Lords Chloro Alkali Ltd

Lords Chloro Alkali Limited — Trading window closed from 1 October 2026 until 48 hours after the declaration of un-audited financial results for the quarter ended 30 September 2026.

AGM Details

• Date, time, venue: 11 Sep 2026, 11:30 AM at registered office (physical meeting).
• Mode: Physical AGM; no VC/OAVM indicated.
• Record date: 04 Sep 2026.
• Shareholders on record: 47,662.
• Attendance: 46 shareholders present; promoter group not present.
• Resolutions passed: 11.

Key Resolutions

• Item 1 (Ordinary): Adopt Audited Financial Statements and Board reports.
• Item 2 (Ordinary): Reappointment by rotation of director Srishti Dhir.
• Item 3 (Ordinary): Re-appointment of Nemani Garg Agarwal & Co. as Statutory Auditors.
• Item 4 (Ordinary): Ratify Cost Auditors' remuneration for FY 2026-27.
• Item 5 (Special): Payment of remuneration to Shri Ajay Virmani, MD.
• Item 6 (Special): Remuneration to Shri Madhav Dhir, Whole Time Director.
• Item 7 (Special): Remuneration to Shri Deepak Mathur as Whole Time Director.
• Item 8 (Special): Increase in borrowing limit under Section 180(1)(c).
• Item 9 (Special): Creation/Modification of Mortgage/Charge over properties.
• Item 10 (Special): Increase in managerial remuneration limits for MD and WTDs.
• Item 11 (Special): ESOP Scheme - 2026 approved.

Voting Outcomes

• Item 1: Passed; majority in favour.
• Item 2: Passed; promoter group votes not counted due to interest.
• Item 3: Passed; broad support.
• Item 4: Passed; Cost Auditors remuneration ratified.
• Item 5: Passed; MD remuneration approved; promoter votes excluded.
• Item 6: Passed; WTD remuneration approved; promoter votes excluded.
• Item 7: Passed; Deepak Mathur remuneration approved; promoter votes excluded.
• Item 8: Passed; borrowing limit increased.
• Item 9: Passed; mortgage/charge approved.
• Item 10: Passed; managerial remuneration limit increased.
• Item 11: Passed; ESOP Scheme 2026 approved.
• Overall turnout around 83.5%.

Director Changes

• Srishti Dhir reappointed as Director (retired by rotation).

Auditors & Remuneration

• Statutory auditors reappointed: Nemani Garg Agarwal & Co.
• Cost Auditors remuneration ratified for FY 2026-27.

Captive solar project update

• 5 MW AC, 21 MW DC captive solar plant with 1.672 MWh BESS commissioned at Lunkaransar, Rajasthan.
• Commissioning completed and operations commenced after grid synchronization and commissioning certification.
• Total captive renewable capacity increased to 47 MW DC.
• Date of commissioning: 2 September 2026.
• Date provides potential renewable energy share uplift and longer-term energy cost efficiency benefits.

Meeting Details

• Date: 04 September 2026; Physical, one-on-one investor meet.

Participants

• Company representatives: Senior Management Team.

Purpose

• Discussion with investors/analysts on the company.

Additional Notes

• Details subject to change.

Financial performance

• Revenue from operations rose to ₹39,013.70 lakh, up from ₹27,022.23 lakh.
• EBITDA rose to ₹66.38 crore.
• Profit after tax stood at ₹28.49 crore.
• Net profit margin improved to 7.30% (FY25: 2.29%).
• Dividend not declared in FY2025-26.

Capacity & operations

• Caustic Soda capacity 300 TPD; target 360 TPD by FY27.
• CPW capacity expansion to 100 TPD by FY27.
• Downstream CPW expansion strengthens product mix.

Renewable energy & ESG

• 16 MW captive solar plant commissioned.
• Plan to add 21 MW solar expansion; target 40-50% renewables.
• Total renewable energy mix target 40-50%.

Capital structure & liquidity

• Total borrowings ₹16,195.38 lakh; long-term ₹9,637.05 lakh; current ₹6,558.35 lakh.
• Cash and cash equivalents ₹2,943.08 lakh; total cash ₹29.43 crore.
• 35 lakh warrants converted; issued capital now ₹28.66 crore.
• ICRA rating BBB+ (Stable) assigned.

Governance & remuneration

• MD Ajay Virmani fixed remuneration ₹2.40 crore; incentives 4% of EBDT above ₹10 crore.
• Madhav Dhir fixed remuneration ₹2.40 crore; 25% rent-free accommodation.
• ESOP Scheme 2026 up to 10 lakh options; NRC to administer.
• Remuneration approvals: MD reappointed; Srishti Dhir reappointed; Sandeep Singh 2nd term.

Audits & compliance

• Auditor notes shortfall of 97.5 lakh OA units; Rs 215 lakh recognized.
• RIICO tax dispute: Jaipur High Court order in 2026; interest ₹50.88 lakh paid.
• IFSTL ₹11.64 lakh payable to IEPF; reconciliation pending.

