Gujarat Alkalies & Chemicals Limited (GACL) has reported a significant turnaround in its financial performance for the second quarter. The company posted a consolidated net profit of 163.4 crore rupees, marking a substantial improvement from a loss of 182 crore rupees in the same period last year.

Revenue Growth and Profitability

GACL's revenue for Q2 increased to 1,083 crore rupees, up 9.3% from 991 crore rupees in the corresponding quarter of the previous year. This growth in revenue indicates a robust demand for the company's chemical products.

EBITDA and Margin Performance

Despite the increase in revenue, the company experienced a slight decline in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). EBITDA for the quarter stood at 739 crore rupees, down from 749 crore rupees in the same quarter last year. Consequently, the EBITDA margin compressed to 6.82% from 7.56% year-over-year.

Financial Results Overview

The following table summarizes GACL's key financial metrics for Q2:

Additional Corporate Developments

According to the LODR data, GACL's Board of Directors has taken several important decisions in their recent meeting:

1. Appointment of Internal Auditors: The Board has approved the appointment of M/s Talati & Talati LLP, Vadodara as Internal Auditors of the company for a period of two years from July 1, 2026, to June 30, 2028.

2. Renewable Energy Initiative: The Board has granted in-principle approval for setting up an additional 42.9 MW Renewable Hybrid Power facility. This is in addition to the ongoing 62.7 MW and 72 MW RE projects, demonstrating GACL's commitment to sustainable energy practices.

3. Investment Committee Formation: To oversee the renewable energy projects, the Board has formed an Investment Committee. This committee will decide on the formation of or participation in Special Purpose Vehicles (SPVs) for captive consumption of power by the company.

4. Director Term Completion: The Board noted that the second term of Shri Rajiv Lochan Jain as Independent Director will be completed on December 31, 2025. The Board has acknowledged his valuable contributions and guidance during his tenure.

These developments indicate GACL's focus on corporate governance, sustainable practices, and strategic growth initiatives.

The company's ability to turn a significant loss into a substantial profit within a year, coupled with its revenue growth, suggests a positive trajectory. However, the slight decline in EBITDA and margin compression may warrant attention to cost management and operational efficiency in the coming quarters.

Gujarat Alkalies & Chemicals Limited (GACL) has taken a significant step towards sustainable energy consumption by executing a shareholders agreement for a 75.9 MW Renewable Hybrid Power Project. The agreement involves GACL, CleanMax Enviro Energy Solutions Limited, and a Special Purpose Vehicle (SPV) named CleanMax Sphere Energy Private Limited.

Key Details of the Agreement

Strategic Implications

This move aligns with GACL's commitment to green technology and sustainable practices. The project is designed for 100% captive power consumption by GACL, potentially leading to significant cost savings and reduced carbon footprint for the company.

Governance and Management

As part of the agreement, GACL will appoint a nominee director on the SPV's board, ensuring representation in the project's management. Both shareholders are required to maintain their proportionate shareholdings and contribute equity from time to time.

Financial Considerations

While specific financial details were not disclosed, the agreement stipulates that GACL acquired its 26% equity stake at the face value of Rs. 10 per share. This suggests a strategic investment approach, focusing on long-term benefits rather than immediate financial gains.

Regulatory Compliance

The agreement has been disclosed in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that shareholders and the market are informed about this significant development.

This partnership between Gujarat Alkalies & Chemicals Limited and CleanMax Enviro Energy Solutions Limited marks a notable step in the industrial sector's transition towards renewable energy sources. As companies increasingly focus on sustainability, such collaborations could become more common, potentially reshaping the energy landscape of India's industrial sector.