Ranvir's Portfolio

[ranvir]

V2 Retail -

Q3 FY 26 results and concall highlights -

Pre Ind AS Q3 outcomes -

Revenues - 929 vs 590 cr, up 57 pc

Gross margins @ 32.4 vs 32 pc

EBITDA - 126 vs 84 cr, up 50 pc

PAT - 82 vs 56 cr, up 47 pc

Pre Ind AS 9M FY 26 outcomes -

Revenues - 2270 vs 1386 cr, up 64 pc

Gross margins @ 30.2 vs 29.7 pc

EBITDA - 223 cs 124 cr, up 80 pc

PAT - 138 vs 75 cr, up 83 pc

Total stores network @ 294 stores across 225 cities. Opened 35 stores in Q3. Have opened 106 stores and closed 1 store in last 9Ms

Q3 performance matrix -

SSSG @ 12.8 pc

ASP @ Rs 363 vs 343

Avg billing value @ Rs 964 vs 924

Full price sales contribution @ 92 pc

Sales PSF / month @ 1032 vs 1219 in Q3 LY

Revenue Mix -

Men’s wear - 41 pc

Ladies wear - 28 pc

Kids wear - 23 pc

Lifestyle - 8 pc

Some comments from previous concalls -

Breakeven level of sales requirement for a new store are > Rs 500 psf / month ( ie EBITDA breakeven ). Most of company’s stores achieve this after 1 -2 months of operations

Current avg rental cost @ Rs 52 psf. For the next 80 stores ( MOUs that the company has signed up ), the avg rentals are Rs 48 psf

Company’s store managers and floor managers do get incentives ( like 10-30 pc extra salaries ) for achieving their sales targets. Hence the attrition is low. However, the attrition @ lower levels remains high - which is an Industry wide phenomenon

At present, the company is not looking to expand their Gross Margins. This is a deliberate strategy - to pass on max benefits to the consumers so as to keep the throughputs and sales velocity @ stores at levels far higher than their competitors

Notes from Q3 concall -

Should be able to open > 25 stores in Q4. Have already added 10 new stores in Q4 taking the store count up to 304 stores

SSSG for 9Ms @ 8 pc

Company’s older stores are clocking PSF / month sales of Rs 1200 and thereabouts ( stores operating on or before Mar 24 )

The new stores that the company has opened in last 12-15 months are already clocking PSF / month sales of Rs 700-730 and are already EBITDA positive. EBITDA breakeven happens @ PSF / month sales level of > Rs 500. Company’s new stores are achieving this within 1-3 months of operations

Upcoming wedding season should keep the demand momentum strong in Q4

Aim to open another 150 stores in FY 27

Aim to achieve 8 - 10 pc SSSG for next FY

Continue to focus on their EBITDA margins and max store level sales velocity ( and not on their gross margins )

There are only 20 odd stores where the company does’t face organised competition. Otherwise - organised apparel retailers exist in vicinity of > 90 pc of their store locations

Aim to be operating @ around Rs 1000 / PSF / month levels - despite the aggressive store expansion. At a company level, if they r able to sustain this, it would a great outcome ( imo )

Seeing good demand momentum in Q4 as well

Guiding for 8-10 pc SSSG and 50 pc revenue growth for FY 27

Going forward - Avg size of new store openings should be around 10-12k Sq Ft ( as has been the case in last 1-2 yrs )

Total store openings in Q4 may eventually settle @ aprox 30 stores

Company uses the extra cash on books to pay its vendors in advance. In return, it gets extra discounts from them. This aids their overall margin profile

Talking about company’s older stores ( ie > 2 yrs old ), repeat customers account for 68 pc of sales. This used to be around 56 pc about 7-8 Qtrs back

Since company works on thin margins, they don’t run any loyalty programs

Avg investment per new store works out to be around @ 1.2 cr of capex + 1.3 cr of inventory

Avg running cost / store is around 190 psf / month. Broad break up - rent @ Rs 50 psf, employee cost @ Rs 40 psf, corporate overheads @ Rs 50 psf, power + fuel @ Rs 20 psf, marketing and advertisements @ Rs 30 psf

