Lords Chloro Alkali has delivered a strong topline performance in the third quarter of FY26, with revenue jumping 43.64% year-on-year, even as higher electricity tariffs weighed on operating margins.
Total Income for Q3 FY26 stood at Rs. 94.11 crore, up from Rs. 65.52 crore in the same quarter last year, driven by a sharp rise in sales volumes across caustic soda lye and chlorinated paraffin wax. Stable realizations and improved throughput further strengthened performance.
EBITDA (including other income) rose to Rs. 10.88 crore from Rs. 6.79 crore in Q3 FY25, supported by higher operating leverage and disciplined cost management. However, margins came under pressure due to increased power and fuel costs during the quarter. EBITDA margin stood at 11.56%.
Profit for the quarter climbed sharply to Rs. 4.61 crore, compared with Rs. 1.27 crore a year earlier.
Addressing the margin pressure, management said: "On a sequential basis, Q3 FY26 witnessed some pressure on operating costs compared to the previous quarter, primarily due to higher electricity costs arising from increased grid tariffs effective October 1, 2025. This resulted in a near-term impact on operating margins during the quarter.
"We view these pressures as temporary in nature and largely driven by external cost factors. Energy cost optimisation remains a key operational priority, and several measures are underway to improve power sourcing efficiency and cost control across operations.
"The commissioning of our 21 MW solar power plant, expected by March 2026, is anticipated to materially reduce grid power dependence. From the next financial year onwards, we expect to see a meaningful improvement in cost visibility and margin stability, reinforcing the long-term competitiveness and resilience of our operations.”
Commenting on the results, Ajay Virmani, Managing Director, Lords Chloro Alkali Ltd, said: "On a sequential basis, Q3 FY26 witnessed some pressure on operating costs compared to the previous quarter, primarily due to higher electricity costs arising from increased grid tariffs effective October 1, 2025. This resulted in a near-term impact on operating margins during the quarter.
"We view these pressures as temporary in nature and largely driven by external cost factors. Energy cost optimisation remains a key operational priority, and several measures are underway to improve power sourcing efficiency and cost control across operations.
"The commissioning of our 21 MW solar power plant, expected by March 2026, is anticipated to materially reduce grid power dependence. From the next financial year onwards, we expect to see a meaningful improvement in cost visibility and margin stability, reinforcing the long-term competitiveness and resilience of our operations.”
For the nine months ended December 31, 2025, the company posted even stronger growth.
Total Income for 9M FY26 rose 53.90% year-on-year to Rs. 295.35 crore, compared with Rs. 191.91 crore in 9M FY25, driven by higher volumes across both key product segments and steady realizations.
EBITDA (including other income) surged to Rs. 52.66 crore from Rs. 15.52 crore in the corresponding period last year, reflecting improved capacity utilisation, better fixed cost absorption, and gradual gains in energy efficiency due to increased renewable power contribution. EBITDA margin for the nine-month period stood at 17.83%.
Net profit for 9M FY26 jumped to Rs. 24.10 crore, sharply higher than Rs. 3.58 crore reported in 9M FY25.
With a solar power plant set to go live by March 2026 and volume momentum intact, the company is positioning itself for stronger margin stability in the next financial year.
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