Financial Performance - Q1FY27 (Consolidated)

  • Total Income: INR 235.10 Cr (highest-ever June quarter revenue, up 8.92% YoY from INR 215.85 Cr in Q1FY26)
  • EBIDTA: INR 27.09 Cr (down 5.05% YoY from INR 28.53 Cr)
  • EBIDTA Margin: 11.52% (vs 13.21% in Q1FY26)
  • Depreciation: INR 8.07 Cr (vs INR 7.22 Cr in Q1FY26)
  • Finance Cost: INR 5.64 Cr (vs INR 4.19 Cr in Q1FY26)
  • PBT: INR 13.38 Cr (down 21.89% YoY from INR 17.12 Cr)
  • PAT: INR 9.64 Cr (down 24.55% YoY from INR 12.77 Cr)
  • PAT Margin: 4.10% (vs 5.92% in Q1FY26)
  • Cash Profit: INR 17.71 Cr (down 11.42% YoY from INR 19.99 Cr)
  • Cash Profit Margin: 7.53% (vs 9.26% in Q1FY26)

Historical Financial Performance (TTM & Annual)

  • TTM June 2026 Revenue: INR 952.4 Cr (up 35.7% over FY25)
  • FY26 Revenue: INR 932.8 Cr (up 32.92% from FY25)
  • 6-Year Revenue CAGR: 21%
  • TTM June 2026 EBIDTA: INR 90.8 Cr (EBIDTA margin 9.54%)
  • FY26 EBIDTA: INR 92.3 Cr (EBIDTA margin 9.89%)
  • TTM June 2026 PAT: INR 30.4 Cr (PAT margin 3.20%)
  • FY26 PAT: INR 33.6 Cr (PAT margin 3.60%)
  • EPS: INR 12.5 (TTM June 2026), INR 13.8 (FY26)
  • Cash EPS: INR 25.5 (TTM June 2026), INR 26.5 (FY26)

Balance Sheet Position (as of June 30, 2026)

  • Networth: INR 463.8 Cr (includes INR 51.98 Cr Land Revaluation Reserve)
  • Net Fixed Assets: INR 382.8 Cr
  • Non-Current Assets: INR 61.9 Cr
  • Current Assets (Excl Cash): INR 381.2 Cr
  • Cash & Cash Equivalents: INR 43.73 Cr
  • ST Borrowings (Net): INR 163.0 Cr
  • Current Liabilities: INR 151.6 Cr
  • Total Liabilities: INR 825.9 Cr

Key Ratios (TTM June 2026)

  • ROE: 7%
  • Core ROCE: 10%
  • Current Ratio: 2.5
  • Fixed Asset Turnover: 2.9
  • Total Asset Turnover: 1.2
  • Inventory Days: 81
  • Debtor Days: 43
  • Payable Days: 34
  • Cash Conversion Cycle: 90 days
  • Net Debt/Equity: 0.44
  • Net Debt/EBIDTA: 2.24
  • Interest Coverage: 2.83

Operational Highlights

  • Installed revenue capacity: INR 1,650+ Cr across all units
  • Current utilization: 55-60% of installed capacity
  • Capex since FY20: INR 385+ Cr from internal accruals
  • 8 factory locations: Silvassa (2), Vapi (1), Panipat (4), Aurangabad (1)
  • Office + Showroom in New York, USA (Faze Three US LLC)
  • Over 90% export revenue to USA, UK & Europe
  • Top 12 customers contribute ~80% of revenue
  • No single customer exceeds 15% of revenue
  • 20+ year relationships with top 15 customers

Management Outlook & Guidance

  • Q1FY27: Highest-ever revenue for June quarter despite margin pressure
  • EBIDTA margin at ~11.5% reflecting input cost pressure from West Asia crisis
  • Strong order book for Q2 and H2 FY27
  • FY27 revenue growth expected to exceed historical CAGR of ~20%
  • Price increases and alternative product offerings being pursued with customers

Capex & PLI Update

  • Planned capex: ~INR 75 Cr in FY27 for new product capabilities
  • Expected completion: Q1FY28 with ~1 year gestation period
  • PLI approval received: July 1, 2026 across multiple products
  • PLI benefits expected: From April 2027 (FY28)

Market Environment & Tailwinds

  • China+1 acceleration: CNYINR appreciated 21% in 13 months (11.65 to 14.10)
  • 10% tariff differential in USA vs China
  • Retailers targeting 15-20% diversification from China within 2-3 years
  • FTA with EU and UK in place
  • US tariffs at 10% under Section 301 (trade deal under process)
  • Tariff refunds expected to support retail demand in H2 CY27

Input Cost Pressure

  • West Asia crisis pushed cotton, polyester, chemicals, fuel, packaging, and logistics costs 25-35% higher from pre-war levels
  • Partial offset from better USDINR realization
  • Company actively requesting reprice/upcharges with customers
  • Business momentum largely unaffected with strong customer feedback

Cash Flow & Capital Allocation

  • Q1FY27 CFO: INR 48.2 Cr (aided by INR 30.5 Cr working capital release)
  • Cumulative capex FY20-Q1FY27: INR 386.9 Cr
  • Cumulative CFO FY20-Q1FY27: INR 330.2 Cr
  • Major capex cycle concluding in FY27
  • 40-50% of CFO to become available for debt reduction, dividends or growth
  • ESG investments: INR 25+ Cr in Rooftop Solar 3.5 MW, PNG clean energy, Li-ion Electric MHE

Credit Rating & Recognition

  • CARE rating reaffirmed: A(Stable)/A1 (July 2026)
  • Factory replacement value: >INR 850 Cr
  • Winner of D&B "Business Enterprises of Tomorrow 2025" - Best Global Business (Mid-Corporate)