Chemfab Alkalis has announced its audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2026. The Board of Directors, which met on May 13, 2026, approved the financial statements and recommended a final dividend for the fiscal year. The audit was conducted by Deloitte Haskins & Sells LLP, which issued an unmodified opinion on the standalone and consolidated financial results. The company also voluntarily submitted its Q4 & FY26 Investor Presentation to the stock exchanges on May 13, 2026, hosted on the company's website. In compliance with Regulation 47 of SEBI (LODR) Regulations, 2015, the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026 were published in Business Standard (English) and Makkal Kural (Tamil) on May 15, 2026.

Q4 Operational Performance

The company's quarterly performance reflected pressure on both revenue and profitability on a year-on-year basis. The following table highlights key Q4 metrics:

Despite a significant decline in consolidated revenue and EBITDA on a year-on-year basis, the company posted a consolidated net profit gain of Rs 5M in Q4 compared to a net loss of Rs 92M in the same quarter of the previous year, indicating an improvement at the bottom line.

Segmental P&L Performance

The investor presentation provides a detailed breakdown of performance across the combined business and individual segments. The combined Chlor-Alkali and OPVC summary is presented below:

Chlor-Alkali Segment

The Chlor-Alkali segment reported a strong sequential recovery in profitability. ECU realisation improved from ₹38,500 per MT in Q3 FY26 to ₹39,100 per MT in Q4 FY26, according to management commentary.

OPVC Segment

The OPVC segment faced headwinds during the quarter, primarily due to the absence of fund flows under the Jal Jeevan Mission. The Union Cabinet approved the extension of Jal Jeevan Mission 2.0 with revised guidelines on March 10, 2026, with a budgetary allocation of ₹67,600 crore for 2026-27, compared to ₹17,000 crore allocated in 2025-26 (against which actual release was ₹1,500 crore during the year).

Full-Year Financial Performance

For the financial year ended March 31, 2026, the company reported a standalone net profit of Rs. 750.59 lakh, compared to Rs. 1,522.42 lakh in the previous year. Total income for the year stood at Rs. 29,684.05 lakh, down from Rs. 32,793.97 lakh in the prior year. For the quarter ended March 31, 2026, the standalone net profit was Rs. 155.77 lakh, a turnaround from the net loss of Rs. 103.80 lakh recorded in the preceding quarter ended December 31, 2025.

On a consolidated basis, the company reported a net loss of Rs. 342.65 lakh for FY26, compared to a net loss of Rs. 694.03 lakh in the previous year. Consolidated total income for the year was Rs. 31,971.07 lakh. In FY26, the Chlor-Alkali segment contributed 68% of revenue, while the OPVC segment contributed 32%.

Key Standalone Financial Metrics

The following table summarizes the standalone financial performance for the year:

Consolidated Financial Metrics and EPS

The consolidated results reflect the performance of the Group comprising Chemfab Alkalis Limited (parent), Chemfab Karaikal Limited, and Chemfab Hiitech Piping Limited (incorporated on October 28, 2025). The following table presents the key consolidated metrics:

Standalone Balance Sheet Highlights

The standalone balance sheet as at March 31, 2026 reflects significant capital investment activity during the year. Key metrics are summarized below:

Net cash from operating activities on a standalone basis stood at Rs. 4,094.38 lakh for FY26, compared to Rs. 6,091.79 lakh in the previous year. Net cash used in investing activities was Rs. 8,329.95 lakh, primarily reflecting purchase of property, plant and equipment of Rs. 9,789.11 lakh. Cash and cash equivalents at the close of the year stood at Rs. 755.70 lakh.

Company Overview

Chemfab Alkalis, established as India's first adopter of membrane cell technology in 1985, operates a Chlor-Alkali facility at Puducherry with a caustic soda capacity of 65,700 TPA and consistent utilisation above 80%. The company strategically expanded into Oriented Poly Vinyl Chloride (OPVC) pipes manufacturing since 2018, and currently holds the largest operational OPVC capacity in India at 20,000 TPA across six lines, offering the widest product range of 110 mm to 630 mm diameter pipes. The company employs over 250 team members.

The company's Technology Modernisation Programme was successfully completed, with the new plant commissioned on November 27, 2025. The Captive Hybrid Power Plant is ready and awaiting final transmission line charging clearances. Additionally, the company has plans to expand its OPVC capacity at Sri City, with each line offering a per-line capacity of 2,500–3,000 TPA and revenue potential of ₹45–50 crore at full utilisation, with a payback period of approximately 2–2.5 years per line.

Dividend Declaration, Auditor Appointments, and Credit Rating

The Board of Directors has recommended a final dividend of 12.50%, amounting to Rs. 1.25 per equity share of Rs. 10 each, for the financial year 2025-26, subject to shareholder approval at the ensuing Annual General Meeting. The Board also approved the reappointment of M/s. Madhavan, Mohan & Associates, Cost Accountants, as cost auditor for FY 2026-2027, and the appointment of M/s. Brahmayya & Co, Chartered Accountants, as internal auditors for FY 2026-2027.

The company has disclosed that it is not classified as a Large Corporate under the applicable SEBI framework. Outstanding borrowings as on March 31, 2026 stood at Rs. 8,143 lakh. The highest credit rating during the previous financial year for bank loan facilities was IND BBB+/Negative/IND A2, as rated by India Ratings.

Chemfab Alkalis Limited's promoters and substantial shareholders have submitted regulatory declarations confirming compliance with SEBI's share encumbrance requirements for the financial year 2025-26. The declarations were filed under Regulation 31(4) of SEBI (Substantial Acquisition of Shares & Takeover) (Second Amendment) Regulation, 2019.

Regulatory Compliance Framework

The declarations serve as mandatory compliance under SEBI's takeover regulations, requiring promoters and substantial shareholders to formally confirm the non-encumbrance status of their shareholdings. This regulatory requirement ensures transparency in share ownership and prevents unauthorized pledging or encumbrance of shares that could impact corporate governance.

Promoter Declaration

Ramachandran N, in his capacity as promoter, submitted a declaration stating that he does not hold any shares in Chemfab Alkalis Limited. He confirmed that the provisions on encumbrance under Regulation 31(4) are not applicable to him and declared no encumbrance on shares along with persons acting in concert during the financial year 2025-26.

Substantial Shareholders Declarations

Four key substantial shareholders also submitted their declarations, representing both individual and corporate entities of the company.

Filing Parameters

The regulatory filings demonstrate coordinated compliance across all promoters and substantial shareholders.

The synchronized filing of these declarations reflects the company's systematic approach to regulatory compliance and corporate governance standards. Each declaration was duly signed by the respective stakeholders or their authorized representatives, maintaining the formal requirements under SEBI regulations.