratio of 0.02, providing significant balance sheet strength
CARE Ratings has re-affirmed GHCL Limited's long-term credit rating at 'CARE AA-; Stable' and its short-term rating at 'CARE A1+'. The total bank facilities rated amount to Rs 879.95 crore, representing approximately 21% of the company's current market capitalization. The review, based on FY26 audited performance, shows a reduction in specific long-term term loans from Rs 85.65 crore to Rs 54.95 crore due to repayments. The company maintains a very conservative capital structure with a debt-to-equity ratio of 0.02.
- Long-term bank facilities rating re-affirmed at CARE AA- with a Stable outlook
- Short-term bank facilities rating re-affirmed at CARE A1+, the highest rating in its category
- Total bank facilities under rating coverage stand at Rs 879.95 crore
- Long-term term loan facility reduced by Rs 30.7 crore to Rs 54.95 crore reflecting debt reduction
- Company maintains a low debt profile with total debt of only Rs 83 crore against a net worth of Rs 3552 crore
Financial Performance
Revenue Growth by Segment
Total revenue for FY25 was INR 3,273 Cr, representing a 6.43% decline from INR 3,498 Cr in FY24. The decline was primarily driven by pricing pressure in the soda ash industry and increased cheap imports, which reduced Q2 FY26 revenue to INR 739 Cr, down 8.77% YoY.
Geographic Revenue Split
Not disclosed in available documents; however, the company operates primarily in India with exposure to international pricing cycles and import competition.
Profitability Margins
Profit Before Tax (PBT) for FY25 was INR 838 Cr (25.6% margin), down 15.44% from INR 991 Cr in FY24. Despite revenue drops, structural operational efficiencies helped maintain resilience.
EBITDA Margin
Profit before financial expenses and depreciation (EBITDA equivalent) was INR 965 Cr in FY25, a 7.34% increase from INR 899 Cr in FY24, resulting in an improved margin of 29.5% compared to 25.7% in the previous year.
Capital Expenditure
GHCL has planned a major greenfield expansion of 5.5 lakh MT per annum at a new location with an estimated project cost of ~INR 4,500 Cr, to be implemented in a phase-wise manner.
Credit Rating & Borrowing
The company maintains a strong financial risk profile with a total debt/PBILDT of 0.25x. It has a fund-based working capital limit of INR 450 Cr which was sparsely utilized, and cash/equivalents of over INR 880 Cr as of June 2024.
Operational Drivers
Raw Materials
Key raw materials include Salt, Limestone, Coal, and Lignite. These commodities saw price moderation in FY24 and FY25, which helped support profitability despite falling sales realizations.
Import Sources
Not specifically disclosed, but the company is a net importer and uses forward contracts to cover import payments for a rolling three-month period.
Capacity Expansion
Current capacity is approximately 13.75 lakh MTPA (derived from expansion data). GHCL is expanding by 5.5 lakh MTPA (~40% increase) at a new greenfield site, with physical construction starting in Q3FY25.
Raw Material Costs
Raw material and input costs (including power and freight) moderated in FY24/FY25. The company uses a de-risked approach and prudent hedging to manage the volatility of these costs which are critical to the energy-intensive soda ash process.
Manufacturing Efficiency
The company emphasizes structural operational efficiencies to navigate industry-wide pricing pressures. Specific capacity utilization percentages were not disclosed.
Logistics & Distribution
Distribution is impacted by freight rate volatility; the company focuses on optimizing supply chains to meet the needs of industrial and retail consumers.
Strategic Growth
Growth Strategy
Growth will be achieved through a 40% capacity expansion in the soda ash segment (5.5 lakh MTPA) and a focus on the Consumer Products business (Salt). The company is also executing its third share buyback via a Tender Offer to return surplus cash and improve EPS and ROE.
Products & Services
Soda Ash (for glass and detergent industries), Edible Salt, and Industrial Salt.
Brand Portfolio
GHCL (Consumer Products/Salt).
New Products/Services
Focus on innovation in the salt business and expansion into traditional glass segments (automotive, construction, and sustainable packaging).
Market Expansion
Targeting the infrastructure and construction boom and automotive industry expansion which drive demand for glass-grade soda ash.
Market Share & Ranking
GHCL is the second-largest domestic soda ash manufacturer in India.
External Factors
Industry Trends
The soda ash industry is currently in a downward cycle with significant pricing pressure. However, long-term demand is supported by the construction boom, automotive expansion, and a push for sustainable glass packaging.
Competitive Landscape
Competes in a consolidated market against two other major domestic producers and international importers.
Competitive Moat
GHCL possesses a strong moat through its position as the 2nd largest player in an oligopolistic market (85% controlled by top 3) and its high operating efficiency and integrated salt/limestone sourcing.
Macro Economic Sensitivity
Highly sensitive to the infrastructure and automotive sectors (glass demand) and the FMCG sector (detergent demand).
Consumer Behavior
Shift toward sustainable packaging and increased detergent consumption in emerging markets drives long-term soda ash demand.
Geopolitical Risks
Exposed to global trade dynamics that influence the volume of cheap imports entering the Indian market, particularly during downward industry cycles.
Regulatory & Governance
Industry Regulations
Subject to environmental and safety regulations for chemical manufacturing. The company uses a compliance management tool to monitor adherence to legal, financial, and labor statutes.
Environmental Compliance
GHCL is increasing renewable energy use and has implemented wastewater treatment systems at all manufacturing locations. It also collaborates on plastic waste disposal.
Legal Contingencies
Not disclosed in available documents; however, the company confirms no significant transactions with Non-Executive Directors except ordinary related-party transactions.
Risk Analysis
Key Uncertainties
Volatility in soda ash prices and raw material costs (coal/lignite) are the primary risks. A significant decline in profitability could lower cash accruals below the projected INR 500 Cr for FY25.
Geographic Concentration Risk
Manufacturing is concentrated in India, but the company is exposed to global commodity price cycles.
Third Party Dependencies
Dependency on vendors for coal and lignite; 6.5% of value chain partners have been ESG-assessed to mitigate supply chain risks.
Technology Obsolescence Risk
The company is mitigating tech risks by adopting advanced technologies to minimize carbon footprints and providing directors access to Skillsoft for staying updated on industry trends.
Credit & Counterparty Risk
Receivables quality is considered healthy, supported by a strong operating cash flow of INR 875 Cr.
