GHCL Ltd. expects global markets to soften in the current financial year, which will lead to prices remaining range-bound or slightly lower, according to Managing Director RS Jalan.
"If you look at FY26, globally, the markets are going to be soft. The prices will be either range-bound or slightly, maybe on the lower side," he said during a conversation with NDTV Profit.
"Our Ebitda margins will probably be range-bound in FY26. Two new projects in the third quarter will lead to our revenue growth in FY26," Jalan added.
The two projects he was referring to are a vacuum salt facility and a bromine plant. Despite the expected price pressure, he is optimistic about the soda ash business as prices have "always been remunerative".
“Because of that, we are going for a new project in Gujarat. It will take three to four years. We have a capital commitment to the new greenfield project, which is approximately Rs 4,000 crore to Rs 4,200 crore," he said.
The chemical manufacturer has approximately Rs 1,100 crore in cash in the balance sheet. Probably, this cash will be used in its new greenfield project in Kutch, according to Jalan.
He also underscored the rising opportunities due to investments in solar systems, adding that it would boost the demand for soda ash for manufacturing solar glass. "By FY27, new solar plant investments could generate demand for around 1,00,000 tonnes of soda ash."
Jalan highlighted that GHCL's plants were operating at over 95% capacity utilisation. He expects to maintain this level of capacity utilisation despite softening short-term demand.
In FY25, the company reported an Ebitda of Rs 966 crore even as its revenue declined by 5%, he said. "Despite a challenging market globally and the availability of surplus material, we have been able to perform better because of our operational excellence and innovation."
In Q4 FY25, GHCL's net revenue declined 4% year-on-year to Rs 807 crore. Its Ebitda rose 22% to Rs 244 crore, while the Ebitda margin stood at 30.2% in the quarter under review.
Shares of GHCL closed 1.02% lower at Rs 573 apiece on the BSE, compared to a 1.1% decline in the benchmark Sensex on Friday.
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