Gujarat Alkalies and Chemicals Limited (GACL) delivered steady financial growth in the third quarter ended December 31, 2025, while simultaneously advancing energy efficiency and approving major capacity expansion projects across its Vadodara and Dahej complexes. The company reported revenue of ₹1,008 crore for the quarter, up from ₹1,001 crore in the corresponding period last year. Meanwhile, standalone EBITDA rose 19% year-on-year to ₹135 crore, reflecting stronger operating performance and improved cost management.
Renewable Energy Push Lowers Production Costs
At the same time, GACL strengthened its sustainability profile by increasing the share of renewable energy in its overall power mix. The contribution of green energy climbed to 35.7%, compared with 29.7% a year earlier. The transition not only supports the company’s decarbonisation goals but also helps reduce production costs, improve operational efficiency, and enhance long-term competitiveness.
Board Clears Major Capex for Energy and Capacity Expansion
Building on its performance, GACL’s board approved three key capital expenditure projects aimed at strengthening energy security and expanding manufacturing capabilities.
Boiler Infrastructure Upgrade
The company will invest ₹389 crore to install four bio-fuel or coal-fired boilers at its Vadodara and Dahej facilities. These boilers will ensure reliable steam and power supply while improving energy efficiency across operations.
New Phosphoric Acid Plant
In addition, GACL approved a ₹560 crore investment to set up a 33,870 tonnes per annum (TPA) food-grade phosphoric acid plant at Dahej. The new facility will enhance value-added chemical production and cater to rising demand from food, beverage, and allied industries.
Caustic Potash Capacity Enhancement
Further, the company will allocate ₹80 crore to relocate electrolysers and boost caustic potash production capacity at the Vadodara complex, thereby improving operational flexibility and output.
Strengthened Financial Position
To support its expansion roadmap, the board also sanctioned a fresh ₹250 crore line of credit from Gujarat State Financial Services Ltd., ensuring adequate liquidity for upcoming projects. Additionally, GACL reported a one-time profit impact after revising the valuation methodology for spent palladium catalyst, resulting in a gain of ₹1,829.48 lakh during the quarter.
Outlook
Taken together, GACL’s stronger earnings, rising renewable energy adoption, and strategic capex approvals position the company for sustained growth. As reported by globalflowcontrol.com, by investing in energy infrastructure and value-added chemicals, the company continues to reinforce its footprint in India’s chemicals and petrochemicals sector while improving operational resilience.
