Devson Catalyst Ltd (DEVSON) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to Devson Catalyst Limited H1 FY27 earnings conference call. As a reminder, all participant lines 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 touchtone phone. I now hand the conference over to Mr. Ayush from Aurim Connect. Thank you and over to you, sir.
Ayush (Aurim Connect): Good evening, everyone. A warm welcome to all of you. I am Ayush from Aurim Connect representing the investor relation team of Devson Catalyst Limited. On behalf of company, I would like to thank you all for joining the first concall and the H1 FY27 earning concall of Devson Catalyst Limited.
Ayush (Aurim Connect): Now, I am pleased to welcome the member of from the management team. We have Mr. Sawan Patel ji, the Managing Director of Devson Catalyst Limited and the team of Devson Catalyst. Now over to you Sawan ji.
Sawan Patel (Devson Catalyst Ltd): Good afternoon everyone.. I am myself, Sawan Patel, Managing Director of the Devson Catalyst Limited. Welcome all our shareholder, investor and analyst to to Devson Catalyst Limited financial '27 first half. And first earnings conference call. This is our first earning conference call. Call forward it our listing on BSE SME platform. I would like to thank all our shareholders for their trust and continued support. I will briefly take you through our business overview, financial performance key perform key, business updates and future growth. As I have mentioned already in my previous speech from when the investor meet was there that Devson Catalyst was incorporated in 2004. And we have started this business in in 2004 with insulator business. Right now we are operate in three major sector product category like catalysts, adsorbent and ceramic ball. Which are used in critical industrial applications such as purification, dehydration, sulfur removal, hydrogen hydro-processing, hydrotreating and environment compliances. Our products serve industry include oil, gas, refineries, petrochemicals, natural gas processing, fertilizers, steel and specialty chemicals. We have established our presence across 22 Indian states and Union Territories and export to more than 15 countries. Our long-term customer relations remain important strength with approximately 79.33% of our revenue of financial year '26 generated from repeat customers. Coming to our financial performance during half year of '20 financial year '27, revenue from operations stood at 31.69 crores, representing year-on-year growth of 1.14% compared with 31.33 crores in financial year '26 first half. Our EBITDA increased by 9.84% to 10.25 crores, compared with 9.33 crores in the corresponding period last year. Our EBITDA margin improved by 250 basis points to 30 to 31.80% from 29.30%. Our PAT, profit after after tax, grew by 13.12% to 7.5 crores compared with 6.63 crore in financial '26 first half. PAT margin expanded by 246 basis point to 23.29% compared with 20.83%. The improvement in profita- profitability reflects our continued focus on operational efficiency, cost optimization, product development and enhancement of existing product offerings. We also generate 6.37 crore in net operating cash flows during the first half, reflecting positive cash generation from our operations. Key business updation and manufacturing expansion. Moving to our key business developments, we successfully completed our IPO and listed on BSE SME platform on July 2026, raising 39.39 crores to the fresh issue. The IPO marks an important milestone in our growth journey and provide us with additional resources to support our expansion plans. Coming to manufacturing, our existing facility at Wadhwan, Gujarat, and installed capacity of 6,205 metric ton per annum. Now, we are planning to add 5,088 metric ton per annum, increasing our total install capacity to 11,293 metric ton per annum, representing a proposed expansion of approximately 82%. Geographical revenue mix, revenue mix and export performance of company. During first half of financial year '27, our export business was impacted by supply chain disruption in the Middle East, particularly
Sawan Patel (Devson Catalyst Ltd): around the space of Hormuz affecting shipments to key export market. Consequently, export revenue contributed declined to 6.72% from 42.95% in first half of financial year '26, while domestic sales contributed 93.28%. Had shipping and logistic condition remained normal, we could have executed a higher volume of export orders, potentially resulting in stronger overall revenue growth. Importantly, we continue to have active export orders in our hand, reflecting sustained international demand. Expect export sales to improve once the situation stabilized. IPO proceeding have been earmarked toward establishing a new manufacturing facility to enhance our production capabilities and support future business growth. Additionally, we have allocated 12 crores from IPO proceeding toward long-term working capital requirement, of which four 4.14 crores was utilized as September 30, 2026. Our financial positioning has also strengthened, with shareholder fund increasing to 76.09 crores as of September 30, 2026, compared with 33.50 crores of March 31st, 2026. Cash and cash equivalent stood as 41.9 crores, providing financial flexibility for our future business growth. Our a growth outlook, closing remark for today's. Like, looking ahead, our priorities remain focused on expanding manufacturing capacities, developing higher-value specific specialty products, strengthening customer relationship, and increasing our presence across domestic and international markets. We are also exploring export opportunity and enhancing our existing product portfolio to address evolving industry requirements. With our strengthened financial position, established customer relationship, and planned manufacturing expansion, we aim to build a scalable business and create sustainable long-term value for our stakeholder. So, I would like to thanks all our shareholder, investor, analyst for joining today's call. Thank you all. Thank you for joining this meeting and thank you for your interest in Devson. Ayush, over to you.
Ayush (Aurim Connect): Hello, am I audible?
Sawan Patel (Devson Catalyst Ltd): Yeah.
Ayush (Aurim Connect): Seema ji, we can start with the question-and-answer session.
Moderator: Sure, sir. Thank you very much, ladies and gentlemen. We will now begin with 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. Thank you. We take the first question from the line of Rahil Bora from Vyom Partners LLP. Please proceed with your question.
Rahil Bora (Vyom Partners LLP): Hello, am I audible?
Sawan Patel (Devson Catalyst Ltd): Yeah, Rahil. Hello.
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