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

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:

1. Appointed M/s Talati Talati LLP as Internal Auditors for a two-year term from July 1, 2026, to June 30, 2028.
2. Noted that the second term of Independent Director Rajiv Lochan Jain will conclude on December 31, 2025.
3. 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.

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.