Ranvir's Portfolio

[ranvir]

Ajanta Pharma -

Q2 FY 26 results and concall highlights -

Revenues - 1354 vs 1187 cr, up 14 pc
EBITDA - 328 vs 311 cr, up 5 pc ( MTM forex losses stood @ 41. Excluding this, EBITDA would have grown by 23 pc with margins @ 27 pc )
PAT - 260 vs 216 cr, up 20 pc

R&D expenses stood @ 5 pc of sales

Segmental revenues -

India - 432 vs 386 cr, up 12 pc
Asia - 310 vs 296 cr, up 5 pc
Africa - 221 vs 213 cr, 4 pc
US generics - 344 vs 232 cr, up 48 pc
Africa tender sales - 32 vs 44 cr, down 25 pc

72 pc of company’s formulation sales are branded. Rest 28 pc are generics

65 pc of company’s India sales come from chronic therapies. 11 pc of their sales come from NLEM products. Indian MR force stands @ 3600+ covering 2.7 lakh Doctors

55 pc of India sales come from top 10 brands. 15 of company’s brands clock annual sales > 25 cr

Breakdown of therapy wise sales contribution of India business -

Cardio - 37 pc
Opthal -30 pc
Derma - 23 pc
Pain Management - 10 pc

Company’s Q2 India sales witnessed a 3 pc volume growth. Rest came from new products ( 5 pc ) and price hikes ( 4 pc )

Company launched 19 new products in Asia + Africa in H1 FY 26

Company’s active products in US @ 50 with 54 active approvals. Field 2 ANDAs in H1. Aim to file another 8-12 in H2

Some comments from previous concalls -

Have added 40 MRs in Asia + Africa in Q1. Planning to add another 210 MRs in these regions by the end of FY 26. So the total MR count in Asia + Africa should rise from 2000 to 2250 by end of current FY

Actively on the look out for inorganic growth opportunities

Notes from Q2 concall -

Have paid an interim dividend of Rs 28/ share amounting to Rs 350 cr

A few of orders from Company’s Asia business were pushed to H2 thus affecting Asia business’s growth in Q2 and H1. Confident of achieving low teens growth in their Asia business for full FY 26 ( indicating a significant pickup in sales in H2 )

Have launched 13 new products in Asia in H1 ( mostly in Chronic therapies )

Africa branded business grew by 1 pc in H1. Confident of achieving double digit growth in Africa business for full FY 26 - had earlier guided for single digit growth from Africa ( again indicating towards a strong business momentum in H2 )

Launched 6 new products in Africa in H1

US business grew by 42 pc in H1

Company’s India business also has a component of trade generics business. Its contribution in Q2 stood @ 52 cr, up 18 pc YoY

Gynae, Nehphro - are the two new therapies that the company ventured into in India in last FY. Building up descent momentum in both. Results should be visible by next FY

High employee expenses in Q2 and H1 were due to aggressive hirings made by the company in last FY ( to expedite their organic growth in India and EMs )

Guiding for GMs of 77+/- 1 pc and EBITDA margins of 27+/- 1 pc for FY 26

Capex for full FY 26 should be at 300 cr ( have already incurred 145 cr in H1 )

Guiding for 40 pc + growth in US business for H2 followed by high teens growth in FY 27

Should add another 100 MRs in India and aprox 150 MRs in Asia + Africa in next 1 yr

Disc: holding, biased, inclined to add more, not EBI registered, not a buy/sell recommendation, posted only for educational purposes

[ranvir]

Yatharth Hospitals -

Q2 FY 26 results and concall highlights -

Revenues - 279 vs 217 cr, up 28 pc
EBITDA - 64 vs 54 cr, up 18 pc ( margins @ 23 vs 25 pc )
PAT - 41 vs 31 cr, up 33 pc ( due higher other income )

Cash on books @ 370 cr

Corporate level occupancy @ 66 vs 60 pc YoY
ARPOB @ Rs 32k vs Rs 30.6k
ALOS @ 4 vs 4.3 days
IPD revenues @ 249 vs 190 cr
OPD revenues @ 30 vs 27 cr

New hospitals led the revenue growth with a YoY jump of 110 pc. Mature hospitals witnessed a revenue growth of 19 pc

Hospital wise revenue percentage split for Q2 FY 26 vs Q2 FY 25 -

Noida extension - 33 vs 37 pc
Greater Noida - 29 vs 31 pc
Noida - 19 vs 21 pc
Jhansi - 8 vs 7 pc
Greater Faridabad - 10 vs 4 pc
New Delhi - 1 vs NIL

Split of company’s total bed capacity -

Mature hospitals -

Noida - 250 beds, Occupancy @ 89 pc
Noida extension - 450 beds, Occupancy @ 64 pc
Greater Noida - 400 beds, Occupancy @ 69 pc
Jhansi - 305 beds, Occupancy @ 71 pc

New Hospitals -

Greater Faridabad - 200 beds
New Delhi ( new opening ) - 300 beds
Faridabad ( new opening ) - 400 beds
Agra ( new acquisition ) - 250 beds

Comments from previous concalls -

Greater Faridabad hospital turned net profit positive within 1 yr of its opening ( its ARPOB was Rs 31 k )

Company estimates that both Delhi and Faribabad hospitals ( 2 new openings in Q2 ) should turn PAT positive in 15 months time

Greater Noida + Noida extension - brownfield expansion should now begin ( post opening of 2 new hospitals in Delhi ). Aim to add aprox 250 beds here ( combined ) by FY 28. Greater Noida + Noida extension brownfield should cost them aprox 175 cr. This brownfield expansion should go live in H2 FY 28

Notes from Q2 concall -

New Delhi’s hôpital went live in Jul. Faridabad hospital also went live towards the end of Q2. Both these r seeing increasing footfalls

Acquired a 250 bed Hospital ( Shantived Hospital ) in Agra for 260 cr ( all cash deal ) in Sep 25

CGHS rates have been revised wef Mid Oct - a big relief for the Industry

5 of company’s hospitals are located near Jewar International airport - should help them with medical tourism

In Q2, mature and new hospital clusters witnessed an ARPOB growth of 9 pc and 19 pc respectively

Model Town ( New Delhi ) facility started operations with ARPOB of Rs 33k - very encouraging sign. Occupancy here is already clocking 15 pc or so

Typically, occupancy required for a new hospital to break even is 30-35 pc

Agra Hospital’s financials will be consolidated with Yatharth wef 01 Jan 26

Payor mix - Govt Business @ 37 pc. Rest is equally divided between self pay and Insurance

Doctor’s salaries + Incentives as a percentage of revenues stand @ 21 pc

Jhansi Hospital is now clocking a very healthy occupancy of 71 pc

Capex spending outlay for next 5 yrs should be around 1500 cr. This includes the latest Agra acquisition, brownfield expansions at Noida and a new Greenfield facility or another acquisition that the company may go in for

Company has started opening International catchment centers - to tap international patients ( will be opening in Central Asian and African mkts ). Have already opened at 2 locations. Noida + Faridabad’s proximity to Jhewar airport should help them tap into international patients. ARPOBs in case of international patients are generally 30-40 pc higher vs domestic patients

Agra’s hospital is expected to clock ARPOB of Rs 30k + ( to begin with )

Agra’s hospital will be EBITDA positive from Day 1. H2 EBITDA margins should be close to H1 margins. Still maintaining their 30 pc + revenue growth guidance for full FY 26

The revision in CGHS rates should incline company’s revenues by about 2.5 pc and EBITDA margins by 1 pc in next FY

For next 2-3 yrs, avg corporate ARPOB growth should be in the range of 6-8 pc / yr, with an upward bias

The brownfield expansion @ greater Noida and Noida extension should go live in 18 months time from now

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes

[ranvir]

Akums Drugs -

Q2 FY 25 results and concall highlights -

Some extracts from Q2 management commentary -

We are excited to share that as part of our international expansion strategy, we entered into a JV with the Zambian government to set up a pharmaceutical manufacturing plant, having capabilities across multiple dosage forms and therapeutic areas in Zambia. Additionally, over the next two years, we envisage supplying medicines of aggregate value of USD 50 million from Indian facilities to Zambia. The plant also aims to establish Zambia as a pharma export hub by catering to neighboring African countries. Akums will hold 51 pc in this JV. Additionally, GRZ to procure medicines worth USD 25 million per annum from Akums for FY27 and FY28. Capex required from Akums will be aprox 200 cr, rest 200 cr shall be provided by Govt Of Zambia

Another milestone we achieved recently was our first commercial supply of formulations in Europe, with the supply of Dapagliflozin tablets to Switzerland. We will also supply Rivaroxaban in Europe in Q3. The European contract for oral liquid supply is on track with Plant 2 undergoing EU-GMP Audit in October

Our financial position remains healthy with robust cash flows during H1. Our net cash position of over INR 1,600 crore gives us leverage to pursue both organic as well as inorganic growth opportunities

While the performance during Q2 was below our expectations, we remain focused on delivering long term shareholder value by further cementing our leadership position in CDMO business, taking measures to grow our domestic and exports branded business and curtailing losses in API and trade generics

Some comments from Q1 concall -

Company’s top therapeutic areas wrt their domestic branded formulations include - paediatrics, gynaecology, cardiology

Company’s top destinations for their exports business include - Uganda, Nigeria, Philippines, Myanmar, Cambodia. Current export business is around 140 cr / yr. Aim to ramp it upto 900 cr / yr in next 5 yrs

Capex lined up for FY 26 @ 300 cr to set up new lines for Onco drugs, Steroids , LBPs ( live bio-therapeutic products )

Capex required in order to serve the European contract shall be around 200 cr ( to be incurred @ their Baddi plant ). The European contract should be a 320 - 340 cr / yr kind of business for the company, lasting 6 yrs ( starting Mar 2027 ). EBITDA margins should be around 14-15 pc wrt this contract

The API business that the company operates was acquired via IBC proceedings ( where in they acquired Parabolic drugs ). Company got credits against 870 cr of previous losses which they plan to utilise over next 3-4 yrs ( hence their tax rates shall continue to remain on the lower side )

