Lords Chloro Alkali Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Lords Chloro Alkali Ltd filed with BSE on 05 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Lords Chloro Alkali reported total income of Rs 393.1 crore for FY26, up 44.62% year-on-year, with PAT growth of 360.9% to Rs 28.49 crore. Q4 FY26 saw EBITDA margin of 14.03%, down sequentially from Q3's elevated levels due to higher grid electricity rates and an electrolyzer shutdown for maintenance. Management discussed the upcoming commissioning of a 21-megawatt solar plant, ongoing capacity expansions, and deferred plans for a sulfuric acid facility due to sulfur price volatility.
Numbers mentioned
Total income: INR393.1 crores (FY26)
p. 3
“Our total income for financial year 2026 stood at INR393.1 crores, a growth of 44.62% yearon-year.”
Ajay Virmani, page 3 of the filed PDF · View the filing
Profit after tax: INR28.49 crores (FY26)
p. 3
“Our profit after tax for the full year reached INR28.49 crores, this is PAT, which represents a growth of 360.9% over financial year 2025.”
Ajay Virmani, page 3 of the filed PDF · View the filing
Caustic soda volume: 84,690 metric tons (FY26)
p. 3
“Our caustic soda volume for the year reached 84,690 metric tons, up 29.7% over financial year 2025.”
Ajay Virmani, page 3 of the filed PDF · View the filing
Caustic soda volume: 20,935 metric tons (Q4 FY26)
p. 3
“In Q4 financial year 2026 specifically, volumes stood at 20,935 metric tons, up 8.72% year-on-year.”
Ajay Virmani, page 3 of the filed PDF · View the filing
EBITDA: INR66.38 crores (FY26)
p. 3
“On profitability, our full-year EBITDA came in at INR66.38 crores, a 159% increase over financial year 2025, with an EBITDA margin of 16.89%, an improvement of 747 basis points year-on-year.”
Ajay Virmani, page 3 of the filed PDF · View the filing
EBITDA: INR13.72 crores (Q4 FY26)
p. 3
“For quarter four financial year 2026, EBITDA was INR13.72 crores at a margin of 14.03%, up basis points year-on-year and 247 basis points quarter-on-quarter.”
Ajay Virmani, page 3 of the filed PDF · View the filing
Total income: INR97.75 crores (Q4 FY26)
p. 4
“On Q4 specifically, total income was INR97.75 crores, up 22.3% year-on-year.”
Ajay Virmani, page 4 of the filed PDF · View the filing
PAT: INR4.39 crores (Q4 FY26)
p. 4
“PAT for Q4 was INR4.39 crores, up 68.64% over Q4financial year 2025.”
Ajay Virmani, page 4 of the filed PDF · View the filing
Shareholders' funds: INR242.52 crores (as of March 31, 2026)
p. 4
“On the balance sheet, our shareholders' funds stood at INR242.52 crores as of March 31, up from INR181.67 crores a year ago, reflecting strong earnings acceleration during the year as well as successful completion of our warrant issue, which has strengthened our equity base and financial flexibility.”
Ajay Virmani, page 4 of the filed PDF · View the filing
Total assets: INR478.7 crores (as of March 31, 2026)
p. 4
“Total assets stood at INR478.7 crores.”
Ajay Virmani, page 4 of the filed PDF · View the filing
Debt-to-equity ratio: approximately 0.67x (as of March 31, 2026)
p. 4
“The long-term debt was INR96.37 crores and short-term borrowing INR65.58 crores, resulting in a debt-to-equity ratio of approximately 0.67x.”
Ajay Virmani, page 4 of the filed PDF · View the filing
Capital work-in-progress: INR43.85 crores (as of March 31, 2026)
p. 4
“Capital work-in-progress stood at INR43.85 crores, reflecting the ongoing 21-megawatt solar project and the caustic soda and CPW capacity expansions.”
Ajay Virmani, page 4 of the filed PDF · View the filing
Power and fuel cost share of production cost: approximately 42% (FY26)
p. 4
“Through the commissioning of our 16-megawatt solar plant in Bikaner and 10-megawatt hybrid wind-solar group captive project in Jaisalmer, we have brought the ratio down to approximately 42% in financial year '26.”
Ajay Virmani, page 4 of the filed PDF · View the filing
Power and fuel cost share of production cost: 61% (FY25)
p. 4
“Power and fuel costs accounted for 61% of our production cost structure in financial year '25.”
Ajay Virmani, page 4 of the filed PDF · View the filing
Grid landed power cost: around INR8.2 or INR8.3 per unit
p. 8
“Let me just tell you that the grid rate, you know, landed to us is around INR8.2 or INR8.3 per unit.”
Ajay Virmani, page 8 of the filed PDF · View the filing
Cost of debt: a little shy of 8%
p. 9
“Current cost of debt average is around a little shy of 8%.”
