Value Added Product Mix Shift
Expected: Post-commissioningHIGH confidence
What: New Capacity: 33,870 TPA
Impact: ₹350 Cr Revenue
Gujarat Alkalies & Chemicals Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +59.3%Weak7w Streak
In , Gujarat Alkalies & Chemicals Ltd (Chemicals - Inorganic - Caustic Soda/Soda Ash) is outperforming Nifty 500 with +59.3% relative strength. Fundamentals: Weak. On a 7-week streak.
Gujarat Alkalies & Chemicals Ltd Key Facts
- Market Cap
- ₹5,882 Cr
- PAT Growth YoY
- -82%
- Revenue Growth YoY
- +2%
- OPM
- 9.0%
- RS vs Nifty 500
- +59.3%
Riding Wave
What's Happening
🌐FII stake decreased 0.9% this quarter
💰Trading 40% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Value Added Product Mix Shift
Post-commissioningHIGH
2. Operating Leverage Inflection
OngoingMEDIUM
Key Risks
1. Lower ECU realizations and heavy dumping of caustic soda products impacting marg
HIGH2. Unusually high tax rate of 620
MEDIUMSector-Specific Signals
ECU RealizationUnder PressureNegative
Domestic Market Share13%Stable
Renewable Energy Mix35.7%Increased
Capacity UtilizationIncreasedPositive
Key Numbers
PAT Growth YoY
-82%
Inflection Down
Revenue YoY
+2%
Stable
Operating Margin
9.0%
+100 bps YoY
Current Price
₹801
Dividend Yield
1.97%
Fundamental Score
26/100
Weak
3Y PAT CAGR
-27%
Market Cap
5.5K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Gujarat Alkalies & Chemicals Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Operating Leverage Inflection
Expected: OngoingMEDIUM confidence
What: Renewable Energy Share: 35.7%
Impact: Cost reduction
What Are the Key Risks for Gujarat Alkalies & Chemicals Ltd?
Earnings deceleration risks from management commentary
Lower ECU realizations and heavy dumping of caustic soda products impacting marg
HIGHTrigger: Lower ECU realizations and heavy dumping of caustic soda products impacting margins.
Impact: PAT impact: Not Given
Management view: Proactively taking corrective action for the imposition of Anti-Dumping Duty.
Monitor: commodity
Unusually high tax rate of 620
MEDIUMTrigger: Unusually high tax rate of 620.89% in Q3 FY26 due to one-time adjustments.
Impact: PAT impact: ₹23.78 Cr tax charge
Management view: Not Given
Monitor: regulatory
What Did Gujarat Alkalies & Chemicals Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹1,044.46 Cr
YoY +1.46%QoQ -3.58%
Revenue remained range-bound due to limited pricing power in the core caustic soda business despite marginal YoY growth.
EBITDA
₹135 Cr
YoY +19%Margin 12.9%
Operational earnings improved due to enhanced efficiencies and higher consumption of renewable energy reaching 35.7% for the nine-month period.
PAT
₹-19.95 Cr
YoY +77.65%QoQ -222.09%
The bottom line was severely impacted by an extraordinary tax charge of ₹23.78 Cr and a one-off inventory valuation correction.
Other Highlights
• Inventory valuation correction of ₹18.29 Cr for Spent Palladium catalyst added to PBT.
• Renewable energy share increased to 35.7% for 9M FY26, aiding cost reduction.
• Interest costs surged to ₹18.48 Cr, the highest in recent quarters.
What Sector Metrics Matter for Gujarat Alkalies & Chemicals Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
ECU Realization
Under Pressure
YoY NegativeQoQ Negative
Why: Heavy dumping of caustic soda products significantly impacting realizations.
Domestic Market Share
13%
YoY StableQoQ Stable
Why: Maintained position as one of India's largest producers.
Renewable Energy Mix
35.7%
YoY IncreasedQoQ Not Given
Why: Focus on cost reduction and green energy adoption under Project Ahvaan.
Capacity Utilization
Increased
YoY PositiveQoQ Not Given
Why: Successfully increased utilization across various plants to offset pricing pressure.
Interest Coverage Ratio
Low
YoY DeterioratedQoQ Deteriorated
Why: Interest costs surged to ₹18.48 Cr while core operations struggled for profitability.
What Is Gujarat Alkalies & Chemicals Ltd's Management Guidance?
