Dachepalli Publishers Ltd (DACHEPALLI) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to Dachepalli Publishers Limited H1 FY '27 earnings conference call. As a reminder, all participants line will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Gautam. Thank you, and over to you, Mr. Gautam.
Gautam (EquiBridge Advisors): Thank you Siddharth. And a very good evening to everyone. Welcome to the H1 FY '27 earnings conference call of Dachepalli Publishers Limited. Joining us today from the management team are Mr. Harish Kumar Dachepalli and Mr. Abhinav Dachepalli, Executive Directors of the company. We will begin the opening remarks from the management, followed by the question-and-answer session. With that, I would like to hand over call to Mr. Abhinav sir for his opening remarks. Thank you, and over to you, sir.
Abhinav Dachepalli (Dachepalli Publishers Limited): Yeah. Good afternoon, everyone. I welcome all the investors, analysts, and participants joining us for Dachepalli Publishers Limited H1 FY '27 earnings call. Thank you for taking time to be with us today. The first half of FY '27 has been a positive period for the company. We reported total income of 70.06 crores, registering year-on-year growth of 74%, while net profit increased by 29% into 9.71 crores. EBITDA for the period stood at 14.63 crores, compared with 11.71 crores in the corresponding period last year. We're pleased with the progress made during the period and remain focused on building the business in a steady and sustainable manner. Our publishing business continues to be the center of our operations. Over the years, we have developed relationships with schools and institutions by providing books aligned with their academic requirements. These relationships, our understanding of the education market, give us a good base to expand our offerings. We see an opportunity to serve our existing customers more comprehensively rather than limiting ourselves to textbooks alone. One of the key steps we have taken in this direction is entering in in-house notebook manufacturing. With the acquisition of notebook manufacturing machinery, we are working towards great greater control over product quality, customization, and supply timelines. This also gives us an opportunity to reduce our dependence on external suppliers. Along this, we have introduced our own notebook brand, Pagecraft. We plan to introduce it gradually to our existing schools, relationships, and customer network, keeping market demand and execution in mind. We are We are also developing Pelican EduSupply to bring different educational requirements together under one offering. Schools require textbooks, notebooks, and other academic supplies throughout the year, and our aim is to make it easier for them to access these products through a more integrated approach. We believe that our existing relationships can help us introduce these offerings in a practical way and build on the trust we have established with our customers over the years. And another addition to our educational offering is our arrangements with Vikitecs for interactive classroom displays. This allows us to explore opportunities beyond printing learning materials and broaden the range of solutions we can offer to schools. As classroom requirements continue to evolve, we believe it is important to understand these needs and gradually expand our presence in related areas. An important part of this journey will be to build on our existing relationships rather than approach each initiative in isolation. Our established network gives us an opportunity to introduce new products to customers who already know and work with us. At the same time, we will remain mindful of market demands and the pace at which each initiative develops. Our focus is to build these offerings on a sound footing while ensuring that our core publishing business continues to receive the attention it deserves. Looking ahead, we will continue to focus on execution, operational efficiency, and meeting the requirements of our customers. These new initiatives are being developed along
Abhinav Dachepalli (Dachepalli Publishers Limited): our existing business and we will take them forward in a phased manner. We believe this approach will help us strengthen our position in the education market and create opportunities for the company over the longer term. So before we move to the Q&A session, I would like to thank all our investors and analysts for their time, continued trust and support. I now invite our Director Harish Dachepalli to lead the Q&A session and answer your questions.
Harish Kumar Dachepalli (Dachepalli Publishers Limited): Hello, everyone. I'm Harish Dachepalli. It's nice to have you all here today, and I'm ready to take any questions if you have. Please go ahead.
Moderator: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Madhur Rathi from Counter-Cyclical Investments. Please go ahead.
Madhur Rathi (Counter-Cyclical Investments): Hi, Harish. Good to see speak to you again. So, Harish, basically, congratulations for the good top line, but I think we missed our margin guidance. So, what's the reason for the same?
Harish Kumar Dachepalli (Dachepalli Publishers Limited): Hello, sir. I'm glad to see you again this year. There are certain parameters like you know because of the war, some paper prices have gone up and down. So that was one reason. And we've spent more money on the marketing and sales this year, so so that in the next two quarters, we will be generating more margin. So that is why the usually, our average of margin should be considered with the Q4 and Q1 the next two quarters. That's when the whole it will average off together at the at the promised returns what we have offered.
Madhur Rathi (Counter-Cyclical Investments): So, what I understood Harish, that can we expect for the full year the NPM to be around 14% as guided?
Harish Kumar Dachepalli (Dachepalli Publishers Limited): Yes, sir. PAT will be around 14% to 16% like previously shown.
Madhur Rathi (Counter-Cyclical Investments): Understood.
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