The conference call was hosted by management including Mr. Saurabh Chhabra (Promoter and Director) and Mr. Prateek Arora (Finance Controller), moderated by Mr. Vishal Bhalada from Adfactors PR.

Financial Performance for Q1 FY27

  • Consolidated revenue from operations increased by 120.64% year-on-year to ₹276.33 crores compared to ₹125.24 crores in Q1 FY26
  • On a sequential basis, revenue grew by 39.85% over ₹197.59 crores in Q4 FY26
  • EBITDA for the quarter increased by 94.41% year-on-year to ₹22.59 crores compared to ₹11.62 crores in Q1 FY26
  • EBITDA grew by 12.16% sequentially over Q4 FY26
  • Profit after tax grew by 130.67% year-on-year to ₹15.04 crores compared to ₹6.52 crores in Q1 FY26
  • PAT increased by 24.30% sequentially over Q4 FY26
  • Basic EPS for the quarter stood at ₹4.85 compared to ₹2.41 in Q1 FY26, an increase of 101.24%

Margin Performance

  • FMCG segment EBITDA margin improved to 8.55% in Q1 FY27 from 7.90% in Q1 FY26
  • Consolidated EBITDA margin for the quarter stood at 8.18% compared to 9.28% in Q1 FY26 and 10.19% in Q4 FY26
  • PAT margin for the quarter improved to 5.44% from 5.21% in Q1 FY26, but moderated sequentially from 6.12% in Q4 FY26

Capacity Expansion and Manufacturing

  • Commissioned a new soap production line at the existing Roorkee facility during the quarter
  • Added approximately 1,700 metric ton of monthly capacity
  • Aggregate installed capacity for FMCG and FMCG intermediate increased to 20,840 tons per month from 19,640 tons per month as of Q4 FY26
  • Manufacturing network spans Bhilwara, Roorkee, and Guwahati facilities

Facility-wise Revenue Contribution (Q1 FY27 vs Q4 FY26)

Roorkee Facility:

  • Soap section: ₹27.50 crores (vs ₹17.63 crores in Q4 FY26)
  • Noodle section: ₹87.62 crores (vs ₹44.47 crores in Q4 FY26)

Bhilwara Facility:

  • Home care and detergent: ₹40.98 crores (vs ₹32.50 crores in Q4 FY26)
  • Edible: ₹30.34 crores (vs ₹29.26 crores in Q4 FY26)

Guwahati Facility:

  • Cosmetics: ₹26.15 crores (vs ₹20.91 crores in Q4 FY26)
  • Noodle section: ₹37.75 crores (vs ₹26.01 crores in Q4 FY26)

Business Segment Performance

  • FMCG, FMCG intermediate, and edible businesses together contribute approximately 90.60% of consolidated revenue, up from around 83% for FY2026
  • Strategic shift from textile-led business to integrated FMCG dominant platform
  • Customer base of over 200 customers

Macro Environment Impact

  • Geopolitical tensions kept crude oil and crude-linked derivatives price volatile through the quarter
  • Impacted input costs, packing material, and supply chain planning across the industry
  • More pronounced impact on textile business due to higher sensitivity to input cost movements
  • Specific impact on dyes, chemicals, consumables, fuel for boilers, LABSA, and PP packaging costs

Management Guidance and Outlook

  • Medium-term aspiration to achieve approximately ₹1,000 crores in revenue by FY2028
  • Target revenue CAGR of 32% to 35% between FY2025 and FY2029
  • For FY27, expect to close between ₹900 crores to ₹1,000 crores revenue
  • Expect 15% to 20% growth in FY28 over FY27 revenue
  • Target PAT margin of 6% for FY27, expecting improvement by 0.75% to 1% in FY28 to reach 7%
  • Expect EBITDA margin to improve by 2% to 2.5% from current levels
  • Expect textile business normalization by Q3 FY27

Capital Allocation and Fundraising

  • Funds raised through preferential issue (₹98.65 crores) utilized for:
  • Acquiring food manufacturing facility in Bhilwara
  • Soap noodle and cosmetic manufacturing facility in Guwahati
  • No plans for additional fundraising in near term
  • No major CapEx expected in next 1-1.5 years beyond balancing production lines

Business Strategy Focus

  • Customer and channel expansion
  • Manufacturing and capacity optimization
  • Wallet share and cross-selling growth
  • Product and portfolio expansion
  • Deepening distribution reach
  • Maintaining disciplined execution and capital allocation

Segment-specific Details

Textile Business:

  • Contributed approximately 9.4% of revenue in Q1 FY27
  • Expected to contribute 8-10% of revenue long-term
  • No plans for demerger currently

Food Business (Bhilwara):

  • Currently operating single shift with second shift available for capacity expansion
  • Spices margins on lower side, savories margins on higher side
  • Long-term commitment customers with quarterly planning and monthly firm orders

Business Model:

  • Entirely B2B manufacturing model (no B2C segment)
  • Long-term customer commitments with quarterly planning

Future Outlook

  • Focus on nullifying cost increase impact from Q1 over next 2-3 quarters
  • Priority on increasing capacity utilization of recently added capacities
  • Open to acquiring lucrative manufacturing facilities or brands if opportunities arise
  • Developing new products in food sector that may require some capacity expansion
  • Working on product innovation and new products needed in the market