1. Opening Hook
As the world debates AI, GHCL’s board debated soda ash and buybacks. One creates value in the cloud, the other in caustic clarity. R.S. Jalan preached stability while global soda ash prices fizzed out faster than a warm Thums Up. Imports flooded in, prices dropped, but GHCL’s margin discipline held firm—like a Gujarati thali at a Delhi buffet.
As theBhagavad Gitasays,“Do your work with the welfare of others always in mind.”GHCL took that literally—helping small shareholders with a ₹300 crore buyback while fighting Chinese oversupply karma.
Grab your chai, because what follows is more effervescent than soda itself.
2. At a Glance
- Revenue ₹739 crore (↓9%)– Soda fizzed out, imports partied in.
- EBITDA ₹175 crore (↓23%)– Margins slipped 360 bps, CFO blamed gravity.
- PAT ₹107 crore (↓31%)– Profit took a brief detox.
- EBITDA Margin 23.8%– Still elite, considering global chaos.
- Net Cash ₹1,047 crore– Balance sheet flexed harder than the rupee.
- Buyback ₹300 crore @ ₹725/share– Shareholder welfare meets tax confusion.
- Capex ₹185 crore– Bromine & salt projects simmering nicely.
3. Management’s Key Commentary
“Domestic demand grew 5%, but cheap imports hurt realizations.”(Translation: The neighbors threw soda in our pool again.)
“DGTR has recommended anti-dumping duty; awaiting Finance Ministry nod.”(Translation: We prayed to Delhi. Now we wait.)🙏
“EBITDA margins at 23.8% despite price drop.”(Translation: We squeezed profits from pebbles—call us Soda Alchemists.)
“Bromine & vacuum salt to contribute ₹70–₹80 crore EBITDA next year.”(Translation: Diversification, but make it salty.)😏
“Greenfield expansion slightly delayed due to land approvals.”(Translation: Bureaucracy—India’s true raw material.)
“Buyback optimizes capital structure and rewards shareholders.”
(Translation: Inorganic growth? Nah, inorganic chemistry instead.)
“Our focus is long-term competitiveness and efficiency.”(Translation: Patience, young investor, the soda cycle shall turn again.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | Change | Commentary |
|---|---|---|---|---|
| Revenue | ₹739 crore | ₹810 crore | ↓9% | Imports hit prices hard |
| EBITDA | ₹175 crore | ₹228 crore | ↓23% | Realizations down 9% YoY |
| EBITDA Margin | 23.8% | 28% | ↓420 bps | Maintenance shutdown added fizz |
| PAT | ₹107 crore | ₹155 crore | ↓31% | Cost control softened impact |
| Net Cash | ₹1,047 crore | — | — | Balance sheet stronger than ever |
| Capex | ₹185 crore | — | — | Bromine + Salt expansions |
| Cash Flow H1 FY26 | ₹313 crore | — | — | Still printing cash |
Margins may have lost some sparkle, but GHCL’s cost-efficiency ensures the glass is half-full.
5. Analyst Questions
Q:Volume loss due to shutdown?A:“~22,000 tons.”(A small blip in a bubbly ocean.)
Q:Bromine & salt EBITDA impact?A:“₹70–₹80 crore, 40–45% margin.”(The salt mines finally pull their weight.)
Q:Antidumping duty timing?A:“Depends on Finance Ministry—2–3 months typical.”(Also depends on divine timing.)
Q:Why a buyback, not acquisitions?A:“Couldn’t find value-accretive targets.”(Translation: Better to buy our own stock than someone
