Gujarat Alkalies and Chemicals Reports 10% Revenue Growth in Q2 FY2025-26, Achieves Operational Milestones

Gujarat Alkalies & Chemicals Limited (GACL), a prominent player in the chemical industry, has reported a robust performance for the second quarter of the fiscal year 2025-26. The company's financial results showcase significant growth and operational improvements across various metrics.

Financial Highlights

Metric	Q2 FY2025-26	Q2 FY2024-25	Change
Sales Revenue	Rs. 1,063.00 crores	Rs. 966.00 crores	+10%
EBITDA	Rs. 133.00 crores	Rs. 124.00 crores	+7%
Profit Before Tax	Rs. 13.00 crores	-	-

For the half-year period:

EBITDA increased by 28% to Rs. 258.00 crores from Rs. 201.00 crores in the previous year.
The company earned a profit before tax of Rs. 23.00 crores.

Operational Achievements

GACL has made significant strides in improving its operational efficiency:

Increased Production: The company achieved higher production across major products through improved capacity utilization.
Better Sales Realization: Enhanced sales realization was observed for major revenue-earning product groups.
Energy Cost Reduction: The company further reduced energy costs compared to the previous year, primarily due to increased use of renewable power.
Strategic Consultancy: GACL has engaged AT Kearney as a strategic consultant under project 'Ahvaan' for operational efficiency improvements.

Subsidiary Performance

GACL-NALCO Alkalies & Chemicals Private Limited, a material subsidiary of GACL, reported its first profit before tax of Rs. 0.10 lacs during the quarter, marking a significant milestone in its operations.

Future Outlook

The company continues to focus on enhancing operating efficiency, implementing cost-cutting measures across various functional areas, and optimizing capacity utilization. These initiatives, part of the 'Ahvaan' project, are expected to contribute to improved operational efficiencies in the short to long term.

GACL's commitment to green energy and operational excellence positions it well for sustainable growth in the coming quarters. The company's strategic moves, including the engagement of AT Kearney and the focus on renewable power, demonstrate its proactive approach to addressing market challenges and capitalizing on opportunities in the chemical sector.

As GACL continues to navigate the dynamic chemical industry landscape, investors and stakeholders will be keen to observe how these initiatives translate into sustained financial performance and market positioning in the future quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.53%	-3.85%	-4.11%	-11.92%	-30.41%	+64.79%

Gujarat Alkalies & Chemicals Limited (GACL) has released its financial results for the second quarter and half-year ended September 30, 2025, along with several key corporate announcements. The company reported standalone revenue from operations of Rs. 1,907.32 crore for the quarter.

Financial Highlights and Corporate Actions

Particulars	Details
Q2 Revenue	Rs. 1,907.32 crore
Employee Benefits Expense	Rs. 3,784.43 crore
Provision for Damaged Goods	Rs. 1,549.24 crore

GACL made a provision of Rs. 1,549.24 crore for goods damaged due to a fire at the facility of its contract manufacturer, Sanghvi Organics Pvt Ltd, located in Ankleshwar, Gujarat.

Board Decisions and Appointments

The Board of Directors has made several key decisions:

Appointed M/s Talati Talati LLP as Internal Auditors for a two-year term from July 1, 2026, to June 30, 2028.
Noted that the second term of Independent Director Rajiv Lochan Jain will conclude on December 31, 2025.
Granted in-principle approval for setting up an additional 42.9 MW Renewable Hybrid Power facility.

Renewable Energy Expansion

GACL continues to focus on sustainable energy solutions:

Approved a new 42.9 MW Renewable Hybrid Power facility
This adds to ongoing renewable energy projects of 62.7 MW-75 MW

The company's commitment to expanding its renewable energy portfolio aligns with the growing trend of sustainability in the chemical industry.

Employee Benefits

The reported employee benefits expense for the quarter included a significant component for pay revision:

Total pay revision amount: Rs. 3,784.43 crore

This substantial investment in employee compensation may reflect the company's efforts to retain talent and boost productivity in a competitive market.

Gujarat Alkalies and Chemicals Limited's latest financial results and corporate actions demonstrate the company's focus on operational efficiency, governance, and sustainable growth. The appointment of new internal auditors and the expansion of renewable energy capacity indicate a forward-looking approach, while the provision for damaged goods highlights the company's prudent financial management in the face of unexpected challenges.