Financial Performance Highlights

Q2 FY27 Performance (Quarter ended September 30, 2026):

  • Total Income: ₹321.55 crores, representing 22.2% quarter-on-quarter growth and 43.8% year-on-year growth
  • Realization per ton: ₹95,291 per ton, increased by 7.6% sequentially and 8.3% year-on-year
  • EBITDA: ₹36.91 crores, increased by 26.9% quarter-on-quarter
  • EBITDA Margin: 11.48%, improved from 11.06% in Q1 FY27
  • EBITDA per ton: ₹11,536 per ton, increased from ₹10,411 in previous quarter
  • Profit After Tax: ₹18.73 crores, increased 32.9% sequentially
  • Total Comprehensive Income: ₹19.02 crores for the quarter
  • Finance Costs: ₹8.48 crores, increased from ₹6.86 crores in Q1 FY27

H1 FY27 Performance (Half year ended September 30, 2026):

  • Total Income: ₹584.62 crores, increased 22.4% year-on-year
  • EBITDA: ₹66 crores, registered growth of 13.7% year-on-year
  • PAT: ₹32.83 crores, grew 17.4% year-on-year
  • Cash Profit: ₹39.46 crores, increased by 22.2% year-on-year
  • Finance Costs: ₹15.34 crores, declined from ₹16.03 crores in H1 FY26 (4.4% reduction)
  • Interest Coverage Ratio: Improved to 3.88x from 2.85x as of March 31, 2026

Operational Performance

Product Mix (Q2 FY27):

  • Pre-Painted Steel: 69.19% of total sales
  • Alu-Zinc steel: 26.48% of total sales
  • Special Alu-Zinc products gaining traction in applications including drywall systems, metal ceilings, and premium metal roofing

Export Performance:

  • Q2 FY27 Export Revenue: ₹227.07 crores, increased 33.4% year-on-year
  • Export Contribution: 71.25% of total revenue in Q2 FY27
  • H1 FY27 Export Volumes: 40,561 metric tons (all-time high)
  • H1 FY27 Export Revenue: ₹397.28 crores, up 20.7% year-on-year
  • Domestic Revenue (H1 FY27): ₹183.55 crores, increased 30.3% year-on-year
  • Alu-Zinc Business: Domestic sales increased 22.1% quarter-on-quarter; Export sales increased 457.2% quarter-on-quarter

Order Book:

  • Total Order Book: ₹525 crores
  • Export Orders: ₹420 crores (80% of total order book)
  • Execution Timeline: Scheduled over next 5 months

Strategic Projects Update

Second Colour Coating Line:

  • Status: Final stages of trial and pre-commissioning
  • Commissioning Target: Q3 FY27
  • Capacity Addition: 150,000 metric tons per annum
  • Total Pre-Painted Steel Capacity: Will increase from 86,000 tons per annum to 236,000 tons per annum (174% increase)

7 MW Captive Solar Power Plant:

  • Status: Nearing readiness and grid connectivity
  • Commissioning Target: Q3 FY27
  • Expected Impact: Offset approximately 50%-55% of grid power consumption at Kutch facility

Digitization Initiatives:

  • Salesforce CRM Implementation: Targeted for Q3 FY27
  • Manufacturing Execution System (MES): Implementation at Kutch facility with go-live targeted for Q1 FY28

Growth Strategy and Outlook

FY29 Vision:

  • Target to triple output revenue and EBITDA by FY29
  • Growth driven by capacity expansion, backward integration, and international market expansion

Capacity Expansion Plans:

  • Backward Integration Project: Phase-2 investment plan including second Alu-Zinc facility in Kutch
  • Potential Capacity: 360,000 tons per annum (3x current capacity)
  • Execution Timeline: 15 months ± couple of months after Phase-1 commissioning

Financial Guidance:

  • FY27 Revenue Growth: 35%-55% increase over FY26 (₹896 crores)
  • FY28 Volume Target: 175,000-200,000 tons (compared to ~100,000 tons in FY26)
  • Quarterly Capacity Target: ~50,000 tons ±10% in stable state post expansion

Capital Structure and Funding

QIP Offering:

  • Fundraise Target: Up to ₹150 crores
  • Purpose: Strengthen balance sheet, impair debt, fund upcoming projects
  • End Use: Immediate debt impairment, long-term project funding

Depreciation Impact:

  • Incremental Depreciation from new projects: ₹4.25 crores per annum

Working Capital:

  • Inventory Days Target: Reduction to 60-90 days from current 130-140 days
  • Cash Flow from Operations: Positive as of September 30, 2026

Market and Competitive Position

European Market Quotas:

  • India benefited from EU quota rejig with reduced quotas for competing countries (Turkey, Vietnam, Korea, Taiwan)
  • FTA quota access provides additional benefits over standard quota
  • Company maintains growth momentum despite quota adjustments

Competitive Advantages:

  • Proximity to ports (Kandla and Mundra, 40-50 km distance)
  • Focus on value-added products and customized solutions
  • Strong customer relationships with long-term MoUs

Geographic Expansion:

  • Current Focus: European markets (less than 90% of exports)
  • New Markets: South America, Central America, Caribbean regions

Management Commentary

Operational Challenges:

  • Geopolitical uncertainties
  • Elevated raw material costs
  • High freight costs
  • Mitigation through break-bulk shipping for large-scale exports

Strategic Focus:

  • Pricing discipline
  • Product premiumization
  • Cost optimization
  • Operational excellence
  • Balanced export-domestic revenue mix

Expected Benefits:

  • Backward Integration: Potential EBITDA margin expansion of ₹1,500-₹1,700 per ton
  • Solar Plant: Improved energy cost efficiency
  • Digitization: Enhanced operational efficiency and customer management