Gujarat Alkalies Q1 FY27 Results (NSE: GUJALKALI)
Signal: Margin expansion
The read
Q1FY27 marks a structural improvement: revenue at all-time high, EBITDA more than doubled, and the company turned profitable after losses in prior quarters. The margin expansion (EBITDA +700bps YoY) is not a one-off — it builds on 7 consecutive quarters of expanding OPM in the prior series and is underwritten by renewable energy share rising from 39% to 59%, reducing power cost structurally.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,224.84 Cr | 14% | N/A |
| EBIT | ₹110 Cr | 1000% | |
| Net profit | ₹81 Cr | N/A | |
| EPS | ₹11 | N/A | |
| EBIT margin | 18.7% |
P&L walk
Revenue hit record on product mix optimization and export expansion; EBITDA surged 83% as energy costs fell sharply due to 59% renewable power mix; PAT swung to profit ₹81 Cr vs. near-zero loss YoY driven entirely by opex leverage and lower power cost.
Key positives
- Highest-ever quarterly revenue ₹1,224.84 Cr, +14% YoY (₹151.39 Cr increase).
- EBITDA ₹229 Cr, +83% YoY, with margin expanding 700bps to ~18.7%.
- Renewable energy share jumped 2000bps to 59%, materially reducing power cost — structural tailwind for chemicals manufacturer.
- PBT ₹110 Cr, +1000% YoY (from ₹10 Cr); PAT swung to ₹81 Cr profit.
- Board approved Vision 2047 and a new HCL synthesis unit (₹55 Cr) — indicative of growth capex.
Key concerns
- Revenue growth (+14%) lags EBITDA growth (+83%) — while operating leverage is real, sustainability depends on continued high renewable share and product mix.
- Comparatives in Q1FY26 were depressed (PAT near zero); year-ago base is low, so absolute PAT levels still modest for a ₹5,000 Cr market cap company.
Research and educational content only. Not investment advice.