Company’s design team comprises of aprox 50 ppl

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

[ranvir]

Entero Healthcare -

Q3 FY 26 results and concall highlights -

Q3 outcomes -

Revenues - 1707 vs 1359 cr, up 26 pc

Gross margins @ 10.1 vs 9.8 pc

EBITDA - 68 vs 50 cr, up 36 pc ( margins @ 4 vs 3.7 pc )

PAT - 40 vs 29 cr, up 36 pc ( adversely impacted by implementation of new labour codes to the tune of 8 cr )

9M FY 26 outcomes -

Revenues - 4681 vs 3757 cr, up 25 pc

Gross margins @ 10.1 vs 9.5 pc

EBITDA - 180 vs 123 cr, up 47 pc ( margins @ 3.8 vs 3.3 pc )

PAT - 107 vs 76 cr, up 41 pc

Company is among the top 3 Pharma / Healthcare distributors in India. Company has a pan India presence via 131 ware houses and cater to 505 districts across 20 states

No of retailers served @ 97,600

Company’s no of Hospital clients stand @ 3200+

At present, company procures from aprox 3100 manufacturers

Comments from previous concalls -

Company’s strategic playbook rests on pillars like -

(a) Disciplined inorganic growth ( have already made 50 + acquisitions )

(b) Organic scale up in underserved markets

(c) Deepening partnerships with Healthcare brands

For full year FY 26, company aims to reach EBITDA margins of 4 pc

Organised distributors account of < 10 pc of IPM as of today - naturally, the headroom for growth is huge

Have made a lot of investments in the tech platforms over last 2-3 yrs ( for the ease of their customers ie retailers and better inventory management for them ). Going forward is the time to utilise these investments and drive better efficiencies through them

Closed 5 acquisitions in Q2. These 5 acquired firms / companies reported combined revenues of 545 cr in last FY

Additionally - The company is acquiring an 80% stake in Bioaide Technologies for INR 36 Crore and a 51% stake in Anand Chemiceutics for INR 210-230 Crore ( subject to satisfactory closure of formalities and due diligence ) - both are Med Tech companies

Med Tech is a margin accretive space. Should aid their gross and EBITDA margins going forward. Its also a high growth area

Once all these Med Tech acquisitions are integrated completely, full FY EBITDA margins for next FY should inch towards 5 pc ( vs 4 - 4.2 pc for current FY )

Comments from Q3 concall -

The acquisitions mentioned above should add an incremental 1000 cr to company’s topline ( post integration )

As the Med Tech acquisitions ramp up, these acquisitions alone have the potential to ramp up to 1000 cr in sales over medium term. Med Tech companies deal in products like - Imaging consumables, Medical consumables, Ortho + Cardio consumables, In Vitro diagnostics etc

Organic growth in Q3 stood @ 12.2 pc

QoQ growth in sales in Q3 over Q2 @ 9 pc

Company’s consol topline growth @ 26 pc is way above the industry growth of aprox 12 pc - representing mkt share gains

Unlike in Pharma distribution, the scope for organic distribution expansion in Med Tech is far more as company is one of the first movers in an under-penetrated space

Gunning for an EBITDA margin of aprox 4.5 pc for Q4 - that would a huge positive

Won’t be looking at big acquisitions in next 2-3 Qtrs. Will focus on integration of large number of transactions made in last 9-12 months

Full impact of the acquisitions made in FY 26 shall be seen in FY 27. Hence the revenue growth for next FY is by and large sorted

Expecting a 35 pc + revenue growth in Q4

Will be giving out guidance for FY 27’s topline growth in next Qtr’s concall

Private label sales currently represent a very small part of their business - in mid single digits or so

ETR for FY 26 should be around 18 pc

Current cash on books @ 250 cr. Gross debt @ aprox 450 cr

Expecting FY 27 to be far better vs FY 26 - on the back of acquisitions made in Q2 to Q4 of FY 26

