Gujarat Alkalies Q2 profit jumps to Rs 79.24 crore as revenue rises

Gujarat Alkalies and Chemicals Limited reported standalone net profit of Rs 79.24 crore for the quarter ended September 30, 2026, compared with Rs 16.28 crore a year earlier, while revenue from operations rose 25.3% to Rs 1,357.50 crore despite a Rs 115.11 crore increase in power, fuel and utility costs.

How did Gujarat Alkalies perform in the September 2026 quarter?

Gujarat Alkalies increased standalone revenue from operations to Rs 1,357.50 crore in the September 2026 quarter from Rs 1,083.19 crore in the September 2025 quarter, a calculated year-on-year increase of 25.3%. Total income rose to Rs 1,409.44 crore from Rs 1,142.48 crore, although other income declined to Rs 51.94 crore from Rs 59.29 crore.

Standalone profit after tax rose by Rs 62.96 crore year on year to Rs 79.24 crore, making it about 4.9 times the Rs 16.28 crore reported in the comparable quarter. Basic and diluted earnings per equity share were Rs 10.79, against Rs 2.22 a year earlier; these quarterly per-share figures are not annualised.

What costs changed for Gujarat Alkalies during Q2?

Gujarat Alkalies' largest disclosed cost increase was in power, fuel and other utilities, which rose to Rs 421.81 crore in the September 2026 quarter from Rs 306.70 crore a year earlier. The Rs 115.11 crore increase, or 37.5% on a calculated basis, exceeded the Rs 47.90 crore rise in material-consumption cost to Rs 480.99 crore.

Total expenses increased to Rs 1,307.34 crore from Rs 1,129.00 crore, a rise of Rs 178.34 crore, while total income grew by the larger Rs 266.96 crore. Employee benefits fell to Rs 98.39 crore from Rs 110.29 crore, finance costs declined to Rs 15.35 crore from Rs 15.77 crore, and depreciation and amortisation was broadly unchanged at Rs 104.41 crore.

Gujarat Alkalies' profit before tax was Rs 102.10 crore in Q2, down from Rs 110.04 crore in the preceding June 2026 quarter despite higher revenue than the June quarter's Rs 1,244.91 crore. The sequential movement reflected total expenses of Rs 1,307.34 crore in Q2 versus Rs 1,142.52 crore in Q1, while other income increased from Rs 7.65 crore to Rs 51.94 crore.

What do the six-month results show?

Gujarat Alkalies reported standalone revenue from operations of Rs 2,602.41 crore for the six months ended September 30, 2026, compared with Rs 2,188.31 crore in the prior-year six months. First-half net profit rose to Rs 132.64 crore from Rs 24.07 crore, while profit before tax increased to Rs 212.14 crore from Rs 23.03 crore.

The results cover a single Chemicals operating segment under Indian Accounting Standard 108, or Ind AS 108, Segment Reporting. Gujarat Alkalies prepared the statements under Ind AS specified under Section 133 of the Companies Act, 2013, and said its statutory auditors had reviewed the September 2026 quarter and six-month results.

For the first half, power, fuel and utility expense rose to Rs 792.79 crore from Rs 602.63 crore, while material consumption increased to Rs 893.47 crore from Rs 850.92 crore. Total expenses were Rs 2,449.86 crore, compared with Rs 2,233.04 crore a year earlier, whereas total income rose to Rs 2,662.00 crore from Rs 2,256.07 crore.

Why did operating cash flow fall despite higher profit?

Gujarat Alkalies generated net cash from operating activities of Rs 144.53 crore in the six months ended September 30, 2026, down from Rs 298.27 crore a year earlier, as working-capital outflows increased. Trade receivables used Rs 169.67 crore of cash and inventories used Rs 135.27 crore, compared with outflows of Rs 28.48 crore and an inflow of Rs 32.36 crore respectively in the prior-year period.

Cash generated from operations before tax was Rs 166.90 crore, versus Rs 307.34 crore in the comparable six months, despite operating profit before working-capital changes rising to Rs 370.94 crore from Rs 248.39 crore. Direct taxes paid increased to Rs 22.37 crore from Rs 9.07 crore, further reducing operating cash flow.

Investing activities used Rs 133.28 crore during the first half, including Rs 118.00 crore spent on property, plant and equipment including capital work-in-progress and Rs 32.33 crore invested in a joint venture and associate. Financing activities used Rs 85.16 crore, and cash and cash equivalents consequently fell to Rs 104.71 crore on September 30, 2026 from Rs 157.22 crore at March 31, 2026.

How did Gujarat Alkalies' balance sheet change by September?

Gujarat Alkalies' standalone total assets increased to Rs 8,414.94 crore at September 30, 2026 from Rs 7,912.80 crore at March 31, 2026. Current assets rose to Rs 1,588.60 crore from Rs 1,179.87 crore, led by inventories of Rs 585.41 crore and trade receivables of Rs 578.04 crore.

Standalone equity increased to Rs 5,860.67 crore from Rs 5,570.91 crore, including other equity of Rs 5,587.23 crore. Total liabilities rose to Rs 2,754.27 crore from Rs 2,341.89 crore, with current borrowings increasing to Rs 370.07 crore from Rs 327.57 crore and non-current borrowings rising to Rs 271.91 crore from Rs 240.06 crore.

The balance sheet also recorded capital work-in-progress of Rs 233.75 crore at September 30, 2026, up from Rs 122.46 crore at March 31, 2026. Property, plant and equipment declined to Rs 4,101.43 crore from Rs 4,248.12 crore over the same period, while investments in joint ventures rose to Rs 878.78 crore from Rs 671.02 crore.

Conclusion

Gujarat Alkalies' September-quarter standalone result combined a 25.3% increase in revenue with a rise in profit after tax to Rs 79.24 crore from Rs 16.28 crore. The improvement occurred despite a 37.5% increase in power, fuel and utility expense, because the Rs 266.96 crore rise in total income exceeded the Rs 178.34 crore increase in total expenses.

The next reported result will show whether the higher receivables of Rs 578.04 crore and inventories of Rs 585.41 crore continue to constrain operating cash flow after the first-half decline to Rs 144.53 crore. Shareholders approved the financial year ended March 31, 2026 dividend of Rs 17.70 per share, totalling Rs 129.9834 crore, at the September 25, 2026 annual general meeting.