Record size; volume growth lags, margins hedged on volatility

Delivered ₹1,032 Cr revenue, ₹109 Cr EBITDA, both confirmed in results

Revenue +20%, volume +6% = 14% price gap; management frames as temporary lag pending volatility stabilization

10.6% margin confirmed; delivered OPM 11.2% also shows expansion, but below stated 15% target

Management later admitted inventory carrying lower-cost raw materials drove benefit; unsustainable once volatility stabilizes

Last year Q4 net profit ₹60 Cr, but ₹27 Cr was deferred tax asset; operating profit ~₹9 Cr/qtr; quality issue

Prior call guided 'improve from 11-12% bracket'; now explicitly 'target 15% EBITDA margin for next year' (FY27). Delivered Q1 at 10.6%, so guidance is 430 bps higher but unmet. This is a clearer restatement, likely upgrade in aspiration.

Standalone volume growth Q1 came at 6%; management now says 'double-digit by year-end' (vs prior implied continuous double-digit). Gap reflects price-driven revenue growth masking volume softness; risk if demand doesn't recover.

Australia/Spain Q1 margins (12.8%, 14.7%) acknowledged as temporary inventory benefits. Guidance reset to sustainable 10-12% EBITDA margins, 5% growth in local currency (EUR, AUD). Prior call implied stronger overseas momentum.

India holds 15-30 days; Australia/Spain held larger inventory during volatile period. Not sustainable going forward. Margins will moderate as prices normalize.

Initial launch at low price to build volume; faced channel margin pressure; raised prices; now settled and sustainable at current levels. Channel accepted.

Should target sub-10%; currently 6%, not happy. But better than industry; once volatility subsides, expect double-digit.

Q4 last year had ₹60 Cr net profit, but ₹27 Cr was deferred tax asset (one-time, end-of-year recognition). Operating profit ₹33 Cr. Q1 had lower contribution due to expenses; but operating profit expected higher full year.

Value growth also accelerated (+15%, +26%). Price hike of quantum seen creates balance; if price hike 10-15%, volume would be double-digit. Confident as volatility subsides, volumes recover.

Volatility expected until Oct-Nov. Expect better profitability by year-end. ROCE currently ~10%, target 20-25% in 3 years. Free cash flow ₹150-200 Cr/year; debt (India ₹300+ Cr, overseas ₹350 Cr) will clear in 1 year (India) and 5 years (overseas).

This quarter exceptional. Combined EBITDA margin 13-13.5%. Should normalize to 10-12%, 5% growth in local currency. Spain done EUR 12M in Q1 (vs EUR 9-10M regular); might sustain higher due to product improvements, but conservative guidance is 10-12%.

₹27 lakh per store capex + ₹20-22 lakh working capital (COCO). 50 stores target; 2,000 sq ft, urban key areas. ₹25 Cr for 50-store plan.

Prices very volatile (±40% to -20%). Doing commensurate price increases to customers. Lag risk if volatility very high and moves fast (inventory in transit); impact seen in Q1. Majority covered.

Guided 11-12%, not 13%. Do stand by it. But volatility makes it hard to comment. Pretty confident on same track. Gross margins down more than target; even 2% improvement gets us to target.

Same business area; RentoMojo more mass, Furlenco more premium. RentoMojo higher utility mix; Furlenco higher furniture. Premium to RentoMojo.

Integration 96-97% complete (backend, frontend, HR, IT). Operating units reduced 21 to 12. Synergies: 75-80% realized, 15-20% on the way. Market share in organized mattress ~20% combined.

Management states Q1 at 20%, targeting 15% as guidance floor. Sees double-digit volume growth returning post-volatility stabilization (Oct-Nov).

Australia/Spain combined Q1 trending strong; Australia +31%, Spain +54% guides path to ₹1,000+ Cr

Q1 delivered 10.6% margin; management reaffirms 15% target but hedges on volatility. Gross margins need +2% improvement to reach 15%; lever is raw material normalization.

On track; 42 stores operational, targeting 100 stores. Per-store unit economics proven (~₹27L capex + ₹20-22L WC).

TDI/polyol prices swung ±40% to -20% in Q1; management estimates 65-70% of COGS. Lag risk if volatility moves fast (inventory in transit). Management passed through prices but hedges on continued pressure.

Standalone volume growth 6% vs historical double-digit and management's desired 10%+ comfort zone. 14% price increase needed to drive 20% revenue growth; demand elasticity risk if prices don't stick or macro softens.

Australia/Spain Q1 margins (12.8%, 14.7%) benefited from carrying high-cost inventory at time of falling raw material prices. Management explicitly states margins will compress to 10-12% sustainable levels once inventory normalizes in Q2.

Q4 FY26 net profit ₹60 Cr, but ₹27 Cr was deferred tax asset recognition (one-time, end-of-year). Operating profit closer to ₹33 Cr. Q1 showed lower contribution; profitability lumpy and inflated by tax benefits.

75-80% of synergies realized; ₹40 Cr remaining pending new machine installation in Q3. Execution risk if capex delays or ramp-up underperforms.