Company has a ready pipeline of potential acquisition targets ( in the range of 100 cr per transaction or so ). Whenever the company again decides to press the inorganic button, the available opportunities are already ready

Med Tech business has much better gross margins. However, the company also has to work towards demand generation and doctor awareness in the Med Tech business ( unlike in normal pharma distribution ). So that’s a cost that the company has to incur

Company’s customers get a one stop shop access to thousands of pharma products with timely and seamless delivery / order fulfilment - otherwise they ll have to deal with multiple distributors. Its a big advantage for the customers ( the retailers )

Disc: holding a small position, inclined to add more, not SEBI registered, biased, posted only for educational purposes

[ranvir]

Borosil Ltd -

Q3 FY 26 concall highlights -

Revenues - 332 vs 333 cr, flat YoY

EBITDA - 54 vs 58 cr, down 5 pc ( adjusted for exceptional gains incurred in Q3 LY )

PAT - 24 vs 24 cr, flat YoY ( adjusted for exceptional gains incurred in Q3 LY )

Q3 segmental sales -

Glassware - 82 vs 74 cr, up 10 pc

Non Glassware - 132 vs 148 cr, down 10 pc

Opalware - 118 vs 111 cr, up 6 pc

9Ms FY 26 segmental sales -

Glassware - 230 vs 190 cr, up 20 pc

Non Glassware - 348 vs 340 cr, up 2 pc

Opalware - 313 vs 293 cr, up 7 pc

Company’s competitive advantages / sectoral tailwinds include -

25 TPD Borosilicate Plant: Backward integration, margin accretive

84 TPD Opalware Capacity: Among India’s largest

Consumption Megatrend Proxy: Plays India’s next-gen kitchen, dining, and lifestyle story

Plastic-to-Glass Shift : Riding health & sustainability wave

Distribution Reach: Extensive distribution footprint spanning General Trade, Modern Trade, E-commerce, B2B, CSD, and CPC

5x Growth in Hydra Range : Tapping ₹2,000+ Cr Insulated Steel Bottle market

Borosil and Larah are the biggest glassware and Opalware brands in the country

Capex underway -

Setting up of a manufacturing unit with three double-wall lines for vacuum insulated stainless-steel flasks, bottles and containers in the state of Rajasthan. Estimated initial capex: ₹65 crore.Initial capacity: ~3.6 million units annually. Target launch: Estimated commercial production date from two double-wall

lines by the end of Q4FY2026 and from the third double-wall line by the end of Q1FY2027, subject to receipt of necessary approvals

Key channel partners include - D Mart, Lifestyle, Reliance retail, @ Home, Croma, WalMart, Metro, Hometown, Star Bazaar

Q2 results were far better vs Q3 as the Diwali and Festive season in FY 26 commenced earlier vs FY 25

Cash on books @ 104 cr. Gross Debt @ 91 cr

Non Glassware segment has seen a sales slowdown in FY 26 due implementation of new BIS norms and supply challenges wrt procurement of BIS compliant products. In a response, company has announced a capex for making some of these products ( Hydra range of insulated bottles ) in-house ( as mentioned above )

Power and fuel costs dropped significantly in 9Ms FY 26 vs LY from 64 to 56 cr - underscoring the effectiveness of their captive solar power initiatives. Company has operationalised 2 solar power plants in Rajasthan of 16 MW capacity - now catering to 30 pc of company’s power costs. Will be spending another 75 cr to set up another Solar plant @ Bikaner with a capacity of 20 MW

Once this Bikaner plant goes online ( sometime in Q4 in current FY ), solar component of company’s total power requirement should grow to about 65 pc - resulting in annual power cost savings of about 30 cr

Company’s 84 TPD opal ware facility is going to be expanded to 90 TPD is near future

Wef 19 Mar 26, a number of small electrical and Kitchen appliances shall also be covered by new BIS norms - putting pressure on smaller / unorganised players. Company has tied up with compliant vendors in advance