Have received European approvals for 2 molecules - Rivaroxaban and Dapagliflozin. Company doesn’t have a field force in EU. Shall continue to supply / operate in EU mkts as a CMO supplier to other Pharma companies / Big Pharma distributors / participate in Tenders. Company expects their EU business to have better margins than their domestic CMO business. In next 3-4 yrs, company intends to own at least 10 sizeable dossiers in European mkts ( to supply to large distributors / participate in tenders ). This doesn’t include the large CMO contract from EU that the company has won and has got advance payment for

Inorganic areas where the company is looking at includes - acquiring capabilities to make dosage forms that they currently don’t have or an acquisition that gives them ready access to new markets so they can ramp up quickly

Wrt API business, company has global ambitions - to sell in Europe, LatAm and African mkts. Should continue to invest behind this business

The API business that the company operates was acquired via IBC proceedings ( where in they acquired Parabolic drugs ). Company got credits against 870 cr of previous losses which they plan to utilise over next 3-4 yrs ( hence their tax rates shall continue to remain on the lower side )

Q2 outcomes -

Revenues - 1018 vs 1033 cr
Gross margins @ 41.8 vs 42.3 pc
EBITDA - 94 vs 121 cr, down 22 pc ( margins @ 9.3 vs 11.7 pc ) - due operating de-leverage
PAT - 43 vs 67 cr, down 36 pc

Segmental revenues and EBITDA margins for Q2 -

CMO - 804 vs 799 cr, margins @ 10.5 vs 15.4 pc
Domestic branded - 122 vs 116 cr, margins @ 21.6 vs 17.8 pc
International branded - 22 vs 26 cr, margins @ 24.5 vs 13.8 pc
Trade generics - 24 vs 33 cr, margins @ (-) 3 vs (-) 6 pc
APIs - 44 vs 59 cr, margins @ (-)14 vs (-) 14 pc

H1 performance -

Revenues - 2042 vs 2052 cr
EBITDA - 223 vs 245 cr, down 9 pc ( margins @ 11 vs 12 pc )
PAT - 107 vs 124 cr, down 14 pc

Segmental revenues and EBITDA margins for H2 -

CMO - 1618 vs 1581 cr, margins @ 12.6 vs 15.4 pc
Domestic branded - 229 vs 220 cr, margins @ 18.4 vs 15.5
International branded - 57 vs 60 cr, margins @ 23.5 vs 18.3 pc
Trade generics - 48 vs 62 cr, margins @ (-) 6 vs (-) 10 cr
APIs - 89 vs 129 cr, margins @ (-) 20 vs (-) 26 cr

Notes from Q2 concall -

Top 200 APIs used by the company witnessed an avg YoY drop of 8 pc - hence the sluggishness in CMO division’s topline growth. CMO business witnessed a volume growth of 7 pc

CMO margins were hit by slower than expected ramp up of their new facilities and higher overhead costs

International branded business is expected to have a strong H2 led by demand pull from their focussed mkts

Cash on books @ 1650 cr. Enables them to go after both organic and in-organic opportunities

Three of company’s plants are going in for EU GMP certification - due increased filings and launch intentions of the company in Europe ( as brought out in the management commentary above )

Company has filed for 2 Cephalosporin based Formulations in the EU mkts. Should get an approval in next 6 months. GMs in EU are better. This would help the company use its APIs captively and help improve the API business’s operating performance. Also the Cephalosporin API prices should start to recover in next 3-6 months

Depending on the market conditions ( as company sees them today ), H2 should broadly be in line with H1 ie a topline around 2050 cr and bottomline around 105-115 cr ( just like H1 )

The large European contract against which the company has also got > 900 cr in advance is for the supply of an Oral Liquid molecule in various dosage strengths and different packagings, be supplied to one of the largest pharma company globally, starting Apr 27, to be supplied from Haridwar facility ( recently inspected by EU GMP officials ). Company would be supplying goods worth > 300 cr / yr for 6 yrs

Charging notional interest of Rs 19 cr / Qtr to the P&L - against the advance they have got from the European major. Anyways, its a non cash entry

Zambian contract should start going live in next FY. In FY 28, both the Zambian and EU contracts would be online. Plus the organic growth should also pick up wef next FY. Additionally the new set of molecules that the company intends to sell in EU should add to growth going forward

Capex in H1 @ 107 cr. H2 capex should be similar

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation

[ranvir]

Eris Lifesciences -

Q2 FY 25 results and concall highlights -

Revenues - 792 vs 741 cr, up 7 pc
Gross margins @ 74.5 vs 75.9 pc
EBITDA - 288 vs 265 cr, up 9 pc ( margins @ 36.4 vs 35.7 pc )
PAT - 134 vs 97 cr, up 39 pc ( due steep fall in depreciation, interest costs )

Q2 capex @ 50 cr - largely towards Insulins, GLP-1s, General Injectables

Debt on books @ 2280 cr vs 3000+ cr on 31 Mar 24 ( 18 months ago )

Segmental performance -

Domestic business -

Revenues @ 708 cr, up 10 pc. H1 revenues @ 1410 cr, up 11 pc
EBITDA @ 266 cr, up 11 pc. H1 EBITDA @ 527 cr, up 13 pc

Guiding for a full FY revenue growth of 12 pc. EBITDA growth for full FY expected @ 15 pc with margins near 37.5 pc. Upside from RHI cartridges business may provide an upside to these numbers

Prices increases that company has taken in late H1 should also aid growth

Biocon’s acquired business reported EBITDA margins of 30 pc vs 19 pc at the time of acquisition. In house manufacturing should lead to further margin expansion in FY 27

Biocon has entered an agreement to supply all three types of Insulins - RHI, Glargine and Asphart to Eris for India and select RoW mkts. Eris would be able to sell these in RoW mkts using the distribution network of Swiss Parenterals

Also, Eris’s Insulin Vials facility @ Bhopal went live in Aug 25. Have produced 20 lakhs vials since then

Company should also be the first to market wrt the GLP 1 opportunity ( post Mar 26 ). Their leading position in Insulins ( @ 15 pc Mkt Share ) should help them do really well in GLP-1 mkt

International business -

Q2 revenues @ 83 vs 84 cr. H1 revenues @ 152 vs 158 cr

Q2 EBITDA @ 27 vs 25 cr. H1 EBITDA @ 50 vs 50 cr

Shortfall in H1 revenues due non-availability of dry powder capacity as the same was occupied for validation batches of EU CMO projects

Still on track to report full FY 26 export revenues of 380-390 cr

Swiss Parenterals now ranks among the few Indian companies to have both EU and ANVISA approvals. Have received first purchase order to make Reference Listed Drug ( RLD ) - ie the Innovator brand of the product. Should bring in revenues worth 125-150 cr in FY 27 with similar EBITDA margins. Discussions underway to expand this contract to 17 countries

Swiss Parenterals is in discussions with large generic companies to make Corticosteroids and Complex Carbohydrates for both RLD and LoE ( loss of exclusivity opportunities )

Clearly, this business is nearing an inflection point

Initiated 130 cr capex for their Unit -3 ( all their 4 units are located at Ahmedabad )

Notes from previous concalls -

Commenced insulin vials production from Bhopal facility in Q1. Should commence production of Insulin cartridges wef Q4

GLP-1 mkt in India should be 2500-3000 cr in the first year of launch and should grow from thereon

Aim to take up the International business revenues to 1000 cr by FY 29 ( from a base of aprox 370 cr at present )

The Insulin mkt being vacated by Novo Nordic in India is of the order of 500 cr/ yr. Eris should be able to capture 200 cr/yr out of the same

Company exports business should pick up wef FY 27. They have confirmed contracts of > 100 cr / yr ( combined value ) like -

Corticosteroids in DPI form for several EU countries for Client -1

Niche Betalactam DPI ( antibiotic - dry powder inhaler ) for EU countries + AUS/NZL + Canada for Client 2

Niche Betalactam DPI for a different set of EU countries for client 3

Corticosteroids in Ampoule form for UK for client 4

Anti Fungal injections for UK mkt for client 5

Notes from Q2 concall -

Company’s RHI cartridges business should go live in Dec 25

Company had acquired Bhopal Insulin capacity LY and upgraded it by spending 80 cr

Key triggers in near term include - pick up in domestic Insulin business ( as the Innovator exits ), GLP-1 launch in Q1 next yr, as Bhopal plant ramps up - Biocon branded business’s EBITDA margins should improve further ( from 30 pc at present ), acceleration in export business wef next FY ( as mentioned above )

Company’s current stake in Levim Lifetech stands @ 30 pc. Eris intends to invest another 100 cr in Levim. Naturally the stake should go up ( management did not specify the exact number )

Over and above the Insulins / GLPs, company has a couple of significant launches lined up for Q3 / Q4 - should help accelerate growth in H2

Guiding for EBITDA margins of 37 pc for domestic and 34 pc for International business ( Swiss Parenterals ) for H2

US mkt is a great example where the GLP1s and Insulins have co-existed for a decade now. GLP-1s work as a “glucose sensitizer” for beta cells, potentiating insulin’s effects to restore normal blood glucose levels, but their action is dependent on the presence of elevated glucose and the availability of insulin. Hence - both therapies co-exist

Company’s EU CMO order book has the potential to grow to 700 - 800 cr / yr kind of business in next 3 yrs ( its currently @ 100 cr / yr - starting next FY )

Company has started seeing heightened demand for their Insulin products wef Nov ( as the Innovator has exited recently ). Augurs well for company’s domestic business in H2

Disc: core holding, biased, not SEBI registered, not a buy / sell recommendation, posted only for educational purposes

[ranvir]

PN Gadgil Jewellers -

Q2 FY 26 results and concall highlights -

Q2 outcomes -

Revenues - 2177 vs 2001 cr, up 9 pc
Gross margins @ 11.9 vs 6.7 pc
EBITDA - 142 vs 66 cr, up 117 pc ( margins @ 6.6 vs 3.3 pc )
PAT - 79 vs 35 cr, up 127 pc ( PAT margins @ 3.6 vs 1.7 pc )

