Event Type and Details:

  • Earnings conference call to discuss Un-Audited financial results for Q2 and H1 FY27 ended September 30, 2026
  • Held on Friday, November 06, 2026
  • Hosted by Go India Advisors

Management Participants:

  • Mr. Bijaykumar Agarwal – Managing Director and Chairman
  • Mr. Jaiprakash Agarwal – Whole-time Director and Chief Financial Officer

Financial Performance Highlights:

Q2 FY27 Results:

  • Revenue: ₹238 crore (48% YoY growth)
  • Total Income: ₹238.8 crore (including other income)
  • Volume: 14,798 metric tons (21% YoY growth, 14% QoQ growth)
  • Capacity Utilization: 70% (vs 62% in Q1 FY27 and 62% in Q2 FY26)
  • Installed Production Capacity: 20,993 metric tons
  • Realization: ₹1.61 lakh per ton (22% YoY increase)
  • EBITDA: ₹20.3 crore (61% YoY growth)
  • EBITDA Margin: 8.5% (vs 7.8% in Q2 FY26)
  • EBITDA per ton: ₹13,718 (33% increase from ₹10,326 in Q2 FY26)
  • PAT: ₹9.5 crore (54% YoY growth)
  • PAT Margin: 4%
  • PBT: 12.5% growth (53% YoY)

Revenue Growth Drivers (₹77 crore increase):

  • Improved realization: ₹43.6 crore contribution
  • Volume and product growth: ₹24.9 crore contribution
  • Trading income: ₹8.7 crore contribution

Product Segment Performance Q2 FY27:

  • Polymer Drums: 5% YoY growth, 16% QoQ growth
  • IBC Units: 17% YoY growth
  • MS Drums Tonnage: 73% YoY growth
  • Value-added IBC Business: 32% of revenue

H1 FY27 Performance:

  • Revenue: ₹460.5 crore (42% YoY growth)
  • Volume: 27,789 metric tons
  • Average Utilization: 66%
  • Gross Profit: ₹106.7 crore (23% YoY growth)
  • EBITDA: ₹41.6 crore (55% YoY growth)
  • EBITDA Margin: 9% (vs 8.2% YoY)
  • PAT: ₹20 crore (42% YoY growth)

Segment-wise H1 Revenue Breakdown:

  • Polymer Drums: ₹204 crore
  • IBC: ₹150 crore
  • MS Drum: ₹64 crore
  • Other Operating Income: ₹42 crore

Strategic Developments:

Expansion Projects:

  • Kutch expansion: ₹20-25 crore investment for 10,000 IBCs/month capacity
  • Expected commissioning: March 2027
  • Focus on Western India market with lower freight costs and faster deliveries

Subsidy Approvals:

  • WADA facility: ₹24.9 crore subsidy over 10 years (expected sanction by March 2027)
  • Bharuch facility: ₹10.5 crore subsidy (application for sanction to be filed in next phase)
  • Total subsidies: ₹35 crore

Green Energy Initiatives:

  • Solar Plants: 14.25 MW total capacity (6 MW + 2.25 MW in Maharashtra commissioned Oct 2025; 5 MW in Bharuch commissioned Feb 2026; 1 MW in Bharuch in next phase)
  • Solar Investment: ₹60 crore total investment
  • H1 FY27 Savings: ₹3.89 crore
  • Expected Annual Savings: ₹15 crore
  • Payback Period: ~4 years

Recycling Plant:

  • Commissioned: October 2025
  • Investment: ₹8-10 crore
  • Q2 FY27 EBITDA: ₹33 lakh
  • FY27 EBITDA Estimate: ₹2 crore
  • Payback Period: 2-3 years

Customer Base:

  • Over 500 customers
  • Top customer: 6% of revenue
  • Top 10 customers: 29% of revenue

Cost Structure:

  • Operating expenditure (including raw material): 14% YoY increase vs 48% revenue growth
  • Employee costs: broadly flat at 6.2%
  • Finance cost: increased 147% YoY
  • Depreciation: increased 37% YoY

FY27 Guidance:

  • Revenue Growth: ~15%
  • EBITDA Margin: 11-12% (from current 9% in H1)
  • CAPEX: ₹20-25 crore (down from ₹90 crore in FY26)

Margin Improvement Levers for H2:

1. Higher utilization

2. Full benefit of solar savings

3. Growing contribution from recycling plant

4. Operating leverage and product mix improvement

Additional Operational Updates:

  • WADA facility running at full swing across SDP drums, IBCs, and MS drums
  • Expected utilization to reach ~80% during FY27
  • New paint industry machine started commercial production in October 2026
  • October 2026 revenue from new machine: ~₹70 lakh

Cash Flow Context:

  • Negative cash flow due to business expansion and working capital requirements
  • Debtors increased from ₹23 crore to ₹33 crore
  • Shift from 80% imported raw materials to 80% local sourcing due to Hormuz issue

Additional Notes Section

  • The transcript was filed pursuant to SEBI LODR Regulations 30 read with Para A of Part A of Schedule III
  • The document includes forward-looking statements subject to business risks