GOYALSALT - Goyal Salt
Financial Performance
Revenue Growth by Segment
The company operates in a single segment of salt refining, which saw revenue grow 41.1% YoY to INR 88.31 Cr in H1 FY26 compared to INR 62.58 Cr in H1 FY25.
Geographic Revenue Split
Not specifically disclosed, though operations are concentrated in Rajasthan and Gujarat.
Profitability Margins
Net Profit Margin improved to 7.22% in H1 FY26 from 6.27% in H1 FY25. Profit Before Tax (PBT) grew 65.2% YoY to INR 8.53 Cr.
EBITDA Margin
Operating profit before working capital changes stood at INR 10.19 Cr for H1 FY26, representing a core profitability margin of approximately 11.5%.
Capital Expenditure
The company invested INR 6.79 Cr in fixed assets during H1 FY26, following a significant capital outlay of INR 27.44 Cr in FY25 for the Gandhidham facility.
Credit Rating & Borrowing
Crisil Ratings assigned a 'Stable' outlook with a moderate networth of INR 42.2 Cr (as of March 2024). Finance costs for H1 FY26 were INR 1.34 Cr on total borrowings of INR 46.85 Cr.
Operational Drivers
Raw Materials
Raw Salt is the primary raw material, accounting for the bulk of the 90% total expense-to-revenue ratio.
Import Sources
Sourced domestically from the salt-producing regions of Gandhidham and Kutch in Gujarat.
Key Suppliers
Not disclosed in available documents, though the company maintains established relationships with regional salt producers.
Capacity Expansion
The new manufacturing facility at Gandhidham became fully operational on November 07, 2025, which is expected to significantly increase production volumes.
Raw Material Costs
Total expenses grew 39% YoY to INR 79.78 Cr in H1 FY26, largely driven by raw material procurement to support a 41% revenue increase.
Manufacturing Efficiency
Not specifically disclosed, but the commencement of the Gandhidham unit indicates a shift toward higher-scale automated refining.
Strategic Growth
Expected Growth Rate
41%
Growth Strategy
Growth is driven by the full operationalization of the Gandhidham facility as of November 2025, which allows for higher volumes of triple-refined salt and industrial salt to meet growing demand in the chemical and consumer sectors.
Products & Services
Triple Refined Free Flow Iodised Salt and Industrial Salt.
Brand Portfolio
Goyal Salt.
Market Expansion
Expansion into the Gandhidham region to leverage Gujarat's salt production ecosystem for national distribution.
External Factors
Industry Trends
The industry is seeing a 5-7% growth trend in iodized salt due to health awareness and a shift toward branded products, while industrial salt demand is rising from the chlor-alkali sector.
Competitive Landscape
Fragmented market with competition from large national brands and numerous unorganized regional players.
Competitive Moat
The moat is built on the promoters' extensive experience since 2010 and the strategic location of refining units near raw material sources, which is sustainable due to high logistics costs for competitors located further away.
Macro Economic Sensitivity
Sensitive to industrial GDP growth, which dictates demand for industrial salt, and inflation in logistics/fuel costs.
Consumer Behavior
Increasing consumer preference for triple-refined and branded iodized salt over traditional crystal salt.
Geopolitical Risks
Low, as the business is focused on domestic essential commodities.
Regulatory & Governance
Industry Regulations
Operations must comply with FSSAI standards for edible salt iodization and pollution control board norms for refinery discharge.
Taxation Policy Impact
The effective tax rate for H1 FY26 was approximately 24.2%, with a current tax provision of INR 2.06 Cr.
Risk Analysis
Key Uncertainties
Working capital intensity is the primary risk; combined inventory and receivables (INR 95.88 Cr) now exceed half-year revenue (INR 88.31 Cr).
Geographic Concentration Risk
High concentration in Rajasthan and Gujarat, making the company vulnerable to regional economic or climatic disruptions.
Third Party Dependencies
High dependency on raw salt suppliers in the Kutch region for consistent refinery input.
Technology Obsolescence Risk
Low risk as salt refining technology is mature and stable.
Credit & Counterparty Risk
Trade receivables increased from INR 15.15 Cr to INR 51.60 Cr in six months, indicating a potential stretch in credit terms to drive sales growth.