H1 outcomes -

Revenues - 3892 vs 3669 cr, up 6 pc
Gross margins @ 12.3 vs 7.4 pc
EBITDA - 266 vs 132 cr, up 101 pc ( margins @ 6.7 vs 3.6 pc )
PAT - 148 vs 70 cr, up 112 pc ( PAT margins @ 3.8 pc vs 1.9 pc )

Total store count @ 63 - 47 company stores + 16 Franchise stores

Stores outside Maharashtra include - 2 in UP, 1 in MP, 3 in Goa, 1 in US

Major Gold selling seasons for the company -

Marriage season - May-June, Sep-Nov and Jan
Agri harvest season - Nov - Dec
Festive seasons - Diwali - Dhanteras ( Oct - Nov ) and Akshay Tritiya ( Apr - May )

Q2 stud ratio @ 9 pc
Q2 SSSG @ 29 pc

Q2 revenues @ 2177 cr vs 1657 cr in Q2 LY, up 31 pc ( if we exclude the discontinued refinery operations which contributed 343 cr in sales in Q2 LY )

H1 revenues @ 3892 vs 2872 cr in H1 LY, up 31 pc ( if we exclude the discontinued refinery operations which contributed 697 cr in sales in H1 LY )

Opened 8 new stores ( 3 franchise + 5 owned ) in Q2. Opened 24 new stores ( 5 franchise + 19 owned ) in last 4 Qtrs

Some comments from previous concall -

Should open a total of 25 stores for FY 26 ( out of which 10 stores would be LiteStyle stores focussing on lighter, more studded, more youth oriented jewellery )

By end of FY 26, company intends to be operating a total of 10 stores outside Maharashtra ( including 3 Goa stores )

The store opening + inventory costs for a LiteStyle store are 8-9 cr / store vs 16-18 cr for a smaller PNG store. For a full size PNG store ( 3000-4000 sq ft ), investment in Capex + Inventory balloons to 45 cr or so. Plus the margins in LiteStyle fashion jewellery are much higher than traditional Jewellery

Half of the 25 stores that company intends to open this yr shall be franchise stores - won’t require investments from company side. Another 5-7 shall be LiteStyle stores - which need much lesser investments

Company continues to remain 100 pc hedged at present

Gross margins in LiteStyle jewellery are aprox 26 pc ( almost double of corporate avg ). LiteStyle mainly focuses on 18K, 14K and Studded jewellery

Have guided for a topline of 9000 - 9500 cr with aprox 3.5 pc PAT for full FY ( assumption : on a sales figure of 9200 cr, company should be able to clock a PAT of 320 cr. At 40 times earnings, potentially - mkt cap can be 12800 cr ) Company aspires to reach 12-13 pc Stud ratio. That should further incline the PAT margin

Notes from Q2 concall -

Company has clocked sales > 1800 cr in the month of Oct ( on back of strong festive demand )

Going to open 13 -15 new stores in H2. Should also open stores in Bihar as well. On track to open 76-78 stores by Mar 26

E Comm sales rose 113 pc in Q2 to 143 cr
Franchise sales rose 105 pc in Q2 to 340 cr

With upcoming wedding season in Dec/Jan - overall sales momentum should remain buoyant in Q3 and Q4

Aim to reach a total of 150 stores by Mar 28 - including - Own stores , Franchise stores + LiteStyle stores

Avg breakeven time for stores in Maharashtra is aprox 15-18 months, for stores outside Maharashtra is aprox 18-24 months

Seeing descent response to the stores they have recently opened @ Kanpur, Lucknow, Indore

Silver Jewellery sales have also been very strong in the recent past. The same pattern continues in Nov as well

Cities on company’s radar for new store openings include - Benares, Jabalpur, Bhopal, Prayagraj, Gwalior and a couple of more cities ( yet to be finalised )

Company intends to keep spending 1-1.5 pc of sales as marketing and advertising spends ( efforts towards brand awareness / brand building )

Likely to see some gross margin expansion in Q3 over Q2 due festive + wedding season sales

Company aims to reach stud ratio of 12 -13 pc in next 2 yrs ( Kalyan, Titan operate at stud ratios > 20 pc ). Company’s recent launch of - Polki, Kundan, Colourstone, LiteStyle collections - are all efforts in that direction

Continue to maintain 100 pc hedging - as a matter of policy continuation

Out of the 14-16 new stores that company aspires to open within FY 26 - split between owned : franchise stores shall be 50:50 ( split between PNG : LiteStyle is also expected to be 50:50 )

At present, don’t plan to enter Lab Grown diamond studded jewellery. Already focussing on other forms of studded jewellery like - natural diamonds, various kind of precious stones

In H1, aprox 10 pc of company’s sales came from Silver Jewellery

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes

[ranvir]

Goodluck India -

Q2 FY 26 results and concall highlights -

Q2 outcomes -

Revenues - 997 vs 980 cr, up 2 pc
EBITDA - 98 vs 75 cr, up 30 pc ( margins @ 9.8 vs 7.7 )
PAT - 42 vs 36 cr, up 18 pc

H1 outcomes -

Revenues - 1951 vs 1871 cr, up 4 pc
EBITDA - 193 vs 155 cr, up 25 pc ( margins @ 9.8 vs 8.2 pc )
PAT - 82 vs 72 cr, up 15 pc ( adjusted for exceptional items )

Company’s capacity utilisation stood at 90 pc at the end of H1 FY 26

H1 breakup of domestic : international revenues @ 73:27

Breakup of segment wise revenues -

Engineering structures and fabrications - 23 pc
Forgings - 16 pc
Precision pipes and Auto tubes - 25 pc
CR sheets and pipes - 36 pc

Company’s key clients and End user industries -

Precision Tubes and Auto tubes - BMW, VW, Skoda, Audi, Mercedes, GM, Renault, Toyota, Mahindra Electric, Tata Motors, Bajaj Auto, TVS, Ashok Leyland, Talbros, Gabriel, Suzuki

End user industries - automobiles, aerospace, defence, railways, oil and gas

Forgings - L&T, RIL, IOL, Toshiba, Mitsubishi, BHEL, GE, Allied Group, Saint Gobain, Bharat Petroleum, HAL, DRDO, ISRO

End user Industries - aerospace, defence, construction and earth moving equipment, nuclear power, oil and gas, general engineering

Engineering Structures - GMR, ABB, L&T, RIL, Toshiba, TRF ( Tata group ), Power Grid, Reliance group, Indian Railways

End user industries - roads, railways, telecom, boilers, turbine generators, steel and concrete grinders, solar energy, building structures

CR Coils and ERW Tubes - various Public and private sector EPC players involved in infra build up in the country, state Govts, NHAI, Railways

End user industries - railways, road bridges, support structures

Manufacturing plants -

06 plants near Delhi ( Sikandrabad and Dadri )
01 plant in Kutchh ( Gujarat )
05 major warehouses located @ Faridabad, Rudrapur, Ludhiana, Nahsik and Aurangabad

Key Business segment capacities ( as on Mar 25 ) -

Engineering structures and precision fabrications capacity @ 85k MTPA
Forging products capacity @ 30k MTPA
Precision Pipes capacity @ 170k MTPA
CR Coils, Pipes and Tubes capacity @ 215k MTPA

Comments from year ending Mar 25 Concall -

New Plant - In January 2025, the company commissioned a state-of-the-art hydraulic tubes unit in Bulandshahr, Uttar Pradesh, with a 50,000 MT capacity. These high-precision tubes serve as an import substitute for seamless tubes, supporting foreign exchange savings and driving topline and bottom-line growth for the company

Goodluck India Ltd will begin trial production in Q1 FY26 at the new facility of its subsidiary, Goodluck Defence and Aerospace Ltd, in Sikandrabad, Bulandshahr (U.P.). Designed to produce ~150,000 precision components annually; commercial production expected by end-Q2 FY26

Precision Pipe (CDW) Ramp-Up - CDW ( cold drawn welded ) facility is currently in the production ramp-up phase, with full-scale production expected by Sep/Oct 2025 to meet targeted demand

The new Defence manufacturing plant has a peak revenue potential of aprox 270 - 300 cr ( should be able to achieve the same by FY 27 ). Should be able to clock 100-120 cr revenues for FY 26. Company may go for further expansion on defence manufacturing capacity once they achieve > 70 pc plant capacity utilisation on this plant. The Defence manufacturing plant should clock EBITDA margins in the range of 20 pc or so

In medium term, company hopes to start clocking double digit EBITDA margins. Most of the fresh capex ( in near future ) shall be dedicated to Auto tubes and Defence manufacturing units. These segments have 12-13 pc and 20-21 pc kind of EBITDA margins respectively. These should pull up company’s consolidated EBITDA margins

Company is already supplying 155 mm Artillery shells to MoD and metal parts for Brahmos Missiles. Seeing a lot of interest from multiple customers wrt the upcoming defence manufacturing facility. Utilising those capacities should not be a problem for the companies. In all probability, they ll have to go for additional capex in not so distant future

The CR sheets and coils business clocks a 4 pc kind of margins. It’s a legacy but stable business. Even in this business, company is looking @ 100 bps kind of margin expansion over next 2-3 yrs

Margin profile for their engineering structures business is 9-10 pc

Comments from Q1 concall -

The hydraulic tubes plant in Bulandshahr, commissioned in Jan 2025, contributed meaningfully in Q1 FY26

This facility is an import-substitute initiative aimed at reducing India’s reliance on seamless tube imports,
while enhancing Goodluck’s margin profile

Notes form Q2 concall -

Goodluck Defence and aerospace ( plant inaugurated in Oct 25 ) has got license from MoD to artillery shells across all calibers ie 105 mm, 120 mm, 125 mm, 130 mm, 155 mm. Current capacity @ 1.5 lakh shells / yr. Plan to scale up production to 4 lakh shells / yr in next 12 months. This plant commenced production in Oct itself

