Earnings call Transcript
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Indo SMC held its Q4 FY26 earnings call, reporting strong performance with revenues more than doubling year-on-year. The company disclosed an order book of INR 237 crores as of March 31, FY26, plus fresh orders of INR 125 crores received from April 1 onwards. Management guided for FY27 revenue target of INR 450-500 crores, representing 50% growth. EBITDA margin improved to approximately 15% in FY26, up from 11% in H2 FY25, driven by higher-value CTPT and busduct products with better margins. The working capital cycle improved significantly from 83 days to 40-45 days. Management aims to maintain or slightly improve margins going forward, targeting margin levels above 15%. The company plans INR 25 crores capex from IPO proceeds to expand capacity in SMC, FRP, and electrical engineering products. Geopolitical tensions have caused raw material price fluctuations, prompting the company to shift to shorter-duration orders (2-3 months) to manage commodity risk.
The strong order book visibility (INR 360+ crores) and clear revenue guidance of INR 450-500 crores for FY27 indicate robust growth prospects. The shift to higher-margin products like CTPT and busducts, combined with improved working capital efficiency, should support profitability. However, geopolitical-related raw material volatility remains a key risk factor for margins in H1 FY27.