Chemfab alkalis Limited has filed its quarterly compliance certificate with stock exchanges, confirming adherence to SEBI depositories regulations for the quarter ended March 31, 2026. The submission was made to both BSE and NSE on April 8, 2026, as part of mandatory regulatory requirements.

Regulatory Compliance Filing

The company submitted the certificate pursuant to Regulation 74(5) of Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018. Company Secretary Bharatraj Panchal signed the filing, which was addressed to both major stock exchanges where the company's shares are listed.

Registrar Confirmation

Cameo Corporate Services Limited, serving as the company's Registrar and Share Transfer Agent, issued the compliance certificate on April 1, 2026. The registrar confirmed that all securities received from depository participants for dematerialization during the quarter were properly processed and confirmed to the depositories within stipulated time limits.

The certificate validates that security certificates received for dematerialization were mutilated and cancelled after due verification by depository participants. Additionally, the names of depositories were substituted in the register of members as registered owners within the regulatory timeframe.

Company Information

Chemfab Alkalis Limited operates as part of Dr. Rao's Group of Companies and holds certifications including OHSAS 18001 and ISO 14001. The company maintains its registered office in Chennai and manufacturing facility in Puducherry. The filing demonstrates the company's commitment to maintaining regulatory compliance across all operational aspects.

This quarterly submission represents standard practice for listed companies to ensure transparency in depository operations and maintain investor confidence through proper regulatory adherence.

Chemfab alkalis has received a credit rating downgrade from India Ratings and Research, reflecting the company's deteriorating financial performance and operational challenges across its business segments. The rating agency has revised the company's long-term rating to IND BBB+ from IND A- with a Negative Outlook, while the short-term rating has been downgraded to IND A2 from IND A2+.

Rating Action Details

India Ratings has taken action on Chemfab Alkalis' bank loan facilities totaling INR1,700 million, with the following changes:

Financial Performance Deterioration

The company's consolidated operating performance showed significant weakness in 9MFY26, with EBITDA declining 38.00% year-on-year to INR187 million compared to INR437 million in FY25. Revenue also contracted to INR2,362 million in 9MFY26 from INR3,344 million in FY25.

Operational Challenges Across Segments

The chemical segment, including chlor-alkali and aluminium chloride operations, continued to record EBIT losses of INR185 million in 9MFY26, compared to losses of INR231 million in FY25. The weak performance stems from subdued caustic soda prices due to global oversupply and reduced capacity utilization levels at around 73.00% in 9MFY26.

The OPVC pipe segment also faced headwinds, with EBIT declining to INR168 million in 9MFY26 from INR305 million in FY25. Weak offtake from the Jal Jeevan Mission kept prices under pressure and resulted in low capacity utilization of 43.00% in 9MFY26, significantly below the 60.00% achieved in FY25.

Liquidity Position Under Stress

Chemfab Alkalis' liquidity position has deteriorated markedly, with cash and liquid investments falling sharply to INR0.30 million at end-9MFY26 from INR210 million in FY25. The company had modest undrawn fund-based lines of INR55 million as of December 2025, while monthly average utilization of its INR300 million fund-based working capital limits increased to 73.00% over 3QFY26.

To address cash flow requirements, the company sold non-core assets and received advance payments totaling around INR245 million in 1HFY26, while borrowing INR110 million from promoter group entity Team Hiitech Eqpt Private Limited.

Capacity Expansion and Future Outlook

Despite current challenges, Chemfab Alkalis has been investing in capacity expansion, with the company expecting to increase OPVC pipe capacity to 23 KTPA by end-1HFY27, representing a 3.80x increase from end-FY24 levels of 6 KTPA. The company also replaced a 30-year-old electrolyser in December 2025, which is expected to reduce breakdowns and enhance operating efficiencies.

India Ratings expects some recovery but notes that the consolidated credit profile and liquidity will remain under pressure over the near term. The Negative Outlook reflects expectations that price recovery in caustic soda may be gradual and JJM pipe offtake remains subdued, despite the company's efforts to diversify its order book with non-JJM projects.