• Event Type: Post Earnings (Group Conference) Call for Q4 FY26 and FY26 results
  • Event Date & Time: Wednesday, 27th May, 2026 (time not specified)
  • Purpose: Discussion of quarterly and annual financial results, strategic updates, and business outlook
  • Management Participants:
  • Mr. Rohit Deepak Jalan, Whole-Time Director
  • Mr. N.K. Dujari, Director, Finance and Chief Financial Officer
  • Mr. Sanjeev Sancheti, Investor Relations Advisor from Uirtus Advisors LLP
  • Moderator: Mr. Navin Agrawal, Head, Institutional Equities at SKP Securities Limited
  • Availability: Transcript was submitted to exchanges and uploaded on company website
  • Compliance: The call included a safe harbor statement directing participants to review the earnings presentation

Financial Highlights Discussed

Q4 FY26 Performance:

  • Operating income: INR137.67 crores (decline of 10.6% YoY)
  • Operating EBITDA: INR17.78 crores
  • Operating EBITDA margin: 12.9% (improvement of 41 basis points YoY)
  • PAT: INR1,046 lakhs
  • PAT margin: 7.5%

FY26 Full Year Performance:

  • Operating income: INR543 crores (broadly stable YoY)
  • Operating EBITDA: INR59.49 crores
  • Operating EBITDA margin: 11% (decline of 89 basis points YoY)
  • PAT: INR3,274 lakhs
  • PAT margin: 5.9%

Balance Sheet Metrics (as of 31st March 2026):

  • Net cash position: INR686 lakhs
  • Net debt to operating EBITDA: -0.12x
  • ROC: 18.7%
  • ROE: 13.3%
  • Fixed asset turnover: ~4x
  • Cash conversion cycle: 64 days

Business Updates and Challenges

Q4 Performance Drivers:

  • Corporate/institutional sales moderated due to high base effect from previous year
  • Export revenues impacted by geopolitical environment affecting Middle East and Eastern Africa markets
  • Pentonic sales affected as export markets were predominantly Pentonic-driven

Near-term Outlook (Q1 FY27):

  • Corporate gifting orders expected to remain muted (typically span Q4 and Q1)
  • Export demand in certain markets continues to be affected by geopolitical environment
  • Polymer prices (principal raw material) have risen due to supply-side disruptions
  • Competitive dynamics limiting immediate full pass-through in pricing

Strategic Initiatives Progress:

  • Joint venture with Mitsubishi Pencil Company, Japan: Operations stable, recently launched product receiving encouraging response
  • Joint venture with Turkish partner: Operations commenced successfully, gradual transition towards automation, order pipeline encouraging
  • Board approved further investment of $250,000 in Turkish JV with matching contribution from partner
  • Morris subsidiary: Progress linked to upcoming West Bengal manufacturing facility expected operational by Q3 FY27
  • Kenya subsidiary: Sales momentum improving, expected to strengthen further
  • Linc-on subsidiary: Operations commenced, expected to gain meaningful traction from FY27

Distribution Enhancement:

  • Sales team split into two verticals: mass distribution and premium brands (Uni, Deli) focused on urban distribution
  • Added 125 frontline sales team members effective April 2026
  • April performance in GT channel showed double-digit growth

Dividend Declaration:

  • Board approved dividend of INR1.5 per share (same as last year)
  • Payout ratio: ~27% on consolidated profit (subject to shareholder approval)

Additional Notes

  • The document includes the complete transcript of the earnings conference call
  • No financial data was disclosed in the announcement itself beyond what was discussed in the call
  • The company indicated it would await another quarter to gain better visibility before providing formal guidance for FY27 due to current uncertainties