Lords Chloro Alkali reports 21.26% operating margin in Q1FY27
Standalone net profit reached Rs 14.95 cr as management cited better caustic soda realizations, while outlining Rs 315 cr of planned FY24-FY28 capex.
Filed 27 Jul 2026, 18:57 IST · after market close · LORDSCHLO (LORDSCHLO)
Key takeaways
- Lords Chloro Alkali reported standalone Q1FY27 net profit of Rs 14.95 cr, with an 8.18% tax rate supporting the conversion from pre-tax profit.
- Operating margin was 21.26%, as management attributed the quarter to higher caustic soda production, improved realizations and prudent cost management.
- Management outlined Rs 315 cr of FY24-FY28 capex, including a planned 21 MW solar plant and 100 TPD caustic soda expansion.
Q1FY27 profit reflects operating earnings, not other income
Lords Chloro Alkali reported standalone operating profit of Rs 22.61 cr on revenue of Rs 106.35 cr, translating into a 21.26% operating margin. Other income was only Rs 0.22 cr against pre-tax profit of Rs 16.29 cr, so reported profit was driven mainly by the operating business rather than non-operating income. The 8.18% tax rate also kept the tax charge at Rs 1.33 cr and supported net profit of Rs 14.95 cr.
Better caustic soda realizations supported the quarter
Management said caustic soda lye realizations improved during the quarter and demand across key end-user industries remained steady. The company also attributed the performance to higher caustic soda production and prudent cost management. The presentation flags increased grid electricity rates in October 2025 as a cost setback, while freight economics from Gujarat were said to discourage imports and protect pricing power.
Expansion plan centres on solar power and downstream capacity
Management said the company expects CPW to contribute to revenue over the next 2–3 years. It outlined Rs 315 cr of FY24-FY28 capex for capacity expansion, renewable energy and downstream diversification, including a planned 21 MW solar plant and 100 TPD caustic soda expansion in FY26-FY27. The presentation also says the programme includes backward integration through a new flaker unit.
Results were filed after market close
The standalone results were filed after market close on 27 July 2026. There is no post-results market reaction to assess yet, and the available information does not provide a recent reaction history for comparison.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹106 cr |
| Other income | ₹0 cr |
| Expenses | ₹84 cr |
| Operating profit | ₹23 cr |
| Operating margin (%) | 21.26% |
| Interest | ₹2 cr |
| Depreciation | ₹4 cr |
| Profit before tax | ₹16 cr |
| Tax | ₹1 cr |
| Net profit | ₹15 cr |
| EPS (₹) | ₹5.22 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- During the quarter, caustic soda lye realizations improved and demand across key end-user industries remained steady.
- The quarter included higher caustic soda production, improved product realizations and prudent cost management.
Guidance & outlook
- The company expects CPW to contribute to revenues over the next 2–3 years.
- The company remains optimistic about the chloro-alkali industry demand outlook, supported by healthy industrial activity and favourable market dynamics.
Expansion
- LCAL plans a total capex outlay of Rs. 315 crore across FY24–FY28 for capacity expansion, renewable energy and downstream diversification.
- The company plans a 21 MW solar plant and 100 TPD caustic soda capacity expansion in FY26–FY27.
- The company plans to set up a 21 MW solar power plant, targeted to be operational by June 2026.
New initiatives
- The expansion includes backward integration and an improved value chain through a new flaker unit.
- The company has phased out mercury cells in favour of cleaner production technology.
Competition
- LCAL says freight economics discourage imports from Gujarat, protecting its pricing power.
- The company is among the few players based in North India, with total capacity of approximately 300 TPD.
Problems & risks
- LCAL reported a setback from increased grid electricity rates in October 2025.
What to watch
- Operating margin in the next quarter versus the 21.26% Q1FY27 base.
- Reported progress on the planned 100 TPD caustic soda expansion.
- Whether CPW begins contributing to revenue within management's stated 2–3-year timeframe.