Steamhouse India Q1 FY27 earnings call
In brief
Steamhouse maiden call: Q1 PAT up 80% YoY to ₹18.34 cr, EBITDA margin 24.05% (+702 bps); ₹311 cr MP project, 705 TPH pipeline
- Management's tone
- Confident
- What was said
- Leaned positive
- Guidance
- First guidance issued
- Analyst pushback
- Medium
- Stock, next session
- +9.99% (Nifty 50 +0.98%)
- Q1 FY27 PAT rose 80.25% YoY to ₹18.34 cr, with revenue up 13.35% to ₹128.62 cr and EBITDA up 60.08% to ₹30.93 cr.
- EBITDA margin expanded 702 bps to 24.05% as EBITDA per ton rose 37.17% to ₹1,011 driven by waste-to-energy utilization and operating leverage.
- Steam distribution capacity is set to roughly double from 345 TPH currently to about 705 TPH via four under-construction and three IPO-funded projects.
- Asset-light entry into Madhya Pradesh via 300 TPH Balraj Park project worth ~₹311 cr funded by state infrastructure entity, with 9% revenue share from end consumers.
- Repeat customer share rose to 99.38% in Q1 from 90.72% in FY26, with 70% of installed 345 TPH capacity tied up under 1-10 year contracts carrying non-exit clauses.
An AI read of our transcription of the recording · the filing
The numbers
What moved the numbers, as management explained it
- Steam volume +16.7% YoY to 305,816 tons, driven by revival in chemical and pharma demand and stronger repeat-customer orders.
- Capacity utilization rose to 41.40% (from 36.06%) creating operating leverage as fixed infrastructure costs spread over more volume.
- Steam revenue +46.07% YoY versus volume +16.7%, reflecting coal price pass-through and mix shift to higher-margin waste-to-energy projects at Vapi.
- Coal trading exit lifted the mix toward higher-margin own generation and distribution, lifting EBITDA per ton by 37.17% to ₹1,011. (one-off)
- Better utilization of waste-to-energy boilers and shift to cash coal purchases from May 2026 added to per-ton profitability.
The numbers management led with
- Steam volumes: 305,816 tons in Q1 FY27, +16.7% YoY and +11.52% QoQ
- EBITDA margin: 24.05% in Q1 FY27 vs 17.03% in Q1 FY26; +702 bps expansion
- Capacity expansion target: Steam distribution capacity to nearly double from 345 TPH to ~705 TPH over 15-18 months
- Balraj Park Guna EPC mandate: ₹311 crores EPC contract for 300 TPH community boiler facility at Balraj Park, Guna (Madhya Pradesh); asset-light — cost funded by MP Balraj Park Infrastructure Ltd
The company's filed results for this quarter are not on file with us yet; these are management's own figures from the call.
Guidance
Guidance on this call
| What | For | What management said |
|---|---|---|
| Company volume growth | — | 20-25% volume growth at company level achievable, per analyst's range and management's confirmation |
| EBITDA per ton (Steam (generation and distribution)) | — | EBITDA per ton of ₹1,000 maintained or better in steam generation and distribution sites |
| Steam distribution capacity (Steam (generation and distribution)) | — | Steam distribution capacity to expand from 345 TPH to approximately 705 TPH |
| Current-location volume growth (Steam (current installed capacity)) | — | 5-10% volume growth expected at current installed capacity locations |
| Clear EBITDA margin (Balraj Park (Guna, MP) project) | — | 8-10% clear EBITDA margin expected on Balraj Park project, subject to agreement signing |
| Working capital days | — | Working capital cycle of 40-45 days going forward |
The business
By business
Generation and distribution of steam
Core vertical contributing 73.7% of Q1 volumes from own boilers; capacity utilization at 41.40% versus 36.06% a year ago; four projects under construction and three planned via IPO proceeds.
