Steamhouse India Ltd (STEAMHOUSE) Q1FY27 Concall Transcript - Jun-2026 Qtr
Moderator: Ladies and gentlemen, you have been connected to Steamhouse India Limited conference call. Please stay connected, the call will begin shortly. Participants, you have been connected to Steamhouse India Limited conference call. Please stay connected, the call will begin shortly. Thank you.
Moderator: Ladies and gentlemen, good day and welcome to the Q1 FY27 earnings conference call of Steamhouse India 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Sharma from Adfactors PR. Thank you and over to you, sir.
Amit Sharma (Adfactors PR): Thank you, Nirav. Good morning, everyone. Welcome to the Q1 FY27 earnings conference call of Steamhouse India Limited. Today, from the management side, we have with us Mr. Vishal S. Budhia, Chairman and Managing Director, Mr. Vaibhav Gattani, Chief Financial Officer of Steamhouse India Also we have the Adfactors IR team. We will begin the call with the opening remarks from the management, after which we shall open the forum for the Q&A session. Kindly note that the company is presently in the silent period pending the announcement
Amit Sharma (Adfactors PR): h's financial results for the quarter ended September 30, 2026. This call would not discuss any unpublished financial or operational information or any other unpublished price sensitive information. The discussions shall be limited to the information that is already in the public domain or has been previously discussed in accordance with the applicable laws and regulations. I must remind you that this conference may include forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the management as on the date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. I now hand over the conference to Mr. Vishal S. Budhia for his opening remarks. Thank you, and over to you, sir.
Vishal S. Budhia (Steamhouse India Ltd): Thank you, Amit ji. Good morning, everyone, and thank you for joining us. It is my pleasure to welcome all our investors, analysts, and stakeholders to Steamhouse India Limited's maiden investor call. I'm Vishal S. Budhia, promoter, Chairman, and Managing Director of Steamhouse India Limited. On behalf of the entire management, I would like to thank you for your continued trust and support, particularly as we begin our journey as a listed company. Before discussing our financial performance for the quarter, I would like to briefly introduce our business, our operating model, and the long-term opportunity we see ahead. Steamhouse pioneered the community boiler system in India. We sell steam and nitrogen to industries like chemical, pharmaceuticals, textiles, plywood, food processing, tire industries, etc. These industries need steam for their heating and processing requirements and have their own boilers for generating steam for their requirement. These industries have had to invest in their own captive boilers along with the associated land, fuel handling system, water treatment facilities, pollution control equipment, manpower, and maintenance. And all of these were mostly inefficient. By outsourcing their steam requirements to Steamhouse, these industries can now focus on their core manufacturing activities, operations, while we provide a reliable, efficient, and scalable steam solution. We believe our steam-as-a-service model represents a structural shift from traditional captive boiler ownership to outsourced steam solutions by aggregating demand through centralized facilities. We provide customers with greater efficiency, reliability, and cost optimization, while creating a scalable business model for Steamhouse. Today, our business operates through three verticals: generation and distribution of steam, purchase and distribution of steam, generation and distribution of nitrogen. Our business model creates through value through scale. By serving multiple customers from a centralized facility, we operate larger and more efficient boilers, optimize fuel consumption, improve capital and capacity utilization, and spread infrastructure costs across a wider customer base. As highlighted in our investor presentation, community boilers can achieve thermal efficiency of 75% to 83% compared with around 50% to 65% for the conventional captive boilers. Our USP is our knowledge of steam distribution for kilometers. We have established more than 60 kilometers of steam pipeline infrastructure across industrial clusters in Gujarat, enabling us to deliver steam directly to the customers with minimal pressure loss while monitoring consumption in real-time. Our customer relationships are longstanding and sticky. Approximately 90. 7% of our FY '26 revenue came from repeat customers. And we currently serve 21 customers with multiple operating units connected to our network. Most of our customers are covered by steam supply agreements comprising fixed and variable components, with the variable component linked to the coal price. This contractual structure enables us to pass through changes in fuel cost. In addition, newer contracts increasingly incorporate minimum guaranteed offtake commitments, providing better revenue visibility and facilitating capacity planning. When evaluating new projects, we focus on customer tie-ups, contracted demand, and achievable utilization levels. As utilization improves, incremental steam volumes contribute meaningfully to the profitability because a significant portion of our infrastructure and operating costs are already in place. This creates operating leverage and supports margin expansion as the business scales. Looking ahead, expansion remains one of our key priorities. Expansion remains a key growth driver for Steamhouse. We currently have four projects under execution at Jhagadia, Vapi, Nandesari, and AMC, Ahmedabad Municipal Corporation, Pirana. Along with three projects planned through IPO proceeds at Ankleshwar, Panoli, and Dahej. Beyond Gujarat, we are also expanding our footprint with a planned project at Tarapur. These initiatives expected to increase our steam distribution capacity from 3 45