Company is in active negotiations with domestic and international defence customers. Should unlock a significant revenue stream for the company. This also demonstrates company’s precision engineering expertise

Company is augmenting their capacity for solar support structures, including tracker tubes to cater to both domestic and export mkts. Over next 1-2 yrs, targeting a revenue of Rs 500-600 cr from this segment alone

Once the Hydraulic tubes plant reaches a capacity utilisation of 80 pc, company shall further expand its capacity by adding another 50k MTPA

Company expects its EBITDA margins to remain in the 9.5-10 pc band for foreseeable future

The eventual revenue potential of company’s Arty Shells plant ( @ production levels of 4 lakh / yr ) should be aprox 1000 cr / yr

H2 is likely to be much better than H1 as Govt orders and Private capex demand in H2 is always better + the weather is supportive

Company expects the newly commissioned hydraulics plant to ramp up to 70 pc capacity utilisation by Mar 26

Goodluck defence should contribute 100 cr and 300 cr in revenues in FY 26 and FY 27 respectively

Company as applied for ( EOI ) for supply of parts for AMCA program. Waiting for RFQ from GoI

Arty shells business is expected to operate @ > 30 pc EBITDA margins

Total capex requirement to reach an annual capacity of 4 lakh shells shall be aprox 500 cr ( out of which, 200 cr have already been spent to reach the capacity of 1.5 lakh shells / yr )

Still guiding for a 15-20 pc topline growth for FY 26 - indicating a strong H2

Wrt Arty shells, demand is > supply. Company has good visibility of revenues from this product for next 2 yrs. Should be able to realise 1000 cr in revenues by FY 28 from Goodluck Defence ( 800 cr from shells + 200 cr from aerospace parts )

Company shall also be manufacturing some aero space parts from the same facility ( ie of Goodluck Dfence and Aerospace ). Have not yet disclosed the details of those parts

Should clock 500 cr kind of revenues from solar structures and tracker tubes in FY 27 ( from 250 cr / yr at present ). EBITDA margins in this business are around 7-8 pc

Disc: not holding, planning to add, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes

[ranvir]

Wonderla Holidays -

Q2 FY 25 results and concall highlights -

Revenues - 88 vs 71 cr, up 24 pc
EBITDA - 7.5 vs (-) 1 cr { margins @ 9.3 vs (-) 1.6 pc }
PAT - (-) 2 vs 15 cr ( due a tax reversal LY )

Footfalls - 5.05 vs 4.51 lakh, up 12 pc
Avg ticket price - Rs 1017 vs Rs 983, up 3 pc
Avg non-ticket price - Rs 461 vs Rs 431, up 7 pc
ARPU - Rs 1478 vs Rs 1414, up 5 pc

Park wise revenues -

Bengaluru - 30.5 vs 28.3 cr, up 8 pc - due 8 pc increase in ARPUs. Footfalls were flat YoY @ 1.96 lakh

Kochi - 27 vs 19 cr, up 37 pc - due 37 pc rise in footfalls from 1.39 to 1.92 lakh. ARPUs @ Kochi were flat YoY

Hyderabad - 14.5 vs 13.4 cr, up 8 pc - footfalls increased by 1 pc to .93 lakh from 0.92 lakh. ARPUs were up by 7 pc

Bhuvneshwar - 2.8 vs 2.6 cr, up 9 pc. Footfalls increased by 3 pc from 0.23 to 0.24 lakh. ARPUs increased by 6 pc

Wonderla resort & Isle - 5.6 vs 3.6 cr, up 53 pc. ARR increased 8 pc from 5.6k to 6.1k. Occupancy improved from 43 to 59 pc

Notes from Q2 concall -

Chennai park’s commercial operations should commence wef 02 Dec 25

Company designs, makes, operates and maintain its own rides. Buying / Importing similar rides would cost the 2-3 X ( on an avg )

In Q1, revenues, footfalls in Bhuvneshwar Park were @ 8.6 cr and 0.96 lakh with APRUs @ Rs 1308. In Q2, ARPUs were @ Rs 1123

Company has already spent 600 cr towards its Chennai Park

Q2 is always the weakest Qtr for the company ( due monsoons )

Company’s preference is for large format parks near tier 1 cities ( wrt future expansions ). For tier 2 cities, company shall only go ahead if they get a sweet deal wrt long term lease at attractive rates ( like they got in Bhuvneshwar - 6 cr for a 90 yr lease ). Otherwise, its difficult for the company to run a profitable park near tier - 2 cities

Bhubneshwar Park’s size is aprox half of Chennai Park’s size

Broad split of their ticket : non ticket revenue at present stands @ 70:30

Chennai Park’s peak capacity stands @ 10-12 lakh visitors / yr. ( Assumption : That should translate into a peak revenue potential of aprox 213 cr @ an ARPU of Rs 1800 ). Company is hopeful of achieving this inside 3-4 yrs

Aprox 35-40 pc land is still un-utilised @ their parks in Kochi and Bengaluru. This figure for Hyderabad park is aprox 25 pc. Company keeps slowly adding newer attractions, restaurants, rides, resorts etc @ these available land banks

Company’s avg price of land would be around 5 cr / acre

[ranvir]

Rainbow Children’s Medicare -

Q2 FY 26 results and concall highlights -

Company’s current footprint of hospitals ( total - 22 hospitals + 6 clinics ) -

Hyderabad - 8 hospitals + 2 Clinics
Bengaluru - 4 hospitals + 2 Clinic
Chennai - 3 hospitals
Vijaywada - 1 hospital + 1 Clinic
Vishakhapatnam - 1 hospital + 1 Clinic
Delhi - 2 hospitals
Guwahati - 1 hospital ( acquired in Sep 25 )
Rajamundhry - 1 hospital ( went live H1 )
Warangal - 1 hospital ( acquired in Jun 25 )

Total bed capacity @ 2285 vs 1935, up 18 pc YoY

Q2 performance indicators -

Revenues - 445 vs 417 cr, up 7 pc
EBITDA - 149 vs 147 cr, up 1 pc ( margins @ 33.5 vs 35.2 pc )
PAT - 75 vs 79 cr, down 4 pc

No of deliveries - 4753 vs 4451, up 7 pc
Occupancy - 52 vs 59 pc, down 13 pc
ARPOB - Rs 57.4 k vs Rs 49.7 k, up 15 pc
ALOS - 2.73 vs 2.93 days, down 7 pc

Mature hospitals( > 5 yrs old ) -

Occupancies - 55 vs 66 pc, down 16 pc
ARPOB - Rs 61 k vs Rs 52 k, up 17 pc
ALOS - 2.76 vs 2.98, down 7 pc

New Hospitals( < 5 yrs old ) -

Occupancy - 44 vs 44 pc, flat YoY
ARPOB - Rs 48.5 k vs Rs 41.6 k
ALOS - 2.66 vs 2.81, down 5 pc

Payor profile - Cash : Insurance @ 47 : 53

H1 outcomes -

Revenues - 797 vs 747 cr, up 7 pc
EBITDA - 252 vs 240 cr, up 5 pc
PAT - 129 vs 118 cr, up 9 pc

Have acquired 2 hospitals in H1 - Warangal ( 100 beds ) and Guwahati ( 150 beds )

Capex pipeline -

150 new bed additions shall happen in H2 @ Bengaluru @ Hennur ( 60 beds ) and Electronic City ( 90 beds )

130 bed hospital is expected to come up in Coimbatore towards the end of FY 27

2 Hospitals are slated to open @ Gurugram in Sec 44 ( 325 beds ) and Sec 56 ( 125 beds ) in FY 28

150 bed Pune hospital shall come up in FY 29

As the hospitals mature, the company migrates its Doctors to revenue share model. Its a win win for both the company and the doctors

Low incidence of seasonal illnesses in Q2 led to a soft Qtr - both wrt profitability and revenues

Both Warangal and Guwahati have now been fully integrated with Rainbow hospitals

The Electronic City Bengaluru hospital is ready and waiting for Govt’s approval to commence operations

International business is clocking 3 cr kind of monthly revenue

Cash on books @ 556 cr. Should be able to finance all the a/m capex from the cash on books + internal accruals

AP, Telangana, Karnataka - mkts behave in a similar fashion wrt seasonality. Chennai is slightly different. NCR and NE are completely different ( wrt peak infection / illness seasons )

Company’s IVF business grew 40 pc QoQ ( although the current base is low )

If seasonal infections are high - a lot of children pick up disease like Pneumonia which require intensive care. If the seasonal infections are low, naturally the loss of business is commensurate

Q2 revenues from IVF segment were about 13 cr. Should be able to clock 40 cr kind of revenues from IVF business in FY 26 ( this segment should keep growing at a brisk pace )

Guiding for a 20 pc revenue CAGR for FY 27 and FY 28

Since company is cash rich, they ll continue to look @ M&A opportunities to keep driving higher growth rates

Company’s 30 pc of business comes from Tertiary + Quaternary procedures ( like Paediatric Onco, Paediatric transplants etc ). Most of this business happens @ their Hub hospitals ( & not at spoke hospitals )

Company aspires for International patient’s business should contribute to 10 pc of their topline in next 5 yrs

Pricing @ Tier-2,3 cities are 20-30 pc lower than their Tier-1 hospitals. But overall margins are similar because the cost structures are also lower

Disc: holding, biased, not SEBI recommended, not a buy/sell recommendation, posted only for educational purposes

[ranvir]

Time Technoplast -

Q2 FY 26 results and concall highlights -

Q2 Outcomes -

Revenues - 1512 vs 1371 cr, up 10 pc
EBITDA - 223 vs 197 cr, up 14 pc ( margins @ 14.8 vs 14.4 pc )
PAT - 115 vs 99 cr, up 16 pc

Revenue growth led by 13 pc volume growth in India and 16 pc volume growth in International business

