Srigee DLM Limited conducted an investors' earnings call on June 11th, 2026, to discuss the Audited Standalone Financial Results for the half-year and year ended March 31st, 2026. The call was moderated by Ms. Dhruvi from EquibridgeX Advisors, with participation from management including Mr. Shashi Kant Singh (Managing Director), Mr. Suresh Kumar Singh (Whole-Time Director), Mr. Randhir Singh (Chairman and Non-Executive Director), Mr. Varun, and Mr. Ravinder.

Financial Performance Highlights

  • FY26 Performance: Revenue from operations stood at INR 72.31 crores, with total income of INR 75.76 crores. EBITDA reached INR 9.23 crores (EBITDA margin of 12.18%), and profit after tax grew to INR 6.87 crores (PAT margin of 9.06%).
  • H2 FY26 Performance: Total income for the period stood at INR 54.34 crores. EBITDA increased to INR 6.89 crores, and profit after tax more than doubled to INR 5.53 crores compared to the corresponding period last year.

Business Overview and Strategy

Srigee DLM is a design-led manufacturing company engaged in extrusion-based polymer compounding and precision plastic manufacturing. The company has evolved into an integrated manufacturing partner providing end-to-end solutions to OEMs and ODMs across consumer durables, electronics, automotive, and allied industries. The business is supported by a vertically integrated model spanning plastic injection molding and assembly, tool room and die manufacturing, mobile phone assembly, and polymer compounding.

Key customers include Symphony, Havells, LG, Yamaha, Neelkamal, Elentec, and other leading brands. The company highlighted that 76% of revenue comes from OEM business, with top 10 customers contributing 91% of revenue (down from 95% previously).

Expansion Plans and Capex

  • New Manufacturing Facility: The company is developing a new manufacturing facility on a 10,850 square meter plot in Greater Noida (R11A), abandoning previous plans for a smaller 2,000 square meter plot in Ecotech 10 due to feasibility concerns.
  • Commissioning Timeline: Target for commercial production is August 15, 2026, with management confirming it will definitely be operational before Diwali 2026.
  • Capex Plan: INR 25 crores capital expenditure planned for FY27, apart from the land acquisition already completed. This will be funded through a combination of IPO proceeds (INR 17 crores), debt financing, and sale of existing smaller units.
  • Debt Financing: In talks with ICICI Bank for debt funding, with expected interest rates between 8-9%. Management is negotiating to bring this down to 8-8.25%.
  • Capacity Utilization: Current capacity utilization is over 100%, constraining growth. The new facility will address space constraints.

Revenue Guidance and Targets

  • FY27 Target: Management is confident of achieving INR 100 crores revenue in the current financial year (FY27).
  • FY28 Target: Aspires to achieve INR 200-250 crores revenue from April 2027 to March 2028.
  • Peak Potential: The new facility has potential to achieve INR 350 crores revenue at peak utilization, with management citing comparable companies (PG Electroplast and Amber) achieving INR 500 crores turnover on smaller plots.

Business Verticals Performance

  • Polymer Compounding Business: Operates under the 'Polymos' brand (trademark registered). Generated INR 11.257 crores revenue in FY26. Currently producing 50 metric tons per month from one twin-screw extruder machine, with plans to expand to 150 metric tons monthly capacity at the new facility.
  • Margin Benefits: Polymer compounding provides dual benefit - saving 10-20% on captive consumption (35-40 metric tons monthly) and earning margins on external sales. Management expects this business to double in FY27 and triple in subsequent years.
  • Mobile Phone Assembly: Identified as the highest margin segment among the four verticals (cooler assembly, telephone assembly, compounding, and tool room). Current contribution to Samsung is less than 10%, with potential to double margins with increased capacity.

Customer Diversification and New Business

Management is in talks with three new customers (two have already visited the site) for ODM opportunities in home appliances segment, specifically hand blenders, juicer mixer-grinders, and other home appliances. Formal audits and business allocation are pending due to space constraints, which will be resolved after moving to the new facility.

Raw Material Impact and War Effects

The ongoing war has impacted polymer prices as polymers are by-products of crude oil. The company made significant polymer purchases in March 2026 to nullify war effects, as prices were 3x higher. Price revisions with customers happen quarterly, and new purchase orders will reflect current market prices.

Operational Efficiency Benefits

The consolidation into one larger facility is expected to yield significant operational efficiency benefits through reduced overheads (single guard, management staff, technical staff, housekeeping, and infrastructure costs instead of maintaining four separate units).

IPO Fund Utilization

50% of IPO funds were utilized by March 31, 2026. The remaining funds will be fully utilized in the current and next quarter for plant development.

Future Expansion Potential

The new facility has permissible FAR of 4, but currently only achieving FAR of 1.5, providing significant scope for vertical expansion (3-4 floors) as business grows beyond the initial INR 350 crores target.