Lords Chloro Alkali Limited reported a record-breaking start to FY27, with net profit after tax (PAT) surging 43.1% year-on-year to ₹14.96 crore for the quarter ended June 30, 2026. The robust performance was driven by a 6.1% increase in total income to ₹106.57 crore and significant expansion in operating margins, marking the highest-ever quarterly earnings for the chloro-alkali manufacturer. Improved product realizations, particularly in Caustic Soda Lye and Chlorinated Paraffin Wax (CPW), combined with disciplined cost management and lower power costs due to renewable energy integration, underpinned the strong financial outcome.

The Board of Directors approved the unaudited financial results during its meeting held on July 27, 2026, pursuant to Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Nemani Garg Agarwal & Co., the statutory auditors, issued a limited review report on the unaudited standalone financial results. In addition to the results, the Board approved several strategic initiatives, including a new Employee Stock Option Scheme (ESOP) for 10 lakh equity shares, an increase in the borrowing limit to ₹500 crore, and the re-appointment of Deepak Mathur as Whole Time Director. The company also announced a change in its Registrar and Share Transfer Agent (RTA) from Alankit Assignment Ltd to Beetal Financial & Computer Services(P) Limited.

Financial Performance Highlights

Total income rose to ₹106.57 crore in Q1FY27 from ₹100.47 crore in the corresponding quarter of the previous year. EBITDA (including other income) grew by 10.4% to ₹22.83 crore, up from ₹20.68 crore in Q1FY26, reflecting an EBITDA margin expansion to 21.42% from 20.59%. Profit before tax stood at ₹16.29 crore, while tax expenses were contained at ₹1.33 crore, contributing to the sharp rise in bottom-line profits. For the full year FY26, the company reported a PAT of ₹28.49 crore, a 360.9% increase from ₹6.18 crore in FY25.

*Including other income.

Strategic Initiatives and Governance

The Board approved the Lords Chloro Alkali Employee Stock Option Scheme – 2026, allowing for the grant of up to 10,00,000 options convertible into equity shares with a face value of ₹10 each. The scheme will be administered by the Nomination and Remuneration Committee and implemented through fresh allotment. Additionally, the Board sought shareholder approval to increase the managerial remuneration limit and the overall borrowing limit to ₹500 crore under Section 180(1)(C) of the Companies Act, 2013. It also approved the creation or modification of mortgage charges over company properties up to ₹500 crore.

The Board further approved the remuneration for Managing Director Ajay Virmani and Whole Time Director Madhav Dhir effective April 1, 2027, subject to member approval at the ensuing Annual General Meeting (AGM). The AGM is scheduled for September 11, 2026.

What the Numbers Show

The divergence between revenue growth (6.1%) and the sharper rise in PAT (43.1%) highlights significant operational leverage for Lords Chloro Alkali. While the volume of Caustic Soda Lye (CSL) declined slightly by 7.0% to 19,953 MT in Q1FY27 compared to 21,462 MT in Q1FY26, higher realizations more than compensated for the volume drop. The expansion in EBITDA margin to 21.42%, driven by better operating efficiencies and lower finance costs, indicates that the company is successfully passing on cost pressures or benefiting from favorable market pricing dynamics. The aggressive push into renewable energy is expected to further stabilize margins against volatile grid electricity rates.

Lords Chloro Alkali Limited reported a 361% surge in net profit to ₹28.49 crore for the financial year ended March 31, 2026, compared to ₹6.18 crore in the previous year. Total income increased 44.62% to ₹393.10 crore from ₹271.82 crore in FY25. The strong performance was driven by healthy volume expansion, improved operating leverage, and enhanced operational efficiencies, supported by a significant reduction in power costs through renewable energy integration.

For the fourth quarter ended March 31, 2026, the company posted a net profit of ₹4.39 crore, a 68.64% rise from ₹2.60 crore in the corresponding quarter of the previous year. Total income for Q4FY26 stood at ₹97.75 crore, up from ₹79.91 crore in Q4FY25. EBITDA for the quarter rose 36.03% to ₹13.72 crore, with margins expanding to 14.03%. The company noted that while Q3 margins were elevated, Q4 faced headwinds from higher grid electricity rates effective from October 2025.

Financial Results Summary

*including other income

Mr. Ajay Virmani, Managing Director, attributed the robust performance to healthy demand, improved production efficiencies, and disciplined execution. He highlighted that power and fuel costs, which constituted 61% of production costs in FY25, were reduced to 42% in FY26 due to the commissioning of a 16 MW solar plant in Bikaner and a 10 MW hybrid group captive project in Jaisalmer. A 21 MW solar plant in Bikaner is expected to become operational by mid-June 2026, which is expected to further reduce costs and enhance profitability.

The Board of Directors, at its meeting held on May 28, 2026, approved the audited financial results for the quarter and year ended March 31, 2026. The meeting also approved the re-appointment of M/s Nemani Garg Agarwal & Co. as Statutory Auditors for a second term of five years from FY 2026-27 to FY 2030-31. Additionally, M/s D Karamchandani and Co. were appointed as Internal Auditors for FY 2026-27, and M/s Goyal, Goyal & Associates were re-appointed as Cost Auditors for FY 2026-27.

Lords Chloro Alkali Ltd operates a manufacturing facility in Alwar, Rajasthan, with an installed capacity of 300 MT per day of Caustic Soda and 50 TPD of Chlorinated Paraffin Wax (CPW). The company has outlined a total capex outlay of ₹315 crore across FY24–FY28 to drive capacity expansion, renewable energy, and downstream diversification. Post-expansion, the total installed capacity is expected to reach 360 TPD.