Company Disclosures: Investor Presentation on Q2 & H1 FY27 Financial Results

Financial Performance Highlights

Quarterly Performance (Q2 FY27 vs Q2 FY26):

  • Net Sales: ₹976.7 Mn, up 31.3% YoY (from ₹743.8 Mn)
  • Expenditure: ₹751.7 Mn, up 39.4% YoY (from ₹539.1 Mn)
  • EBITDA: ₹225.0 Mn, up 9.9% YoY (from ₹204.7 Mn)
  • EBITDA Margin: 23.0% (vs 27.5% in Q2 FY26)
  • Other Income: ₹28.9 Mn, down 7.4% YoY (from ₹31.2 Mn)
  • Depreciation: ₹4.2 Mn, down 12.5% YoY (from ₹4.8 Mn)
  • Interest: ₹0.8 Mn (nil in Q2 FY26)
  • Profit Before Tax: ₹248.9 Mn, up 7.7% YoY (from ₹231.2 Mn)
  • Tax: ₹64.1 Mn, up 7.6% YoY (from ₹59.6 Mn)
  • Profit After Tax: ₹184.8 Mn, up 7.7% YoY (from ₹171.6 Mn)
  • PAT Margin: 18.9% (vs 23.1% in Q2 FY26)
  • Reported Earnings Per Share: ₹15 (vs ₹14 in Q2 FY26)

Quarterly Performance (Q2 FY27 vs Q1 FY27):

  • Net Sales: ₹976.7 Mn, up 11.4% QoQ (from ₹877.1 Mn)
  • Expenditure: ₹751.7 Mn, up 0.2% QoQ (from ₹750.5 Mn)
  • EBITDA: ₹225.0 Mn, up 77.7% QoQ (from ₹126.6 Mn)
  • EBITDA Margin: 23.0% (vs 14.4% in Q1 FY27)
  • PAT: ₹184.8 Mn, up 57.3% QoQ (from ₹117.5 Mn)

Half Yearly Performance (H1 FY27 vs H1 FY26):

  • Net Sales: ₹1,853.7 Mn (vs ₹1,494.8 Mn)
  • EBITDA: ₹351.5 Mn (vs ₹411.1 Mn)
  • EBITDA Margin: 19.0% (vs 27.5%)
  • PAT: ₹302.3 Mn (vs ₹345.4 Mn)
  • PAT Margin: 16.3% (vs 23.1%)
  • EPS: ₹25 (vs ₹29)

Operational and Business Highlights

Capacity Expansion:

  • Brownfield expansion completed with current capacity increased to 3,500 MT per month (annualized: 42,000 MTPA)
  • Additional 1,500 TPM capacity added in Q2 FY27

Geographic Expansion:

  • Entered Odisha market in Q2 FY27, expanding presence to 16 states
  • Branch network expanded from 54 to 61 branches
  • Distributor reach increased to 65
  • Retailer base expanded to 14,000

Sales Force and Customer Base:

  • Sales force increased to ~650 members (vs 562 in Q1 FY27)
  • Carpenter reach grew to 355,000
  • Active carpenter base increased to 212,000

Cash Flow and Financial Position:

  • Net Cashflow from Operating Activities: ₹461.6 Mn
  • Company maintains net debt negative position since FY18
  • Strong investments and cash position: ~₹1,659 Mn as of FY26
  • Cash & Cash Equivalents breakdown: Investments + Cash in Hand + Bank Balance = ₹309.1 Mn

Guidance and Outlook

  • EBITDA Margin expected to be at 24-25% levels in H2 FY27 subject to no further sharp increase in raw material prices
  • VAM (Vinyl Acetate Monomer) continues to be volatile due to freight rates led by current geopolitical scenario
  • Long-term EBITDA guidance maintained at 23-25%

Capital Allocation and Returns

  • FY26 Dividend Payout Ratio: 15.4% (₹9 per share, 90% of face value)
  • Generating +25% ROE & ROCE over last 8 years
  • Fixed Asset Turnover Potential > 8-10x post brownfield expansion
  • Sustained Gross Margins of 65%+ for the year
  • Provision for redemption points creates negative working capital effect

Brand and Marketing Initiatives

  • Brand "Euro 7000" launched in 2006, now among top selling wood adhesive brands in retail segment
  • Appointed Pankaj Tripathi as Brand Ambassador with campaign "SirfJodoNahinFayedonKeSaathJodo"
  • Comprehensive marketing activities including ATL and BTL engagements

Manufacturing and Infrastructure

  • Manufacturing plant at Santej, Ahmedabad, Gujarat
  • Corporate office in Ahmedabad, administrative office in Mumbai
  • 61 Branch Offices & Warehouses across key cities & states

Historical Financial Performance (Annual)

| FY | Net Sales (₹ Mn) | EBITDA (₹ Mn) | EBITDA Margin | PAT (₹ Mn) | PAT Margin | EPS (₹) |

| FY21 | 1,012.9 | 104.4 | 10.3% | 121.7 | 12.0% | 30.41 |

| FY22 | 1,819.6 | 237.6 | 13.1% | 197.6 | 10.9% | 49.41 |

| FY23 | 2,612.5 | 606.2 | 23.2% | 464.4 | 17.8% | 38.70 |

| FY24 | 2,573.0 | 839.1 | 32.6% | 671.2 | 26.1% | 55.93 |

| FY25 | 2,841.2 | 894.8 | 31.5% | 738.7 | 26.0% | 61.57 |

| FY26 | 3,147.4 | 849.5 | 27.0% | 699.8 | 22.2% | 58.32 |

Balance Sheet Highlights (H1 FY27)

  • Total Equity: ₹3,048.0 Mn
  • Total Assets: ₹4,387.3 Mn
  • Property, Plant & Equipment: ₹478.1 Mn
  • Capital work-in-progress: ₹39.4 Mn
  • Inventories: ₹198.8 Mn
  • Trade Receivable: ₹1,616.6 Mn
  • Investments: ₹652.2 Mn
  • Cash & Cash Equivalents: ₹170.9 Mn
  • Bank Balance: ₹587.7 Mn

Management Team

  • Chairman: Mr. Jagdish N Patel (first-generation entrepreneur, founded company in 1994)
  • Managing Director: Mr. Utkarsh Patel (joined in 2005, driving operational turnaround)