Yasho Industries Ltd (YASHO) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (MUFG Intime): Ladies and gentlemen, good day, and welcome to Yasho Industries Limited Q2 FY27 earnings conference call, hosted by MUFG Intime. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sejal Bhattar from MUFG Intime. Thank you, and over to you, ma'am.
Sejal Bhattar (MUFG Intime): Thank you, Yusuf. Welcome to Yasho Industries' Q2 and H1 FY27 earnings conference call. From the management today, we have Mr. Parag Jhaveri, Managing Director and CEO, and Mr. Chirag Shah, CFO. Before we proceed with the call, I would like to give a small disclaimer that this call may contain certain forward-looking statements which are based on business operations and expectations of the company as of today. These statements are not guarantees of future performance and involves risks and uncertainties which are difficult to predict. A detailed disclaimer has been given in the company's investor presentation which is uploaded on the stock exchange. Now, I would request Parag sir to give his opening remarks. Over to you, sir.
Parag Jhaveri (Yasho Industries Ltd): Good evening, everyone, and thank you for joining us for Yasho Industries Limited Q2 and H1 FY27 earnings conference call. We are pleased to report a strong performance in the first half of FY27, driven by robust volume growth, increasing demand across our key market, and continued progress in strengthening our industrial chemical business. These results reflect the benefit of our investments in manufacturing capacity and the opportunities we see ahead. For Q2 FY, we have achieved a sales of 147.33 crore, while for FY27, it has stood at a 646.98 crore, registering an year-on-year growth of 71.7%, while EBITDA has increased by 122.8% to 147.33 crore. We recorded volume growth of 62% year-on-year, and 7% on quarter-on-quarter, supported by higher offtake from existing customers. Our industrial chemicals business remained a key growth driver, contributing approximately 90% of the revenue. Our focus is on strengthening our product portfolio and capturing a larger share of the addressable
Parag Jhaveri (Yasho Industries Ltd): it through deeper customer engagement and the new product offerings. Capacity utilization stood at 66% in Q2 FY '27, reflecting better demand absorption across our key market. Our priority is to ramp up utilization further, which shall be shall enable us to benefit from better fixed-cost absorption. Exports account for 70% of the revenue. The The supply agreement we signed last year will start contributing to our growth from FY '28. Company has received rupees 120 crores to date under the contract. We are expecting trial production by Q4 FY '27 and commercialization in Q1 FY '28. We remain focused on executing these milestones as planned. We foresee growing demand for several of our products. We have committed a capex of rupees 200 crore 250 crores this year on building a two new manufacturing buildings at our Pakhajan site. This will enable us to grow beyond FY '28 and enable us to pursue projects that align with the long-term growth plan for the company. With that, I would like to thank our employees, customers, shareholders, business partners, leaders, and the Board of Directors for their continued support. Thank you. I will hand over to our CFO, Mr. Chirag Shah, who will take you through the financial details.
Chirag Shah (Yasho Industries Ltd): Thank you, Parag bhai, and good evening everyone. I will take you to through the financial performance of Yasho Industries for Q2 and H1 FY '27. Total income stood at 347.92 crores compared with 183.6 crores in Q2 FY '26, registering an year-on-year growth of 89.5%. EBITDA increased to 72.92 crores from 33.42 crores, representing growth of 118.2%. Profit after tax stood at 33.68 crores compared to with 4.86 crores in the corresponding quarter last year. Our net working capital cycle stood at 149 days as of H1 FY '27. On capital expenditure, the planned outlay for FY '27 stands at 250 crore. This will be funded through internal accruals of 100 crore and 150 crore of term loans, which has been sanctioned. This investment is intended to support the company's manufacturing expansion and future business requirements. Our focus remains on deploying capital in line with project milestones, while maintaining financial discipline. Total debt stood at 615 crore as of Q2 FY '27, comprising short-term debt of 329 crore and long-term debt of 286 crore. Our debt to EBITDA ratio stood at 2.09x in H1 FY '27 compared with 3.74x in FY '26. Our ROE for H1 FY '27 stands at 27.3% and our ROCE at 18.4%. During the quarter, the cost of freight increased from 10 crore in Q1 to 20 crore in Q2. Increase in gas prices in the quarter also resulted in an additional expenditure of Rs. 1.8 crore. Operationally, the company had to absorb both these additional expenditure, as we cannot pass on the spot changes or input cost to customers where purchase orders have already been accepted. We expect this to be passed on to the customers from this quarter onwards. Overall, our financial performance for the first half reflects strong year-on-year growth. Going forward, we will continue to focus on disciplined capital allocation, efficient working capital management, and maintaining a healthy balance sheet. Thank you. We will now be happy to take your questions.
Moderator (MUFG Intime): 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 withdraw yourself from the question queue, you may press star and two.
Moderator (MUFG Intime): participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question is from the line of Lovish Soven from B&M Capital Management. Please go ahead.
Lovish Soin (B&M Capital Management): Hi, thank you for the opportunity. Am I audible?
Parag Jhaveri (Yasho Industries Ltd): Yes.
Lovish Soin (B&M Capital Management): Yeah. Sir, my question is regarding the capacity utilization that we have reported and the revenue growth that we have shown. So as I can see from 4Q FY '26 to this to this quarter, our revenue has grown by roughly 40% while our utilization has only grown from 60% to 66% over two quarters which, as per my understanding, implies 10% volume growth. So, how should we think about volume growth and pricing growth over these quarters, and what are the drivers of the pricing growth that we have seen?
Parag Jhaveri (Yasho Industries Ltd): I think, I don't know, if there's some misunderstanding on calculation. The growth in a this quarter is about 7% in volume Q1 to Q2. And in value terms is about 13%. So, I don't know how you got a different growth number. So, you are talking Q4 or you are talking Q1 before?
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