GHCL Ltd Q3 FY25 Earnings Call Highlights: Revenue Down, EBITDA Margin Rises Amid Industry Challenges.

GHCL Ltd reported a 32% EBITDA margin in Q3 FY25, up from 20.3% in Q3 FY24. Revenue decreased to INR 807 crores from INR 813 crores YoY. The company's strong performance was driven by increased production volumes and operational efficiency, contributing to better cost control and profitability. GHCL Ltd is debt-free with a net cash surplus of INR 920 crores. The company's growth in profit is heavily dependent on soda ash price recovery, which is expected to be impacted by the Minimum Import Price (MIP) and duties on solar glass imports.

GHCL Ltd, a leading commodity chemicals company based in India, reported a commendable performance in the third quarter of the financial year 2025 (FY25). The company's EBITDA margin expanded by a significant 32% year-over-year (YoY) to reach 20.8%, up from 15.3% in the previous quarter (Q2 FY25) [1]. Despite a slight decrease in revenue, which stood at INR 807 crores compared to INR 813 crores in the corresponding quarter last year [1], GHCL's strong operational performance and cost control measures contributed to better profitability.

The improved EBITDA margin was primarily driven by increased production volumes and operational efficiency. These factors enabled the company to achieve cost savings and maintain a healthy margin despite external headwinds such as weak demand in developed markets and cheap imports into India [1]. The Indian government's imposition of a Minimum Import Price (MIP) for soda ash is expected to mitigate the intensity of imports and support the domestic soda ash industry [1].

GHG's financial performance in the first half of FY25 (H1FY25) was less impressive, with net revenue declining by 10% YoY to INR 1,659 crores [1]. However, the company's operational strength enabled it to maintain a relatively stable EBITDA margin of 27.6% [1].

Looking ahead, the global soda ash market is expected to remain range-bound due to ongoing industry challenges and potential risks from geopolitical situations [1]. However, domestic prospects in India appear positive, with the government's efforts to encourage production of solar glass expected to support the domestic soda ash industry [1].

GHCL's growth prospects are not solely dependent on the soda ash market. The company is planning expansion initiatives around vacuum salt and bromine, which are expected to start contributing to its revenue from next year onwards [1].

In conclusion, GHCL Ltd's Q3 FY25 performance demonstrates the company's resilience and operational strength amidst challenging market conditions. With the government's support and planned expansion initiatives, the company is well-positioned to drive profitable growth and maximize shareholder value.

References:
[1] ICICI Direct. (2025, October 21). GHCL Ltd: Q3FY25 Results Announced. https://www.icicidirect.com/research/equity/rapid-results/ghcl-ltd