73.7% of Q1 volumes from own generation · Steam volumes 305,816 tons · EBITDA per ton ₹1,011 · Utilization 41.40% · Repeat customers 99.38%
Outlook: 20-25% volume growth at company level targeted; capacity to expand from 345 TPH to ~705 TPH; EBITDA per ton ₹1,000 or better expected to be sustained
Purchase and distribution of steam
Traded/purchased steam contributed 22.2% of Q1 volumes; provides geographic reach where Steamhouse lacks own boilers; coal pass-through monthly or quarterly.
22.2% of Q1 volumes · Repeat customers 99.38%
Outlook: Continued as geographic coverage layer; new agreements signed at HSSZ and Alkyl Halides Bengaluru
Generation and distribution of nitrogen (industrial gases)
New vertical commenced at Ankleshwar via PSA plant of 350 NM3/hr; exploring air separation units (ASU) for cryogenic separation and expansion into O2, H2, CO2, instrument air.
PSA plant 350 NM3/hr at Ankleshwar
Outlook: Gradual scaling leveraging existing pipeline infrastructure; expansion into additional industrial gases planned
EPC and O&M for government projects (Balraj Park)
Asset-light 300 TPH community boiler at Balraj Park, Guna, MP; project value ~₹311 cr including GST; project cost funded entirely by Madhya Pradesh Balraj Park Infrastructure Limited; long-term O&M mandate.
300 TPH facility · Project value ₹311 cr including GST · 9% revenue share from end consumers
Outlook: 8-10% clear EBITDA margin expected (subject to agreement signing); 9% revenue share to be recovered from end consumers, not from Steamhouse
Balance sheet, capex and funding
- Gross debt ₹359.48 cr as of Q1 FY27, up from ₹281.62 cr at FY26 end; increase for general corporate purposes, intended to be repaid from IPO proceeds.
- Working capital cycle brought to 40-42 days recently, guided to 40-45 days going forward; coal purchases moved from credit to cash basis from May 2026.
- Capex of ~₹55-60 cr remaining to complete four under-construction projects; another ~₹170 cr planned over next 15-18 months for Tarapur and IPO-funded projects.
- Four under-construction facilities already funded via debt and NCDs; ₹311 cr Balraj Park project cost funded entirely by Madhya Pradesh state infrastructure entity.
The industry, as management sees it
Management views the centralized community boiler model as 'significantly underpenetrated' across chemicals, pharma, textile, food processing, paper, pulp and tiles, providing a substantial runway. Multiple state governments (Madhya Pradesh, Himachal Pradesh, Gujarat) are now adopting the model for industrial parks, signaling broader institutional support.
Risks management named
- Q2 monsoon typically weaker — wet coal, industrial cluster shutdowns, demand dip
- Capacity utilization at 41% remains below the 60-65% management views as healthy full-time
- Continued related-party steam purchase from Sanju Dyeing & Printing Mills (only for next few quarters)
- Fuel cost volatility — though mitigated via monthly pass-through clauses in supply contracts
Q&A
Q&A was dominated by operational deep-dives — capacity utilization, pipeline infrastructure economics, industrial gas roadmap and the ₹311 cr Madhya Pradesh entry drew the most analytical attention. Pushback was moderate and largely probing rather than adversarial; two analyst questions on margin bifurcation between own generation and traded steam were deflected citing competition sensitivity, and the Varna project EBITDA margin was given only as a directional 8-10% pending final agreement. The most material commitment was the CFO's affirmation that ₹1,000 EBITDA per ton is sustainable and 20-25% volume growth is 'very comfortably' achievable at the company level.
Not answered directly
- Own-generation vs traded steam EBITDA margin bifurcation (Soneil Jain, Nirmal Bang) — declined citing competition sensitivity
- Varna project EBITDA margin — only directional 8-10% pending Himachal Pradesh Urban Infrastructure Ltd agreement
- Government community boiler adoption roadmap (Tej Patel) — response not captured in transcript
Asked for a number, answered without one
- EBITDA per ton split between own generation and traded steam: Apologies, we will not be able to give this details considering the competition sensitiveness. We can talk this in a one-to-one call and we can discuss this. Not here.
