Dai-ichi Karkaria Limited announced a major expansion of its alkoxylation project at its Dahej manufacturing facility in Gujarat. The company plans to add 5,000 metric tons per annum (MTPA) of additional production capacity, which will double the plant’s total alkoxylation capacity to 10,000 MTPA. The expansion reflects the company’s strategy to capitalise on rising market demand and prepare for the next phase of growth in the specialty chemicals sector.
Capacity Expansion Driven by Strong Plant Utilisation
The existing alkoxylation facility is currently operating at nearly 95% capacity utilisation, leaving limited room for further production growth. By expanding the Dahej plant, Dai-ichi Karkaria aims to strengthen its manufacturing capabilities and improve its ability to meet increasing demand from key end-use industries. The company expects sectors such as textiles and paints to contribute significantly to future demand recovery, creating new growth opportunities for its alkoxylation products.
Expansion to Be Funded Through Internal Accruals
One of the key highlights of the project is the company’s disciplined financial approach. Dai-ichi Karkaria stated that the ₹10 crore investment will be fully funded through internal accruals, allowing the company to avoid taking on additional debt. This strategy is expected to help protect the company’s balance sheet and minimise interest-related financial pressure during the ongoing recovery cycle in the chemical industry.
Signs of Recovery Emerging in FY26
Although FY26 remained challenging for the broader chemical sector due to weak global pricing trends, the company reported early signs of operational recovery in recent quarters. Dai-ichi Karkaria returned to profitability in Q4 FY26, reporting a net profit of ₹0.09 crore compared to a net loss of ₹0.86 crore in Q3 FY26. Sequential revenue also improved by 8.35% during the quarter, indicating stabilising market conditions.
Full-Year FY26 Performance Reflects Industry Challenges
For the full financial year FY26, the company reported consolidated sales of ₹161 crore, reflecting an 11.05% decline compared to ₹181 crore in FY25. The decline was primarily attributed to softer global chemical prices and challenging market conditions across the industry. Despite these pressures, Dai-ichi Karkaria maintained its focus on shareholder returns. The company reported a consolidated net loss of ₹0.74 crore for FY26 but still recommended a final dividend of 15%, equivalent to ₹1.50 per share.
Company Positions for Future Growth
With the Dahej expansion project, Dai-ichi Karkaria is positioning itself to capture future growth opportunities as demand gradually recovers across industrial and specialty chemical segments. As reported by tradebrains.in, the company believes that expanding production capacity while maintaining financial discipline will strengthen its long-term competitiveness and support sustainable growth in the evolving chemical market.
