Growth intact, margins squeezed; capacity ramp delayed to FY28

₹33.8 Cr EBITDA ÷ ₹338.8 Cr revenue = 9.97% (round 10%)

₹338.8 Cr vs ₹250.6 Cr Q1 FY26 = 35.2% growth

1,56,950 MTPA vs prior 1,04,025 MTPA = 50.9% increase confirmed

471% growth stated; Q1 FY27 exports 38.7% of ₹338.8 = ₹131 Cr run-rate

Q1 volume 17,645 MT at 65% utilization; management cited war impact, import blockages

Gross profit per ton fell ₹38,000 (Q4) → ₹34,500 (Q1); EBITDA per ton ₹19,000 vs prior ₹20,000+

FY26 EBITDA margin 12.6% → Q1 FY27 10%; FY27E ~10% (vs 12%+ prior expectations). Driven by ₹4,500/ton gross profit decline and petroleum/raw material inflation.

FY27 guidance 10-20% (vs historical 58.8% CAGR FY24-26). Management citing geopolitical disruption, procurement challenges, not market demand weakness.

70-75% optimum pushed to FY28 (not FY27) despite 51% capacity addition in May. Current 65% utilization held due to market caution.

Exports grew to ₹465 Cr FY26 (up from ₹81.6 Cr FY24); Q1 FY27 exports 38.7% of revenue. LME listing (announced this period) new credential.

War-driven import disruptions and procurement challenges forced strategic conservative positioning; capacity still ramping, utilization 65% vs 70-75% optimal.

Concentration already fell 70% → 40%; will continue declining as company grows. Top 5 customers will remain ~max business; structure inherent to the industry.

Mostly for scrap sourcing from new geographies and developing export origins (higher credit). Sustainable WC cycle 90-100 days; gross requirement ₹400+ Cr FY27.

Historically low capex = high ROCE; new equity will dilute ratios. Target to maintain 20%+ range long-term despite balance-sheet expansion.

Geopolitical scenario ongoing; safer to guide ~10% for full FY27 rather than 13%.

Works efficiently; daily audit system, no positions left unhedged, zero margin impact from unhedged commodity exposure.

Being conservative; willing to overperform. Whole 20% is volume-only (no metal price growth); supply-chain caution. Targeting ~85,000 MT FY27 vs 70,600 MT Q1.

Nothing concrete; evaluating multiple opportunities. Lithium is one but no direct entry planned now.

Already started participating in corporate auctions and direct buys. Challenges include higher domestic prices, GST complexity, unorganized sector. Working on it.

Running ~30-35% growth. OEM approvals slow ramp; gradual scaling. Capacity reallocation between pure lead and alloys ongoing.

Volume-driven only; no metal price appreciation. FY26 baseline ₹1,167.7 Cr implies ₹1,285-1,401 Cr FY27. Targeting ~85,000 MT FY27 (from 70,600 MT Q1 = ~282K MT FY26 annualized base).

Down from 12.6% FY26. Geopolitical impact (freight, import costs) expected to persist; room for recovery if macro stabilizes but not in base case.

₹15 Cr brownfield done; new land (5.56 acres) for future phases, not immediate deployment. Exploring opportunities on new land but no concrete timelines.

War-driven Middle East blockages and trade cost inflation constraining volumes and margins. Management cited as primary reason for conservative FY27 guidance despite 35% YoY growth.

Largest customer reduced from 70% to ~40%, top 5 always ~max business. Industry structure (few large OEM relationships) inherent but concentration remains.

Business inherently commodity-linked (lead spot prices). Back-to-back hedging mechanism works but basis risk, timing gaps, or unhedged pockets could impact profitability.

Despite ₹1.57L MTPA installed capacity (May 2026), only 65% utilized in Q1; management expects 70-75% optimum by FY28, not FY27. Implies near-term margin pressure from fixed-cost deleverage.

Q1 EBITDA margin 10% vs 12.6% FY26. FY27 guidance still ~10%; no recovery built in unless geopolitical situation improves. Raw material (domestic) and petroleum cost inflation blamed.