The new manufacturing facility for Hydra range of products should ramp up to optimum capacity utilisation in about 6 months. In parallel, company has also worked very hard in developing domestic sourcing ecosystem. By next fin year, company’s supply issues wrt Hydra range of products should get fully resolved

Because of the supply challenges faced in FY 26, the Hydra category of products had to face a 30 pc de-growth in sales

Over last 1 yr, company has tied up with a number of Indian vendors for small kitchen appliances. Substituting Chinese vendors has also led to some margin compression for the company. Company’s local supplies have now reached 60 pc of the total procurement. Should take it up to 85 pc by next FY end

Demand in H2 is definitely better than H1 - across all product categories, specially in glassware + stainless steel products. Awaiting eagerly for their SS - Hydra range’s manufacturing to go online

Q4 should be incrementally better than Q2 and Q3 wrt stainless steel ware

Opalware and Glassware capacity utilisations are around 95 and 90 pc respectively

The only reason for tepid revenue growth in last 2-3 Qtrs is the hit ( in terms of lost sales ) that the company is taking on Hydra range of products

Company spends about 15 cr / yr as maintenance capex towards their furnaces ( actually the maintenance happens every 2.5 yrs and requires about 36 cr )

Will announce brownfield expansion plan for expanding their glassware facility in next FY. Company has the space to expand the current capacity by around 50 pc

Have built up inventory of small kitchen appliances in anticipation of implementation of new BIS norms

Once the cost control initiatives go live + Hydra supplies are resolved, company’s EBITDA margins should ramp up to low 20s ( vs 16 pc presently ) !!!

Disc: hold a small position, waiting for the company’s sales and margin trajectory to rebound, biased, not SEBI registered, posted for educational purposes

[ranvir]

Electronics Mart -

Q3 FY 26 results and concall highlights -

Revenues - 1939 vs 1805 cr, up 7 pc. SSSG @ 2.5 pc

Gross margins @ 14.3 vs 14.3 pc, flat YoY

EBITDA - 119 vs 101 cr, up 17 pc ( margins @ 6.1 vs 5.6 pc )

PAT - 30 vs 34 cr ( due sharp spikes in depreciation and finance costs + exceptional charge of 4 cr towards implementation of new labour codes )

Cluster wise sales performance for Q3 -

Hyderabad - 1126 vs 1059 cr, up 6 pc. SSSG @ 3.3 pc

Telangana - 277 vs 272 cr, up 2 pc. SSSG @ (-) 5 pc

AP - 281 vs 238 cr, up 18 pc. SSSG @ 5 pc

NCR - 164 vs 126 cr, up 30 pc. SSSG @ 7 pc

Cluster wise sales performance for 9Ms FY 26 -

Hyderabad - 3008 vs 2926 cr, up 3 pc. SSSG @ 0.5 pc

Telangana - 736 vs 720 cr, up 2 pc. SSSG @ (-) 3 pc

AP - 798 vs 771 cr, up 4 pc. SSSG @ (-) 4 pc

NCR - 437 vs 339 cr, up 29 pc. SSSG @ 11 pc

Company opened a total of 4 stores in Q3 taking the total store count to 219 stores

Mature stores ( > 4 yrs old ) @ 83 stores, operating at EBITDA margins of 6.9 pc

Non Mature stores ( < 4 yrs old ) @ 136 stores, operating @ EBITDA margins of 2.7 pc

For 9Ms FY 26, South cluster’s EBITDA margin stood @ 6.2 pc vs North cluster’s EBITDA margin which stood @ 0.5 pc

Cash on books @ 21 cr

Stores added in last 9Ms @ 19 vs 40 stores added in FY 25 vs 33 stores added in FY 24

GST cuts helped boost demand sentiments which in-turn helped company grow its topline and expand EBITDA margins

As more of company’s stores mature, company’s operating leverage should improve meaningfully

Telangana cluster witnessing good demand recovery in Jan 26. This cluster should report positive SSSG in Q4

New mkts that the company is planning to venture into include - Odisha and Western UP

Major NBFCs / Banks that the company works with include - BajFin, HDB Fin, IDFC First

