diff --git a/config-daemon.ac b/config-daemon.ac
index f96cc8f7ac..8c1c776133 100644
--- a/config-daemon.ac
+++ b/config-daemon.ac
@@ -51,7 +51,7 @@ if test "x$guix_build_daemon" = "xyes"; then
     no)
       LIBGCRYPT_LIBS="-lgcrypt"
       ;;
-   *)
+    *)
       LIBGCRYPT_LIBS="-L$LIBGCRYPT_LIBDIR -lgcrypt"
       ;;
   esac
diff --git a/configure.ac b/configure.ac
index 38e9ec56b7..bb3d947535 100644
--- a/configure.ac
+++ b/configure.ac
@@ -169,6 +169,9 @@ case "x$LIBGCRYPT_PREFIX$LIBGCRYPT_LIBDIR" in
     GUIX_LIBGCRYPT_LIBDIR([LIBGCRYPT_LIBDIR])
     if test "x$LIBGCRYPT_LIBDIR" != x; then
       LIBGCRYPT="$LIBGCRYPT_LIBDIR/libgcrypt"
+    else
+      dnl 'config-daemon.ac' expects "no" in this case.
+      LIBGCRYPT_LIBDIR="no"
     fi
     ;;
 esac
diff --git a/m4/guix.m4 b/m4/guix.m4
index d464a478ca..842249a848 100644
--- a/m4/guix.m4
+++ b/m4/guix.m4
@@ -279,7 +279,7 @@ AC_DEFUN([GUIX_LIBGCRYPT_LIBDIR], [
   AC_CACHE_CHECK([libgcrypt's library directory],
     [guix_cv_libgcrypt_libdir],
     [if test "x$LIBGCRYPT_CONFIG" != "x"; then
-       guix_cv_libgcrypt_libdir=`$LIBGCRYPT_CONFIG --libs | sed -e "s/.*-L\([[^ ]]\+\)[[[:blank:]]]\+-lgcrypt.*/\1/g"`
+       guix_cv_libgcrypt_libdir=`$LIBGCRYPT_CONFIG --libs | grep -e -L | sed -e "s/.*-L\([[^ ]]\+\)[[[:blank:]]]\+-lgcrypt.*/\1/g"`
      else
        guix_cv_libgcrypt_libdir=""
      fi])