Steamhouse India Limited – Investor Presentation Summary

Key Operational Highlights

  • Steam sold: 305,816.37 tons in Q1 FY27, representing 16.70% YoY growth and 11.52% QoQ growth
  • Installed Steam Generation Capacity: 345 TPH across 7 operating boilers (6 owned, 1 leased)
  • Key drivers: Optimal utilization of waste-to-energy boilers, operating leverage from higher steam sales, and pass-through mechanism for coal costs

Segment-wise Performance

  • Steam Generation & Distribution: Primary business segment with centralized community boiler facilities
  • Purchase & Distribution of Steam: Sourcing surplus steam from industrial units for distribution
  • Industrial Gases: Supplying nitrogen through pipeline infrastructure with one PSA-based plant at Ankleshwar
  • Coal Trading: Discontinued effective April 1, 2026 (was incidental, non-core, low-margin activity)

Financial Highlights

Consolidated Performance Q1 FY27:

  • Revenue from Operations: ₹1,286.21 Mn, +13.35% YoY
  • EBITDA: ₹309.32 Mn, +60.08% YoY | EBITDA Margin: 24.05% (+702 bps YoY)
  • PAT: ₹183.42 Mn, +80.25% YoY | PAT Margin: 14.26% (+529 bps YoY)
  • EPS: Not specified
  • Clean EBITDA: ₹292.20 Mn, +65.43% YoY (adjusted for operating lease expenses)

QoQ Comparison:

  • Revenue: (7.10)% from Q4 FY26 (₹1,384.56 Mn)
  • EBITDA: +17.11% from Q4 FY26 (₹264.13 Mn)
  • PAT: +30.12% from Q4 FY26 (₹140.96 Mn)

Drivers of financial performance: Higher steam sales (₹1,233.74 Mn, +46.07% YoY), improved operational efficiencies, discontinuation of coal trading (revenue from sale of coal: Nil in Q1 FY27 vs ₹282.58 Mn in Q1 FY26)

Key Risks: Inflationary pressures from geopolitical uncertainties, increase in coal prices

Geographical Revenue Split

  • Domestic vs Export: Not specified
  • Regional Presence: Strong presence in Gujarat with expansion into Maharashtra & West Bengal
  • New Projects: Tender awarded for 300 TPH steam project at Bulk Drug Park, Una (Himachal Pradesh)

Balance Sheet Snapshot

Debt Profile Q1 FY27:

  • Term Loan: ₹116.19 Mn (from ₹126.80 Mn in FY26)
  • Working Capital: ₹2,858.66 Mn (from ₹1,515.41 Mn in FY26)
  • Other Borrowings: ₹619.96 Mn (from ₹1,174.01 Mn in FY26)
  • Gross Debt: ₹3,594.81 Mn
  • Cash & Cash Equivalents: ₹3.23 Mn
  • Net Debt: ₹3,591.58 Mn

Financial Health Insights: Increase in debt primarily due to additional borrowings for general corporate purposes, intended to be repaid from IPO proceeds. Expected reduction in finance costs in FY27 driven by repayment of high-cost borrowings.

Capex & Cash Flow Health

IPO Proceeds Utilization:

  • Fresh Issue: ₹3,530.00 Mn
  • Debt Repayment: ₹1,800.00 Mn
  • Ankleshwar Phase 3 and Panoli Phase 2: ₹759.53 Mn
  • Dahej GIDC Phase 2: ₹381.74 Mn
  • General Corporate Purpose: ₹231.25 Mn (balancing amount - issue expenses)

Capital Expenditure: Focus on capacity expansion with plans at Dahej and Haldia over next 12 months

Strategic & R&D Initiatives

Investments in Innovation:

  • Technology: IoT sensors, SCADA systems, drones for pipeline monitoring, steam traps/auto valves
  • Alternative Fuels: Waste-to-energy solutions, agro waste, MSW-RDF, plastic and textile waste
  • Green Boilers: Capacity to increase 7x from 15 TPH in FY26 to 105 TPH in FY27

Strategic Initiatives:

  • 300 TPD municipal solid waste-to-steam plant from Ahmedabad Municipal Corporation (10-year contract)
  • Nitrogen compression and distribution plant at Ankleshwar
  • Expansion into new geographies: Maharashtra, West Bengal, Himachal Pradesh

Expected impact on growth: Pan-India expansion strategy transitioning from Gujarat-focused to national presence

Industry Trends & Business Environment

Macro/Industry Trends:

  • Government support for community boiler ecosystem through favorable policies and initiatives
  • Viksit Gujarat Industrial Policy 2026 providing enabling ecosystem for industrial infrastructure
  • Regulatory tailwinds: Tightening emission norms making shared steam economically compelling
  • Total process steam demand in India: 186,000 TPH (₹37,468.40 Cr addressable market potential)

Impact on Company: Steamhouse has less than 0.2% market share of total steam market, significant growth potential by catering to existing locations

Management Commentary & Growth Outlook

Strategic Outlook: "Q1 FY27 emerged as a landmark quarter for Steamhouse India Limited, delivering the strongest performance in the Company's journey despite a challenging macroeconomic and geopolitical environment" - Mr. Vishal S. Budhia, Promoter, Chairman and Managing Director

Growth Targets:

  • Targeting sustained EBITDA growth of 30-35% CAGR over next three years
  • Focus on capacity expansion, operational excellence, and new growth opportunities
  • Exploring new growth opportunities across geographies and business segments
  • Expanding community boiler footprint, participating in upcoming tenders, adding new projects
  • Strengthening nitrogen business to drive sustainable long-term growth

Risks and Opportunities: Geopolitical uncertainties resulting in inflationary pressures including increase in coal prices, but mitigated through pass-through mechanism

ESG Updates

Corporate Social Responsibility Initiatives:

  • Education: Supporting learning, child development and educational advancement through associations with Rotary Club of Surat West, Sadbhaav Child Development Foundation, Vidya Bharti Gujarat Pradesh, Divine Shree Ram International Charitable Trust
  • Environment: Promoting environmental sustainability through 'Catch the Rain' initiative
  • Sports: Encouraging sports development through Surat District Cricket Association
  • Cultural Activities: Supporting cultural development through Rashtriya Sewa Samvardhan Samiti

Safety Initiatives:

  • Personal Protective Equipment (PPE) for all employees and workers
  • Continuous boiler monitoring through digital control systems
  • Emergency preparedness with first aid kits and alarm systems
  • Regular safety seminars and training sessions

Digital Transformation

Technology Implementation:

  • IoT sensors for real-time boiler performance monitoring
  • SCADA systems for remote monitoring and management
  • Drone technology for pipeline leakage monitoring
  • Automated valves and steam traps for efficient operations
  • Exploring emerging technologies: Microwave plasma technology, Concentrated Solar Power (CSP), exothermic reactions, Small Modular Reactors