- Q2 FY27 specific revenue or EBITDA growth target: Almost same for both the numbers, but yes, we are saying we will try to maintain. We are not saying that we will maintain.
- Coal pass-through quantum contribution to per-ton realization: Attributed qualitatively to better utilization, higher waste-to-energy mix at Vapi, and chemical/pharma demand recovery; pass-through quantum not quantified separately.
Every question, with its answer
1. Seasonality, demand recovery, coal trading exit
Sagar Tanna, Agrim Ventures
Question. Is there seasonality in the business across Q1-Q4? And what explains the Q1 vs Q4 jump in volumes? With coal trading exited, will EBITDA margins stabilize?
Answer, Vaibhav Gattani, Chief Financial Officer. CFO: Seasonality is limited — only weather/monsoon impacts since wet coal reduces efficiency and industrial clusters sometimes shut. Q1 vs Q4 volume jump driven by chemical and pharma demand recovery; major business from repeat customers. Coal trading had negligible margin so EBITDA margins should be maintained or improve.
2. Capacity tie-up, contract structure, Balraj Park economics
Sujal Chawar, Diamond Capital
Question. Is current capacity 345 TPH correct and how much is contracted? Can customers terminate the long-term contracts? What is the Balraj Park revenue/EPC vs O&M/revenue-sharing split?
Answer, Debabrata, Management (unnamed executive). Approximately 70% of the 345 TPH installed capacity is tied up with customers. Contract tenor typically 1-10 years with non-exit clauses built in; customers cannot terminate before tenor expiry. Pass-through is predominantly monthly, few quarterly. On Balraj Park: EPC work will be executed and handed over to government; revenue share is 9% recovered from end consumers only, no cost to Steamhouse.
Partly answered.
3. Customer switching value, capex schedule for 705 TPH
Ajit Reddy, Eco Quantum Solutions
Question. What is the value proposition to switch customers from in-house steam generation or competitor sources? How much capex is needed to reach 705 TPH and when operational?
Answer, Debabrata, Management (unnamed executive). Generally no competitor in geographies we operate; switching value proposition is 25-35% cost efficiency vs captive on furnace oil/LDO/natural gas or for intermittent consumers. Capex: ~55-60 cr remaining for four under-construction projects (live in current FY); ~160 cr for Tarapur 160 TPH (live Q4 FY28); ~170 cr for IPO-funded MIDC/GIDC facilities at Ank.live and Palanpur (live Q1 FY29).
4. Pipeline infrastructure, steam transfer losses, customer savings
Avinash Nahata, Prami Financial Services
Question. How many km does steam travel, at what pressure and temperature drop? Also explain how much savings customers get vs captive, and what is the steam loss % during transfer?
Answer, Vishal S. Bhatia, Chairman and Managing Director. Over 60 km of overhead pipeline across seven industrial areas; farthest customer ~7.5-8 km from generation. Pressure drop ~1 bar; temperature drop 4-5 degrees. Savings: not so beneficial for textile processing houses on coal — but 25-35% cheaper for industries on furnace oil/LDO/natural gas or intermittent consumers. Steam transfer loss 3-7% depending on season. Sellable capacity 80% of installed; 330 days effective operating days (annual mandatory maintenance required by law).
5. Industrial gas business model, boiler tech and efficiency roadmap
Sunny Gosar, MK Ventures
Question. Explain the industrial gas business — partner model or own ASU? How can pipeline infrastructure be leveraged? Also: what boiler technology and efficiency measures are being explored?
Answer, Debabrata, Management (unnamed executive). Will supply nitrogen, oxygen, CO2, instrument air to existing steam customers (basket-sell); leverage existing pipeline infrastructure — incremental pipeline capex is 10-20% of current investment. Evaluating air separation units (ASU) via cryogenic separation; exploring build-operate-own and build-operate-transfer partnerships with gas players. On boilers: working with top Indian manufacturers (German/Japanese tech licensees); focusing on industrial waste fuels, SCADA/DCS systems, and even atomic-energy-based steam generation under discussion with global orgs.