Vishal S. Budhia (Steamhouse India Ltd): per hour currently, to approximately 705 705 tons per hour capacity, providing a strong strong foundation for long term growth. The long term opportunity remains significant. Steam is a critical input across a wide range of industries including pharmaceuticals, chemicals, textiles, food processing, paper, pulp, and tires, supporting essential processes such as heating, drying, sterilization, and distillation. As industries continue to focus on operational efficiency and sustainability, we believe the centralized community boiler model remains significantly undependent, providing a underdependent, providing a substantial runway for the future growth. An important milestone in our expansion beyond beyond Gujarat is our entry into Himachal Pradesh. We have been awarded the EPC mandate for setting up a 300 tons per hour community boiler facility at the Bulk Drug Park, Una, with a project value of approximately 311 crores inclusive of GST. The project will also include long-term operations and maintenance. Importantly, the project is structured as an asset-light opportunity with the project cost funded by Himachal Pradesh Bulk Drug Park Infrastructure Limited. This allows us to bring our proven community boiler expertise to the new markets while maintaining our focus on operational excellence and sustainable growth. Additionally, the Government of Gujarat's supportive policy framework backed by capital subsidies for eligible projects provides a strong tailwind for our long-term expansion plans and helps us expand our footprint across Gujarat. Alongside steam, we are also building a second growth vertical through industrial gases. We have commenced nitrogen generation and pipeline distribution at Ankleshwar through a PSA plant through a PSA based plant with a capacity of 350 NM cube per hour, leveraging our existing industrial customer relationship and pipeline infrastructure. We intend to gradually scale this business by adding new nitrogen and while commercially viable, expanding into industrial gases such as hydrogen and oxygen. This creates opportunities to deepen customer relationships, cross-sell additional products, and diversify our revenue streams over the long term. We are also actively diversifying our fuel mix by increasing the use of waste-to-energy solutions wherever commercially viable. Our experience at Vapi along with projects under development reflects our commitment to combining operational efficiency with sustainable energy solutions. Let me now briefly discuss our financial performance. Q1 FY '27 was stronger strong quarter for Steamhouse despite a challenging macroeconomic environment marked by geographic geopolitical uncertainty and subdued industrial activity across certain sectors. During the quarter, we re recorded steam sales of 305,816 tons representing year-on-year growth of 16.7%. Revenue from operations increased by 13.35% to 1,286.21 million INR. EBITDA grew by 60.08% to 309.32 million INR with EBITDA margins expanding to 24.05%. Profit after tax increased by 80.25 80.25% to ₹183.42 million. This performance was driven by higher steam volumes, improved capacity utilization, and the operating leverage inherent in our business model. Despite external headwinds, we continue to execute well, reflecting the resilience of our customer relationship and strength of our operating platform. As we look ahead, our prior priorities remain clear. We will continue to expand capacity prudently, improve utilization across our network, execute projects on schedule, strengthen our presence in new geographies, scale our industrial gases business, and pursue sustainable energy solutions through greater adoption of waste-to-energy technologies. To conclude, I would like to leave you with the four key messages. First, our centralized steam distribution model provides customers with reliable, efficient, and cost-effective alternative to captive boilers. Second, our significant capacity expansion pipeline together with our entry into new geographies positions us well for long-term growth. Third, we are creating additional growth avenues through industrial gases and sustainable energy solutions while maintaining disciplined capital allocation and operational excellence. Fourth and most important, we continuously explore and invest in emergen emerging technologies to strengthen our capabilities, enhance operational efficiencies, and remain in the forefront of industrial steam and energy solutions. Our objective is to build Steamhouse into India's leading provider of centralized industrial steam and pipeline-based industrial gas solutions while helping indus
Vishal S. Budhia (Steamhouse India Ltd): reduce emissions, improve energy efficiency, and lower their overall operating costs. I would once again like to thank our investors, customers, employees, lenders, business partners, and all our stakeholders for their continued confidence and support. With that, I now invite our Chief Financial Officer Mr. Vaibhav Gattani to take you through the financial performance for the quarter. Thank you.
Vaibhav Gattani (Steamhouse India Ltd): Good morning, everyone. I am Vaibhav Gattani, CFO of Steamhouse India Limited. I will take you through the financial performance of Steamhouse India Limited with a focus on the key operating and financial numbers for Q1 FY '27 and the progress we are making on profitability, utilization, and capital allocation. Let me begin with the operating performance. Q1 FY '27 was a strong quarter for Steamhouse India Limited, with steam volumes reaching a record quarterly level of approximately 3,05,816 tonnes representing a growth of 16.70% year-on-year and 11.52% sequentially. The growth in volumes reflect the improving demand environment across our customer base and better utilization of our installed capacity. Our revenue from operations for the quarter stood at ₹128.62 crores compared with ₹113.47 crores in Q1 FY '26 representing a growth of 13.35%. Importantly, the quality of revenue has improved significantly. The revenue from steam increased by 46.07% year-on-year to ₹123.37 crores from ₹84.46 crore in Q1 FY '26. Coming to profitability, EBITDA for Q1 FY '27 increased by 60, 60.08% year-on-year to ₹30.93 crores from ₹19.32 crores. EBITDA margin expanded substantially to 24.05% compared with 17.03% in Q1 FY '26, an improvement of 702 basis points. One of the key indicators of this improvement is EBITDA per tonne. EBITDA per tonne increased by 37.17% to ₹1,011 in Q1 FY '27 from ₹737 per tonne in Q1 FY '26. This improvement was driven by higher steam sales, better utilization of our waste to energy boilers and operating leverage from the higher volume base. Our clean EBITDA, adjusted for operating lease expenses, increased by 65.43% to ₹29.22 crores from ₹17.66 crore in Q1 FY 2026. This further
Moderator: Sir, sorry to interrupt, we are losing your audio.
Vaibhav Gattani (Steamhouse India Ltd): At the
Moderator: Vaibhav sir, sorry to interrupt you, we are losing your audio. Participants, please stay connected while we rejoin Vaibhav sir.
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