Chemfab Alkalis Ltd

AGM Details

• AGM on 9 September 2026 at 10:00 AM IST; via VC/OAVM.
• Record date 2 September 2026; book closure 3–9 September 2026.

Resolutions

• Ordinary: Adoption of standalone and consolidated financial statements.
• Ordinary: Reappointment of director retiring by rotation.
• Ordinary: Dividend declaration at ₹125 per equity share.
• Ordinary: Appointment of statutory auditors for five years.
• Special: Ratification of cost auditor's remuneration of ₹190,000.
• Special: Commission to non-executive directors up to 11% of net profits.
• Special: Commission divisible among directors as the Board decides.

Dividend Details

• Dividend proposed/approved: ₹125 per equity share; record date 2 Sept 2026; book closure 3–9 Sept 2026.

Director Changes

• Reappointment of Suresh Krishnamurthi Rao, retiring by rotation.

Auditor Appointments

• Statutory auditors M S K C & Associates LLP appointed for 5 years; board to approve remuneration.

Material Related Party Transactions

• No material related party transactions disclosed.

Other Material Approvals

• Remuneration approvals for cost auditor and director commissions.

Voting Results

• Outcomes not disclosed in the provided excerpt.

Financial snapshot

• Consolidated revenue ₹311.02 crore; standalone ₹288.56 crore for FY26.
• Standalone PAT ₹7.51 crore; consolidated PAT at a loss of ₹3.43 crore.
• EPS (standalone) ₹5.22; final dividend ₹1.25 per share.

Segment performance

• Chlor Alkali revenue ₹195.69 crore; OPVC pipes ₹93.47 crore in FY26.
• OPVC capacity expanded to 20,000 TPA; Line 7 planned for 23,000 TPA in FY27.
• Largest OPVC plant at Sri City; 15 states approved OPVC pipes.

Capex and capacity expansion

• New generation electrolyser commissioned Nov 2025; hybrid power project readied.
• Hybrid power to meet ~55% of energy; supply to begin FY27.
• OPVC Lines 5 and 6 raised capacity to 20,000 TPA; Line 7 to 23,000 FY27.

Sustainability and CSR

• CSR spend ₹105.51 lakh; focus education, water, healthcare, environment.
• WOW brine sludge bricks; Miyawaki forests; pond restoration; water stewardship.

Governance & risk

• Board 7 non-exec; 4 independent; Satish Narain Jajoo joined May 2025.
• Independent Directors met 10 Mar 2026; Audit Committee met 5 times FY26.
• ISO 14001/45001; SAP S/4HANA migration; strong internal controls.

Audit & governance flags

• Statutory auditors: Deloitte Haskins & Sells; Secretarial auditors engaged; no material fraud noted.
• Secretarial audit notes compliance; name-change of Karaikal subsidiary completed.

Outlook and risks

• Jal Jeevan Mission 2.0 funding resumed; FY27 demand recovery expected.
• Chlor-alkali margins tied to global price cycles; focus on cost discipline and green manufacturing.

Dividend & shareholder matters

• Final dividend proposed ₹1.25 per share; record date 02 Sep 2026.
• Dividend payable within 7 days after AGM; promoter holdings remain robust.

AR access and AGM update

• AR 2025-26 access link sent to shareholders with unregistered emails; AGM notice issued.
• Weblink to AR 2025-26 PDF provided on company website.
• 17th AGM on 9 September 2026 at 10:00 AM IST via VC/OAVM.
• AGM notice and AR sent by email to registered shareholders as on 07 Aug 2026.
• Requests missing KYC details; forms downloadable from Cameo and AR portal.
• Wisdom portal by RTA Cameo for investor queries.
• Letter signed by Company Secretary Bharatraj Panchal.

Dividend record date

• Record date fixed as Wednesday, 02 September 2026 for final dividend.
• Final dividend for FY 2025-26 will be declared at the AGM on 09 September 2026.

Financial performance

• Consolidated revenue from operations: ₹31,102.27 Lakhs (FY26).
• Standalone revenue: ₹28,856.60 Lakhs (FY26).
• Consolidated EBITDA: ₹3,590.64 Lakhs; Standalone EBITDA: ₹4,268.65 Lakhs.
• Consolidated PBT: ₹-20.00 Lakhs; PAT (consolidated): ₹-342.65 Lakhs.
• Total comprehensive income (consolidated): ₹-283.57 Lakhs.
• Dividend per share: ₹1.25; total dividend ₹179.67 Lakhs.
• Net debt to equity: 0.29x; current ratio 1.12x.