6. Customer concentration, related-party transactions, Varna margins
Pratik Anil Patel, ICICI Securities
Question. Customer concentration risk — how many of top customers make up 50%+ of revenue? Will related-party transactions with Sanju Group continue after coal trading stop? What are expected EBITDA margins from Varna project?
Answer, Vaibhav Gattani, Chief Financial Officer. Customer concentration: 21 customers with multiple operating units; no single-customer dependency — top customers are sizable but well-diversified. Related-party: coal sales stopped, but Steamhouse still purchases steam from Sanju Dyeing & Printing Mills Pvt Ltd for the original community boiler location (Sachin GIDC) — that continues for next few quarters. Varna project EBITDA margin: ~8-10% on pass-through fuel; no capex from Steamhouse; will depend on final agreement with Himachal Pradesh Urban Infrastructure Ltd.
Partly answered.
7. Volume growth trajectory, EBITDA per ton sustainability
Piyush Podar, Safai Capital
Question. Volume growth has been 10-12% historically; with utilization at 40% and new capacity coming, what growth should we envisage? Also, is ₹1,000 EBITDA per ton sustainable?
Answer, Vaibhav Gattani, Chief Financial Officer. Volume growth: 5-10% from existing locations (capacity utilization uplift) plus new location ramp — 20-25% company-level volume growth achievable 'very comfortably'. EBITDA per ton of ₹1,000 sustainable barring Q2 monsoon impact (Q2 typically weaker on account of monsoon); structural changes (cash coal purchases, solar power, inventory optimization) support sustainability; annual basis should be at par with or better than Q1.
8. Government community boiler adoption
Tej Patel, Nivesh Investment Advisory
Question. Why sudden interest from governments (Wada, Himachal, Gujarat) in community boilers? Is this concept being adopted in government schemes/parks? More opportunities beyond the three mentioned?
Answer, Company Spokesperson, Management (IR/executive). Transcript captured only via the moderator's transition to the next question — substantive answer from management not recorded in source.
Not answered directly.
9. Sarigam utilization, overall utilization rationale
Analyst (Volkel Ventures), Volkel Ventures
Question. Any special reason for lower utilization at Sarigam facility? Why is overall utilization only ~40%?
Answer, Company Spokesperson, Management (unnamed executive). Sarigam: initially missed onboarding a large customer; Q1 FY27 utilization improving after adding 2-3 new customers; further 2-3 large customers in advanced discussion. Overall 40% utilization reflects (i) weak chemical/pharma in FY24-26, now recovering post EU-US tariff deal; (ii) late commissioning of some projects; (iii) headroom kept for incoming new industries. Targeting 60-65% utilization can accommodate 2-3 years of new demand.
10. Steam realization drivers, WTP outlook
Mihir Dholam, Augmenta Research
Question. Steam sold +17% YoY but steam revenue +46% YoY — what explains the realization increase? With more waste-to-energy capacity, will realization/EBITDA per ton rise further?
Answer, Vaibhav Gattani, Chief Financial Officer. Realization improvement from (i) better utilization/operating leverage, (ii) higher contribution from waste-to-energy projects at Vapi. Demand recovery also driven by chemical/pharma revival; customer mix diversification adding tire industry and food processing (Haladia). With more waste-to-energy capacity coming, hope EBITDA per ton improves via better mix.
11. Working capital cycle and drivers
Arya Varun, Anso Capital
Question. Working capital cycle has improved — what's the guidance and what's driving it?
Answer, Vaibhav Gattani, Chief Financial Officer. Working capital days brought to 42-40 days; targeting 40-45 days going forward. Coal purchases converted from credit to cash from May 2026 — also helping lower fuel cost and improve margins.
12. Steam mix bifurcation
Analyst (Equity Ventures), Equity Ventures
Question. Revenue bifurcation between own-generated vs traded steam?
