GHCL Limited has executed one of the most impressive balance sheet transformations in the Indian chemical sector, reducing its total debt by 92% over six years while building a robust cash position and expanding into higher-margin business segments.

Dramatic Debt Reduction Strategy

The company's deleveraging journey represents a fundamental shift in capital allocation priorities. GHCL systematically reduced its borrowings through aggressive debt repayment, fundamentally altering its financial profile.

The FY20 borrowing structure included ₹807.89 crore in long-term borrowings, ₹268.88 crore in short-term borrowings, and ₹162.86 crore in other liabilities. GHCL repaid ₹304.9 crore in FY21 and ₹473.99 crore in FY22, demonstrating sustained commitment to deleveraging.

Shareholder-Focused Capital Allocation

With its strengthened balance sheet, GHCL has shifted focus toward rewarding shareholders through strategic capital returns. The company announced a ₹300 crore share buyback program at ₹725 per share, representing 4% of total paid-up equity capital as of March 31, 2025.

This capital return strategy aims to optimize the capital structure while improving key financial metrics, particularly earnings per share and return on equity, without compromising future expansion plans.

Business Diversification Into High-Margin Segments

GHCL is strategically expanding beyond its traditional soda ash and sodium bicarbonate manufacturing into more profitable segments. The company's diversification includes bromine and vacuum salt production, targeting significantly higher margins.

New Segment Projections:

• Expected EBITDA margins: 40-45%
• Projected contribution: ₹70-80 crore
• Commissioning timeline: Q4 FY26

The company also operates in consumer products through its I-Flo brand, manufacturing edible salt, industrial grade salt, and jujube honey. Long-term plans include greenfield expansion of soda ash capacity, supported by growing demand from applications like solar glass manufacturing.

Market Position and Investor Confidence

GHCL's shares closed at ₹524 per share, representing a 149% return over five years, with a market capitalization of ₹5,034 crore. The company has attracted attention from ace investor Dolly Khanna, who holds 9,87,735 shares as of December 2025.

Strategic Policy Support

Management actively seeks government support through proposed anti-dumping duties on imported soda ash to protect domestic pricing and margins. This strategic engagement addresses competitive pressures from low-cost Chinese imports, which have increased import share and pressured local margins.

GHCL's transformation from a highly leveraged chemical manufacturer to a net-cash company with diversified revenue streams demonstrates disciplined capital allocation and strategic vision. The combination of debt reduction, shareholder returns, business diversification, and policy support positions the company for sustained value creation in the evolving chemical sector landscape.

GHCL Limited has announced an investor conference call to discuss its Q3FY26 financial results, scheduled for January 29, 2026. The company made this announcement in compliance with regulatory requirements under SEBI listing obligations.

Conference Call Details

The earnings discussion will take place on Thursday, January 29, 2026 at 4:00 PM IST. The conference call will feature key members of GHCL's senior management team who will present and discuss the company's third quarter performance for fiscal year 2026.

Management Participation

The conference call will be led by two senior executives from GHCL Limited. R S Jalan, Managing Director, and Raman Chopra, CFO & Executive Director (Finance), will participate in the discussion to provide insights into the company's Q3FY26 financial performance and address investor queries.

Access Information

Emkay Global Financial Services Ltd is organizing the conference call and has provided comprehensive dial-in access for participants. The primary access numbers include:

• Universal Access: +91 22 6280 1325 / +91 22 7115 8226
• International participants can access through toll-free numbers across multiple countries including USA, UK, Singapore, Japan, Germany, and others
• Pre-registration option available to avoid wait times with DiamondPass™ express join feature

Regulatory Compliance

The announcement was made pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015. GHCL Limited has informed both major stock exchanges about this investor conference, ensuring compliance with disclosure requirements.

The company has also made the intimation available on the websites of BSE Limited, National Stock Exchange of India Limited, and the company's official website at www.ghcl.co.in . For additional information regarding the conference call, investors can contact Meet Vora at Emkay Global Financial Services through the provided contact details.