Lords Chloro Alkali Ltd Q3 FY26: 45% Revenue Jump, 263% PAT Spike — But ROCE Still Just 5%? Chemical Comeback or Chlorine Confusion?
1. At a Glance – The Caustic Comeback Story
At ₹141 per share and a market cap of ₹402 crore, Lords Chloro Alkali Ltd is trading at a P/E of 15.1 with a book value of ₹80 and price-to-book of 1.76. Sounds reasonable? Maybe. But wait — this chemical maker just posted Q3 FY26 sales of ₹93.95 crore (+45% YoY) and PAT of ₹4.61 crore (+263% YoY). EPS for the quarter stands at ₹1.83.
Stock is down 24.2% in the last 3 months and 29.3% in 6 months. Meanwhile, TTM EPS is ₹10.6, ROE is just 3.25%, ROCE is 5.05%, and debt sits at ₹147 crore.
So what is this? A turnaround? A sugar rush quarter? Or a chemical cycle bounce that may vanish faster than chlorine gas in open air?
Let’s open the caustic drum.
2. Introduction – From SME Kid to Mainboard Midlife Crisis
Incorporated in 1979, Lords Chloro Alkali Ltd manufactures caustic soda and allied chlorine-based chemicals. The company migrated from the NSE SME platform to the mainboard in August 2023.
Translation: “We grew up. Now judge us like adults.”
Based in Alwar, Rajasthan, it supplies caustic soda lye, flakes, liquid chlorine, hydrogen gas, hydrochloric acid, sodium hypochlorite and chlorinated paraffin wax to paper mills, soap manufacturers, dyes, plastics and vegetable oil industries across North India.
In simple words: If your detergent is foaming, chances are Lords supplied the caustic.
But the journey hasn’t been smooth. FY24 saw weak profitability. ROCE dipped negative. Debt rose. Cash flow turned messy. And then — FY26 arrives with a dramatic quarterly jump.
Is this a structural shift or just chemical price cycle magic?
Keep reading.
3. Business Model – WTF Do They Even Do?
This is a classic chlor-alkali player.
They produce Caustic Soda (210 MT per day capacity currently). Chlorine is a by-product. Instead of wasting chlorine, they process it into higher-value chemicals like hydrochloric acid, sodium hypochlorite, and chlorinated paraffin wax.
Basically:
Make caustic soda.
Don’t waste chlorine.
Convert it into money.
Smart.
Their FY23 production volume of caustic soda stood at 61,900 MT versus 60,083 MT in FY22.
They’ve commissioned:
New Sodium Hypochlorite plant
New Chlorinated Paraffin Wax plant
Expansion plans:
Increase Caustic Soda capacity from 210 TPD to 300 TPD (≈43% increase)
Expand Chlorinated Paraffin Wax from 20 TPD to 50 TPD
12 MW captive solar plant in Rajasthan
In November 2025, board approved:
100 TPD Caustic expansion (~₹60 crore)
100 TPD Sulphuric plant (FY27–28)
21 MW solar addition (~₹65 crore)
Total expansion buzz: ~₹125 crore plus future sulphuric plans.
So management is clearly betting on scale.
But here’s the question:
Are they expanding because demand is strong — or because the chemical cycle temporarily looks good?
4. Financials Overview – The Quarter That Woke Everyone Up