Business segments & capacity

• Chemicals & related products revenue: consolidated ₹21,814.51 Lakhs; OPVC pipes ₹9,287.76 Lakhs.
• Consolidated segment results before exceptional items: Chemicals −₹1,709.99 Lakhs; OPVC Pipes ₹1,589.88 Lakhs.
• Chlor Alkali capacity: 65,700 TPA; OPVC capacity: 20,000 TPA.
• OPVC pipes approved in 15 states; Jal Jeevan Mission 2.0 and AMRUT 2.0 support demand.
• FY26: Lines 5-6 commissioned, raising OPVC capacity to 20,000 TPA; Line 7 to 23,000 by FY27.

Capex & capacity expansion

• Major capex completed: new generation electrolyser (Nov 2025) and hybrid power.
• OPVC Lines 5 & 6 commissioned; Lines 7 to complete Sri City site (23,000 TPA) in FY27.
• OPVC market size FY26 ₹225 crore; projected ₹1,000 crore by FY29.
• CAPEX additions to CWIP: ₹14,087.90 Lakhs in FY26.

Liquidity & capital structure

• Consolidated borrowings ₹12,296 Lakhs; net debt to equity 0.29x.
• Cash and cash equivalents (consolidated) ₹754.50 Lakhs; undrawn facilities exist.
• Axis Bank covenant breach on current ratio (0.73); lender waived default; not treated as default.
• Dividend proposed post-AGM: ₹1.25 per share; payout expected within 7 days of AGM.

Governance & controls

• Board size seven; four Independent Directors; Satish Narain Jajoo appointed Independent Director 30 May 2025.
• Auditors: Deloitte Haskins & Sells LLP reappointed as Statutory Auditors for five years.
• Secretarial audit: M Damodaran & Associates; ESOP disclosures and Annexures reported.
• SAP S/4HANA migration completed; robust internal controls and quarterly internal audits.

ESG & CSR performance

• FY26 CSR spend: ₹105.51 Lakhs; seven focus areas including education, safe drinking water, health.
• Projects: RO drinking water in government institutions; Miyawaki forests; pond restoration; rural development.
• 71 farmers benefited; 1,300 students gained access to safe RO water; STEM centers established.

Audit flags & related party notes

• Related parties: Sale of products to Team Hiitec; purchases from Team Hiitec; inter-corporate deposits.
• Significant related party transactions disclosed; no default or material non-compliance beyond noted items.
• Secretarial and audit committees oversee governance; material related-party disclosures in Annexures.

Outlook & risks

• Chlor Alkali pricing is cyclical; energy costs are key margin drivers.
• OPVC market reliant on Jal Jeevan Mission funding; approvals resumed in 2026-27.
• Hybrid power plan to supply ~55% of energy by FY27; renewable sourcing to improve cost base.

Notable governance/structural changes

• Independent Director Satish Narain Jajoo appointed in 2025; board compliance updated per SEBI LODR.
• Name change of subsidiary Chemfab Karaikal Limited to Chemfab Karaiikal Limited in Dec 2025.
• Two wholly owned subsidiaries: Chemfab Karaiikal Limited and Chemfab Hiitech Piping Limited.

AGM details

• Seventeenth AGM on 09 September 2026 at 10:00 AM IST via VC/OAVM.
• Record date: 02 September 2026; book closure 03-09-2026 to 09-09-2026.

Key resolutions

• Adopt Audited standalone and Consolidated financial statements for year ended 31 March 2026.
• Reappointment by rotation of Director Suresh Krishnamurthi Rao, non-independent and non-executive.
• Dividend proposal: INR 125 per equity share.
• Appointment of M S K C & Associates LLP as Statutory Auditors for five years.
• Ratification of Cost Auditor remuneration of INR 1.90 lakh for FY 2026-27.
• Payment of Directors' commission up to 11% of net profits; cap for single non-exec director.

Voting status

• Voting results to be declared after Scrutinizer's report and posted on company and exchange websites.

Director changes

• Director Suresh Krishnamurthi Rao to be reappointed; retires by rotation.

Auditor appointments

• Statutory Auditor appointed for five-year term; remuneration to be approved by the Board.

Q1 FY27 highlights

• Consolidated revenue ₹73.16 cr; EBITDA ₹10.13 cr; EBITDA margin 13.85%.
• OPVC revenue ₹5.75 cr; EBITDA ₹2.39 cr; EBITDA margin 41.57%.
• ECU realisations ₹39,600/MT in Q1FY27, up from ₹39,100/MT.
• 10 MW Captive Hybrid Power commenced 25 May 2026; expected long-term cost savings.

OPVC pipes business

• OPVC capacity: 6 lines at 20,000 TPA; target 23,000 TPA by FY27.
• Molecor partnership enables 110–630 mm OPVC pipes; plug-and-play lines within 15 days.
• OPVC market ₹225 crore in FY26; projected ₹1,000 crore by FY29.
• JJM extended to 2028; AMRUT 2.0 budget ₹67,000 crore to drive OPVC demand.