Financial Performance Highlights

Standalone Performance (Q1 FY27):

  • Revenue: ₹824 crores, up 10% YoY
  • EBITDA: ₹97 crores, up nearly 70% YoY
  • EBITDA Margin: Expanded by 420 basis points

Consolidated Performance (Q1 FY27):

  • Revenue: ₹1,174 crores, up 11.6% YoY
  • EBITDA: ₹80 crores, up 35% YoY

Segment-wise Performance

Roofs Segment:

  • Record revenue of ₹517 crores, up 17% YoY
  • Market share gain of approximately 100 basis points (1%)
  • EBITDA margin improved by 390 basis points to 18.2%
  • Volume growth of approximately 10%

Walls Segment:

  • Revenue growth of 14% YoY
  • EBITDA margin expanded by 270 basis points to 10.2%
  • Healthy volume expansion across panels and blocks categories

Pipes Segment:

  • Revenue declined by 11% YoY
  • Volumes declined by 27% YoY
  • EBITDA margin expanded by 660 basis points despite challenging conditions
  • Impacted by PVC resin price volatility (60% increase in March, 30% decline in April)
  • Expect moderate growth in Q2 FY27

Construction Chemicals:

  • Revenue growth of 11% YoY
  • Faced raw material price inflation exceeding 50%
  • Disruptions in customer industries (tile industry specifically mentioned)

Parador Subsidiary:

  • Revenue stable in euro terms year-on-year
  • EBITDA loss of ₹13 crores compared to profit of ₹5 crores in Q1 FY26
  • Order book up over 10% year-on-year
  • €1 million in one-time costs (SAP migration expense and advanced plant maintenance)
  • Expect improved margin profile in H2 FY27
  • BCG engaged for cost optimization program targeting 300-400 basis point EBITDA uplift

Strategic Initiatives and Capacity Expansion

New Capacity Investments:

  • Board approved new greenfield designer board manufacturing facility in Hyderabad
  • Estimated capital outlay: ₹167 crores
  • Expected revenue: ₹140 crores
  • Asset turnover target: 0.9x
  • Existing Nellore Boards plant commissioning expected in Q4 FY27

Other Strategic Initiatives:

  • Commissioned additional solar capacity at 2 manufacturing facilities
  • Commenced enterprise-wide AI roadmap implementation
  • Clean Coats business contributed ₹9 crores revenue in Q1 FY27

Balance Sheet and Capital Management

Working Capital:

  • Reduced working capital by approximately ₹100 crores year-on-year
  • Inventory reduction through optimized fiber stock management
  • 30% reduction in receivables through tightened credit controls

Borrowings:

  • Gross borrowings reduced from ₹852 crores (March 31, 2026) to ₹758 crores (June 30, 2026)
  • Reduction of ₹94 crores in Q1 FY27
  • Debt-to-equity ratio: 0.68x as of June 30, 2026
  • Covenant waivers obtained from banks for debt equity covenants not met in 2026

Management Outlook and Guidance

Near-term Outlook:

  • Remain mindful of evolving external environment including geopolitical uncertainties
  • Raw material, freight, and currency markets remain volatile
  • Labor costs showing upward trend
  • Confident of maintaining momentum for rest of the year

Parador Outlook:

  • Line of sight for adding €20-30 million revenue over next couple of years
  • Revenue mix diversification: commercial channel and new markets (US, India, UK, Middle East) expected to reach 20% of portfolio
  • Manufacturing location diversification under evaluation (including India option)
  • Expect break-even on full year basis in FY27

Boards Segment Market Context:

  • Industry size: ₹1,500-2,000 crores, growing at 10-14% annually
  • Organized player dominated with 5-7 key players
  • 15-20% import share currently
  • Premium boards segment offers 15-20% EBITDA margins
  • Expected revenue upside: ₹300-350 crores from new capacities
  • Expected EBITDA uplift: ₹75-85 crores from new capacities

Q&A Session Highlights

Debt Management: Borrowings expected to remain elevated in near term due to greenfield projects, with reduction expected as Nellore plant starts generating profit and cash from Q4 FY27/Q1 FY28.

Parador Strategy: Focus on commercial channel development in US, market expansion in India and UK/Middle East, and DIY channel expansion across Europe beyond Germany.

Boards Business: Operating at 80-90% capacity utilization, similar product composition to fibre cement industry, serving same customer base as other wall products.

Working Capital Improvements: Inventory and receivable reductions considered sustainable going forward.

Corporate Branding: BirlaNu brand consolidation showing positive traction across product categories with increased portfolio selling capability.

Capex Status: OPVC capex of ₹40 crores completed; Nellore project (₹127 crores) in civil construction phase with 90-100% order commitments placed.