Forward-looking targets from management for Annualized post-commissioning
Capex Plan
₹1029 Cr
Revenue Outlook
₹480 Cr
Capex Plan
₹1,029 Cr
Phosphoric acid plant, KOH expansion, and new boilers.
Management Tone: CAUTIOUS
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 parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 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: 1.1x
What is Gujarat Alkalies & Chemicals Ltd's price-to-book ratio?
Gujarat Alkalies & Chemicals Ltd's price-to-book ratio is 1.1x.
- Price-to-Book (P/B): 1.1x
- Book Value per Share: ₹759
- Current Price: ₹801
Is Gujarat Alkalies & Chemicals Ltd a fundamentally strong company?
Gujarat Alkalies & Chemicals Ltd is rated Weak with a fundamental score of 26.18/100. 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 1.97%.
- Dividend Yield: 1.97%
- Current Price: ₹801
Who holds Gujarat Alkalies & Chemicals Ltd shares — promoters, FII, DII?
Gujarat Alkalies & Chemicals Ltd's shareholding pattern (Mar 2026)
- Promoters: 47.3%
- FII (Foreign): 0.9%
- DII (Domestic): 3.7%
- Public: 48.0%
Is promoter holding increasing or decreasing in Gujarat Alkalies & Chemicals Ltd?
Gujarat Alkalies & Chemicals Ltd's promoter holding has increased recently.
- Current Promoter Holding: 47.3% (Mar 2026)
- Previous Quarter: 46.3% (Dec 2025)
- Change: +1.00% (increasing — positive signal)
How long has Gujarat Alkalies & Chemicals Ltd been outperforming Nifty 500?
Gujarat Alkalies & Chemicals Ltd has been outperforming Nifty 500 for 7 consecutive weeks, indicating building momentum.
Is Gujarat Alkalies & Chemicals Ltd a new momentum entry or an established outperformer?
Gujarat Alkalies & Chemicals Ltd is an established outperformer with 7 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Gujarat Alkalies & Chemicals Ltd?
Gujarat Alkalies & Chemicals Ltd has 2 key growth catalysts identified from recent earnings analysis
- Value Added Product Mix Shift — Shift toward food-grade phosphoric acid reduces reliance on cyclical commodity caustic soda.
- Operating Leverage Inflection — Lowering power costs (33-34% of TOI) is critical for margin expansion in chlor-alkali.
What are the key risks in Gujarat Alkalies & Chemicals Ltd?
Gujarat Alkalies & Chemicals Ltd has 2 key risks worth monitoring
- [HIGH] Lower ECU realizations and heavy dumping of caustic soda products impacting marg — Lower ECU realizations and heavy dumping of caustic soda products impacting margins.
- [MEDIUM] Unusually high tax rate of 620 — Unusually high tax rate of 620.89% in Q3 FY26 due to one-time adjustments.
What is Gujarat Alkalies & Chemicals Ltd's management guidance for growth?
Gujarat Alkalies & Chemicals Ltd's management has provided the following forward guidance for Annualized post-commissioning
- Revenue outlook: ₹480 Cr
- Margin outlook: Not Given
- Capex plan: ₹1029 Cr for Phosphoric acid plant, KOH expansion, and new boilers.
- Management tone: cautious
What sector-specific metrics matter most for Gujarat Alkalies & Chemicals Ltd?
Gujarat Alkalies & Chemicals Ltd's most important sub-sector-specific KPIs from the latest concall
- ECU Realization: Under Pressure (YoY Negative) (QoQ Negative) — Heavy dumping of caustic soda products significantly impacting realizations.
- Domestic Market Share: 13% (YoY Stable) (QoQ Stable) — Maintained position as one of India's largest producers.
- Renewable Energy Mix: 35.7% (YoY Increased) (QoQ Not Given) — Focus on cost reduction and green energy adoption under Project Ahvaan.
- Capacity Utilization: Increased (YoY Positive) (QoQ Not Given) — Successfully increased utilization across various plants to offset pricing pressure.
- Interest Coverage Ratio: Low (YoY Deteriorated) (QoQ Deteriorated) — Interest costs surged to ₹18.48 Cr while core operations struggled for profitability.
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: Value Added Product Mix Shift
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Lower ECU realizations and heavy dumping of caustic soda products impacting marg
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: Value Added Product Mix Shift
- Key Risk: Lower ECU realizations and heavy dumping of caustic soda products impacting marg
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.