HLE Glascoat Ltd (HLEGLAS) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and you all have been connected to HLE Glascoat Limited Q2 and H1 FY '27 earnings conference call. The call will begin shortly. Please stay connected.
Moderator: Ladies and gentlemen, good day and welcome to HLE Glascoat Limited Q2 and H1 FY '27 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 "*" then "0" on your touchtone phone. Please note that this conference is being recorded.
Moderator: I now hand the conference over to Ms. Nidhi Vasa from MUFG. Thank you, and over to you.
Nidhi Vasa (MUFG): Thank you, Anam. Good evening, everyone. Welcome to the Q2 and H1 FY '27 earnings conference call of HLE Glascoat Limited. Today on this call, we have Mr. Aalap Patel, Executive Director; Mr. Harsh Patel, Executive Director; Mr. Amit Kalra, Chief Financial Officer; and Mr. Nilesh Dandiwala, Senior Advisor. This call may, this conference call may contain some of the forward-looking statements about the company, which are based on beliefs, opinions, and expectations as of today. Actual results may differ materially. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is given to the company's investor presentation, which has been uploaded on the stock exchange, as well as company's website. With this, I hand over the call to Mr. Harsh Patel sir for the opening remarks. Over to you, sir.
Harsh Patel (HLE Glascoat Limited): Hello, good afternoon. It gives me great, great pleasure to welcome you all to HLE Glascoat Limited's quarter two and H1 FY '27 earnings conference call. I hope you have had an opportunity to go through our financial results and the investor presentation, which have been uploaded on the stock exchanges and the company's website. The global economic environment continues to remain dynamic with geopolitical developments, inflationary pressures, supply chain realignments, and evolving trade policies influencing industrial investment decisions across markets. Despite these uncertainties, the long-term outlook for India's manufacturing and engineering sectors remain encouraging. HLE Glascoat, with its strong technological capabilities and established market presence, is well positioned to benefit from these emerging opportunities. Also, Q2 FY '27 has been a significant milestone for HLE Glascoat, with our consolidated order book crossing the 1,000-crore mark for the first time in the company's history. As of September 30th, 2026, the consolidated order book stood at 1,087.3 crores, registering a growth of 51% year-on-year and 64% quarter-on-quarter compared to 662 crores as of June 30th, 2026. This strong order accretion reflects the confidence our customers place in our engineering capabilities, technological expertise, and execution track record across domestic and international markets. A key highlight during the quarter was the landmark order worth approximately €20.56 million secured by our step-down subsidiary, HLE Surface Technologies GmbH, Germany, for vitreous enamel cladding panels for the Fehmarnbelt tunnel connecting Germany and Denmark. This project further strengthens our international presence and provides long-term revenue visibility. The record order book, coupled with a diversified geographical presence and product portfolio, provides a strong foundation for our growth in the coming quarters. During the quarter, we witnessed a gradual improvement in business momentum following a period of geopolitical uncertainties and delays in customer delivery acceptances. The positive indicators observed in Q1 have gained further traction, particularly towards the latter part of quarter two. Customer inquiries across the pharmaceutical and specialty chemical industries have improved, while several previously deferred projects are now again progressing towards finalization. Filtration, drying, and other equipment recorded revenue of 102 crores during the quarter, glass-lined products reflected Rs. 195.4 crores, while heat exchanger equipment contributed 48.8 crores. On a sequential basis, all three segments witnessed improvement in revenue, indicating a gradual recovery in business activity. The Thaletec business continues to strengthen its presence
Harsh Patel (HLE Glascoat Limited): Thaletec range of products introduced in India over the past few years is witnessing encouraging traction. As communicated earlier, we have viewed this as a medium term opportunity, recognizing that wider customer adoption would require a gradual shift in market preferences and greater acceptance of advanced product offerings. We are now seeing this transition gaining momentum with Thaletec products contributing approximately 22% of our overall glass lined product businesses in India during the current quarter. This represents encouraging progress in expanding our product portfolio and strengthening market penetration. Going forward, we expect customer acceptance to improve further, supporting a higher contribution from Thaletec products and to improve further and and creating an additional growth opportunity for our glass lined product business. With a healthy order pipeline, diversified end-user exposure, strengthening international operations, and improving business visibility, we believe HLE Glascoat is well positioned to capitalize on emerging opportunities and deliver sustainable growth and long-term value for our shareholders. From a balance sheet perspective, we continue to follow a disciplined financial approach, with a strong emphasis on working capital optimization, prudent capital allocation, and maintaining financial flexibility. These priorities remain central to supporting our growth objectives while ensuring financial discipline. As we move into the second half of '27, our key priorities remain focused on converting the record order book into timely project execution, improving margins through a favorable product mix, strengthening cost efficiencies, and further expanding our product portfolio and customer relationships. With a strong order book, a diversified business portfolio, and encouraging demand indicators across our key end-user industries, we remain optimistic about the business outlook for second half of '27. We are confident that our continued focus on execution excellence, operational efficiency, and strategic growth initiatives will enable us to strengthen our market position and deliver sustainable profitab sustainable profitable growth in the years ahead. I will now request our CFO, Mr. Amit Kalra, to take you through the financial highlights for the second quarter and half year ended 30th September 20 26. Over to you, Amit.
Amit Kalra (HLE Glascoat Limited): Good afternoon, everyone. I'll now take you through the financial performance of the company for the quarter and half year ended 30th September, 2026. During quarter two, the company reported consolidated revenue from operations of approximately 346.7 crores INR with a growth of 15.3% compared to Q1 FY27, with EBITDA of 39 crores INR and EBITDA margin of 11.2%. EBITDA grew by 72.3% quarter-on-quarter. The company earned profit after tax of around INR 16 crores with a PAT margin of 4.6%. PAT grew 680% quarter-on-quarter. For H1 FY27, our revenue grew by 2% rising from 634.7 INR crores to 647.4 INR crores. Our EBITDA for FY26 stood at INR 61.6 crores against INR 80 crores, thus registering a degrowth of 23% year-on-year, and EBITDA margins stood at 9.5%. Our filtration, drying, and other equipment segment grew by 5.4% quarter-on-quarter. We reported a revenue of INR 102 crores in comparison to 96.8 INR crores in the previous quarter. Meanwhile, our glass lined equipment business generated about INR 195.4 crores of revenue in Q2 FY27 compared to around 157.3 INR crores last year in the same quarter, reflecting a growth of 24.2%. Likewise, for H1 FY27, our revenue increased by 35.4% in this segment. The heat transfer equipment segment showed a revenue degrowth by 12.3% year-on-year and growth of 362.3% quarter-on-quarter. Net working capital days increased to 102 days, in line with the order book expansion, from 80 days in FY26. Going forward, we remain focused on improving working capital efficiency through better inventory management, disciplined receivables collection, and optimizing the overall cash conversion cycle. Our Our emphasis will continue to be on prudent capital allocation, maintaining financial flexibility, and strengthening operational efficiencies to support sustainable business growth. I will now request the moderator to open the floor for Q&A. Thank you.
Moderator: Thank you very much, sir. 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.
Moderator: Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Harsh Patel (HLE Glascoat Limited): Thank you, and have a good day. Thank you.
Moderator: Thank you. On behalf of HLE Glascoat Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
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