• Event Type: Q1 FY27 Earnings Conference Call hosted by MUFG Intime, including results discussion and Q&A session.
  • Event Date and Time: Held on August 04, 2026 (time not specified in transcript).
  • Purpose: Discussion of Q1 FY27 financial results and business performance, including strategic initiatives and outlook.
  • Management Participants: Mr. Nihar Chheda (Vice President - Strategy) and Mr. Anand Gupta (Chief Financial Officer).
  • Moderator: Mr. Sumeet Khaitan from MUFG Intime.
  • Compliance: The call included forward-looking statements with risks and uncertainties, referring to investor presentations and filings on the company website.

Financial Highlights for Q1 FY27:

  • Revenue from operations: INR 609 crores (5% YoY growth)
  • Volumes: 40,729 metric tons (7% YoY degrowth)
  • EBITDA: INR 77 crores (93% YoY growth)
  • EBITDA Margin: 13% (600 basis points improvement)
  • PAT: INR 34 crores (580% YoY growth)
  • PAT Margin: 6%
  • Working Capital Days: 71 days
  • Receivable Days: 40 days
  • Inventory Days: 100 days

Strategic Initiatives Discussed:

  • Three strategic pillars: product innovation, distributor network expansion, retailer network expansion
  • New product DECILO (polypropylene-based drainage system) manufacturing at Haridwar facility
  • Digitization of value chain with Distributor Management Systems (DMS) and Sales Force Automation (SFA)
  • Brand building initiatives across local trains, buses, and high-footfall locations
  • Identification of white spaces at district and taluka levels for network expansion

Guidance and Outlook:

  • Maintained FY27 volume growth guidance: 12-15%
  • Maintained FY27 EBITDA margin guidance: 11-13%
  • Bathware segment expected to reach breakeven by Q3 FY27 with INR 25 crores quarterly revenue
  • Target capacity utilization: 60-65% (currently at 52-53%)
  • Debtor days target: 30 days (currently 40 days)

Raw Material Scenario:

  • PVC resin prices saw sharp correction from early April due to temporary suspension of import duty until June 2026
  • Minimum Import Price (MIP) of $766 per ton providing price floor and reducing uncertainty
  • No inventory gain or loss in Q1 FY27

Business Mix:

  • Agri segment typically 30-35% of annual business, lower in Q1 due to volatility
  • Project business: 25-30%, Retail business: 70-75%
  • Product mix improvement with higher contribution from CPVC, PPR, and PP products

Capital Expenditure:

  • Q1 capex: INR 40-42 crores primarily for Bhuj plant takeover completion
  • No change in overall capex plan

Financial Position:

  • Gross debt: ~INR 120 crores (including long-term and short-term)
  • Net cash: approximately neutral

Additional Notes Section

  • The document is a complete transcript of the earnings conference call, including all Q&A sessions with analysts.
  • The company emphasized focus on market share gains through network expansion, digitization, and product innovation.
  • Management expressed confidence in industry-leading growth driven by consolidation in the piping industry.