Ajay Virmani, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Renewable energy share of total power — between 40% to 45%
stated firmly by Ajay Virmani
p. 4
“Once commissioned, our total captive renewable capacity will be 37 megawatt plus 10 megawatt from the group captive project, taking our renewable energy share to between 40% to 45% of our total power requirements.”
Ajay Virmani, page 4 of the filed PDF · View the filing
21-megawatt solar plant commissioning — mid-June '26
stated firmly by Ajay Virmani
p. 4
“Our 21-megawatt solar plant is expected to become operational by mid-June '26.”
Ajay Virmani, page 4 of the filed PDF · View the filing
Total installed capacity — 360 tons per day
stated firmly by Ajay Virmani
p. 4
“Post-expansion, our total installed capacity will be 360 tons per day.”
Ajay Virmani, page 4 of the filed PDF · View the filing
Capacity utilization — 80% to 85% · next one year
stated as an aspiration by Ajay Virmani
p. 7
“So, the capacity utilization at the best, you know, 85% around or so will continue to happen.”
Ajay Virmani, page 7 of the filed PDF · View the filing
Additional long-term debt — around INR90 crores · FY27
stated firmly by Ajay Virmani
p. 9
“We are raising additional longterm debt of around INR90 crores in addition to what INR90 crores I mentioned which is standing in the books.”
Ajay Virmani, page 9 of the filed PDF · View the filing
Caustic soda market share in North India — around 26% to 27% · next year or so
stated firmly by Ajay Virmani
p. 11
“And we are doing 300 tons per day. So, we are 20% of the total capacity, which will, and we'll go up to around 26% to 27% in the next year or so.”
Ajay Virmani, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management explained the shortfall was due to delayed wind project implementation and that units are recognized per the power purchase agreement, not reversible.
Answered by Ajay Virmani
Asked by Shubham: Explanation of the energy shortfall accounting from the consortium and whether it is reversible in future quarters.
p. 6
“So, the number of committed units minus whatever they could provide to us is the number of units which is reflecting and this is as per the share purchase agreement which we have executed with them.”
Ajay Virmani, page 6 of the filed PDF · View the filing
Management said no new capacity is coming up in North India for 2-2.5 years, so demand will exceed supply.
Answered by Ajay Virmani
Asked by Shubham: How will growth be achieved over the next couple of quarters given capacities are already at 80% utilization?
p. 6
“So, I don't see any capacity coming up in the next 2 to 2.5 years, additional capacity coming up in North of India.”
Ajay Virmani, page 6 of the filed PDF · View the filing
Management said global sulfur prices have been volatile due to the war, so the project has been deferred rather than cancelled.
Answered by Ajay Virmani
Asked by Shubham: Why was the planned sulfuric acid capacity not proceeded with?
p. 7
“So, we have deferred that for a little bit of while so that the situation stabilizes.”
Ajay Virmani, page 7 of the filed PDF · View the filing
Management attributed it to lower caustic soda prices quarter-on-quarter and higher power consumption from an electrolyzer shutdown for renovation.
Answered by Ajay Virmani
Asked by Prisha Shah: What drove the sequential EBITDA margin compression in Q4 versus Q3?
p. 8
“So, that is why, you know, and one of our, electrolyzer was shut down for renovation, for, changing of anodes and cathodes and changing of membranes.”
Ajay Virmani, page 8 of the filed PDF · View the filing
Management said salt costs rose due to higher production volumes, while purification chemical prices rose 20-30% but have minimal cost impact.
Answered by Ajay Virmani
Asked by Prisha Shah: What drove the rise in raw material costs and what pricing power exists on key inputs?
p. 9
“But salt, is something -- the figure which you see on the higher side is because of the higher, production.”
Ajay Virmani, page 9 of the filed PDF · View the filing
Management said new capacities will use chlorine captively for PVC production and target export markets rather than the fragmented domestic North Indian market, limiting oversupply risk.
Answered by Ajay Virmani
Asked by Mandira A: With India adding 2-2.5 million tons of caustic soda capacity, how will this affect domestic pricing and oversupply risk?
p. 11
“So, these two capacities which you have just mentioned which are going to be coming up in the next three years, they will be captively using the whole chlorine thing within their own plant because they are making downstream projects.”
Ajay Virmani, page 11 of the filed PDF · View the filing
Risks flagged
Higher grid electricity rates from October 2025 pressuring margins
p. 4
“despite a headwind from higher grid electricity rates that came into effect from October 2025”
Ajay Virmani, page 4 of the filed PDF · View the filing
Volatile global sulfur prices due to war affecting sulfuric acid project decision
p. 7
“But you see the sulfur situation all over the world, for the last nine months, six to nine months has been very, very volatile and especially, the war has started three months back.”
Ajay Virmani, page 7 of the filed PDF · View the filing
Delay in wind project implementation affecting renewable power supply
p. 6
“Their implementation of the wind project got delayed.”
Ajay Virmani, page 6 of the filed PDF · View the filing
Steep increase in discom power rates
p. 9
“So, it was a very steep increase of almost 15% to 18% in the power rates by the discom.”
Ajay Virmani, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.