Chemfab Alkalis Limited , a manufacturer of chemicals and PVC-O pipes, has reported its financial results for the second quarter of fiscal year 2026, revealing a challenging period for the company.

Financial Performance

The company reported a net loss of Rs 159.22 lakhs for the quarter ended September 30, 2025, a significant downturn compared to the profit of Rs 539.40 lakhs in the previous quarter and Rs 204.72 lakhs in the corresponding quarter of the previous year. This decline in profitability was accompanied by a decrease in revenue from operations, which fell to Rs 7,040.51 lakhs from Rs 8,738.10 lakhs in the preceding quarter.

Segment Performance

Chemfab Alkalis operates in two primary segments:

1. Chemicals and Related Products
2. PVC-O Pipes

The chemicals segment faced challenges, reporting a segment result before tax of Rs (462.96) lakhs. However, the PVC-O Pipes segment showed resilience, with a segment result before tax of Rs 747.18 lakhs.

Half-Year Results

For the six-month period ended September 30, 2025, Chemfab Alkalis posted a net profit of Rs 698.62 lakhs, compared to Rs 727.61 lakhs in the previous year.

Balance Sheet Highlights

As of September 30, 2025:

Corporate Actions

The Board of Directors approved the allotment of 6,000 equity shares under the employee stock option scheme.

Asset Held for Sale

Chemfab Alkalis has classified assets worth Rs 2,165.00 lakhs as held for sale, related to Salt Division 2. The company expects to complete this sale before the end of the financial year.

Outlook

While the quarterly results indicate short-term challenges, the company's diverse segment operations and strategic decisions, such as the planned asset sale, suggest efforts to optimize operations and improve financial performance in the coming quarters.

Chemfab Alkalis Limited , a leading manufacturer of chlor-alkali products and OPVC pipes, has reported mixed financial results for the first quarter, reflecting a challenging operating environment with softer global caustic prices.

Revenue and Profitability

The company's consolidated revenue from operations for Q1 stood at ₹91.54 crore, marking a 19.1% increase compared to ₹76.83 crore in the same quarter last year. However, the net profit after tax declined to ₹2.55 crore from ₹8.96 crore in the corresponding quarter, primarily due to increased costs and lower realizations in the chlor-alkali segment.

Segment Performance

Chlor-Alkali Division

The chlor-alkali segment faced headwinds during the quarter. ECU (Electrochemical Unit) realization declined from ₹42,386.00/MT in the previous quarter to ₹40,955.00/MT in Q1, reflecting softer global caustic prices. The segment reported a loss before interest and tax of ₹3.72 crore, compared to a loss of ₹6.37 crore in the same quarter last year.

OPVC Pipes Division

The OPVC pipes segment showed resilience, with revenue increasing to ₹38.70 crore from ₹30.93 crore in the corresponding quarter last year. The segment's profit before interest and tax rose to ₹8.63 crore, up from ₹7.40 crore in the same period.

Operational Highlights

• The company undertook planned maintenance for recoating and re-membraning of elements in its chlor-alkali plant, which temporarily impacted production.
• Market demand for OPVC pipes remained muted, with no major uptick in Central Government fund flows towards the Jal Jeevan Mission.
• Chemfab Alkalis is progressing with two significant capex projects:
  1. A ₹60 crore technology modernization initiative
  2. A ₹15 crore hybrid power sourcing project Both projects are expected to be completed in Q2, with anticipated cost savings and improved profitability starting Q3.

Management Commentary

Mr. V.M. Srinivasan, Chief Executive Officer, stated, "While Q1 posed short-term challenges, we remain optimistic about the upcoming quarters. Our focused investments in technology, energy efficiency, and capacity enhancement are poised to strengthen our competitive position and drive improved financial performance in the periods ahead."

Future Outlook

The company is expanding its OPVC pipes capacity from 14,000 TPA to 23,000 TPA, with the 5th production line expected to be installed within Q2. Management expressed confidence in improved order inflows for the OPVC segment in the second half of the year.

Chemfab Alkalis continues to focus on operational efficiencies and strategic investments to navigate the current market challenges and position itself for future growth.