Strong Q1 validates platform thesis; Pyrova margin inflection pushed to FY28

Delivered 26.7% YoY revenue, 140.2% PAT growth. EBITDA ₹17.4Cr (60% growth consistent)

Calculated EBITDA margin 11.1% (₹17.4/156.8). OPM 10.8%. Gross margin moderated despite volume mix

No contradicting data; management detailed July 25-day run achieving industry threshold

Segment detail not broken out in delivered results; claims are internally consistent

Call confirms single-digit ramp phase, 18-20% target dependent on rCB Oct 2026 commissioning + several quarters of trials

Prior guidance implied FY27 high double-digit Pyrova margins. Call now explicit: single-digit in FY27 (ramp phase), 18-20% target in FY28 post-rCB stabilization. ~12-month pushout.

Prior call aspired to 'improved utilization'; now quantified 20%+ FY27 revenue growth (vs Q1's 26.7%, so implies consistent execution). Driven by Pyrova scaling, Reclaim capacity, Plastics volume.

12% Q1 volume growth; company targeting ~20% FY27 sustained on new product introductions, order book healthy. Over 3 years, mid-teen growth expected.

Consistent with prior call. Split: 2 additional pyrolysis lines to 45KTA, rCB plant, Reclaim debottleneck, renewable energy. FY28 capex TBD pending Solapur facility success.

Prior call mentioned it; now emphasized as 'clearly strengthening.' Nylon 27% volume growth + 14pp EBITDA margin expansion YoY seen as Reg-driven. 10-15% stable EBITDA FY30 target.

Polymer composite shut permanently (onetime loss). Reclaim/Die Forms volumes restored pre-tariff, healthier margins on currency. Direct US exports back strong; indirect non-US exports partially recovered with room for rest-of-year recovery.

Pyrova Energy, Reclaim growth, Plastics scaling driving 20%-plus revenue growth. All three with margin expansion structural, not onetime. This margin will 'continue to improve' from Q1 levels.

rCB commissioning Oct 2026 expected; 1-2 months stabilization needed. By Q4 FY27 meaningful contribution. Once fully operational with customer approvals, 18-20% EBITDA. Nylon growth: OE automotive + new appliance approvals Q4 FY26; regulatory tailwind for circular materials.

Not qualified to predict duration. Of 26% overall growth, 12% is volume; balance price movement passed to customers. Pricing contracts quarterly/6-monthly, so lag exists. Oil prices and El Niño uncertain.

FY27 capex ₹90-100Cr (pyrolysis lines 45KTA, rCB, reclaim debottleneck). FY28 capex TBD in H2 pending Solapur success. Committed to ₹250Cr total investment. Deleveraging: no firm plans; depends on cash generation from Pyrova/Reclaim scaling.

Combination. Circular materials value proposition: mechanical/chemical properties + sustainability + cost vs virgin. Context shifts with virgin rubber prices. Currently, strong alternative due to oil volatility and synthetic rubber supply mismatches.

20% export volume growth; bulk from North America recovery, also Europe/others. New high-performance products finding adoption. Domestic market share up ~1%. Export share flat overall but up in company's focus geographies. More room for growth in international markets (pyrolysis oil, rCB).

Must evaluate each business. Reclaim: 10-14% EBITDA post-Pyrova synergy. Pyrova: 15-20% post-rCB. Plastics: 12-15%. Gross margin has lead-lag due to quarterly/6-monthly contracts. EBITDA improvements via operating leverage and cost discipline are structural.

Milestone 1 (crossed): 25-day min run/month at desired throughput (achieved July). Milestone 2: rCB commissioning Oct 2026 + product quality for tire industry (several quarters). Milestone 3: Tire industry approval. Milestone 4: Replicate template (6-8 months post-rCB). Stand-alone Pyrova revenue ₹250-300Cr potential, 15-20% EBITDA. Currently single-digit (ramp phase).

Driven by Pyrova Energy capacity scaling, Reclaim Rubber ~20% volume growth, Plastics nylon/polyolefin momentum. Q1 tracking at 26.7% YoY; guidance assumes sustained execution.

Q1 delivered 12% volume growth; export recovery (20% rebound), order book healthy, new product introductions in progress. Order book back to pre-tariff levels.

Built on new product categories, customer wins in Europe/Latin America, domestic market share gains. Dependent on tariff stability and export market normalization.

Nylon +27% Q1; polyolefin selective mix shift. Growth supported by EPR regulation tightening and brand owner demand for compliant recycled content.

Improvement via Pyrova Energy synergies (shared feedstock, sourcing, energy). Currently 9-10%; Pyrova integration will structurally lift as platform matures.

Commissioning Oct 2026; requires 2+ quarters trials. Dependent on customer approvals, optimal reactor/rCB utilization, successful tire-industry qualification. rCB critical value driver.

Nylon growing on OE automotive; polyolefin selective high-margin specialty mix. Supported by EPR regulation enforcement and value-added product shift vs packaging commodity.

Split: 2 additional pyrolysis lines (45KTA target), rCB plant Oct 2026 commissioning, Reclaim Rubber capacity debottlenecking, renewable energy infrastructure. On track from ₹91Cr Pyrova cumulative.

Next 30,000-ton Pyrova capacity (FY28+) and 12,000-ton rCB in Gujarat facility, plus further Reclaim tech upgrades. FY28 capex final call in H2 FY27 pending Solapur facility success.

Commissioning Oct 2026; several quarters needed for tire-industry product approvals. Multiple gates (quality, approvals, optimization). Failure or delay pushes profitability inflection beyond FY28, undermining 15-20% EBITDA thesis.

Q1 export recovery (+20%) largely North America tariff relief + demand normalization. Further tariff escalation or new US/EU restrictions could reverse gains. Indirect export (non-US countries) only ~50% recovered.

Gross margin moderated 48.3% vs higher prior base despite pass-through efforts. Natural rubber + synthetic prices linked to El Niño and oil volatility. Pricing contracts quarterly/6-monthly lag means input cost inflation not immediately recovered.

Pyrova currently single-digit EBITDA in ramp phase; burning cash until rCB scales and stabilizes. If rCB delays or underperforms, Pyrova remains unprofitable, eating capital and WACC pressure on consolidated returns.

Export volume recovery largely demand normalization, not permanent market share capture. Only ~1% domestic share gain noted. If tariff ease or demand normalizes, growth could stall. Indirect exports (non-US) only 50% recovered.