• Event Type: Earnings Conference Call for Investors to discuss Q1 FY27 results
  • Date and Time: July 27, 2026 (time not specified)
  • Purpose: Discussion of quarterly results and business updates
  • Management Participants: Mr. J. Lakshmana Rao – Chairman and Managing Director
  • Moderator: Mr. Rajesh Kumar – Emkay Global Financial Services
  • Compliance: The document represents a regulatory filing of the earnings call transcript pursuant to SEBI Listing Regulations

Key Financial and Operational Highlights

Q1 FY27 Performance:

  • Turnover crossed INR300 crores
  • EBITDA per kg reached INR46.7 (historically around INR40-42)
  • Volume growth of 6.25%
  • Revenue growth of 19% on per kg basis

Segment Performance:

  • Paints: 11% volume growth, 31% revenue growth
  • Food & FMCG: 24% growth
  • Pharma: 38% growth (2% by volume, 3.5% of sales)
  • Lubes: 17% decline due to base oil supply issues
  • Qpack: 2% growth (disappointing due to price sensitivity)

Product Mix Evolution:

  • Current paint contribution: 46% by value, ~50% by volume
  • Expected to reduce to ~40% over next 2-3 years as Food & FMCG and pharma grow faster
  • Food & FMCG expected CAGR: 18-20%
  • Pharma expected CAGR: 40-50%

Operational Improvements:

  • Hyderabad unit consolidation: Reduced from 5 units to 2 units
  • Benefits include reduced overheads, wastage, interunit transfers, and rejections
  • Improved capacity utilization compared to previous year

Raw Material Environment:

  • Raw material costs increased from ~INR105-110 to ~INR155 per kg
  • Company successfully passed on price increases to clients
  • Current raw material price: ~INR145-146 per kg

FY27 Guidance and Outlook:

  • Targeting EBITDA per kg of INR44-45 for full year (previous guidance was INR42-43)
  • Volume growth target: 10-12%
  • Capex planned: ~INR90 crores (down from INR130-135 crores previous year)
  • Working capital: INR125 crores (up from INR110-112 crores)

Future Growth Initiatives:

  • Pharma: Targeting INR50-55 crores revenue for FY27 (from INR34 crores previous year)
  • Ophthalmic products: Trial molds completed, commercial molds expected in 5-6 months
  • Medical devices: Dosing pens development underway, targeting entry in next financial year
  • Semiconductor packaging: Exploring as long-term opportunity
  • Vibe JV: 3 products patent-applied, 6 more in pilot stage, expected commercial production in Q3

Capacity Utilization:

  • Current capacity: 67,000 MTPA
  • Utilization: ~75%
  • Focus on improving utilization to 78-80% through product fungibility across units
  • Annual capacity addition target: 10-12%

Additional Notes Section

  • The document contains the full transcript of the earnings conference call
  • No financial data was disclosed in the announcement itself beyond what was discussed in the call
  • The company emphasized that all raw material price increases were successfully passed through to customers
  • The transcript shows active participation from multiple institutional investors and analysts