Gujarat Alkalies & Chemicals Limited has invested ₹32.33 Cr to maintain its 26% shareholding in Cleanmax Sphere Energy Private Limited, a Special Purpose Vehicle (SPV) established for a 75.9 MW renewable hybrid power project. The investment was made through a rights issue by way of equity share capital contribution, with the total consideration paid on June 11, 2026. The shares will be allotted to the company's demat account in due course. This strategic move ensures the company retains its stake in the SPV, which is developing a renewable energy facility for 100% captive use by Gujarat Alkalies & Chemicals Limited.

The acquisition involved the purchase of 15,77,063 equity shares at a price of ₹205 per share, comprising a face value of ₹10 and a premium of ₹195. Cleanmax Sphere Energy Private Limited, incorporated on June 12, 2020, operates in the renewable energy sector and has not yet commenced business operations. The transaction does not constitute a related party transaction, and no specific governmental or regulatory approvals were required for the acquisition. The company may subscribe to further capital of the SPV in the future to maintain its 26% equity shareholding.

Investment Details

The SPV is yet to generate turnover as it is in the pre-operational stage. The investment aligns with the company's objective of securing renewable energy for its captive consumption, reducing reliance on external power sources. The transaction was disclosed under Regulation 30(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Gujarat Alkalies and Chemicals reported a 32% increase in profit after tax (PAT) to ₹208 crore for the financial year ended March 31, 2026, compared to ₹158 crore in the previous year. Revenue from operations rose 7% to ₹4,358 crore from ₹4,073 crore in FY25. The Board of Directors approved the audited financial results for the fourth quarter and full year at meetings held on May 28 and May 29, 2026, under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance and Dividend

The Board recommended a final dividend of ₹17.70 per equity share, or 177%, for the year ended March 31, 2026. The total dividend outgo amounts to ₹1,299.83 crore on 7,34,36,928 equity shares of ₹10 each. The statutory auditors audited the financial results, which were reviewed by the Audit Committee. The company's EBITDA for the year increased by 15% to ₹522 crore, driven by higher capacity utilization and improved sales realizations.

Consolidated Results and Joint Venture

The consolidated financial results for FY26 reported a net loss of ₹241 crore, compared to a net loss of ₹651 crore in the previous year. The consolidated figures include the results of joint venture company GACL-NALCO Alkalies & Chemicals Pvt. Ltd. (60%) and 26% of associates. The joint venture incurred losses of ₹386.87 crore during the year, with accumulated losses of ₹6,333.08 crore as of March 31, 2026. An external expert assessment determined that no impairment provision is required against the company's investment of ₹4,140 crore in the joint venture, as the fair value exceeds the carrying amount.

Capital Expenditure and Strategic Initiatives

The Board approved the establishment of a 5000 TPA High Purity Grade Hydrogen Peroxide Plant at Dahej, Gujarat, with an estimated investment of ₹67 crore. The project is scheduled to be commissioned in 18 months and is expected to contribute approximately ₹42 crore to annual sales revenue. The facility aims to serve niche applications in semiconductor fabrication, solar cell manufacturing, and advanced electronics. Funding will be sourced from internal accruals, with need-based gaps met through borrowings.

The Board also approved the remembrancing and recoating of generation VB+ Cell elements at the Vadodara Complex to reduce power costs and the implementation of a digitization and AI strategy, including migration to SAP S/4HANA. For the current financial year, the company expects to commission several projects, including an HCl Synthesis Unit and 138.60 MW of renewable energy projects.