Chemfab Alkalis Ltd

Chemfab Alkalis Q2FY26 Update: Capacity Expansion & Strategic Shifts Amid Market Challenges ⚡

- OPVC capacity expansion from 14,000 TPA to 23,000 TPA by FY26, targeting Jal Jeevan Mission/AMRUT 2.0

- Technology Modernisation Programme to enhance efficiency, complete by Nov 2025

- Captive Hybrid Power Plant operational by Q4FY26 (delayed due to transmission clearance)

- Q2FY26 revenue declined to ₹70.66 crores (YoY -10.56%), EBITDA dropped to ₹8.44 crores (YoY -33.33%)

- Chlor Alkali segment reported negative EBITDA of ₹1.27 crores; OPVC segment EBITDA at ₹9.71 crores

- FY25 historicals: ₹322.09 crores revenue, ₹53.29 crores EBITDA (16.54% margin)

- Strategic vertical integration: salt operations (backward) & aluminium chloride plant (forward)

- Sustainability leadership: brine sludge bricks, carbon footprint reduction initiatives

- OPVC segment revival expected from Q3FY26 after subdued Jal Jeevan Mission fund flow

- Global caustic price impact: ECU realization dropped to ₹36,700/MT from ₹40,955/MT (Q1 to Q2FY26)