GHCL Limited has successfully completed the voluntary closure of its US-based subsidiary, Dan River Properties LLC, marking the end of a non-operational entity that had been part of the company's international portfolio since 2007.

Closure Details and Timeline

The subsidiary was officially closed on February 18, 2026, with GHCL receiving confirmation along with the Certificate of Cancellation dated February 19, 2026. The closure process was completed in Delaware, where Dan River Properties LLC was originally incorporated on September 5, 2007.

Financial Impact and Performance

According to GHCL's audited consolidated financial statements for the financial year ended March 31, 2025, Dan River Properties LLC had minimal operational impact on the parent company's overall performance. The subsidiary had previously owned property assets, which were disposed of with sale proceeds received as per agreed terms and conditions before the liquidation process began.

Regulatory Compliance

GHCL has fulfilled all regulatory requirements under Regulation 30 of SEBI (LODR) Regulations 2015. The company has provided comprehensive disclosures as mandated, including detailed annexures with the Certificate of Cancellation and required financial information. The intimation has been made available on the websites of BSE Limited, National Stock Exchange of India Limited, and GHCL's corporate website.

Strategic Implications

The closure of Dan River Properties LLC represents a streamlining of GHCL's subsidiary structure, eliminating a non-operational entity from its portfolio. Since the subsidiary was not engaged in active business operations and had already disposed of its property assets, the closure allows GHCL to focus resources on its core operational subsidiaries and business segments.

The successful completion of the voluntary liquidation process demonstrates GHCL's commitment to maintaining an efficient corporate structure while ensuring full compliance with regulatory requirements across jurisdictions.

GHCL conducted its Q3 FY26 earnings conference call on January 29, 2026, providing comprehensive insights into the company's financial performance and strategic initiatives. The call was hosted by Emkay Global Financial Services and attended by key management including Managing Director R.S. Jalan, CFO Raman Chopra, and Senior General Manager Manu Jain.

Financial Performance Overview

The company reported steady performance despite challenging market conditions during the third quarter.

Operational Highlights and Market Dynamics

During Q3 FY26, GHCL successfully completed its planned maintenance shutdown, which resulted in production loss of approximately 20,000 tons. However, the company managed inventory and supply chain effectively, ensuring sales volumes remained higher than production levels. Sales volume growth was reported at approximately 5-7% compared to the same quarter last year.

The domestic soda ash market continues to show resilience with healthy demand growth of around 5%. The solar glass segment presents significant opportunities, with current monthly demand at 11,000 tons expected to reach 28,000 tons by March 2027, representing an additional 17,000 tons monthly demand.

Import Challenges and Pricing Pressure

The company faces headwinds from increased imports, which have risen 10% in the first nine months of FY26 compared to the previous year. The anti-dumping duty application was not approved by the Ministry of Finance after the 90-day consideration period expired. Imports primarily come from Turkey, US, Iran, Russia, and recently from China, though Chinese volumes remain minimal.

Management indicated that soda ash prices declined approximately 3% during Q3 FY26, with current pricing levels potentially representing the bottom of the cycle based on global cost structures.

Diversification Projects and Capital Allocation

GHCL is in the final stages of commissioning two key diversification projects:

The Greenfield soda ash project faces delays due to land acquisition challenges, with management targeting completion by 2030 for both phases depending on market conditions.

Strong Cash Generation and Shareholder Returns

For the nine-month period ending December 31, 2025, GHCL generated ₹443 crores in cash profit after tax. The company invested ₹226 crores in CAPEX and ₹29 crores in loan repayment, while releasing ₹109 crores from working capital.

GHCL successfully completed a ₹300 crores share buyback program during the quarter, in addition to ₹115 crores in dividend payments during the financial year. Total shareholder returns of ₹415 crores represent 116% of nine-month PAT, demonstrating strong cash flow generation capabilities.

The company maintains a net cash surplus of ₹890 crores as of December 31, 2025, providing financial flexibility for strategic investments and growth initiatives. Management emphasized their commitment to operational excellence and cost leadership to navigate current market challenges while positioning for future recovery.