GHCL Limited , a leading chemical and textile company, has successfully completed its buyback of 41,37,931 equity shares at ₹725.00 per share and subsequently extinguished these shares on December 11, 2025, in compliance with regulatory requirements.

Buyback and Extinguishment Details

Share Capital Reconciliation

Following the extinguishment of buyback shares, GHCL's share capital structure has been updated:

Regulatory Compliance and Process

The extinguishment process was completed in accordance with Regulation 11 of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018. Key compliance measures included:

• Buyback Committee approval on December 11, 2025
• Confirmation from Central Depository Services (India) Limited for share extinguishment in demat form
• Certification by MUFG Intime India Private Limited (Registrar to the Buyback)
• Verification by Chandrasekaranassociates, Company Secretaries (Secretarial Auditor)

Shareholding Pattern Impact

The buyback has resulted in changes to the company's shareholding structure:

The reduction in outstanding shares has proportionally increased the promoter shareholding percentage from 18.97% to 19.83%, while maintaining the absolute number of promoter shares at 1,82,29,669.

Market Implications

With the successful completion of the buyback and share extinguishment, GHCL has effectively returned ₹300.00 crore to shareholders while reducing its equity base. This corporate action may lead to improved earnings per share for remaining shareholders and demonstrates the company's commitment to efficient capital allocation.

GHCL Limited , a leading soda ash manufacturer, reported its Q2 FY26 results, showcasing resilience amid challenging market conditions. The company's performance reflects the impact of global oversupply and pricing pressures in the soda ash industry.

Financial Highlights

Key Factors Affecting Performance

1. Market Oversupply: The domestic market continues to face oversupply conditions, primarily due to high volumes of cheap imports running at approximately 85,000 tons per month.

2. Pricing Pressure: Realizations declined by 9% year-on-year, reflecting the challenging pricing environment in the soda ash industry.

3. Planned Maintenance: GHCL completed a planned maintenance shutdown in late September, impacting production volumes in Q2.

4. Domestic Demand Growth: Despite challenges, domestic soda ash demand grew by 5% year-to-date, driven by various end-user sectors.

Strategic Initiatives and Future Outlook

1. Share Buyback Program: The Board has announced a ₹300 crore share buyback program under the tender offer route, demonstrating confidence in the company's long-term value and commitment to shareholders.

2. Diversification Projects:

   • Bromine and vacuum salt projects are progressing, with commissioning expected in Q4 FY26.
   • These projects are projected to contribute ₹70-80 crores in additional EBITDA with 40-45% margins.

3. Antidumping Duty: GHCL awaits Finance Ministry approval for antidumping duty recommendations on soda ash imports, which could potentially provide some relief to the domestic industry.

4. Greenfield Soda Ash Project: The project faces delays due to pending land clearances, although environmental approvals have been secured.

Management Commentary

R.S. Jalan, Managing Director of GHCL, commented on the results: "Our performance demonstrates resilience and the benefits of our structural operational efficiencies which helped us navigate significant pricing pressure seen across the industry. We remain optimistic about India's soda ash demand, which is directly tied to the country's robust growth story."

Market Outlook

The global soda ash market continues to face challenges, with China's domestic demand declining by 2% year-to-date. However, GHCL management expects accelerated growth in India, particularly from new applications like solar glass, which are anticipated to ramp up starting next year.

GHCL remains focused on cost competitiveness, customer serviceability, and strategic growth initiatives to navigate the current market challenges and create long-term sustainable value for its stakeholders.