GUJALKALIBSEGujarat Alkalies and Chemicals LtdHighNeutral
Announced Fri, 29 May · 13:54 IST

Audited Financial Results of the Company (Standalone & Consolidated) for the Fourth Quarter and Financial Year ended on 31st March, 2026.

Emphasis Of MatterPat NegativeResults View source PDF

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AI summary

Gujarat Alkalies reported standalone FY26 revenue of Rs. 4,35,808 Lakhs, up 7% YoY (FY25: Rs. 4,07,291 Lakhs). Standalone net profit grew 32% to Rs. 2,084 Lakhs with EPS of Rs. 2.84 vs Rs. 2.15 prior year. However, consolidated net result shows a loss of Rs. 241 Lakhs (improved from Rs. 6,512 Lakhs loss in FY25) due to share of loss from JV GACL-NALCO Alkalies & Chemicals Pvt. Ltd., which incurred Rs. 3,868.72 Lakhs loss during the year and has accumulated losses of Rs. 63,330.82 Lakhs. An external impairment review confirmed no write-down is needed on the Rs. 41,400 Lakhs JV investment. The board recommended a 177% dividend (Rs. 17.70/share) and approved a Rs. 67 Crore investment in a 5,000 TPA High Purity Grade Hydrogen Peroxide Plant at Dahej, expected to contribute Rs. 42 Crore annual revenue in 18 months. The auditors issued an unmodified opinion with an Emphasis of Matter regarding a Composite Scheme of Amalgamation and Arrangement sanctioned by the MCA on 8th April 2026.

Likely market impact

Standalone profitability improved but the consolidated result remains in loss territory due to the under-performing JV, raising questions about the long-term value of the Rs. 41,400 Lakhs JV investment. The new high-purity hydrogen peroxide plant signals strategic diversification into semiconductor and electronics supply chain. Dividend of Rs. 17.70/share rewards shareholders despite weak consolidated earnings.