Q4 FY26 Annual Profitability
Expected: March 2026MEDIUM confidence
Potential return to annual profitability after 9-month PBT of ₹36 crore vs previous year's loss
“9M PBT: ₹36cr vs ₹-13cr LY”
Gujarat Alkalies & Chemicals Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +28.3%WeakNew This Week
In Week of Mar 28, 2026, Gujarat Alkalies & Chemicals Ltd (Chemicals - Inorganic - Caustic Soda/Soda Ash) is outperforming Nifty 500 with +28.3% relative strength. Fundamentals: Weak.
Riding Wave
What's Happening
🌐FII stake decreased 0.9% this quarter
💰Trading 26% above estimated fair value — significant premium
Re-Rating Catalysts
1. Q4 FY26 Annual Profitability
March 2026MEDIUM
2. Bio-fuel Boilers Commissioning
June 2026HIGH
3. Phosphoric Acid Plant Ramp-up
Sept 2026MEDIUM
Value Trap Risks
1. Debt Trap
HIGH2. Capex Execution Risk
MEDIUM3. Commodity Price Volatility
HIGHKey Numbers
PAT Growth YoY
-82%
Inflection Down
Revenue YoY
+2%
Stable
Operating Margin
9.0%
+100 bps YoY
Current Price
₹586
Dividend Yield
2.70%
Fundamental Score
27/100
Weak
3Y PAT CAGR
-27%
Market Cap
4.3K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Is Gujarat Alkalies & Chemicals Ltd a Turnaround Opportunity?
Deep value thesis based on recent earnings • Updated Feb 22, 2026
GACL's 19% EBITDA growth signals operational improvement, but debt overhang prevents bottom-line recovery until specialty chemical capex delivers higher-margin revenue streams.
Verdict
WAIT_FOR_CONFIRMATION
What Could Re-Rate Gujarat Alkalies & Chemicals Ltd?
Re-rating catalysts over the next 2-4 quarters • Updated Feb 22, 2026
Bio-fuel Boilers Commissioning
Expected: June 2026HIGH confidence
₹389 crore capex expected to reduce energy costs by 15-20% in caustic soda production
“Management guidance on energy cost reduction”
Phosphoric Acid Plant Ramp-up
Expected: Sept 2026MEDIUM confidence+₹480 Cr revenue
₹560 crore specialty chemical plant targeting 25%+ EBITDA margins vs current 12.9%
Impact: +₹480 Cr revenue
“Board approval documents citing ₹480cr annual revenue”
What Are the Value Trap Risks for Gujarat Alkalies & Chemicals Ltd?
Risks that could prevent re-rating or deepen the value trap
Debt Trap
HIGHCaustic soda prices fall below ₹18,000/ton
Impact: -300 bps margin impact
Management view: Working on debt restructuring with banks
Monitor: Interest coverage ratio
Capex Execution Risk
MEDIUMCapex overruns exceed 20%
Impact: -200 bps margin impact
Management view: Engaged EPC contractors with fixed-price contracts
Monitor: Capex vs budget tracking
Commodity Price Volatility
HIGHGlobal capacity additions exceed demand growth
Impact: -400 bps margin impact
Management view: Diversifying into specialty chemicals to reduce cyclicality
Monitor: Caustic soda price index
What Is Gujarat Alkalies & Chemicals Ltd's Management Guidance?
Forward-looking targets from management for FY27
Revenue Growth Target
8%
Implied PAT Growth
25%
OPM Guidance
14.5%
Capex Plan
₹1029 Cr
Credit Growth Target
5%
Management Tone: CAUTIOUS
Key Milestones
• Bio-fuel boilers commissioning (June 2026)
• Phosphoric acid plant operational (Sept 2026)
How Fast Is Gujarat Alkalies & Chemicals Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +2% | +3% | Stable |
| PAT (Net Profit) | -82% | -27% | Inflection Down |
| OPM | 9.0% | +100 bps | Expanding |
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Frequently Asked Questions: Gujarat Alkalies & Chemicals Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Gujarat Alkalies & Chemicals Ltd's latest quarterly results?
Gujarat Alkalies & Chemicals Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: -81.8% (inflecting downward)
- Revenue Growth YoY: +1.5%
- Operating Margin: 9.0% (expanding)
Is Gujarat Alkalies & Chemicals Ltd's profit growing or declining?
Gujarat Alkalies & Chemicals Ltd's profit is declining with an inflecting downward trend.
- PAT Growth YoY: -81.8% (latest quarter)
- PAT Growth QoQ: -225.0% (sequential)
- 3-Year PAT CAGR: -26.8%
- Trend: Inflecting downward — consistent growth pattern
What is Gujarat Alkalies & Chemicals Ltd's revenue growth trend?
Gujarat Alkalies & Chemicals Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +1.5%
- Revenue Growth QoQ: -3.6% (sequential)
- 3-Year Revenue CAGR: +2.7%
How is Gujarat Alkalies & Chemicals Ltd's operating margin trending?
Gujarat Alkalies & Chemicals Ltd's operating margin is expanding.
- Current OPM: 9.0%
- OPM Change YoY: +1.0% basis points
- OPM Change QoQ: +2.0% basis points
What is Gujarat Alkalies & Chemicals Ltd's 3-year profit and revenue CAGR?