Answer, Company Spokesperson, Management (unnamed executive). Q1 FY27 split: 73.7% steam from own boilers; 22.2% purchased and resold (traded steam).
13. EBITDA CAGR guidance confirmation
Vedant, Mars Investments
Question. Was your growth momentum comment on EBITDA or revenue? Trying to confirm 30-35% EBITDA CAGR guidance for this year?
Answer, Company Spokesperson, Management (unnamed executive). Said almost same for both numbers but qualified: 'We are not saying that we will maintain' — they will try. 'We hope so' on whether FY27 EBITDA CAGR will exceed the 30-35% guidance.
Not answered directly.
14. Own vs trade margin split, growth from trades vs generation
Soneil Jain, Nirmal Bang
Question. Bifurcate margin between own generation and traded steam of ₹1,000 EBITDA per ton. Future growth — is it from generation or trading?
Answer, Company Spokesperson, Management (unnamed executive). Own-generation vs trade margin bifurcation declined as 'competition sensitiveness' — offered one-on-one call instead. On growth: trading already has two signed agreements (HSSZ, Alkyl Halides Bengaluru); future growth expected to come predominantly from own generation/distribution. Distribution model highlighted as more capital-efficient (higher ROCE) than own generation since CAPEX is just pipeline.
Not answered directly.
15. Funding of under-construction capacity and IPO use of proceeds
Aditya Shrivastava, Neves Wisdom
Question. Green capacity being added in Chhindwara and Siddhena — if not from IPO proceeds, how is it funded? Were IPO funds then used to reduce debt?
Answer, Company Spokesperson, Management (unnamed executive). Four under-construction facilities were funded via past debt and non-convertible debentures — almost on the verge of going live. Part of IPO funds were used to reduce debt.
What was said
Topic by topic, in the order it was spoken
Maiden Investor Call Welcome · Vishal S. Bhatia (CMD)
- First investor call post listing; thanked investors, customers, employees, lenders and partners for support
- Introduced as promoter, chairman and managing director; IR partner ActFacs coordinating
- Call deliberately limited to publicly disclosed information; silent period for Q2 FY27 results ongoing
Community Boiler Business Overview · Vishal S. Bhatia (CMD)
- Pioneered community boiler model in India; sells steam and nitrogen to chemicals, pharma, textile, plywood, food processing and tire industries
- Three verticals: (i) generation and distribution of steam, (ii) purchase and distribution of steam, (iii) generation and distribution of nitrogen
- Community boilers achieve 75-83% thermal efficiency vs 50-65% for conventional captive boilers
- Over 60 km of steam pipeline infrastructure across Gujarat industrial clusters; real-time consumption monitoring
- Approx 90.7% of FY26 revenue from repeat customers; 21 customers served; supply agreements with fixed + coal-pass-through variable component
Capacity Expansion Pipeline · Vishal S. Bhatia (CMD)
- Four projects under execution: Jagarvad, Bapi, Nandesari (AMC Ahmedabad Mineral Corporation), Derana
- Three projects planned via IPO proceeds at Ankleshwar, Panoli, Dahej
- Planned Tarapur project outside Gujarat; total capacity to nearly double from 345 TPH to 705 TPH
- Asset-light ₹311 cr EPC win at Balraj Park Guna, Madhya Pradesh — 300 TPH facility, fully funded by MP Balraj Park Infrastructure Ltd
- Long-term O&M mandate also part of Guna project
Industrial Gases & Sustainability · Vishal S. Bhatia (CMD)
- Nitrogen generation via 350 NM3/hr PSA plant at Ankleshwar; leverages existing pipeline and customer base
- Future industrial gases under evaluation: oxygen, hydrogen
- Diversifying fuel mix via waste-to-energy solutions; Bapi experience cited
