Lords Chloro Alkali (500284) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 total income rose 14.62% YoY to Rs 115.51 crore, driven by higher sales volumes; lower caustic soda realizations pressured EBITDA and margins.

• H1 FY27 operating income increased 11.69% to Rs 221.75 crore; profit for the period rose 23.01% to Rs 23.97 crore.

• Renewable energy expansion, capacity growth and downstream diversification remain priorities for cost efficiency and growth.

Financial highlights

• Q2 FY27 EBITDA was Rs 18.82 crore, down 10.78% YoY; EBITDA margin declined to 16.29% from 20.93%.

• Q2 FY27 profit for the period was Rs 9.04 crore versus Rs 8.67 crore; basic EPS was Rs 3.15 versus Rs 3.59.

• H1 FY27 EBITDA was Rs 41.64 crore versus Rs 41.78 crore, with margin at 18.75% versus 20.76%.

• H1 FY27 PBT was Rs 28.06 crore versus Rs 28.16 crore; profit for the period was Rs 23.97 crore versus Rs 19.49 crore.

• Q2 power and fuel expense was Rs 37.79 crore; raw-material expense was Rs 36.69 crore.

Outlook and guidance

• Planned 100 TPD caustic soda expansion is targeted for ~Q4 FY27; installed capacity is expected to reach 360 TPD after decommissioning a 40 TPD plant.

• Management expects next-year revenue of Rs 550–600 crore on the current CapEx plan; expanded production is expected to start by July.

• Renewable power targets are 40%–45% in the short term and 70%–80% in the medium term, subject to Rajasthan policy remaining unchanged.

• Priorities include operational excellence, downstream diversification, capacity expansion, manufacturing efficiency and disciplined capital allocation.