Lords Chloro Alkali (500284) Q2 25/26 earnings summary

Executive summary

• The company is undergoing a strategic transformation toward sustainability and long-term growth, with major investments in renewable energy, capacity expansion, and a focus on becoming a green chemical company.

• Operations include caustic soda, chlorine, hydrogen, bleaching powder, CPW, and HCL, with a strong presence in North India and a focus on the chloro alkali sector.

• Approved unaudited financial results for Q2 and H1 ended September 30, 2025, with compliance confirmed by statutory auditor's limited review.

• Ongoing and planned capex to expand caustic soda, CPW, and sulphuric acid capacity, and add solar power, supporting product diversification and sustainability.

Financial highlights

• H1 FY26 total income was ₹201 crore, up 59% year-over-year; Q2 income was ₹100 crore, up from ₹60.86 crore in Q2 FY25.

• Q2 FY26 EBITDA was ₹21.09 crore (20.93% margin), up from ₹3.70 crore (6.08%) in Q2 FY25; H1 FY26 EBITDA was ₹41.78 crore (20.76% margin).

• Q2 FY26 PAT was ₹9.04 crore, up from ₹0.36 crore in Q2 FY25; H1 FY26 PAT was ₹19.49 crore, up from ₹2.31 crore in H1 FY25.

• Power and fuel costs reduced from 51% to 39% of production costs in H1 FY26 due to solar plant commissioning and product mix changes.

• Cash and cash equivalents increased to ₹1,618.24 lakhs as of September 30, 2025.

Outlook and guidance

• Revenue is expected to remain stable for the next three quarters until new capacity comes online in Q3 FY27.

• FY26 revenue is projected around ₹400 crore, with margins expected to improve as renewable energy integration increases.

• Announced ₹165 crore capex plan for FY26–FY28 to expand caustic soda and sulphuric acid capacity and increase solar power generation.

• CPW capacity expansion to 100 TPD by FY27 to boost downstream integration and revenue.

• Solar power plant expansion (21 MW) to be completed by May 2026, aiming for power cost savings.