Financial Performance Highlights

H1 FY27 Results (April-September 2026)

  • Revenue from operations: ₹162 crores, up 31% year-on-year
  • EBITDA: ₹10 crores, significantly increased from approximately ₹3 crores in H1 FY26
  • EBITDA margin: 5.93%, expanded by 334 basis points year-on-year
  • Net loss: Approximately ₹3.5 crores
  • Sales volume: 446,769 cubic meters, up 22% year-on-year
  • Capacity utilization: 68.74%

Q2 FY27 Results (July-September 2026)

  • Revenue from operations: Approximately ₹83 crores, up 23% year-on-year
  • EBITDA: Approximately ₹3 crores, up 74% year-on-year
  • EBITDA margin: 3.98%, expanded by 116 basis points year-on-year
  • Net loss: Approximately ₹2.75 crores
  • Sales volume: 225,241 cubic meters, up 13% year-on-year
  • Capacity utilization: 69.34%

Operational and Business Updates

Record Performance

  • Company achieved highest ever monthly turnover and sales volume in October 2026
  • Demonstrates growing market acceptance and strong customer relationships

Capacity Utilization Trends

  • H1 FY26 utilization: 56-57%
  • H1 FY27 utilization: 68.74% (approximately 17-18% increase)
  • Target: Improve to 75% utilization in H2 FY27

Product Mix

  • AAC blocks: 87-88% of total volume
  • AAC panels: 5-6% of total volume
  • Construction chemicals: 5-6% of total volume

New Orders and Projects

  • Received order from AdaniConneX for data center in Hyderabad
  • Executing walling requirements for multiple bullet train stations on Mumbai-Ahmedabad route
  • In advanced discussions with large conglomerates for additional orders
  • Working with Foxconn factories and Embassy Group

Input Cost Pressures

  • Overall input costs increased 8-12% due to geopolitical developments and supply-side pressures
  • Key increases: Lime prices up 3-4%, aluminum powder prices up 15-20% in Q2 (with some reversal in October)
  • Partially passed through 5-7% price increases to customers
  • Planning additional 5-7% price increases in upcoming quarters

Raw Material Cost Structure

  • By quantity: Fly ash 65%, cement 20-22%, lime 10-12%, gypsum 1%, aluminum powder minimal
  • By value: Cement 25-30%, lime 15-20%, fly ash 10-15%, aluminum powder 12-15%, gypsum 3-5%
  • Logistics cost: 20-30% of total volumes

Operational Initiatives

  • Enhancing automation in boiler operations and material handling systems
  • Transitioning from rented forklifts to own electric vehicle fleet
  • Rooftop solar installations: 3.5 megawatts aggregate capacity across facilities
  • Electric forklift implementation across all 4 plants in Q3 FY27
  • Boiler automation across 3 plants to be completed next quarter
  • Expected EBITDA margin improvement: 2-3% from operational efficiencies

Financial Position

  • Debt-to-equity ratio: 1.4x (reduces to 1.2x considering promoter infusions as equity)
  • Sales receivables: Approximately ₹70 crores in H1 FY27
  • Collection cycle: 70-80 days
  • Credit insurance policy taken from Tata AIG for large corporate receivables

Construction Chemicals Business

  • Started manufacturing in Q1 FY27 (previously white-labeled)
  • Potential revenue capacity: ₹20-25 crores
  • Currently at lower capacity utilization

Expansion Plans

  • Land acquired in Madhya Pradesh (57,000 square meters)
  • Government approvals and CPCB plan pass completed
  • Construction not yet started due to economic scenario and geopolitical situations
  • Expansion decision expected in next 1-2 quarters

Market Dynamics

  • Red bricks approximately 10-15% more expensive than AAC blocks
  • Transportation cost advantage due to lower density of AAC blocks (3x lighter)
  • Industry-wide conversion from red bricks to AAC blocks ongoing
  • No major new capacity additions in operating regions
  • Some competing plants reportedly shut down or up for sale

Customer Base

  • 60-65% customer retention rate
  • Key customers include Paradise, L&T, Runwal, Sunteck, Capacit'e Infraprojects
  • Own fleet of 70-75 trucks for customized customer service
  • Sales network covering 300-350 km radius from plants