Sejal Glass Ltd (SEJALLTD) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Kirin Advisors Private Limited): Ladies and gentlemen, good day and welcome to Sejal Glass Limited Q2 and H1 FY27 results conference call hosted by Kirin Advisors Private Limited. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Thakur from Kirin Advisors Private Limited. Thank you and over to you, sir.
Karan Thakur (Kirin Advisors Private Limited): Good afternoon, everyone. On behalf of Kirin Advisors, I welcome you all to the Q2 and H1 FY27 earnings conference call of Sejal Glass Limited. We have with us the senior management of the company led by Mr. Amrut Gada, Promoter and Mr. Chandresh Rambhia, Chief Financial Officer. We will begin the with opening remarks from the management followed by a Q&A session. I would, I would now like to hand over the call to Mr. Amrut Gada for his opening remarks. Over to you, sir.
Amrut Gada (Sejal Glass Ltd): Yes, thank you, Karan. Good afternoon everyone and welcome to the Q2 and H1 FY27 results conference call of Sejal Glass Limited. On behalf of the management team, I would like to thank all our investors, analysts, stakeholders for their continued interest and confidence in the company. Sejal Glass has been steadily evolving from its traditional glass business into an integrated architectural glass manufacturing company with an expanding presence in specialized and value-added products, with manufacturing facilities across Silvassa, Taloja, and Erode in India, along with our
Amrut Gada (Sejal Glass Ltd): to Khemka, UAE. We now have a four state-of-the-art along with our, manufacturing plant network with an annual production capacity of approximately 61.94 lakh square meter for all products put together, that is tempered, laminated, and insulated glasses. Our focus remains on strengthening this platform by improving capacity utilizations, expanding our product portfolio, enhancing operational efficiency, and increasing our presence across domestic and international markets. Coming to our financial performance for the Q2 of FY '27, on a consolidated basis, total income stood at 139.86 crore compared with 105.04 crore in Q2 of FY '26, registering a year-on-year growth of 33.14%. Our consolidated EBITDA increased by 43.44% to 25.66 crore from 17.89 crore in the corresponding quarter of the previous year. Consolidated EBITDA margin improved to 18.35% from 17.03%, representing the expansion of 132 basis points. Consolidated net profit stood to 14.42 crore compared with 8.11 crore in Q2 FY '26, registering a year-on-year growth of 77.61%. The net profit margin improved to 10.31% from 7.73%, an expansion of 258 basis points. Earning per share increased to 12.52 from 7.95 in the corresponding year last quarter. For the first half of FY '27, consolidated total income reached to 259.29 crore compared to 182.81 crore in H1 of '26, reflecting a growth of 41.84%. EBITDA increased by 43.79% to 43.68 crore from 30.38 crore, while EBITDA margin improved to 16.85 to 16.62%, an expansion of 23 basis points. Consolidated net profit for H1 FY '27 stood to 21.63 crore compared to 12.53 crore in H1 of FY '26, registering a growth of 72.6%. The net profit margin increased to 8.34% from 6.86%, an improvement of 149 basis points. Earning per share increased to 18.79 from 12.28, representing a growth of 53%. Overall, our Q2 and H1 FY '27 performance reflects healthy growth in income and profitability, supported by improved margin and the continuous development of our expanded manufacturing network. Operationally, our key priority is to continue integration and ramp up of our Taloja and Erode facilities acquired through the Glasstech business acquisition in April 2025. Following the initial integrations and machine overhaul, our focus is on increasing utilization, improving production efficiency, and generating a better operating leverage across the network. Our established Silvassa facility continued to provide a strong domestic manufacturing base, while our UAE operation remains an important contributor to the group's overall performance. Going forward, we expect improved capacity utilization across our facility and a more balanced contribution from India and the UAE to support sustainable growth. We have also continued to strengthen our order pipeline. In July 2026, our UAE subsidiary secured five significant architecture glass orders, aggregating approximate AED 27.6 million, equivalent to around 71 crore, for hospitality, residential, and healthcare projects. In addition, we secured domestic architectural glass projects, aggregating approximately 50 crore across commercial, residential, and institutional applications. Our UAE order book reached approximately 78 million AED in September 2026, providing visibility for execution over the following 6 to 9 months. This project reflects continued customer confidence and strengthened our presence in the GCC region. On the product development front, we are progressing towards a higher value product mix. Our digital printing capability have expanded our offering in decorative and specialized architectural glass, while our bullet-resistant glass has progressed through the testing in India. We are also an approved vendor for railway grade glass at three railway coach factories and are participating in the tender opportunities. Although this business is currently at an early stage, we expect it to develop progressively over the coming quarters. Another important initiative is our entry into fire-rated glass. The manufacturing line and associated technology has been imported and are being
Amrut Gada (Sejal Glass Ltd): our factory facility with the trial production and approval progress towards commercial production target to end of Q3 FY '27. We see promising opportunity across real estate, healthcare, airports, infrastructure, defense and other applications where fire safety requirements are important. As these specialized products scale up, we expect from them to contribute increasingly to our revenue and product mix, while supporting our strategy of moving towards higher-value glass processing solutions. Looking ahead, our outlook for FY '27 remains constructive based on our assessment of market condition, real estate activity, infrastructure development and progress of our operations. We continue to expect year-on-year revenue growth in the range of 25% to 40%. We also remain focused on sustaining EBITDA margin at around 18% and maintaining a PAT margin of approximately 10%. These objectives will be supported by better capacity utilization, operational efficiencies and gradual increase in the contribution of value-added products. Our broader priorities under the Lakshya 2030 vision remain centered on speed, scale and sustainability. We will continue to strengthen our domestic presence, expand our reach across GCC and other export markets, improve manufacturing efficiency, evaluate growth opportunity with focus on the long-term value creation. We believe that our expanded manufacturing footprint, established customer relationship and increasing capability in specialized glass position us well to participate in opportunity emerging across residential and commercial constructions, hospitality, healthcare, infrastructure and transportation. At the same time, we remain focused on disciplined execution, cost management, working capital efficiency and prudent capital allocation as we move into the next phase of growth. With that, I would like to thank all our investors, stakeholders for their continued support and confidence in Sejal Glass Limited. We look forward to sharing further progress as we execute our plans for the remaining FY '27. Thank you. I will now hand the call back to the moderator for the question-and-answer session. Thank you very much. Over to you, Payal.
Moderator (Kirin Advisors Private Limited): 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. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Gaurav Shukla (Finvestors): Hello?
Moderator (Kirin Advisors Private Limited): The first question is from the line of Gaurav Shukla from Finvestors. Please go ahead.
Gaurav Shukla (Finvestors): I'm audible, sir? I'm audible, sir?
Amrut Gada (Sejal Glass Ltd): Yes, yes.
Gaurav Shukla (Finvestors): Thank you, sir, for giving me opportunity and congratulations for great set of numbers. Sir, as we see that Q2 FY27 has shown strong growth in both revenue and profitability. Could you please explain how much of this improvement is sustainable particularly after the integration of Taloja and Erode facilities in 2026? What revenue growth and EBITDA margin do you expect from FY27? And how will company improve cash flow and reduce debt while funding further expansion?
158 more turns of this transcript: log in to Stocksigma to read the full call.