Financial Highlights for Q4 FY26

Standalone Performance:

  • Revenue from operations: ₹260.55 crores (22% YoY growth)
  • PBT: ₹82.59 crores (70% YoY growth)
  • PAT: ₹60.71 crores (73% YoY growth)

Consolidated Performance:

  • Revenue from operations: ₹273.35 crores (9% YoY growth)
  • PBT: ₹81.23 crores (54% YoY growth)
  • PAT: ₹59.43 crores (43% YoY growth)

Full Year FY26 Performance Metrics

  • Total volume sold: 31 million meters (4.5% volume growth)
  • Total value growth: 15%
  • Export growth: 35% in value terms
  • Domestic growth: 4%+ in value terms
  • Export contribution: 42.5% of total business

Segment-wise Revenue Breakdown for Q4 FY26

  • Export general: ₹21 crores
  • Export OEM: ₹88 crores
  • Auto OEM domestic: ₹55 crores
  • Replacement: ₹41 crores
  • Footwear: ₹48 crores
  • Furnishing: ₹5 crores
  • Others: Balancing figures

Key Operational Highlights

Export Business Performance:

  • Auto OEM exports grew 50% in FY26 (from ₹194 crore in FY25 to ₹290 crore in FY26)
  • Received good export orders from US for OEM supply
  • Export prices are fixed on dollar basis, providing currency advantage
  • Targeting 15-20% export growth in FY27

Domestic Business:

  • Targeting 8-10% growth in FY27
  • Focus on higher-value automotive items rather than low-priced products

Margin Analysis:

  • Q4 gross margin approximately 50%
  • Q4 EBITDA margin approximately 31%
  • Margin expansion driven by:
  • Increased export business with better margins
  • Favorable product mix towards higher-value automotive products
  • Foreign exchange gain of approximately ₹30 crores for full year FY26
  • Improved operating efficiency and cost control
  • Reduction in other expenses due to lower freight costs and controlled maintenance

Raw Material Situation:

  • Paste PVC (petroleum by-product) prices increased significantly in March
  • Prices have softened from March highs
  • Availability issues resolved after initial challenges in March
  • Price increases to customers take 1-2 months to implement in automotive segment
  • Impact of raw material price increase expected in Q1 FY27

Corporate Social Responsibility Initiatives

  • Plantation of 45,000+ plants with plans for larger scale plantation
  • Adoption of schools for education of children
  • Education for underprivileged children
  • Healthcare initiatives, child skill development
  • Water and sanitation programs in school areas
  • Distribution of books, bags, clothes
  • Family planning and welfare schemes in nearby villages
  • Recognition by state government for these initiatives

Capital Expenditure and Expansion Plans

  • Ordered new coating line for existing facility (not South India as previously considered)
  • Capex for existing facility expansion: approximately ₹50 crores
  • Expected completion: end of calendar year 2026 (plus/minus one month)
  • Capacity addition: approximately 5 lakh meters monthly (average)
  • Expected revenue increase: ₹120-150 crores
  • Planning ₹300 crore capex for global facility (Mexico or other location under analysis)

Employee Expenses

  • Q4 employee expense increased from ₹14 crore to ₹17 crore
  • Increase due to new labor code implementation impact and new hiring
  • Labor code impact started from November 21, 2025

Forward Guidance and Outlook

  • FY27 growth guidance: 8-10% domestic, 15-20% export
  • Margin expectation: 25-30% range
  • Growth momentum expected to continue for next 2-3 years
  • Focus on automotive sector growth in both domestic and international markets
  • Targeting multiple customers and new platforms with existing customers

External Factors Impact

  • War situation temporarily impacted general export market (Middle East dispatches on hold)
  • US tariff impact nullified by expansion into European markets
  • Currency depreciation making Indian exports more competitive
  • Raw material price volatility remains a monitoring area

Conference Participants

Management:

  • Mr. Arun Bagaria - Executive Director
  • Mr. Vinod Kumar Sharma - Chief Financial Officer

Moderator:

  • Mr. Rahul Dani - Monarch Networth Capital Limited