Transcript of Q4 and FY26 Post Earning Conference Call.
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Jyoti Resins delivered its highest ever Q4 performance with 18% YoY revenue growth and ~16% volume growth, while maintaining EBITDA margin at ~27%. For FY26, the company achieved 8% volume growth and 11% revenue growth. Management is targeting INR 500 crore+ revenue in 2-3 years, requiring 15-20% volume growth. The company is expanding capacity from 2,000 to 3,500 tons per month via brownfield expansion within 1-2 quarters, which can support INR 600-650 crore revenue. Key raw material VAM (90% of RM cost) has risen ~100% in price, and the company has passed on 60-70% of this increase via price hikes effective May 2024. Receivables have increased to INR 160 crore (150-160 days), but management targets bringing this back to 110-120 days within 2-3 quarters. The company is entering Odisha and Chhattisgarh in May 2024 and plans to increase brand investment from 4% to 6-7% of revenue.
Strong Q4 performance and clear 2-3 year growth roadmap to INR 500 crore with margin guidance of 23-25% EBITDA provide confidence, though rising raw material costs and higher working capital requirements in new markets warrant monitoring.