Record PAT masked by one-time gain; input headwinds emerge

₹261 Cr revenue, ₹74.4 Cr PAT confirmed; however ₹241.7 Cr (32.5% of PAT) is one-time gain from old Bangalore facility sale

Adjusted PAT excluding one-time gain is ₹50.3 Cr, +45.2% YoY; core operating profit growth is healthy but PAT headline inflated

30% EBITDA margin down ~100 bps QoQ from ~31% in Q4 FY26; despite pricing pass-through, input cost headwind of 50-60 bps was absorbed via operational efficiency, not margin expansion

32.4% SJS auto growth vs 21.7% combined PV+2W industry is confirmed; sustained 27th consecutive quarter of outperformance is plausible

Q4 56.6% vs Q1 56.7% gross margin (up only 0.1% QoQ). Pricing pass-through is in progress but lagged 1-2 quarters; only partial recovery visible

27-28% EBITDA margin guidance held despite 100 bps QoQ decline to 30% this quarter. Management cited new product ramp as offset but no numeric target revised. Prudent but cautious.

Currently 9.8% of revenue; growing 83% YoY. Management confident on 'large businesses under discussion' but no firm orders disclosed vs prior call. Timeline held.

Plant commissioning Q2 FY28 as guided. Production samples at BOE for OEM field testing. No customer orders or ramp assumptions given; margin profile TBD pending manufacturing cost validation.

Pune facility adds 200-250 Cr revenue capacity over 3 years; expect 85-90% utilization by year 3, 2-2.5x asset turn. Breakeven at 1-1.25x asset turn (likely Q2-3 of FY27).

Margins have improved, not declined. Gross margin Q4 56.6% vs Q1 56.7%, up 10 bps. Input cost headwind ~50-60 bps offset by richer product mix, export contribution, operational efficiency. Customer pricing negotiations ongoing; some wins already in place, some lagged 1-2 quarters.

Asset turn 2-2.5x at steady state (company-wide average >2x). Utilization 85-90% in 3 years. Breakeven at 1-1.25x asset turn (likely near end of FY27 or Q1 FY28). Order book very strong, bullish on prospects.

Equipment on order, will ship and install. Sales start Q2 FY28 from new plant. Technical license with BOE; development samples currently with OEMs for testing. Orders expected after plant PPAP validation. Subsidiary structure leaves door open for JV if BOE wants to expand.

BOE handles global development and prototyping; SJS handles India localization and assembly. Tripartite conversations (customer, BOE, SJS) on India supply timing. BOE leads technical phase, SJS executes local. This is exactly the model being followed.

Multiple large businesses under discussion, good pipeline. Target still 14-15% exports by FY28. Advanced stage discussions happening across multiple technologies and geographies. Typical ramp during course of FY27. On track.

Display market (of which cover glass is part) currently ₹500-1000 Cr, expected to grow to ₹5000-7000 Cr by 2030. SJS aspiration: 10% market share by 2030. Margins higher than assembly margins; TBD when manufacturing starts. 50% of display is TFT (imported from BOE), 50% localized by SJS.

Industry 4-wheeler segment declined 7.5% QoQ (Q4 to Q1). This is normal seasonality; Q1 soft period, demand picks up before festive sales in Q2. SJS PV grew 45.3% YoY. Strong overall.

Localization of display/instrument cluster is the key; currently many Indian OEMs import from overseas. As EV volumes grow, investment in India localization will increase. Cover glass is additional opportunity. Volumes still low but growing rapidly; big lever for future growth.

Non-compete till January 2027. Prefer cooperative agreement; Walter Pack Spain may not have capacity for everything. Could leverage partnership to co-operate. Theoretically can supply BMW, Audi, but till Jan 2027 cannot compete with Walter Pack Spain on these accounts.

Extremely bullish. All building blocks in place (capacity, cash generation). By 2030 expect organic and inorganic growth. Exports major chunk of journey. Intentionally maximizing sales.

Walter Pack operating at 75% capacity. Developing couple of new businesses. No immediate capex beyond normal maintenance. Will disclose further capex plan in future.

27 quarters of track record; automotive business 32.4% YoY growth vs 21.7% industry this quarter validates assumption

Q1 EBITDA 30% down 100 bps QoQ; input costs 50-60 bps headwind not fully offset yet. New generation products 24% of revenue; upside contingent on volume.

Decoplast Pune facility commissioned Aug 2026; breakeven at 1-1.25x asset turn. Cover glass equipment on order, PPAP runs to start when plant ready.

Input costs created 50-60 bps headwind Q1 FY27; pricing pass-through lagged 1-2 quarters. If recovery stalls, 27-28% EBITDA margin guidance at risk.

Cover glass and display facility ramp-up dependent on BOE's global supply chain, customer approvals, and PPAP validation. No firm customer orders disclosed. Margin profile TBD. Delays could push revenue recognition to FY29.

New Pune facility adds 1.75x existing capacity with target 85-90% utilization over 3 years. Revenue ramp of ₹200-250 Cr over 3-4 years is contingent on order flow and export execution. Utilization slippage would hurt ROCE.

FY27 guidance assumes automotive industry growth of 21.7% (passenger vehicle + 2-wheeler combined). If macro softens, SJS 1.5x-2x outperformance assumption may not hold. Industry growth has been lumpy; macro uncertainty (interest rates, consumer demand, supply chain).

New businesses at Walter Pack have been 'under discussion' for 2+ quarters with tooling timelines repeatedly pushed. Revenue contribution still unclear; management non-committal on timing or magnitude.