VAP sales grew by 18 pc, Established products sales grew by 7 pc

H1 Outcomes -

Revenues - 2865 vs 2602 cr, up 10 pc
EBITDA - 420 vs 372 cr, up 13 pc ( margins @ 14.6 vs 14.3 pc )
PAT - 210 vs 177 cr, up 18 pc

H1 revenue growth led by 12 pc volume growth in India and 16 pc volume growth in International mkts

VAP sales grew by 17 pc, Established products sales grew by 8 pc

QIP - successfully raised Rs 800 cr @ Rs 201 / share in Q2

Non Core assets avlb for sale ( mostly RE ) currently valued @ aprox 40 cr

Have developed a low cost, low maintenance, high performance battery for E-Rickshaws named - E Start with SELINIUM. Current mkt size of such batteries is 6400 cr / yr and is expected to grow @ 25 pc CAGR for foreseeable future

Equity dilution caused due a/m QIP @ 8.7 pc

Have set up a new subsidiary - TIME ECOTECH - focussed on recycling and reprocessing industrial packaging. Will invest 120 cr over next 3 yrs in this new initiative

Has received BIS certification for supply of HDPE pipes for Gas Distribution projects. Earlier the company only had the approval for their PE pipes. HDPE pipe supplies should be a high growth area

Committed to source 75 pc of its energy requirements to Solar sources - to reduce its energy costs

Products under development and approval -

• Composite Fire Extinguisher
• Power Sector OP-Z Batteries
• Composite CNG Cylinder of more than 200 litres capacity
• Composite Hydrogen Cylinders
• Composite LPG Cylinder of 14.2 kg or higher capacity

India : International split of business in H1 @ 64:36

Revenues from Composite cylinders in H1 grew by 22 pc

Pending orders ( awaiting execution in near term ) - 450 cr for packaging products, 195 cr for CNG cascades, 280 cr for PE pipes

Segmental breakup of Q2 revenues -

Polymer products - 972 vs 863 cr, up 7 pc ( margins @ 14.2 pc )
Composite products - 584 vs 503 cr, up 16 pc ( margins @ 15.7 pc )

Segmental breakup of H1 revenues -

Polymer products - 1788 vs 1670 cr, up 7 pc ( margins @ 14.1 pc )
Composite products - 1075 vs 930 cr, up 16 pc ( margins @ 15.6 pc )

Utilisation of QIP funds -

Reduced debt by 400 cr
Purchase of machinery and equipment - 105 cr
Investment in Time Ecotech - 55 cr
Money kept for inorganic opportunities - 240 cr

Comments from previous concalls -

Company’s products -

Polymer products like - Drums, Jerry cans, Polyethylene pipes, turfs and mats, disposable bins, MOX films, steel drums

Composite products like - Intermediate bulk containers, composite cylinders, Auto parts, energy storage devices

Out of the products listed above, the value added product segments include - Intermediate bulk containers ( IBCs ), Composite CNG,LPG cylinders and MOX films

Established products include - Drums, Jerry Cans, auto components, air and hydraulic tanks, their Lead - Acid batteries, door mats, PE pipes. Their batteries are used in Telecom sector, railway signalling and other Industrial applications

The metal cylinder used in households for LPG supply is of 14.2 kg. Currently, the company is supplying 10 kg composite cylinders as its replacement ( currently supplying to IOC + BPCL + HPCL ). These composite cylinders are growing rapidly. Company has now been asked to develop 14.2 kg cylinders by the Govt Oil Marketing PSUs. Should be able to start supplying these in H2 next FY. Once 14.2 kg cylinders r approved, the growth rates in this segment should increase further !!! Company may also be required to undertake capex for the same

Company received approval for manufacturing of Type -3, fully wrapped, fibre reinforced composite cylinders. These find applications in storing hydrogen in fuel cell driven UAVs and Drone applications. Time Techno is the first company in India to have such an approval

As part of its international expansion, Time Technoplast has set up a new step-down subsidiary, Elan Steel Containers (FZC), in the Sharjah Airport Free Zone, UAE. This marks the Group’s entry into steel drum manufacturing in the Middle East and complements its existing polymer packaging business. The facility, built with cutting-edge automation and quality controls, will help meet rising regional demand and strengthen the Group’s position as a complete packaging solutions provider

Notes from Q2 concall -

Capex spends in H1 @ 127 cr

Once company switches over to solar energy for 75 pc of its power requirements, annual energy costs savings can be in the range of 20-30 cr

Company is has already developed a 6 kg composite fire extinguisher. A 9 kg version is under development. Both these products are slated to be launched in Q4 this FY. Railway ministry has already mandated fresh procurement of Fire Extinguishers be made that are made of composite material only

Company is undertaking a capacity expansion project for expanding its capacity to produce CNG cascades. This capex has the potential to add 400 cr to company’s revenues.( they r already doing 400 cr of business from CNG cascades )

Company has already developed small Hydrogen cylinders for drone applications. In the process of developing larger Hydrogen cylinders at present

Due money infusion post QIP, annual interest cost savings should be around 30 cr ( without considering further debt reduction that may happen in future )

Company has submitted its designs to IOL, HPCL, BPCL for its 14.2 kg gas cylinders. Approval should only be a matter of time

Still guiding for 15 pc volume growth for FY 26 ( although their internal tat is 20 pc volume growth ). A 15 pc kind of volume growth should lead to 20 pc + kind of PAT growth for full FY

Company’s tat acquisition candidate is Ebullient Packaging Pvt Ltd. Should be able to buy 74 pc stake in this company for a sum of Rs 150 cr

EPPL specializes in manufacturing Flexible Intermediate Bulk Containers (FIBCs) and other packaging products. The acquisition is expected to be completed in 4 to 6 months, subject to due diligence. EPPL projects revenue of ₹250 crore for FY 2025-26 with an expected EBITDA margin of 10%. This strategic move marks TTL’s entry into the flexible industrial packaging segment, complementing its existing rigid packaging portfolio and expanding its market presence

Post acquisition, Time Technoplast is confident of improving EPPL’s EBITDA margins from 10 to 14 pc - mostly on account of better buying and bargaining capacity that Time Techno has vs EPPL. FIBC packaging is growing at much faster rates ( > 20 pc ) across the world. That’s an added advantage

Disc : holding, biased, added recently, not a buy/sell recommendation, posted only for educational purposes

[ranvir]

Alkem Labs -

Q2 FY 26 results and concall highlights -

Revenues - 4001 vs 3414 cr, up 17 pc
Gross margins @ 65 vs 64.7 pc
EBITDA - 920 vs 752 cr, up 22 pc ( margins @ 23 vs 22 pc )
PAT - 765 vs 688 cr, up 11 pc ( due higher other income in Q2 LY )

Segmental performances -

Domestic business -

Revenues @ 2766 vs 2461 cr, up 12.4 pc

Domestic revenues contributed to 69 pc of company sales

Alkem became the No1 player in IPM in Acute segment in Q2

Alkem continues to be ranked No 1 in Anti Infectives, No 2 in VMNs, No 3 in GI, No 3 in Pain management and No 7 in Neuro therapies

US business -

Revenues - 764 vs 597 cr, up 28 pc

Strong revenue growth in US on the back of good growth in their CMO business and launch of Sacubitril + Valsartan

US revenues contributed to 19 pc of company’s consolidated sales

In Q2, filed 02 ANDAs, received 01 approval and launched 4 products in US

RoW business -

Revenues - 424 vs 320 cr, up 32 pc

RoW business contributed to 10 pc of company sales

Strong growth led by EU and Australian mkts

Comments from previous concalls -

Company’s RoW business margins are much better than their US margins. Company is now focussing on growing the RoW pie with renewed thrust

IPM breakdown of Acute : Chronic is about 62 : 38. But for Alkem, its about 81 : 19. 30 pc of company’s domestic business is under NLEM

Company has been improving their margins in the trade generics segment. Their margins in this segment are now very close to their corporate avg EBITDA margins. Growth in trade generics business is generally a function of growth in the acute therapies

Actively looking at inorganic acquisitions in the Chronic space ( as the current business is heavily lopsided towards Acute therapies )

Looking to commercialise their first Biosimilar in US towards the end of FY 27

Enzene clocked revenues of aprox 90 cr in Q1

Notes from Q2 concall -

Cash on books @ 4940 cr

R&D spends for Q2 stood @ 130 cr ( @ 3.3 pc of sales )

India growth should remain in double digits in H2 as well

Guiding for 20 pc kind of EBITDA margins for full FY 26

H2 expenses are likely to be higher - as the CMO facility in US goes live ( should add to 50 cr kind of operational expenses )

Adroit ltd ( a derma company acquired in Apr 25 ) clocked 15 cr sales in Q2

Enzene’s US plant ( meant for CDMO operations ) went live in Sep. Should clock 20 cr / Qtr kind of revenues from the facility ( to begin with ). Enzene’s Pune plant clocked revenues of 120 cr in Q2

RoW growth should continue to remain strong for short to medium term ( mid teens to early twenties on a YoY basis )

In Q2, company invested aggressively behind their marketing endeavours ( hence the elevated other expenses )

Enzene’s US plant should start to clock 70-80 cr of Qtly run rate after 12 - 15 months from now. That’s the initial tgt. All of this shall come from development work and not commercial supplies

Company should be among the first lot of companies to launch GLP-1s in India

Aim to keep improving EBITDA margins by 100 bps / yr from hereon

Company has an approval for Tolvaptan ( used to treat low blood sodium levels ) in US. Should launch in next FY

Company’s main look out for M&A opportunity continues to be something ( brands / company ) that’s based out of India and serving the domestic mkts. That’s their core mkt and that’s where they intend to expand further

Disc: hold a small tracking position, not SEBI registered, not a buy / sell recommendation, posted only for educational purposes

[ranvir]

Beta Drugs -

H1 FY 26 results and concall highlights -

Over next three yrs, company aims to double its revenues and establish itself among top three players in India in the Cytotoxic ( Chemotherapy drugs that kill cancer cells or stop them from growing and dividing by targeting DNA or metabolic pathways essential for cell replication ) Oncology mkt. Company intends to launch novel NDDS platforms in IPM over next 2-3 yrs

