Growth on track, Abrasive margins hit by geopolitics, new ventures unproven

Delivered 17.0% YoY; call reported 1,411 Cr vs delivered 1,426.6 Cr (1.1% variance)

Volume-driven growth confirmed; price pressure real (cost push ₹16 Cr from energy)

33% growth cited; no price increase, mix (treated products) helping margin — consistent

Standalone: 59 Cr PBIT on 274 Cr sales = 21.5% margin; notes unabsorbed semi/aerospace capacity costs

Delivered PAT 80.3 Cr (5.4% higher than call figure; growth reconciles to ~33% delivered)

Standalone PBIT fell from 60 Cr (Q4) to 34 Cr; margin 10.4% vs FY26 full-year 15.3% — claims plausible

15%-15.5% → 23%-25% on SOFC, metallized cylinders, engineered ceramics momentum, though Q1 only grew 15.2%

8%-9% → 9%-10% excl. Foskor on strong EMD export trajectory (now 40% of sales vs 20% prior year)

Stated 9.5%-10% margin guidance, but Q1 showed 10.4% standalone (below range) due to ₹16 Cr cost push from US-Iran conflict and energy spikes

₹400 Cr CAPEX maintained. Awuko/Foskor wind-down progressing; expect final exit in Q2

Growth predominantly volume-driven, very small price. Chinese competition easing starting to show but macro headwinds (exchange, commodity) still shifting. Positive trend overall.

Combination of all three. SOFC facility setup in FY27, revenue from FY28. Semi components already supply-starting (very small FY27, pick up FY28, peak FY30). Individual breakdowns not disclosed.

80-85% of COGS is grain (cost up 3-5%, offset by price); rest is oil-based resins/fuel. Oil spiked $117 in May post-geopolitical escalation, energy costs hit hard. Grains didn't drive it.

Too hard to predict geopolitical outcome. Staying put, complying with laws, serving domestic market, managing profitability/cash. No exit plan; wait-and-see.

Not breaking down individual contributions. Upgrade is combination of SOFC, Engineered, Metallized Cylinders. SOFC material from FY28 onwards.

Loss of Awuko still drags consolidated; excluding that, feels fine with guidance. Standalone margin 10.4% reasonable base for year.

Adjacency play (40-50 yr ceramics expertise). Work via anchor customers, qualification first, then invest. Monitor 4-8 quarters; if fundamental shift, exit (like Awuko/Foskor).

Definitely seeing trend in generation/distribution tech switching; going to last some time. Based on that demand.

Acquired for NBSiC refractories (wear/impact apps, better than alumina). Also anchor into North America. Work in progress.

Export saliency up 20% → 40% trajectory (now 35%, trending to 40%). Long sustained effort + now opportunistic from China duty cycle.

Focus is raw material supplier. Established 5N, moving to 6N purity. Metallized substrate program with anchor customer, tech tie-up ongoing, FY28 revenue start.

Based on current order load and customer forecasts; contingent on geopolitical stability and macro recovery

Driven by SOFC, Metallized Cylinders, Engineered Ceramics; but Q1 showed only 15.2% growth, suggesting ramp likely skews H2

Standalone EMD 33% growth Q1 suggests strong trajectory; export momentum sustained

Retaining prior guidance; Q1 margin pressure (10.4%) offsets volume growth; needs energy cost stabilization

Q1 consolidated margin ~6.5% (incl. exceptional ₹25 Cr Sterling gain); standalone 10.4% slightly below range due to geopolitical cost push

Q1 consolidated 21.2% (₹74 Cr / ₹349 Cr); guidance maintained with confidence of margin recovery as new lines absorb costs

Q1 standalone margin 13.8% (₹39 Cr / ₹282 Cr) well above range; consolidated dragged down by Foskor ₹17 Cr loss

Covers Ceramics (substrate, metallized, aerospace), brown-fused alumina expansion, thermal spray zirconia furnace, integrated furnace facility

US-Iran tensions since Feb 2026 caused ₹16 Cr cost push in Q1 Abrasives (oil spiked to $117 in May). Unabated, threatens full-year margin guidance (9.5%-10%) on Abrasives if oil remains elevated.

Ceramics guidance raised 50% to 23%-25% based on SOFC, semi fab equipment, aerospace components. But Q1 growth only 15.2% (old trajectory). These ventures are small FY27, ramp FY28+, unproven at scale, need ₹400 Cr capex and customer adoption.

Awuko (Germany) undergoing voluntary winding up; expected completion Q2 FY27. Foskor (South Africa, 51% owned) commercially unviable, exploring divestment options, also Q2 target. Delays or poor valuations could hit consolidated PAT and cash flow.

VAW Russia (Electrominerals, ~₹200 Cr sales, domestic-centric) under sanctions since ~18 months. MD stance: stay put, comply, serve domestic market, await resolution. Impossible to predict geopolitical outcome; business currently marginally profitable but at risk if sanctions tighten further.

Abrasive margin compressed sharply Q1 (10.4% standalone vs 15.3% FY26 full year, 13.1% Q1 FY26). MD attributed ₹16 Cr to geopolitical costs, ₹8-9 Cr to seasonal volume drop. Guidance 9.5%-10% looks at risk if energy costs persist or volume doesn't recover.