The document contains the transcript of the Q1 FY27 Earnings Conference Call hosted on August 06, 2026, following the company's quarterly results announcement.
The conference call was moderated by Mr. Ashish Poddar from Motilal Oswal and featured management participants including Mr. Nageswara Kandula (Managing Director), Mr. Ramakrishna Kandula (Executive Director), Mr. Venkata Mohana Rao Katragadda (Executive Director), Mr. Yasuyuki Ikeda (Executive Director), Mr. Brahma Reddy (Managing Director of GScale Energy Private Limited), and Mr. Anjaneyulu Pathuri (Chief Financial Officer).
The purpose of the call was to discuss Q1 FY27 financial results and provide business updates, including strategic acquisitions and new market entries.
Management indicated that no unpublished price sensitive information (UPSI) would be shared during the call.
Financial Highlights & Business Updates
Q1 FY27 Financial Performance: Total income of INR250 crore (41% YoY growth), EBITDA of INR44 crore (27% YoY growth), Profit Before Tax of INR36 crore (26% YoY growth), Profit After Tax of INR26 crore (26% YoY growth), with EBITDA margins at 17.5%.
Core Business Guidance: Pharma and chemical engineering business expected to grow 40-50% in FY27, reaching approximately INR1200 crore revenue. Current order book stands at INR1400 crore.
GScale Energy Acquisition: Company acquiring 51% stake in GScale Energy to enter AI data center infrastructure market. Targeting INR250 crore revenue from this vertical in FY27. Manufacturing facility of 400,000 sq ft being established, with 200,000 sq ft already operational.
GL Hakko Investment: Acquired approximately 19% stake in Japanese partner GL Hakko for ~INR71 crore, with right to increase to 51% in 2-3 years. Provides access to advanced glass-lining technology for semiconductors and conductivity glass technology.
New Product Initiatives: Shell and tube glass lining heat exchangers (India TAM INR2000 crore, global USD2 billion), conductivity glass reactors, and low-leaching high-corrosion resistant glass for semiconductor applications.
Export Performance: Q1 exports were 2-3% of revenue, expected to increase to 5-6% in Q2 FY27.
Margin Outlook: Core business EBITDA margins expected to maintain 17-18%; GScale business expected to deliver 23-25% EBITDA margins.
Working Capital: Targeting reduction from 320 days to below 200 days in FY27 through improved inventory management and advance collections.
Additional Notes Section
The document includes the full transcript of the earnings conference call with detailed Q&A session covering business strategy, market opportunities, and operational details.
Financial data was disclosed as part of the earnings discussion, including specific revenue figures, growth rates, margin percentages, and guidance metrics.
The company emphasized its transformation from a glass-lining specialist to a broader engineering technology company addressing multiple high-growth sectors.