Company entered the API manufacturing business in 2019 in order to achieve backward integration, higher margins, improve drug quality and ensure reliable supplies. 70 pc of company’s API requirements are met from in-house supplies. In addition, API exports help them achieve added operating leverage

H1 outcomes -

Revenues - 204 vs 180 cr, up 13 pc
EBITDA - 41 vs 40 cr ( margins @ 20 vs 23 pc )
PAT - 24 vs 20 cr, up 20 pc

Domestic branded Onco sales @ 69 vs 57 cr, up 21 pc ( now contributing to 34 pc of company’s consolidated topline ). Top 10 brands contribute to more than 50 pc of domestic sales. Injectables : Oral solids share in domestic branded business @ 52 : 48. Company’s brand - Caxfila OS ( used to treat Endometrial and Breast cancer ) is now a > 10 cr brand. Another 5 company’s brand now clock annual sales > 5 cr

CMO sales @ 79 cr, up 8 pc

International sales @ 43 cr, up 10 pc

API sales @ 13 cr

Derma sales @ 9 cr, up 45 pc

Derma division achieved positive EBITDA of 11 lakh in H1 vs EBITDA level losses in H1 LY

Completed COFAPRIS audit ( Mexican Auditor ) and filed 16 dossiers in Mexico. Aim to file another 15 dossiers in Mexico in next 3 yrs

Also cleared INVIMA audit ( Columbian regulator ) for Injectables. Plan to file 10 dossiers within H2 in Columbia

Company’s International business is tender dominated business. Company is hopeful of winning a lot of business in Nov - Dec 25. Should start to get reflected in their sales wef Q4 FY 26

Only 7 pc of company’s revenues come from Platins ( basic Chemotherapy drugs ). These r low gross margin sales

Continue to guide for full yr revenue growth of 20 pc ( despite only 13 pc growth in H1 ) with EBITDA margin guidance of 23 pc or so - pointing towards a significantly better H2

Beta Drugs became the first Indian Company to get an approval for Methotrexate Oral Solution from DCGI ( in Oct 25 ). It’s a patient-friendly and bioequivalent alternative to existing tablet form. The product is indicated for use in acute lymphoblastic leukemia (ALL), lymphomas, various solid tumors, Rheumatoid Arthritis (RA), Juvenile Idiopathic Arthritis (JIA), and Psoriasis Vulgaris including Chronic Plaque Psoriasis, Erythrodermic Psoriasis, Psoriatic Arthritis and Pustular Psoriasis. This should improve company’s growth trajectory going forward

Company has tied up with an Italian Derma company to In Licence one of their Cosmetology products ( its a Derma filler - these r injectables used to improve facial appearance, smoothen skin etc ) and launch them in India. They have got the products registered in India. Should soon be launching them. Aim to garner 50 - 100 cr of annual sales from this product ( over a period of time )

Company’s one of the manufacturing facility is due for an EU audit. Should happen in Q4

Company has recently acquired a plant ( adjacent to their own API plant ) that makes Onco Intermediates. Now the company is revamping the acquired facility. It should take 6-8 months for the complete revamp to happen. Total capex requirement for acquisition and revamp should be around 10 + 20 = 30 cr or so. Also, their R&D team is working on in-house manufacturing of KSMs for which the company is already making the APIs

Confident of clocking > 100 cr in International sales in H2 ( vs 43 cr in H1 )

Beyond Mexico and Columbia, company has filed dossiers in South Africa, Algeria, Vietnam. Should start to realise greater sales from exports going forward. Have received 43 product registrations in last 6 months. Aim to file another 150 dossiers in next 3 yrs. Aim is cover a large no of export destinations with all the Cytotoxic Onco products

Disc: hold a small tracking position, will add once there is an uptick in results, not SEBI registered, not a buy / sell recommendation, posted only for educational purposes

[ranvir]

Krsnaa Diagnostics -

Q2 FY 26 results and concall highlights -

Revenues - 206 vs 186 cr, up 11 pc
EBITDA - 60 vs 50 cr, up 18 pc ( margins @ 29 vs 27 pc )
PAT - 24 vs 19 cr, up 22 pc

No of CT centers @ 146
No of MRI centers @ 40
Pathology Refernce labs @ 6
Pathology satellite labs @ 114

MRI + CT centers are slated to to upto 200 ( by Dec 25 / Jan 26 ). Their Rajasthan project execution should see their Path Ref labs going upto 7 and satellite labs going upto 249

Amravati, Buldhana ( Maharashtra ) MRI centers and Ranchi ( Jharkahnd ), Tuljapur ( Maharashtra ) CT scan centers are slated to go live in Q3

Performance of their retail arm ( RPL ) -

Revenues - 17 vs 2 cr ( retail revenue contribution now @ 8 pc of company sales ). Retail revenues grew by 60 pc on a QoQ basis. No of retail touchpoints @ 2878 vs 608 ( up 4.7 X )

Rajasthan PPP project - slated to add 10 labs in Nov, 25 in Dec and balance in Q4

Expect meaningful revenue bump up in revenues wef Q4 as Rajasthan project starts to contribute meaningfully

Expecting revenues from RPL ( their retail arm ) to accelerate to 15 pc of company’s topline in FY 27 ( indicating strong growth for next FY as well )

Retail business has now expanded to 2800 touch points ( mainly in Maharashtra, Punjab, Assam, Odisha )

The capex required to execute the Rajasthan contract shall be around 250 cr. Rajasthan business has the potential to clock 300 cr / yr kind of business for the company

Receivables stand @ 150 days, aim to bring them down to 100 days by end of this FY

Yet to open 15 MRI / CT centers @ Maharashtra

Due competitive nature of tenders that company bids for, they r not in a position to disclose their details nor the states that the company is bidding in

Due competitive nature of tenders that company bids for, they r not in a position to disclose their details nor the states that the company is bidding in

By 2030, company aspires RPL revenues to be 40-50 pc of company’s sales

Expect the retail business to break even @ annual revenue of 100 cr

Have started venturing into preventive / wellness areas in their retail business. Should help them accelerate growth + improving margins

Company is hopeful of clocking 25 cr / Qtr kind of run rate from their B2C venture ( from 18 cr in Q2 )

Disc: holding, biased, not SEBI registered, not a buy / sell recommendation

[ranvir]

Hindustan Zinc -

Q2 FY 26 results and concall highlights -

Q2 outcomes -

Mined metal production - 2.58 vs 2.56 lakh tons
Refined metal production - 2.46 vs 2.62 lakh tons
Avg cost of production @ $ 994 / ton vs $ 1071 / ton

Avg silver prices in Q2 @ $ 39 / ounce, up 30 pc YoY. Avg prices in Oct + Nov are in the range of $ 49-50 / ounce. Silver mkt continues to remain in deficit led by increased industrial demand from renewable energy, electronics, auto and 5G applications

Silver contributes to 40 pc of company’s EBITDA. Surge in silver prices is a great outcome for Hind Zinc

Company produced 144 tons + 149 tons of silver in Q2 and Q1 respectively. Company is 4th largest silver producer - globally

Progress on ongoing projects -

1.6 lakh MTPA Roaster @ Derbari - commissioned in Q2 FY 26

5.1 lakh MTPA fertilisers plant expected to be commissioned in Q1 FY 27. It ll be producing DAP fertiliser and NPK nutrients. The fertiliser plant that the company is expected to commission next yr has the potential to do peak EBITDA of 450 - 500 cr / yr

Hot Acid leaching plant - to a recover additional 27 tons of Silver and 6000 tons of Lead / yr from smelting waste is expected to be ready in Q4 FY 26

De-Bottlenecking @ Chanderia Zinc smelter expected to be commissioned in Q3 FY 26

De-Bottlenecking @ Dariba Lead smelter commissioned in Q2 FY 26

Notes from last 2 concalls -

In FY 25, 13 pc of total power used by the company came from renewable sources. Company aims to take it to 30 pc by FY 26 end !!! By FY 28, they aim to take their renewable power usage to a massive 70 pc

In medium to long term, company aspires to increase its metal production to 1.5 MMT / yr ( initially ) and then to 2 MMT ( eventually ). Also intend to increase their reserves to 2X of current levels by indulging in domestic and international exploration activities. This would entail a lot of CAPEX - should be doable with internal accruals as the company produces a lot of cash / yr

Company has set up a dedicated subsidiary - Hindmetal Exploration Services Pvt Ltd - to continuously focus on exploring, discovering, developing and tapping mineral resources. The subsidiary has interest in exploration of all minerals across the globe by implementing best in class technologies and practices

Have secured mining rights 3 new blocks @ -

UP for Rare earth metal ( Monazite ore - used to produce Neodymium - a key component for rare earth magnets )

Rajasthan for Potash mining ( an important step towards securing India’s potash fertiliser demands ). The Potash mine block that the company has got shall eventually be integrated with their fertiliser plant

Andhra for Tungsten mining ( Tungsten is widely used in defence, electronics and clean energy technologies )

Company’s smelting capacities -

Zinc smelting capacity @ .913 MMT + .16 MMT ( recently commissioned @ Derbari )
Lead smelting capacity @ .210 MMT
Silver refining capacity @ 800 MT

Power generation capacities - Captive power generation capacity @ 625 MW. Among India’s largest producer of Wind Power with a generation capacity of 274 MW - spread across 5 states

Company has entered into a 25 yr long renewable power purchase agreement with Serentica ltd - this would @ a fixed flat rate of energy buying without any inflation and would help the company move towards its stated goal of reducing costs to $ 1000 / Ton

Notes from Q2 concall -

Revenues - 8525 vs 8242 cr, up 3 pc
EBITDA - 4426 vs 4104 cr, up 8 pc ( margins @ 52 vs 50 pc )
PAT - 2632 vs 2298 cr, up 14 pc ( due higher other income and lower interest outgo )

