Strong Q1 execution amid Morbi recovery headwind

Delivered ₹203.8 Cr, +42.6% YoY; 22.9% volume + 15.9% ASP = 42.8% calc matches

OPM 8.1%, NPM 4.1%—gross margin not separately disclosed in delivered results

17.6/203.8 = 8.6% margin; prior year EBITDA margin ~1.7% implies 480 bps expansion supported

Delivered PAT ₹8.3 Cr; PBT ~11.2 with ~25% tax rate reconciles

22.9% volume growth claimed; mgmt split: (1) Morbi shutdown Apr-May (temporary), (2) demand initiatives—40% sellout vs 26% prior year (structural)

ASP +15.9% as reported; gas INR44-45 pre-war → INR60-62 current matches magnitude; pricing held but sustainability tied to gas volatility

Price gap vs Morbi narrowed from ₹100 to ₹50-55, but OBL still holding 18-19% increases. Organized player advantage real vs unorganized. Mgmt confidence on pricing backed by 40% sellout.

40% sellout vs 26% prior year is structural improvement (not Morbi-driven). Drishti AI answering 10k Q's/month; dealers now confident on volume absorption. Digital initiatives shifting from cost to revenue driver.

Organized players like OBL benefited from Morbi shutdown Apr-May. Dealers diversifying suppliers post-shutdown to reduce concentration risk. Structural shift favors branded, multi-location producers.

73% vs 64% Q4 vs 60% FY26. Headroom to grow without incremental CapEx. GVT conversion (INR10 Cr) will further improve product mix and utilization.

Industry exports ₹800 Cr/month avg (Apr-May) vs ₹1500-1600 Cr prior. Freight costs 5-6x up; West Asia demand down. Not direct OBL issue (low export exposure) but signals macro headwind, limits upside.

18-19% price hike vs pre-war. Currently no price cuts; watching volatility. Gas INR60 avg Q1, currently 1-2 rupee fluctuation. Will follow market.

Two drivers: (1) Morbi supply gap Apr-May (temporary), (2) demand initiatives—40% sellout vs 26%, dealers now confident on absorption. Optimistic on growth KPIs.

Plants shut end-Mar to mid-May; now at capacity. Price gap narrowed from ₹100 to ₹50-55; positive for organized players. Dealers diversifying suppliers for security.

Plant-level utilization misleading (product mix changes by quarter). Instead: South market (Dora-focused) grew 37% in Q1 retail; West grew 60%. Better metric.

47% of sales by value is GVT. 15-20% from Dora, bulk from SKD, 4-5% from Morbi sourcing.

FY26 blended 60%, Q1 now 73%. Headroom to grow; converting ceramic line to GVT will further help Q3/Q4.

Q1 project revenue 18% (3000m+ definition). Grown faster in retail last few quarters; focusing on enterprise (large builder) growth now. No target %; both channels priority.

Bulk of price increases happened in Q1. Now stable (INR1-2 variance). July prices close to Q1. But geopolitical risks (Iran, Russia refineries) make future uncertain.

Sikandrabad pre-war INR44-45, now INR60-62 (formula-based on Brent rate, then spot). Morbi INR42-44 to INR69. So far holding prices; watching market.

Exports down to ₹800 Cr/month avg (Apr-May) vs ₹1500-1600 pre-war. Freight costs 5-6x; West Asia demand weak. Market continues down.

As a policy, we do not provide guidance for future. Encouraged by sales momentum; KPIs showing positive; hopeful year will perform better, no specific numbers.

INR15 Cr on near-term CapEx (ceramic-to-GVT conversion, digital printing, polishing). Larger portion for next growth phase; debating options, will announce in 2-3 months.

Q1 revenue ₹2.5 Cr; cash-and-carry model. Scaling geographies (North started, now expanding to North India + East). Small scale now; no plant CapEx; building quarter-on-quarter.

Management cites macro volatility (Middle East geopolitics, gas prices, export weakness). Optimistic on momentum but no targets.

Pricing 18-19% held so far; watching gas market. EBITDA margin at 8.7% Q1; management optimistic but not committing to level.

Ceramic-to-GVT conversion underway Q3/Q4 FY27. Digital printing, polishing machine additions. Larger growth capex to be decided in 2-3 months.

Q1 benefited from Apr-May Morbi shutdown (production halted end-Mar to mid-May). ~50% of 23% volume growth from this temporary gap. Once Morbi fully online, volume growth moderates.

18-19% price increase partially offset input cost inflation (gas INR44-45 → INR60-62). If gas falls materially (20%+ drop), pricing power tested; management may need to cut prices to stay competitive.

Industry exports down to ₹800 Cr/month (Apr-May) vs ₹1500-1600 Cr pre-war. Freight costs 5-6x up; West Asia demand weak. OBL not export-heavy, but shows macro softening.

Russia refineries destroyed per management; lost ~1/3 capacity. Iran tensions ongoing. Could cascade into higher global gas prices; OBL vulnerable given GAIL contract dependence.

Gap between OBL and Morbi prices narrowed from ₹100 to ₹50-55. Continued narrowing would erode OBL's quality/brand premium and margin advantage.