GHCL Raises Net Revenue 11% to 821 Crore Rupees in Second Quarter
Key Facts
GHCL said its net revenue rose 11% to 821 crore rupees in the second quarter of financial year 2027, compared with 739 crore rupees in the corresponding period of the previous financial year. The company's published results showed operating profit and net profit growing faster than revenue. Earnings before interest, taxes, depreciation and amortization rose 16% to 202 crore rupees from 175 crore rupees. The margin on these earnings was 24.7% during the quarter. Net profit also increased 19% to 127 crore rupees, compared with 107 crore rupees a year earlier. The figures show revenue and profit growing in tandem during the quarter, with profit growth accelerating relative to revenue.
Revenue growth was slower in the first half of financial year 2027, with net revenue rising 4% to 1,619 crore rupees, compared with 1,562 crore rupees in the first half of the previous year. Over the same period, earnings before interest, taxes, depreciation and amortization increased 9% to 435 crore rupees from 399 crore rupees. Net profit rose 26% to 319 crore rupees, compared with 252 crore rupees. First-half profit growth therefore also outpaced revenue growth, with a wider gap in net profit. The comparison provides a broader context for the quarterly results, which showed year-on-year increases in revenue and profit, while cumulative revenue growth since the start of the financial year remained relatively limited.
In new products, commercial production of vacuum salt began at GHCL's soda ash plant on 31 August 2026. The product has annual capacity of 1.7 lakh metric tons, according to a company disclosure. GHCL said the project uses surplus capacity at the plant, a specific operational advantage cited in the disclosure announcing the start of production. The company classified the salt as a food product and identified domestic and international markets as its target destinations. This adds another line of activity at the plant, directly linked to its existing soda ash production infrastructure. The company had set the date for the start of commercial production before announcing its second-quarter results.
Commercial production of liquid bromine began at GHCL's facility in Kathivadar village, Gujarat, on 12 October 2026. The facility has annual capacity of 2,800 metric tons, according to a company disclosure. GHCL classified bromine under chemicals and commodity chemicals, with the product targeting domestic and international markets. Its launch timing differed from that of vacuum salt, which began commercial production in August, while bromine production started in October. The company disclosure confirmed the start of production and the targeted capacity without linking the move to quarterly revenue or profit performance. The company has thus added a new chemical product to its operations, alongside the food product launched at its soda ash plant.
These steps come as GHCL describes the chemicals industry as being in a prolonged downturn, and expects industry growth to slow to 2% in 2026 amid excess capacity, weak demand and global uncertainty. In its annual report, the company said, "The year 2025 brought more uncertainty and volatility instead of stability." At the same time, GHCL expects India's chemicals sector to grow at a compound annual rate of 9.2% between 2025 and 2031. These estimates point to a difference between the industry's near-term outlook and the longer-term prospects for India's sector. The company is also working on a greenfield expansion project in Kutch, Gujarat, aimed at nearly doubling soda ash production capacity in the near future. The annual report did not specify a timetable for the increase, and the company did not directly link the expansion or the launch of new products to the reported quarterly results.