CSR & related party

• CSR spend ₹58.06 lakh; minimum ₹49.89 lakh; excess ₹8.17 lakh carried forward.
• Cirrus Chemicals sold hydrogen gas ₹413.77 lakh.
• Related party transactions largely in ordinary course; arm's length.

Market & risk outlook

• India caustic soda market shows positive growth; expansion poised to improve margins.
• Key risks include energy price volatility and import competition.

AGM Details

• AGM date/time: 11 September 2026 at 11:30 AM, physical at registered office.
• Book closure: 5–11 September 2026.
• EV voting cut-off: 4 September 2026.
• Remote e-voting: 7–10 September 2026.
• Notice and annual report available on company website.

Ordinary Business

• Adoption of Audited Financial Statements for year ended 31 March 2026.
• Reappointment of Ms. Srishti Dhir as Director (retiring by rotation).
• Reappointment of M/s Nemani Garg Agarwal & Co. as Statutory Auditors.

Special Businesses

• Ratify remuneration of Cost Auditors for 2026-27.
• Remuneration to Ajay Virmani as Managing Director fixed Rs 2.40 crore per annum.
• Remuneration to Madhav Dhir as Whole Time Director fixed Rs 2.40 crore per annum.
• Remuneration to Deepak Mathur as Whole Time Director up to Rs 1 crore per annum.
• Increase borrowing limit under section 180(1)(c) to Rs 500 crore.
• Creation/modification of mortgage/charge to secure borrowings up to Rs 500 crore.
• Increase in limit of managerial remuneration payable to Directors.
• Approval for Lords Chloro Alkali Employee Stock Option Scheme-2026.

Dividend Status

• Dividend for 2025-26 was not declared.

Auditors & Remuneration

• Statutory Auditor: reappointment for 5 years (2026-2031) with remuneration Rs 5 lakh per annum plus out-of-pocket expenses.
• Cost Auditor: remuneration for 2026-27 Rs 75,000; ratification sought.

Material Related Party Transactions

• Related party Cirrus Chemicals Private Limited; sale of hydrogen gas; Rs 413.77 Lakhs; 10-year term.

ESOP Scheme 2026

• Approval of Lords Chloro Alkali Employee Stock Option Scheme-2026.
• Not more than 10,00,000 options may be granted; exercisable into equal shares.
• Administered by Nomination & Remuneration Committee; direct issue from company.
• Vesting: minimum 1 year, maximum 3 years.
• Exercise price linked to market price; cannot exceed market price; no lock-in.
• Schemes to be implemented via fresh allotment from the company.

Business Overview

• LCAL is a North India caustic soda and downstream chemicals producer transitioning to green chemistry.
• Strategy focuses on solar integration and CPW downstream to stabilize chlorine absorption and margins.

Operational Highlights

• Caustic soda capacity up from 210 to 300 TPD, ~80% utilization.
• CPW capacity up from 20 to 50 TPD; expansion to 100 TPD by FY27 end.
• 16 MW solar plant commissioned; 10 MW hybrid plant; 21 MW solar project planned.
• Total capex plan of Rs 315 crore for FY24-28; Rs 150 crore completed; Rs 165 crore ongoing.

Financial Performance

• Q1 FY27 total income Rs 106.56 crore; EBITDA Rs 22.83 crore; PAT Rs 14.96 crore; EBITDA margin 21.42%.
• FY26 full-year: total income Rs 393.10 crore; EBITDA Rs 66.38 crore; PAT Rs 28.49 crore; EBITDA margin 16.89%.
• YoY revenue growth driven by higher volumes and realizations; best operating profits in LCAL history.

Capital Structure & Liquidity

• Debt-to-equity stands at 0.67 as on March 2026.
• Capex funded through internal accruals and debt; balance sheet strength maintained.

Strategic Priorities & Outlook

• Renewable energy target: 40-45% in short term; 80% in medium term.
• Downstream diversification via CPW to improve chlorine absorption and margins.
• Expanded capacity and renewed energy mix to strengthen competitive position.

Risks & Mitigation

• Energy costs are a major component; renewables reduce exposure, grid-rate increases mitigated by captive power.
• CPW integration stabilizes chlorine absorption and caustic soda production.

Governance & Leadership

• Management team includes Ajay Virmani (MD), Madhav Dhir (Executive Director), and Deepak Mathur (Technical Director).

Financial highlights (Q1 FY27)

• Total Income Rs 106.34 crore, up 6.13% YoY.
• EBITDA Rs 22.83 crore; margin 21.42%.
• PAT Rs 14.96 crore; up 43.16% YoY.
• Volume CSL: 106.56 MT in Q1 FY27.
• Highest-ever quarterly Total Income, EBITDA and PAT reported.

Outlook and strategy

• Optimistic demand outlook for chloro-alkali industry.
• Focus on operational excellence and timely execution of growth initiatives.
• Disciplined capital allocation and downstream value addition emphasized.
• Expansion projects on track with financial discipline.

Capacity and assets

• Installed capacity: 300 MT/day Caustic Soda; CPW 50 TPD.
• Solar park of 16 MW and a 10 MW hybrid captive project.