Gujarat Alkalies & Chemicals Limited (GACL) has released its financial results for the second quarter and announced key corporate developments, including the cessation of Independent Director Shri Rajiv Lochan Jain effective December 31, 2025.

Financial Performance and Provisions

The company reported standalone revenue from operations of ₹1,907.32 crore for the quarter. GACL made a significant provision of ₹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.

Director Changes and Board Decisions

GACL has formally announced that Shri Rajiv Lochan Jain (DIN: 00161022) ceased to be an Independent Director of the company effective December 31, 2025. This cessation follows the completion of his second five-year term as an Independent Director, as previously communicated by the company in November 2025.

The Board of Directors has also made other key appointments, including M/s Talati Talati LLP as Internal Auditors for a two-year term from July 1, 2026, to June 30, 2028.

Renewable Energy Expansion

GACL continues its focus on sustainable energy solutions with the Board granting in-principle approval for setting up an additional 42.9 MW Renewable Hybrid Power facility. This expansion adds to the company's ongoing renewable energy projects of 62.7 MW-75 MW, demonstrating its commitment to sustainability in the chemical industry.

Employee Investment

The company reported substantial employee benefits expense of ₹3,784.43 crore for the quarter, which included a significant component for pay revision. This investment reflects GACL's efforts to retain talent and boost productivity in a competitive market environment.

Gujarat Alkalies and Chemicals Limited's latest developments showcase the company's focus on governance transitions, operational efficiency, and sustainable growth while managing unexpected operational challenges through prudent financial provisions.

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.