Gujarat Alkalies & Chemicals Ltd (GUJALKALI)
🎯 Key Takeaways
- Gujarat Alkalies & Chemicals Ltd (GUJALKALI) is transitioning from a period of financial distress to a recovery phase, marked by improved profitability and strategic reinvestment. The company posted a turnaround in FY25-26 with a return to profit after tax of ₹20.
- Revenue grew 10.6% QoQ to ₹1,245 in Q1FY27.
- ⚠️ Execution risk in large-scale renewable energy and specialty chemical projects, with no interim milestones or capital allocation details provided.
📖 The Story
Gujarat Alkalies & Chemicals Ltd (GUJALKALI) is transitioning from a period of financial distress to a recovery phase, marked by improved profitability and strategic reinvestment. The company posted a turnaround in FY25-26 with a return to profit after tax of ₹20.84 crores from a loss of ₹65.12 crores in the prior year, supported by revenue growth to ₹4,358.07 crores. Management is focusing on scaling renewable energy capacity and expanding specialty chemical production, signaling a strategic pivot toward sustainable growth and higher-margin segments.
📰 What's Happening
In the last quarter, GACL declared a dividend of ₹17.70 per share (177% payout) for FY25-26, reflecting strong cash generation despite modest net profit. The company secured shareholder approval for a ₹1,000 crore related party transaction with NALCO and GNAL for utilities supply, up to 10% of turnover. Management also outlined ambitions to achieve 45% renewable energy by FY26-27 and 80% by FY28-29, while targeting ₹40,000 crore revenue by 2047 through capacity expansion in chlorotoluenes, phosphoric acid, and hydrogen peroxide. The AGM on 25 September 2026 will formalize these strategic moves and auditor remuneration.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 1,105 | 1,083 | 1,044 | 1,125 | 1,245 |
| Operating Profit | 15 | -30 | 1 | 5 | 119 |
| OPM % | 1.3% | -2.8% | 0.1% | 0.5% | 9.5% |
| Net Profit | -14 | 16 | -20 | 15 | 55 |
| EPS | ₹-1.88 | ₹2.23 | ₹-2.72 | ₹2.04 | ₹7.49 |
The company’s financial trajectory shows a clear inflection point: revenue grew sequentially from ₹1,044 crores (Dec 2025) to ₹1,245 crores (Jun 2026), with operating profit turning positive at ₹119 crores and net profit reaching ₹55 crores. This improvement follows a sharp recovery from losses in Q3 and Q4 of FY25, where profitability was negative. The turnaround aligns with management’s disclosed focus on operational efficiency and renewable energy investments, suggesting execution of a restructuring plan aimed at margin improvement and sustainable growth.
🔮 Management Outlook & What's Next
Management has provided forward-looking guidance on sustainability and growth, targeting 45% renewable energy share by FY26-27 and 80% by FY28-29, alongside a long-term revenue target of ₹40,000 crores by 2047. These goals are tied to planned expansions in specialty chemicals and green manufacturing. However, no near-term financial targets or capital allocation specifics were provided in the latest filings. The company emphasized ESG integration and operational resilience but did not outline concrete timelines or investment plans beyond general aspirations.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 73 | 73 | 73 | 73 |
| Reserves | 6,112 | 5,596 | 5,497 | 5,117 |
| Borrowings | 603 | 561 | 637 | 568 |
| Total Liabilities | 8,413 | 7,987 | 8,209 | 7,533 |
| Fixed Assets | 4,490 | 4,583 | 4,521 | 4,343 |
| Investments | 2,377 | 1,976 | 2,044 | 1,633 |
| Total Assets | 8,413 | 7,987 | 8,209 | 7,533 |
The balance sheet shows a stable capital structure with low debt-to-equity of 0.11 and consistent equity of ₹73 crores, while reserves have grown from ₹5,596 crores (Mar 2025) to ₹5,497 crores (Mar 2026), indicating retained earnings. Borrowings rose slightly to ₹637 crores from ₹561 crores, but remain manageable. Total assets increased to ₹8,209 crores, reflecting asset base expansion. The company is not aggressively deleveraging but is using strong cash flows to fund operations and dividends, with no major equity raises or buybacks disclosed.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | +381 | +406 |
| Investing | -264 | -228 |
| Financing | -145 | -150 |
| Net Cash Flow | -28 | +28 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 46.3% | 46.3% | 47.3% | 47.3% |
| FII | 1.0% | 1.0% | 0.9% | 3.3% |
| DII | 4.5% | 4.8% | 3.7% | 3.0% |
| Public | 16.5% | 16.4% | 16.5% | 15.0% |
| # Shareholders | 70,371 | 68,436 | 73,032 | 64,106 |
Promoter holding remains steady at 47.28% over recent quarters, indicating confidence in long-term control. FII ownership has declined sharply from 3.26% (Q1FY27) to 0.94% (Q4FY26), suggesting foreign investor exit or reclassification, while DII holdings have modestly increased. The growing number of shareholders (64,106 to 73,032) reflects retail participation. No pledging or selling signals from promoters are evident, and the shareholder base is broadening, which may support liquidity but could reduce institutional conviction.
