Indo SMC Limited submitted a transcript of its Q4 FY26 Earnings Conference Call held on May 22, 2026, at 04:00 P.M. (IST) in compliance with SEBI Listing Regulations Regulation 30(6). The call was hosted by EquiBridgeX Advisors Private Limited and featured management representatives including Mr. Neel Shah (Managing Director and CFO), Mr. Nitin Patel (Chairman), and Mr. Dipal Patel (Financial Consultant).

Financial Performance

  • FY26 was described as a "strong year across all key parameters" with revenue more than doubling compared to the previous year.
  • The company achieved an EBITDA margin of approximately 15% for FY26.
  • Profit After Tax (PAT) more than doubled for FY26.

Order Book and Revenue Guidance

  • Order book stood at INR 237 crores as of March 31, 2026.
  • Fresh orders of INR 125 crores were received from April 1, 2026, until the call date (May 22, 2026).
  • Total current order book approximately INR 360 crores (INR 237 crores + INR 125 crores).
  • Execution target for existing orders: within first 6 months, with most orders completed within 3-4 months due to price fluctuation concerns.
  • FY27 revenue target: INR 450-500 crores.
  • Long-term target: Become a INR 1,000+ crores company within approximately three years (by FY28/FY29).

Segment Performance and Strategy

  • Shift in product mix toward higher-value items like CTPT, bus ducts, and meter cubicles which offer better margins.
  • SMC segment declined from INR 90 crores to INR 64 crores; FRP also declined slightly due to geopolitical situation affecting raw material availability in March.
  • CTPT segment showed significant growth at INR 222 crores.
  • Current order book breakup: ~INR 125 crores in CTPT and LTCT; ~INR 80 crores in SMC; remainder in FRP and tarpaulins.
  • Margin target: Sustain current 15% EBITDA margin and aim for 18%+ in CTPT products.

Capacity and Expansion Plans

  • Existing capacity described as "large capacity availability" with good land availability.
  • Plan to increase SMC capacity to 6,000+ tons.
  • Target to develop additional 300 tons of FRP production (pultrusions and gratings).
  • IPO-related capex of INR 25 crores to develop machines and facilities.
  • 2,000-ton press machine expected in next 2-3 months for larger products including railway components.
  • Lab expansion planned for completion by end of May 2026.

Raw Materials and Working Capital

  • Main raw materials: resin (for SMC and FRP), glass fiber, copper, and steel.
  • Maintained 3-month stock of glass fiber; resin prices fluctuating due to geopolitical situation.
  • Strategy: Take shorter-duration orders (INR 20-50 crores for 2-3 months) to manage price fluctuations.
  • Payment terms include clauses to pass on cost increases exceeding 5%.
  • Working capital cycle improved from 83 days to 40-45 days, which management believes is sustainable.
  • No immediate plans for additional funding; working capital to be managed through improved cycles and existing IPO proceeds.

Export Plans

  • Export market for FRP described as worth 79 billion.
  • Initial exports to Oman and Gulf countries begun.
  • Planning participation in electrical fair in Dubai from September 2026.
  • Samples sent to US and Germany for approval; certification process typically takes 1-2 months.
  • Focus on obtaining UL 94 certification for US market; currently following ASTM and NEMA compliance standards.

New Product Developments

  • Developing hand molds for industrial vehicles (trial orders expected, minimal revenue impact initially).
  • Railway approvals expected by end of June 2026 (delayed due to technical issues).
  • Meter cubicles for up to 33 kV being developed.
  • Focus on replacing metal components with SMC and FRP in various industries including telecom.

Market Presence and Competition

  • Current operations focused mainly in Gujarat, Maharashtra, and Karnataka.
  • Few competitors have necessary approvals for CTPT products.
  • Company provides complete package up to 33 kV including meter cubicles.
  • Also doing work for companies like ABB and Crompton.

Management Commentary

  • Company now in "driving position in the market" with ability to choose orders based on margins.
  • Focus on maintaining quality and service while expanding product range.
  • Long-term vision to create legacy like ABB or Crompton and become full-service provider for utilities and switchgear products.

Challenges and Risks

  • Geopolitical situation causing raw material price fluctuations, particularly affecting resin and petroleum products.
  • Managing inventory levels (INR 85 crores inventory representing ~100 days) due to market uncertainty.
  • H1 FY27 may see impact from commodity price fluctuations despite mitigation strategies.