Transcript of Q3 & 9M FY 26 Post Earnings Conference Call.
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Awaiting price reaction for this filing.
Management addressed weak Q3 FY26 results, with volume growth nearly flat year-on-year after October's sharp demand slowdown, though November-December saw strong recovery. For 9M FY26, volume growth was around 4-4.5%, and the company reiterated its long-term EBITDA margin guidance of 22-25% (down from current ~25%) citing ongoing ATL/BTL marketing spends (currently 4-4.5% of revenue, targeted at 7-8%). The balance sheet remains robust with ~INR 170 crores in cash and zero debt, and brownfield capacity expansion to 3,500 tons/month is 70-80% complete, expected to support revenue potential of INR 600-700 crores. Management deferred key investor queries including state-wise growth numbers, the timeline for the INR 500 crores revenue target, VAM price impact details, share buyback, and a reputed auditor upgrade. Competitors like Pidilite and Astral posted mid-double-digit growth, while Euro continues to face pressure despite strong Gujarat market share of 35% and presence in 14 states (5 mature, 9 in build-up).
Investors expressed frustration over stagnant revenue/profits, declining margins, and weak share price despite cash-rich balance sheet, with buyback and reputed auditor upgrades being key asks that management only partially addressed. Short-term sentiment is likely negative due to flat Q3 and no fresh growth catalysts, though long-term INR 500 crores target and zero-debt balance sheet provide some comfort.