Chemical stock jumps 8% after company’s net profit increases 183% YoY

Synopsis:
Chemical stock jumps 8% following their Q1 Results with a 183% rise in Profit YoY

The shares of a Chemical company, specializing in the manufacture of Chloralkali chemicals and PVC-O pipes, jumped upto 8 percent upon declaring Q1 results with a 183 percent rise in profit Year on Year (YoY).        

With a market capitalization of Rs. 1,041.37 crores on Friday, the shares of Chemfab Alkalis Ltd jumped upto 8.2 percent, making a high of Rs. 845.65 per share compared to its previous closing price of Rs. 780.90 per share.

Chemfab Alkalis Ltd, engaged in the manufacture of Chloralkali chemicals and PVC-O pipes, has announced its Q1 results as follows. Its Revenue from operations rose by 20 percent YoY from Rs. 76.5 Crores in Q1FY25 to Rs. 91.5 Crores in Q1FY26, and it declined by 0.8 percent QoQ from Rs. 92.3 Crores in Q4FY25 to Rs. 91.5 Crores in Q1FY26.

Its Net Profit YoY rose by 183 percent from Rs. 0.90 Crores in Q1FY25 to Rs. 2.55 Crores in Q1FY26, and in QoQ from a loss of  Rs. 9.19 Crores in Q4FY25 it turned to a profit of  Rs. 2.55 Crores in Q1FY26. The earnings per share (EPS) for the quarter stood at Rs. 1.78, compared to Rs. 0.63 in the previous year’s quarter.

The company maintains strong financial stability with a low debt-to-equity ratio of 0.22 and current assets exceeding current liabilities. Promoters hold over 65% stake, reflecting solid ownership confidence. It has also delivered a healthy average 3-year revenue growth of 22.38%, indicating consistent business expansion.

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Segment Revenue & Others

In the latest quarter, the company reported ₹52.83 crore in revenue from Chemicals and Related Products, up from ₹60.78 crore in the previous quarter. Revenue from the DPVC Pipes segment stood at ₹38.70 crore, compared to ₹31.53 crore in the previous quarter, reflecting strong sequential growth across both segments.

Chemfab Alkalis Limited (CCAL) is a major Indian chemical organization, established in 1985. Headquartered in Chennai, India, it operates a state-of-the-art manufacturing plant in Puducherry. 

CCAL primarily manufactures chlor-alkali products, including caustic soda lye (in 32% and 48% grades), caustic soda flakes, liquid chlorine, hydrogen gas, hydrochloric acid, and sodium hypochlorite.

The company operates two manufacturing units with an annual capacity of 65,700 TPA for chlor-alkali products and 14,000 TPA for OPVC pipes. In FY25, the chlor-alkali segment contributed 59% to total revenue, while the OPVC pipes segment accounted for 41%, reflecting a well-balanced revenue mix across its core operations.

Written by Sridhar J 

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