⚖️ Peer Comparison — Chemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| PIDILITIND | 1.67 L Cr | 63.2 | 33.4% | 24.7% | 0.01 |
| SRF | 75,831 | 35.1 | 15.6% | 15.4% | 0.36 |
| LINDEINDIA | 54,443 | 99.7 | 17.5% | 12.8% | 0.00 |
| FLUOROCHEM | 51,528 | 84.2 | 9.6% | 7.7% | 0.34 |
| NAVINFLUOR | 44,502 | 56.3 | 22.2% | 19.9% | 0.31 |
| GODREJIND | 38,256 | 32.5 | 9.2% | 19.8% | 4.57 |
| HSCL | 33,181 | 41.2 | 20.7% | 17.1% | 0.16 |
| DEEPAKNTR | 23,850 | 30.4 | 15.3% | 13.4% | 0.26 |
| AETHER | 22,459 | 95.2 | 13.8% | 10.6% | 0.08 |
| AARTIIND | 19,021 | 35.8 | 9.2% | 9.5% | 0.68 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Execution risk in large-scale renewable energy and specialty chemical projects, with no interim milestones or capital allocation details provided. 2. High exposure to commodity cycles and input cost volatility in chlor-alkali and hydrogen peroxide production, despite ESG positioning. 3. Dependence on related party transactions with NALCO and GNAL for utilities, which require shareholder approval and may face scrutiny. 4. Water scarcity and climate-related operational risks in Gujarat, despite water recycling efforts, could constrain expansion plans.
📋 Recent Filings
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🟡 Board Meeting 27 August 2026Gujarat Alkalies & Chemicals Ltd (GUJALKALI) will hold its 53rd AGM on 25 September 2026 via video conference, where shareholders will vote on adoptin...
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🔴 annual report 27 August 2026Gujarat Alkalies & Chemicals Ltd (GUJALKALI) released its 53rd Annual Report for FY 2025-26 on 27 August 2026, detailing strong financial performance ...
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🟡 sustainability report 27 August 2026Gujarat Alkalies & Chemicals Limited (GACL) submitted its 2025-26 Business Responsibility and Sustainability Report (BRSR) to SEBI on August 27, 2026,...
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Announcement 18 August 2026Gujarat Alkalies and Chemicals Limited announced an investor meet scheduled for August 24, 2026, hosted by Antique Stock Broking, where corporate upda...
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🔴 Corporate Action 14 August 2026GACL announced a Rs 17.70 per share dividend (177% payout) for FY 2025-26, payable on 14 August 2026, with record date 18 September 2026. Shareholders...
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Announcement 7 August 2026Gujarat Alkalies and Chemicals Limited (GACL) has uploaded an updated Investors Presentation on its website, providing shareholders with refreshed ins...
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🔴 Announcement 4 August 2026Gujarat Alkalies and Chemicals Limited (GACL) received a credit rating downgrade from CARE Ratings for its long-term bank facilities, reducing the rat...
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🔴 Announcement 30 July 2026Gujarat Alkalies and Chemicals Limited announced that CARE Ratings downgraded its long-term bank facilities to CARE AA-; Stable from CARE AA; Stable, ...
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🔴 Corporate Action 29 July 2026Gujarat Alkalies announced a 53rd AGM on September 25, 2026 via video conference, with record date September 18, 2026 for dividend entitlement and pay...
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🟡 Board Meeting 29 July 2026Gujarat Alkalies and Chemicals announced its 53rd Annual General Meeting will be held on 25th September 2026 via video conference, with record date se...
🧠 Analyst's Read
Gujarat Alkalies & Chemicals is undergoing a strategic recovery with improving profitability and clear long-term ambitions in sustainability and scale, but near-term growth hinges on execution of capital projects and market conditions. Investors should monitor AGM outcomes, progress on renewable targets, and capital deployment into specialty chemicals, as delays or cost overruns could impact margins and shareholder returns.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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