GHCL Q3 FY26 Earnings Call: Revenue ₹773 Cr, EBITDA ₹175 Cr with 22.7% Margin
GHCL conducted its Q3 FY26 earnings call on January 29, 2026, reporting quarterly revenue of ₹773 crores and EBITDA of ₹175 crores with 22.7% margin. Despite facing challenges from increased imports and a planned maintenance shutdown that reduced production by 20,000 tons, the company maintained steady performance through operational efficiency and effective inventory management. The company completed a ₹300 crores share buyback and is finalizing diversification projects in Bromine and Vacuum Salt, expected to commission by end of Q4 FY26.
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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.
| Metric | Q3 FY26 | Q3 FY25 | Q2 FY26 | Performance |
|---|---|---|---|---|
| Revenue | ₹773 crores | ₹807 crores | ₹739 crores | -4.2% YoY, +4.6% QoQ |
| EBITDA | ₹175 crores | ₹259 crores | ₹175 crores | -32.4% YoY, Flat QoQ |
| EBITDA Margin | 22.7% | 32.1% | 23.7% | -940 bps YoY, -100 bps QoQ |
| PAT (Continuing Operations) | ₹107 crores | ₹168 crores | ₹107 crores | -36.3% YoY, Flat QoQ |
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:
| Project | Capacity | Timeline | Strategic Benefit |
|---|---|---|---|
| Bromine | 2,800 tons | End of Q4 FY26 | Higher margin business using existing salt fields |
| Vacuum Salt | - | End of Q4 FY26 | Utilizes waste energy, improves bottom-line |
| Greenfield Soda Ash | Phase 1 & 2 | Target 2030 | Long-term capacity expansion |
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.
Historical Stock Returns for GHCL
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.81% | -1.56% | -7.96% | -7.13% | -26.27% | +149.24% |
