Earnings Call Transcript- Q4 & FY 26
BUILDPRO · price
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Shankara Buildpro delivered strong FY26 results with revenue of INR 6,826 crore (+30% YoY) and PAT of INR 128 crore (+64% YoY), marking its first full year as a separate listed entity post demerger. Steel volumes surpassed the 1 million tonne milestone at 10.16 lakh tonnes (+32% YoY), while EBITDA margin expanded 47 bps to 3.35%. Q4 revenue was INR 1,996 crore (+28% YoY). Management provided medium-term targets: targeting 1.2 million tonnes steel volume in FY27 and 2 million tonnes by FY31, with non-steel revenue guidance of INR 750 crore in FY27 (+25% YoY). The company aims to scale EBITDA margins to ~4% in the next 2-3 years (FY28-29), driven by product mix improvement and operating leverage. Near-term FY27 margin guidance is conservative at 3.3-3.5%. Management flagged price-led demand resistance in April-May-June due to sharp price increases across tiles, pipes, and steel, though expects recovery by June. Non-steel faced headwinds from Morbi tile factory shutdowns due to gas price spikes and PVC resin volatility in plastic pipes. The company plans to open 7-10 new fulfilment centres in FY27 (3 already opened in Vasai, Trichur, Bangalore) at ~INR 15-20 crore capex.
Strong FY26 performance with 30% revenue growth and 64% PAT growth validates the demerger rationale. Near-term headwinds from price resistance and non-steel challenges may temper expectations, but multi-year volume and margin targets provide a solid medium-term roadmap. The stock should benefit from volume growth trajectory and margin expansion story, though FY27 margin guidance is conservative.