Zinc prices continue to remain firm crossing and sustaining above $ 3000 / Ton on LME ( in Oct - Nov ). Silver prices continue to remain buoyant, sustaining @ around $ 50 / Ounce in Oct - Nov. Lead prices are holding steady - at similar levels as Q1

In H1, company’s zinc COP stood @ $ 1002, down 8 pc vs LY H1. For full year FY 26, Zinc’s COP should remain at < $ 1000, one full year before the initial tgt year of FY 27

Growth capex for FY 26 should be around 3500 cr - includes all the ongoing projects like Fertiliser plant, de-bottlenecking of Zinc and Lead smelters, hot acid leaching plant ( as mentioned above ). Maintenance capex for current FY should be around 400 - 500 cr

Company’s full yr tgt for Silver production stands @ 680 Tons. In H1, company has produced aprox 290 Tons. For H2, company is diverting resources from other mines to SK mines, incentivising contractors and workers at the sites - to ensure that they r able to meet the targeted silver production in H2 ( specially when the Silver prices are so good ). For FY 27, Silver production should be between 700 - 750 tons

Have announced a capex of 12000 cr for setting up of 250 KTPA zinc smelter @ Debari. Have already started work on ground ( yet to finalise the technology to be used in the Smelter ). This should take 2.5 - 3 yrs before it goes commercial

Percentage of power used by the company that came from renewable sources in Q2 stood @ 19 pc. Aim to exit FY 26 with renewable share of power consumption @ 25 pc

By the end of FY 26, company’s net cash position should be neutral / near Zero ( ie Cash on books - Debt on books )

Company’s hedged positions in Zinc / Silver continue to be at around 20 pc of their annual production. Rest 80 pc remains unhedged

With the commissioning of 1.16 lakh MTPA smelter at Derbari ( as mentioned above ), company should be able to achieve high single digits / low double digits volume growth in FY 27

Disc: holding, biased, not SEBI registered, not a buy sell recommendation, posted only for educational purposes

[ranvir]

Ambuja Cements -

Q2 FY 25 results and concall highlights -

Revenues - 9174 vs 7552 cr, up 21 pc
EBITDA - 1761 vs 1111 cr, up 58 pc ( margins@ 19.2 vs 14.1 pc )
Other income - 257 vs 374 cr, down 31 pc
PAT -605 vs 496 cr, up 22 pc ( reported PAT @ 2302 cr - due income tax provision reversal of 1697 cr )

Volumes @ 16.6 vs 13.8 MMT, up 20 pc
EBITDA / MT @ Rs 1060 vs Rs 803, up 32 pc
RM costs / MT @ Rs 803 vs Rs 789, up 2 pc
Power and fuel costs / MT @ Rs 1370 vs Rs 1308 cr, up 5 pc
Freight costs / MT @ Rs 1224 vs Rs 1318, down 7 pc
Other expenses / MT @ Rs 712 vs Rs 715, flat YoY

Aim to achieve total costs / MT @ Rs 4000 and aim to reduce it to Rs 3600 / MT by FY 28 end

Current capacity @ 107 MMT. Should expand to 120 MMT by end of FY 26. Aim to take this upto 155 MMT by FY 28 ( revised upwards from earlier tgt of 140 MMT )

Capacities added recently ( last 2 yrs ) via inorganic acquisitions -

Sanghi Cement - 6.1 MMT
Asian Cement - 1.5 MMT
Penna Cement - 10 MMT
Orient Cement - 8.5 MMT

Cash on books @ 1813 cr ( Rs 5910 cr were spent in Q1 towards acquisition of Orient cement )

Additional 15 MMT expansion ( from 140 to 150 MMT ) shall happen via de-bottlenecking across company’s multiple plants. The clinker capacity shall also rise from 84 to 96 MMT

Installing 13 new blenders across their plants - should help them improve the output of their premium cement, helping them improve realisations

Industry volume growth in Q2 stood @ 4 pc ( Ambuja’s volumes grew by 20 pc !!! ). Company’s Mkt share is now approaching 16 pc

Share of premium product sales now @ 35 pc of total sales. Premium Cement offerings reported a 28 pc growth in Q2 on a YoY basis

Green power share @ 33 pc. Green power capacity @ 673 MW - slated to expand to 900 MW by end of FY 26 and 1120 MW by end of FY 27. Aim to hit the 60 pc energy from renewable sources tgt by FY 28

This should help company reduce avg power costs from Rs 6 / unit to Rs 4.5 / unit by FY 28

GST rate cuts on cement should help fuel demand for premium / branded cement

Company still expects the Industry to grow @ 7 pc ( vs 4 pc growth in H1 )

Company has identified 13 locations where the company shall undertake the de-bottlenecking exercise

Company’s RMC ( ready mix concrete ) business is also doing well. At present, aprox 3 pc of company’s cement production is going towards making RMC. Aim to incline this to 5 pc of company’s cement production

As the acquired assets come into the base ( for calculation of YoY growth ), volume growth may start to moderate from Q1, Q2 levels of 20 pc or so. Still confident of maintaining double digit volume growth for many Qtrs to come

Company’s Tgt for EBITDA / MT by end of FY 28 stands @ Rs 1500 / MT

This would be achieved by continuously working on reducing power and logistics costs + improving efficiencies + bringing the acquired assets ( Sanghi, Pennar, Orient ) efficiency to Ambuja’s level

Company’s capacity utilisation ( on a consol basis ) stands @ 65-67 pc. As company’s volumes pick up - they should get the benefits of operating leverage

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes

[Kish44]

Can you share latest portfolio. Do you own Narayana Hrudayalaya

[ranvir]

I ll post it over the weekend

Thanks

[ranvir]

EIH ltd -

Q2 FY 26 results and concall highlights -

Revenues - 598 vs 589 cr, up 2 pc
EBITDA - 154 vs 175 cr , down 12 pc ( margins @ 26 vs 30 pc )
Other income @ 53 vs 40 cr
PAT - 117 vs 133 cr, down 12 pc

Cash on Books @ 1057 cr

Domestic travel and tourism were affected by excessive and prolonged rains in several parts of the country

Q2 occupancy @ 72 vs 72 pc ( flat YoY )
ARRs @ Rs 15,967 vs 14,968 ( up 7 pc YoY )

De-Growth in RevPar witnessed @ Mumbai, Jaipur, Udaipur, Shimla, Ranthambhore and Chandigarh

Strong Rev Par growth ( high single digits ) witnessed @ Agra and International destinations. Avg Rev Par growth ( low single digits ) witnessed @ Hyderabad, Bengaluru, Bhuvneshwar, Delhi NCR, Chennai

Current strength of hotels -

Oberoi - Domestic @ 14 hotels
Oberoi - International @ 6 hotels
Trident - Domestic @ 9 hotels

Oberoi Rajgarh Palace ( Owned - 66 rooms ) opened on 16 Nov 26. Three more properties - Oberoi Dahabia -1, Dahabia -2 ( 7 rooms each, managed ) and Oberoi Diriyah ( 60 rooms, managed ) - are slated to open within FY 26

Hotels slated to open in FY 27 -

Trident - Vishakhapatnam - 150 rooms - Owned
Oberoi - Goa - 20 rooms - Managed
Oberoi - Nile cruiser - 25 - Managed

Hotels slated to open in FY 28 -

Oberoi - Goa - 90 rooms - Owned
Oberoi - Gandikota - 20 rooms - Owned
Oberoi - Bardia - 18 rooms - Managed
Oberoi - London - 21 rooms - Owned
Oberoi - Jawai - 15 rooms - Managed
Oberoi - Clarks - 29 rooms - Managed

Adjusted for - The Oberoi Grand Kolkata ( under renovation ) + Oberoi Airport Lounge Mumbai ( lease ended in LY ) - company’s revenues grew by 9 pc

Q2 LY had greater number of wedding dates vs current FY - which also adversely impacted growth in Q2

RevPar decline @ Shimla, Chandigarh - driven by excessive rains / flooding. Decline in Mumbai was driven as parts of hotel were under renovation

Company reported a RevPar growth of 7 pc vs Industry’s growth of 5 pc

Company has a pipeline of 27 hotels / Cruisers to be operationalised till FY 30 - 19 are Domestic + 8 are International properties. Out of these, 8 shall be owned and 19 shall be managed ( 5 shall be under the Trident brand and 22 under the Oberoi brand )

Witnessing strong demand combined with high room rates in Nov 25

Seeing very strong demand in Q3 for the wedding season ( specially in Jaipur, Udaipur, Chandigarh hotels ) - very frequently, the customers buy out entire hotel for the occasion

Renovation work at Oberoi Jaipur ( Rajvilas ) hotel is now over. Have added some more luxury tents in that hotel. Trident Jaipur continues to be under renovation

Out of 200 rooms @ Oberoi Mumbai, 40 rooms were under renovation in Q2

Trident Nariman Point ( Mumbai ) continues to do exceedingly well post renovation ( that took place in last FY )

ARR and Occupancy for owned domestic hotels in H1 were @ Rs 17,160 and 75 pc respectively

Looking at locations like Maldives for future projects. Maldives sees a lot of affluent travellers and sees 5-7 star hotels commanding rentals north of Rs 1 lakh / night

According to the management, the demand - supply gap wrt hotel properties @ Prime locations in India is not expected to narrow in near to medium term - keeping the occupancies and ARRs on the higher side ( and growing )

Oberoi Grand Kolkata is expected to open in 2 phases ( 50 keys + 150 keys ) in Oct 26 and Jun 27 respectively

MICE segment is performing really well in Q3 and is expected to do well going forward as well ( into Q4 )

Management indicated that Rev Par growth in Q3 is expected to be strong ( going by current demand trends )

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted for educational purposes

[ranvir]

Kajaria Ceramics -

Q2 FY 26 results and concall highlights -

Revenues - 1186 vs 1179 cr
EBITDA - 213 vs 156 cr, up 34 pc ( margins @ 17.9 vs 13.5 pc )
Other income - 15 vs 10 cr
PAT - 132 vs 84 cr, up 58 pc

