Strong volume, margin pressure from capacity commissioning

Delivered 1334.7 Cr; aligns exactly

Depreciation +23 Cr (11.7→34.7), finance costs +34 Cr (4.62→38.6); 57 Cr headwinds fully explain -41% YoY PAT

Delivered 8.1%; but YoY margin fell 123 bps (9.33%→8.1%), contradicting 'stable' framing

Stated explicitly; 100k MT total sales, 46k MT from Punjab on 700 MT/day capacity implies ~80%

Delivered from financial statement: 94.93 Cr vs 70.05 Cr = 35.5% growth

Q1 FY27 8.1% vs Q1 FY26 9.33% (−123 bps); standalone Silvassa margin +233 bps (9.34%→11.67%) masked by new facility drag

23.8 Cr vs 40.43 Cr YoY (−41%); ₹57 Cr depreciation + finance cost hit fully offsets ₹55% EBITDA growth

Prior call stated '>500 Cr'; now 520–540 Cr range given. Technically a clarification, not raised or cut.

Phase 2 commissioning by Q1 FY28 as planned; Phase 1 80% utilization Q1, targeting 85–96% by Q3

New capex commitment: ₹400 Cr for 72,500 spindles at MP; 0.8 asset turn = ₹350–375 Cr incremental revenue

Paresh pivoted to EBITDA per ton (₹30k target for Punjab filament next year vs ₹11k Silvassa blended). Avoided direct margin % answer, emphasizing per-ton efficiency over margin ratios.

Paresh: 'Very shortly' commissioning. Out of 9k MT additional capacity, expect 7.5k MT in FY27. Q2 onwards ramp visible.

Paresh: On track. Phase 1 currently 80%, targeting 85–90% Q2, 95–96% Q3. Phase 2 adds 200 MT/day, 1.5–2 quarters to full capacity ramp.

8–10 days raw material inventory at quarter-end; normal management, not excessive buildup. Disciplined procurement.

Paresh: ₹30k for filament/polyester only at Punjab; ₹11k Silvassa is blended (polyester + cotton + technical). Not directly comparable.

₹400 Cr capex for 72,500 spindles. Asset turn 0.8–0.85 = ₹350–375 Cr incremental revenue. Clear and direct.

Paresh: 'Spreads improved across divisions, all three verticals.' Did not provide individual figures. Vague.

Polyester: 12–13 days (normal 10–12), cotton: ~7 days (target). Slightly elevated but within policy.

Expecting better demand Q2–Q3, especially from end-Aug onwards as conditions normalize.

Paresh: 'Maintaining guidance of EBITDA between about ₹520 crores to ₹540 crores.' Firm reaffirmation.

Imports still ~2M tonnes/year; GAIL facility commissioning now (Q2), IOCL Paradip by year-end will reduce dependence. Punjab: all from IOCL Panipat. Silvassa: 50–60% imported, 40% domestic (contracted).

Paresh: In talks but not finalized. Will transition from import to domestic in phased manner as new plants come online.

Anchored on Q1 base (1,335 Cr), Phase 2 ramp, technical textile expansion. But requires Q2–4 avg ~380–390 Cr/quarter

Current 8.1% margin suggests mid-single-digit expansion needed; depends entirely on Punjab margin recovery from 2.2% baseline

Standalone Silvassa at 11.67% shows it's achievable; consolidated depends on bringing Punjab to 10%+ (unproven)

Phase 1 commissioned Q1 FY27 on track; Phase 2 add 200 MT/day. Cotton plant not yet started; multi-year build

Three concurrent expansions (Phase 2 Punjab, technical +7.5k MT FY27, cotton 72.5k spindles). Complexity high; any delay pushes FY27–28 EBITDA guidance miss.

Punjab generated ₹550 Cr revenue Q1 but only ₹12 Cr EBITDA. Needs 5x margin uplift to justify ₹1,000+ Cr capex. Risk: capacity utilization plateaus, product mix suboptimal, or price competition erodes spreads.

Q1 saw sharp PTA/MEG and cotton inflation; buyers deferred purchases. GAIL (PTA) commissioning now, IOCL Paradip by year-end will reduce imports. Risk: commissioning delays, pricing stays high, or supply chains disrupt again.

Q1 buyers deferred purchases in April–May due to price shock. June showed early recovery. But if raw material prices normalize rapidly, will buyer demand stick or collapse as deferrals cancel out? Q2–Q4 could miss consensus.

Cotton plant expected ₹350–375 Cr incremental revenue from ₹400 Cr capex (0.87 asset turn). Implies single-digit returns post-margin. If margins compress (as they have), or execution delays, IRR could be 5–6%. Competes for capital vs margin recovery at existing assets.