Chemfab Alkalis Ltd

📉 Chemfab Alkalis Downgraded by Ind-Ra Amid Sharp EBITDA Drop & Liquidity Strain

- EBITDA dropped 38% year-over-year to ₹187 million in 9MFY26.

- Net leverage (net debt/EBITDA) rose sharply to 3.6x from 1.4x in FY25.

- Cash balances fell to ₹0.3 million from ₹210 million in FY25.

- Weak performance due to lower caustic soda prices, operational issues (now resolved), and subdued government offtake.

- Subsidiary Chemfab Karaiikal reported EBITDA losses of ₹77 million in 9MFY26.

- Company diversifying order book with non-JJM projects and commissioning new capacities, including a hybrid power plant expected to save ₹150 million annually.