Upper Circuit & 52-Week High Alert: Chemical manufacturer Q1FY26 revenue surges 53 per cent, PAT rockets 436 per cent, capacity expansion and solar power benefits!

On Tuesday, shares of Lords Chloro Alkali Ltd hit a 20 per cent upper circuit to Rs 231.60 per share from its previous closing of Rs 193 per share. The stock also made a new 52-week high of Rs 231.60 per share while its 52-week low is Rs 117.25 per share. The shares of the company saw a spurt in volume by more than 126 times on the BSE.

Established in 1979, Lords Chloro Alkali Ltd is a prominent chemical manufacturer producing a wide array of high-quality chemicals, including Caustic Soda Lye, Sodium Hypo, Hydrogen Gas, Liquid Chlorine, HCL, and CPW. Their state-of-the-art manufacturing facility in Alwar, Rajasthan, spans 84 acres and boasts an installed capacity of 300 MT per day of Caustic Soda and 50 TPD Chlorinated Paraffin Wax (CPW). Additionally, the company operates a 16 MW solar park on 45 acres in Bikaner, Rajasthan.

Lords Chloro Alkali Limited has reported robust financial results for Q1 FY26, driven by sustained demand and increased capacity for Caustic Soda and Chlorinated Paraffin Wax (CPW). The company achieved its highest-ever quarterly income, with Total Income for Q1 FY26 reaching Rs 100.47 crore, marking a significant 53.32 per cent year-on-year growth compared to Rs 65.53 crore in Q1 FY25. This growth was primarily fuelled by higher volumes and improved realisations for both Caustic Soda lye and CPW.

Profitability also saw a substantial increase, with Q1 FY26 EBITDA standing at Rs 20.68 crore, yielding a margin of 20.58 per cent, a considerable rise from Rs 5.03 crore in Q1 FY25. This improvement was attributed to higher product volumes, enhanced cost efficiencies from better fixed cost absorption, and notable savings in power expenses due to the operationalisation of their solar power plant, which led to an almost 18 per cent year-on-year reduction in energy cost per tonne. Consequently, Profit After Tax for Q1 FY26 surged by 435 per cent year-on-year to Rs 10.45 crore, up from Rs 1.95 crore in Q1 FY25. The company also recently announced plans to expand its CPW manufacturing capacity from the current 50 TPD to 100 TPD.

The company has a market cap of Rs 582.56 crore. The shares of the company have a PE of 40x, an ROE of 4 per cent and an ROCE of 5 per cent. The stock is up by 97.53 per cent from its 52-week low of Rs 117.25 per share and has given multibagger returns of 664 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.