Gujarat Alkalies & Chemicals Ltd's long-term compounding rates
- 3-Year Profit CAGR: -26.8%
- 3-Year Revenue CAGR: +2.7%
Is Gujarat Alkalies & Chemicals Ltd's growth accelerating or decelerating?
Gujarat Alkalies & Chemicals Ltd's earnings growth is inflecting downward with mixed signals on a sequential basis.
- YoY Acceleration: -180.0% bps
- Sequential Acceleration: -100.0% bps
What is Gujarat Alkalies & Chemicals Ltd's trailing twelve month (TTM) performance?
Gujarat Alkalies & Chemicals Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹-9 Cr
- TTM PAT Growth: +92.5% YoY
- TTM Revenue: ₹4,000 Cr
- TTM Revenue Growth: +7.7% YoY
- TTM Operating Margin: 8.5%
Is Gujarat Alkalies & Chemicals Ltd overvalued or undervalued?
Gujarat Alkalies & Chemicals Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Price-to-Book: 0.8x
What is Gujarat Alkalies & Chemicals Ltd's price-to-book ratio?
Gujarat Alkalies & Chemicals Ltd's price-to-book ratio is 0.8x.
- Price-to-Book (P/B): 0.8x
- Book Value per Share: ₹759
- Current Price: ₹586
Is Gujarat Alkalies & Chemicals Ltd a fundamentally strong company?
Gujarat Alkalies & Chemicals Ltd is rated Weak with a fundamental score of 27.18/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +1.5% (10% weight)
- PAT Growth YoY: -81.8% (10% weight)
- PAT Growth QoQ: -225.0% (10% weight)
- Margins expanding (10% weight)
Is Gujarat Alkalies & Chemicals Ltd debt free?
Gujarat Alkalies & Chemicals Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹561 Cr
What is Gujarat Alkalies & Chemicals Ltd's return on equity (ROE) and ROCE?
Gujarat Alkalies & Chemicals Ltd's return ratios over recent years
- FY2023: ROCE 11.0%
- FY2024: ROCE -4.0%
- FY2025: ROCE 0.0%
Is Gujarat Alkalies & Chemicals Ltd's cash flow positive?
Gujarat Alkalies & Chemicals Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹381 Cr
- Free Cash Flow (FCF): ₹117 Cr
What is Gujarat Alkalies & Chemicals Ltd's dividend yield?
Gujarat Alkalies & Chemicals Ltd's current dividend yield is 2.70%.
- Dividend Yield: 2.70%
- Current Price: ₹586
Who holds Gujarat Alkalies & Chemicals Ltd shares — promoters, FII, DII?
Gujarat Alkalies & Chemicals Ltd's shareholding pattern (Dec 2025)
- Promoters: 46.3%
- FII (Foreign): 1.0%
- DII (Domestic): 4.8%
- Public: 48.0%
Is promoter holding increasing or decreasing in Gujarat Alkalies & Chemicals Ltd?
Gujarat Alkalies & Chemicals Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 46.3% (Dec 2025)
- Previous Quarter: 46.3% (Sep 2025)
- Change: 0.00% (stable)
How long has Gujarat Alkalies & Chemicals Ltd been outperforming Nifty 500?
Gujarat Alkalies & Chemicals Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.
Is Gujarat Alkalies & Chemicals Ltd a new momentum entry or an established outperformer?
Gujarat Alkalies & Chemicals Ltd is a new entry this week — it just started outperforming Nifty 500. New entries are worth monitoring for follow-through.
What are the growth catalysts for Gujarat Alkalies & Chemicals Ltd?
Gujarat Alkalies & Chemicals Ltd has 3 key growth catalysts identified from recent earnings analysis
- Q4 FY26 Annual Profitability
- Bio-fuel Boilers Commissioning
- Phosphoric Acid Plant Ramp-up
What are the key risks in Gujarat Alkalies & Chemicals Ltd?
Gujarat Alkalies & Chemicals Ltd has 3 key risks worth monitoring
- Debt Trap
- Capex Execution Risk
- Commodity Price Volatility
What is Gujarat Alkalies & Chemicals Ltd's management guidance for growth?
Gujarat Alkalies & Chemicals Ltd's management has provided the following forward guidance for FY27
- Revenue growth target: 8%
- Implied PAT growth: 25%
- OPM guidance: 14.5%
- Capex plan: ₹1029 Cr
- Credit growth target: 5%
- Management tone: cautious
- Milestone: Bio-fuel boilers commissioning (June 2026)
- Milestone: Phosphoric acid plant operational (Sept 2026)
Is Gujarat Alkalies & Chemicals Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Gujarat Alkalies & Chemicals Ltd may be worth studying
- Operating margins are expanding — OPM at 9.0%
- Cash flow is positive — CFO ₹381 Cr
What is the investment thesis for Gujarat Alkalies & Chemicals Ltd?
Gujarat Alkalies & Chemicals Ltd investment thesis summary:
Research Signals (Bull Case)
- Margins expanding
- Growth catalyst: Q4 FY26 Annual Profitability
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Debt Trap
What is the future outlook for Gujarat Alkalies & Chemicals Ltd?
Gujarat Alkalies & Chemicals Ltd's forward outlook based on current data signals
- Earnings Trend: inflecting downward
- Revenue Trend: stable
- Margin Trend: expanding
- Valuation: Significantly Overvalued
- Key Catalyst: Q4 FY26 Annual Profitability
- Key Risk: Debt Trap
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.