GHCL Q4FY25 Update: Holding Strong Despite Market Challenges
Let’s talk about GHCL’s Q4FY25 performance. The results? Pretty much in line with what the market was expecting.s Yes, revenues dipped by 5.1% YoY, but that was kind of expected given the broader environment.
We’re in the middle of a challenging macro backdrop. Plus, the soda ash market? Still oversupplied. That combo naturally had some impact, especially on realisations—thanks to cheaper imports and softer global pricing trends.
Even then, GHCL managed to keep things in check on the margin front. The company reported an EBITDA margin of 27.9%, and that didn’t happen by chance. It came through structural cost efficiencies and plant-level optimisation—basically, running things tighter and smarter.
With all that in mind, there’s been a reduction in the valuation multiple to 5× FY27E EV/EBITDA. But the bottom line? Retain ADD.
Key Highlights from GHCL Q4FY25 Earnings
Here’s what stood out on the positive side:
-
Domestic soda ash volumes grew ~9% YoY in FY25. That’s solid growth.
-
Capacity utilisation was high at ~95%. Meaning the company is making the most of its installed capacities.
-
There’s growth visibility ahead, too. The commissioning of bromine and vacuum salt is expected in Q3FY26.
-
On the regulatory front, things are looking supportive. There’s a likely extension of the Minimum Import Price (MIP) on soda ash. Plus, the ongoing anti-dumping duty (ADD) application, if it goes through, could offer a good buffer against aggressive imports.
-
And longer term? GHCL’s greenfield plant and captive salt field at Zarazumara are part of a strategy to boost vertical integration and strengthen margins.
Challenges Ahead: Soda Ash Prices Remain Under Pressure
There are some near-term headwinds to keep an eye on:
-
Continued global oversupply of soda ash means pricing remains under pressure.
-
And with increased low-cost imports into India, realisations have taken a hit.
Final Take
So where does that leave us?
This update is a synopsis of the Research report issued by Kotak Securities Limited. If you’re thinking about making an investment move, don’t stop here. Refer to the full report for a complete picture and make sure to read the disclaimers.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262. Read full disclaimer here