Cash on books @ 593 cr

Company’s manufacturing capacities -

Tiles -

Ceramic wall and floor tiles - 34 MSM
Polished vitrified tiles - 15 MSM
Glazed vitrified tiles - 38 MSM
Total - 87 MSM

Sanitaryware -

12 lakh pcs / yr

Faucets -

16 lakh pieces / yr

Adhesives -

108000 MTPA

Breakdown of Q2 sales -

Own manufactured tiles - 579 vs 587 cr
Subsidiary tiles - 221 vs 194 cr
Outsourced tiles - 250 vs 271 cr
Plywood - 1 vs 17 cr ( have closed the plywood division )
Sanitaryware + Faucets - 102 vs 90 cr
Adhesives - 32 vs 18 cr

Margin expansion led by - aggressive cost cutting measures, more efficient procurement of outsourced tiles, cutting down on un-necessary manpower. These cost saving measures started to kick in in Q1, have continued in Q2 and are expected to continue in Q3,Q4 as well. All things being equal - margins may incline by another 50-100 bps in H2

Have hired a team of 18-20 ppl whose only job is to influence / educate the archietects about company’s tiles and bathware offerings. Have also streamlined company’s distribution channel so that same outlet is never served by multiple distributors

Hopeful of clocking descent volume growth in Q3 ( after a flattish H1 )

Current retail:project sales breakdown @ 70:30

If the volumes pick up meaningfully ( going forward ), operating leverage may further help incline company’s margins

Pricing difference between Kajaria’s products vs those sold by Morbi players is hovering @ about 20 pc or so

Recent rate cuts and injection of liquidity by RBI + GST rate cuts by GoI should help fuel better demand for the building materials Industry ( specially wef Q3 as the monsoons are also now behind )

Advertisement spends in H1 were lower on a YoY basis. However, this should reverse in H2. Company is by far the biggest spender on advertisements in India ( in the Tiles Industry )

Disc: not holding, not SEBI registered, posed only for educational purposes

[ranvir]

Blue Jet Healthcare -

Q2 FY 25 results and concall highlights -

Q2 outcomes -

Revenues - 165 vs 208 cr, down 20 pc
EBITDA - 55 vs 69 cr, down 21 pc ( margins @ 33 vs 34 pc )
Other Income - 24 vs 12 cr
PAT - 68 vs 76 cr, down 10 pc

Segmental breakdown of sales in Q2 -

High Intensity sweetners - 34 vs 31 cr, up 7 pc
Contrast media intermediates - 80 vs 113 cr, down 29 pc
Pharma intermediates and APIs - 43 vs 59 cr, down 27 pc

H1 outcomes -

Revenues - 520 vs 371 cr, up 40 pc
EBITDA - 175 vs 113 cr, up 54 pc ( margins @ 34 vs 30 pc )
Other income - 32 vs 20 cr
PAT - 143 vs 96 cr, up 49 pc

Segmental breakdown of sales in H1 -

High intensity sweetners - 68 vs 66 cr, up 3 pc
Contrast media intermediates - 177 vs 177 cr, flat YoY
Pharma intermediates and APIs - 255 vs 119 cr, up 113 pc

Company’s total reactor capacity @ 1178 KL - across its three facilities. Has a product portfolio of 51 commercialised products - 19 contrast media products, 4 high intensity sweeteners and 28 Pharma grade products

In contrast media space ( used in X Rays, CT/MRI scans ) , top 4 players command 75 pc mkt share. Company has 4-26 yr long relationship with top 3 manufacturers. The relationship of company with its clients is very sticky as the supplies require strict control over impurities and specific product profiles. Company now aims to forward integrate into more advanced contrast media intermediates in order to realise better sales and profitability by moving up the value chain

High Intensity Sweetener business involves manufacturing and marketing of Saccharin and its salts - used in oral care products, beverages, confectionary products, pharma products, food supplements, animal feeds. Company’s Sweetners plant is FDA compliant

Company manufactures APIs and Intermediates in the CVS, CNS and Onco therapies. Supplies to 56 customers ( 40 in India, 16 international customers )

Company is currently supplying advanced intermediates for 4 APIs that are currently under patent. One is an Onco API, another one is a CNS API and 02 are Cardiovascular APIs

Comments from Q1 concall -

Additionally, company aims to add another 1000 KL reactor capacity in next 2-3 yrs in order to emerge as a globally competitive CDMO. Company intends to acquire a land parcel for the same and build 4 manufacturing blocks on the same - 2 for CM products, 01 for HI sweeteners and 01 as a multi purpose block ( mainly catering to Pharma intermediates )

Company’s new plant in Mahad ( expected to go commercial in H2 ) - focussing on Contrast media intermediates and KSMs shall position them very strongly in this space

Company is also building a state of the art R&D plant at Hyderabad focussing on newer chemistry platforms like peptides, intermediates for GLP-1s, bio-catalaysis

Notes from Q2 concall -

Company’s new Iodinated contrast media intermediate is likely to go commercial in Q4 - seeing encouraging response from the customer

Have developed a new sweetener - has a large addressable mkt ( > $ 1 billion ) and higher realisation / kg

Have started work on their 103 acres Greenfield facility at Vizag. Phase -1 at this site should tgt capacities for Contrast media products and artificial sweeteners. Already have commitments from global customers - backing this investment

Their new Mahad facility - Unit C ( focussed on backward integration ) is expected to go live in H2 FY 26

Seeing a surge in RFPs - currently tracking about 20 RFPs ( 6 are high potential, phase 3, chronic disease molecules ). New R&D center @ Hyderabad should support company’s efforts towards development of these opportunities

70 pc of company’s energy requirements are met from Solar + Renewable sources

Company aims to add another 1000 KL reactor capacity in next 2-3 yrs in order to emerge as a globally competitive CDMO ( talking about the 103 acre facility @ Vizag ) . Company intends to acquire a land parcel for the same and build 4 manufacturing blocks on the same - 2 for CM products, 01 for HI sweeteners and 01 as a multi purpose block ( mainly catering to Pharma intermediates ). Total capex outlay for this should be around 1000 cr. Should complete this capex by FY 28

Goods in transit in Q2 in contrast media segment are much higher vs Q1. Only 55 pc of goods produced in Q2 could reach the customers and the rest were in transit as on 30 Sep. These r likely to be recognised in Q3

Cash on books @ 340 cr. Company is debt free

Prescription trends for Bempedoic Acid ( the CVS drug whose intermediate is supplied by Blue Jet ) is seeing an encouraging trend. Company believes, they should see good upsides and should maintain a descent mkt share wrt supplies being sourced by the innovator ( till 2031 )

Should see other Pharma molecules ( APIs / Intermediates ) to start contributing in a more meaningful way wef FY 27 and beyond

The Contrast media sales that could not be realised in Q2 amount to aprox 75 pc

Guiding for 34-35 pc EBITDA margins for full FY 26

Blue Jet has started commercial supplies of Iodinated ABA HCL ( a key intermediate used in manufacturing of Contrast media products ) - should see a gradually rising off take wrt this product going into H2 and FY 27

In H2, contrast media revenues should be around 225 cr or so ( similar to H2 LY ). In H1, contrast media sales were @ 177 cr

Despite the heavy capex and increased R&D costs lined up for next 2 yrs, management sounded confident of sustaining 35 pc kind of EBITDA margins throughout this period on the back of strength in their base business

Company’s US revenues are about 5 pc of company’s total revenues

Disc: hold a small position, not SEBI registered, not a buy/sell recommendation, biased, posted for educational purposes

[ranvir]

Hero MotoCorp -

Q2 FY 26 results and concall highlights -

Revenues - 12218 vs 10483 cr up 16 pc
EBITDA - 1766 vs 1450 cr, up 21 pc ( margins @ 14 vs 14 pc )
Other income - 240 vs 239 cr
PAT - 1321 vs 1066 cr, up 23 pc

Company clocked close to 10 lakh retail sales in Oct 25. Company’s mkt share expanded by 3.7 pc to hit 31 pc in Oct 25

Expecting the retail momentum to sustain even after the festive season

Glamour X 125 cc - seeing very good customer response

Xoom and Destini ( both 125 cc ) command 10 pc share in 125 cc scooters mkt. Expect to build further on the gains with launch of Destini 110 and Xoom 1600 premium scooter

Hero Premia network now stands @ 100 stores

XPulse sales grew by 31 pc in the ongoing festive season

Company’s EV 2 W mkt share has now crossed 10 pc ( vs 4 pc LY )

Exports grew 77 pc in Q2 ( 3X the industry growth )

EBITDA margins for ICE business expanded to 17 pc in Q2 - due lower material costs, mix improvement

Avg selling price improved 4 pc in Q2 vs LY

Sales of parts and merchandise stood @ 1530 cr, up 5 pc YoY

Expecting the 2W industry to grow by 8-10 pc in H2 with Hero positioned to outperform the Industry

Company’s festive season sales grew 17 pc vs comparable festive season sales in last FY

Seeing strong demand continuing in the month of Nov as well

GST cuts have led to surge in demand for the entry level products - like Splendour, HF Deluxe, Passion ( where company is as such the mkt leader )

Export growth was led by SriLanka, Nepal, Columbia. In the export sales, 40 pc contribution comes from their premium offerings

Annualised 2W sales are still below the pre-covid levels

Post festive inventory levels at the dealers are @ multi year lows. Augurs well for the company

Outlook for Export sales also continues to be bright

EV 2Ws are currently operating in negative EBITDA territory. Profitability shall occur with better scale + further cost controls ( my guess - should be another 12 - 18 months away. Hero sold aprox 12k Vida EVs in Nov25 vs 7k in Nov 24. What I remember from a recent concall of Bajaj Auto is - they were hinting at EV 2W business 's EBITDA breakeven @ monthly sales of > 25k )

Vida is already the No 2 EV player in 50 cities - an encouraging sign

New product introduction, price interventions and PLI benefits - should help company improve the EV business’s profitability

Disc: hold a small position, nota buy sell recommendation, not SEBI registered, posted for educational purposes