Key Financial Figures (Quarter Ended June 30, 2026)

Standalone Performance:

  • Revenue from Operations: ₹247.03 Crore (20% YoY growth)
  • Profit Before Tax (PBT): ₹77.79 Crore (41% YoY growth)
  • Profit After Tax (PAT): ₹58.95 Crore (43% YoY growth)

Consolidated Performance:

  • Revenue from Operations: ₹269.23 Crore (25% YoY growth)
  • Profit Before Tax (PBT): ₹74.12 Crore (35% YoY growth)
  • Profit After Tax (PAT): ₹56.12 Crore (38% YoY growth)

Segment-Wise Revenue Breakdown (Standalone)

The management provided the following segment-wise revenue breakdown for the quarter:

  • Export General: ₹30.24 Crore
  • Export OEM: ₹73.56 Crore
  • Total Exports: ₹103.80 Crore
  • Auto OEM (Domestic): ₹56.08 Crore
  • Replacement Market: ₹36.52 Crore
  • Footwear: ₹41.16 Crore
  • Furnishing: ₹6.08 Crore
  • Other: ₹3.38 Crore
  • Total Domestic Sales: ₹143.23 Crore
  • Total Revenue: ₹247.03 Crore

Management Commentary & Operational Highlights

Growth Drivers & Business Outlook

  • The strong performance was primarily driven by a favorable product mix change towards higher-value export OEM business, rather than volume growth. Overall volume growth was only ~3% YoY.
  • The company has received and started fulfilling new OEM supply orders from the USA, which are contributing to export sales and profitability. This growth momentum in exports is expected to continue for the next 2-3 years.
  • Management provided growth guidance of 10-15% annually for the next three years, with stronger growth anticipated from the export market compared to the domestic market.
  • The recently signed India FTA was viewed positively, as it is expected to improve cost competitiveness and sentiment among European customers.

Expansion Plans & Capital Expenditure

  • A new production line has been ordered for the existing facility, which will add 5 lakh meters of capacity. Production from this expansion is expected to commence by February-March 2027.
  • This expansion is estimated to potentially add ₹150 crore annually to revenue, depending on product mix. With additional capacity in other facilities, total revenue potential from current expansion plans is estimated between ₹250-400 crore.
  • The company is evaluating a major greenfield expansion outside India (e.g., Mexico, USA, or other NAFTA areas) with an estimated capex of ₹250 crore. However, a final decision is pending due to market volatility (Trump tariffs, West Asia war) and has not been finalized.
  • Capex for FY27 is planned at ₹50 crore.

Capacity Utilization & Margins

  • Current capacity utilization stands at 75-78% for the PVC segment.
  • The management stated that the Q1 FY27 margin (approx. 25% EBITDA) should be considered the sustainable base margin, with any improvements viewed as a bonus. The exceptionally high margin in the previous quarter (Q4 FY26) was attributed to a one-time foreign exchange gain.
  • Raw material prices have been volatile, increasing sharply since March 2026 and remaining elevated, though with some recent softening.
  • Freight and logistics costs increased 4x during the quarter due to geopolitical disruptions (West Asia war), significantly impacting other expenses.
  • A price increase request has been sent to US OEM customers to counter rising costs, but it has not been aggressively pursued due to subsequent periods of market softening and the benefit of a ~10% natural hedge from USD/INR appreciation.

Segment-Specific Performance

  • Footwear Segment (Domestic): Experienced a degrowth due to a sharp 2x-3x increase in raw material (sole) prices, which muted market demand.
  • PU Plant: Continues to be underutilized and is loss-making due to intense competition from China and high raw material costs. The strategy involves engaging with top brands for sampling, but no confirmed business has been secured yet. A turnaround is not expected in the near term.
  • Auto OEM (Domestic): Growth is expected from increased wallet share with Mahindra and potential new platforms with Tata, though the latter is still in initial stages.

Corporate Social Responsibility (CSR)

The company highlighted its CSR initiatives, which include the plantation of 50,000 plants, adoption of schools, and various programs focused on education, healthcare, child skill development, water, sanitation, and family welfare in nearby villages. These efforts have been recognized by the state government.

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