- Gujarat government's capital subsidy policy supports eligible expansion projects
Q1 FY27 Financial Performance · Vishal S. Bhatia (CMD)
- Steam volumes: 305,816 tons, +16.7% YoY; revenue from operations +13.35% to ₹128.62 cr
- EBITDA +60.08% to ₹30.93 cr; EBITDA margin expanded to 24.05%
- PAT +80.25% to ₹18.34 cr
- Performance attributed to higher steam volumes, improved capacity utilization and operating leverage
CFO Deep Dive — Operating Metrics · Vaibhav Gattani (CFO)
- Steam volumes 305,800 tons; +16.70% YoY, +11.52% QoQ to record high
- Steam segment revenue +46.07% YoY to ₹123.37 cr vs ₹84.46 cr in Q1 FY26 — quality of revenue improved materially
- EBITDA +60.08% to ₹30.93 cr; EBITDA margin expanded 702 bps to 24.05% vs 17.03%
- EBITDA per ton +37.17% to ₹1,011 vs ₹737 per ton
- Clean EBITDA (ex-operating lease) +65.43% to ₹29.22 cr; PAT +80.25% to ₹18.34 cr; PAT margin 14.26% (+529 bps)
- Capacity utilization 41.40% vs 36.06% YoY and 38.32% in Q4 FY26; significant headroom remains
- Coal price pass-through mechanism protects margins from fuel volatility
FY26 Recap & Capital Structure · Vaibhav Gattani (CFO)
- FY26 revenue +24.4% YoY to ₹491.51 cr; EBITDA +20.45% to ₹83.49 cr (16.99% margin); PAT ₹38.64 cr
- FY26 ROE 22.36%; ROCE 16.06%
- Q1 FY27 gross debt ₹359.48 cr vs ₹281.62 cr at FY26 end; increase due to general corporate borrowings to be repaid via IPO proceeds
- Capital allocation focused on debt reduction and funding identified capacity expansion locations
Forward Outlook & Capital Priorities · Vaibhav Gattani (CFO)
- Continue growing steam volumes by improving utilization of existing 345 TPH capacity
- Disciplined new capacity additions matched to identifiable customer demand
- Capacity expansion 345 → 705 TPH plus 300 TPH Balraj Park Guna to drive medium-term growth
- Building nitrogen business and evaluating additional industrial gas opportunities
- Focus on capital efficiency, lower financing costs, and disciplined working capital as business scales
In their words
EBITDA per ton of thousand rupees can be safely assumed that it will be maintained in our steam generation and distribution sites for next few quarters as the new facilities that are coming up are on waste and will definitely help in keeping EBITDA per ton at thousand rupees or better.
Given the new capacity also coming and the revival you spoke about, a 20-25% volume growth at a company level is what, something is achievable for us? — Yes, very comfortably.
Steamhouse pioneered the community boiler system in India, which sells steam and nitrogen to industries like chemicals, pharmaceuticals, textile, plywood, food processing, tire industries, etc.
To check next time
What management committed to on this call, or the dates they gave.
- Commissioning of four under-construction projects (Jagarvad, Bapi, Nandesari, AMC Derana) targeted within current FY.
- Q2 FY27 EBITDA impact from monsoon - flagged as seasonal exception historically.
- Tarapur 160 TPH project timeline for Q4 FY28 commissioning.
- Ankleshwar, Panoli, Dahej IPO-funded project execution - targeted Q1 FY29 commissioning.
- Finalization of agreement with Madhya Pradesh state entity on Balraj Park project margin (8-10% indicated).
- Scaling of industrial gases (nitrogen) and any ASU partnerships announced.
Transcript
Read along with the recording
The whole call, 194 lines from 26 speakers over 1:04:53. Click any line to hear it, jump to the Q&A, or find a word. Free with an account.
The stock after the call
| After the call | Close | Stock | Nifty 50 |
|---|---|---|---|
| Next session Tue 6 Oct 2026 | ₹118.42 | +9.99% | +0.98% |
From the close of Mon 5 Oct 2026, ₹107.66: the last close before the call, which began at 11:30 IST. Adjusted daily closes; the move includes everything else that happened in those sessions.