LY 20 Mar to 30 May saw weak AC sales due - not so harsh summers. Expecting this yr sales to be much better. Even if the season is not great, LY’s base is as such low

NCR is also witnessing good demand trends in Jan 26

Should open another 7-8 stores in Q4. FY 26 store happenings were slow vs previous 2 FYs. This was a deliberate strategy employed by the company since the summers were exceptionally weak

NCR store count is @ 33 now

No of owned stores count is @ 20 ( flagship stores where rentals r too high )

Post the GST cuts, TVs + Washing Machines + Dish Washers are seeing a demand spurt

Disc: hold an investment position, biased, not SEBI registered, posted only for educational purposes

[ranvir]

Eveready Industries -

Q3 FY 26 results and concall highlights -

Revenues - 367 vs 333 cr, up 10 pc

EBITDA - 33 vs 29 cr, up 13 pc ( margins @ 9.1 vs 8.9 pc )

PBT ( before exceptional items ) - 21.5 vs 16 cr, up 34 pc

PAT - 7.5 vs 13 cr ( as 9.4 cr have been set aside as additional liability towards implementation of new labour codes )

Board has approved for Noida land divestment in line with fiscal prudence - should aid balance sheet strength

Jammu Greenfield facility should be ready by end of Q4 current FY

Segmental revenues for Q3 -

Batteries - 252 cr, up 11 pc

Flashlights - 35 cr, down 5 pc

Lighting - 90 cr, up 10 pc

Segmental revenues for 9Ms FY 26 -

Batteries - 748 cr, up 9.5 pc

Flashlights - 150 cr, up 3 pc

Lighting - 260 cr, up 5.6 pc

Revenue split in battery business - Carbon Zinc : Alkaline @ 90 : 10. Alkaline batteries witnessed 72 pc growth in Q3

Revenue split in flashlights business - Battery operated : Rechargeable @ 43 : 57. Mkt is clearly shifting towards rechargeable flashlights

New products launched in last 12 months include - Irons, room heaters, immersion rods, mosquito racquets, charging devices

In Q3, rural demand was better than urban demand

Company is rapidly gaining mkt share in Alkaline battery segment. Their mkt share in Q3 jumped to 19 pc. Their mkt share in Carbon-Zinc batteries remained steady @ 58 pc

Greater sale of high value Luminaries helped the lighting business grow per unit realisations

Jammu plant shall bump up the company’s margins in the Alkaline battery space by up to 10 pc. That would be a meaningful jump

Company was able to maintain their EBITDA margins despite GM compression due high Zinc prices + weaker rupee

The sale of Noida land parcel should fetch them at least Rs 250 cr. Should be able to sell this in next 2-3 Qtrs. Gross debt on books as on 30 Sep 25 stood @ 320 cr

A&P spends in Q3 stood @ 41 cr

Aprox 5 pc of company’s business comes from E Comm ( half of this is Quick Comm )

YTD volume growth in C-Zn + Alkaline batteries is @ 5 pc

Jammu alkaline battery plant should be to achieve > 30 pc capacity utilisation by end of FY 27

Their Mkt share in Alkaline battery segment at the end of FY 23 and FY 24 was 4 pc and 9 pc respectively vs 19 percent at the end of Q3 FY 26

If the Zinc prices continue to rise, company will have to take price hikes in their economy segment of batteries ( have already taken hikes in their value added C-Zn portfolio ). Since they r the mkt leaders, others should follow with price hikes

Mandatory BIS certification should make it difficult for unorganised players to compete in the flashlights segment - which should help the company

Jammu plant will have capacities so that the company can supply Alkaline batteries to other branded players in India + for exports to ME, African, other Asian mkts

Jammu plant has the capacity to make 35 cr batteries / yr at peak capacity utilisation. Should be able to produce and sell 10 cr batteries from this plant in FY 27 ( assuming 30-40 pc growth in alkaline batteries in next FY )

Jammu plant should be eligible for GST refund incentives ( yet to achieve their registration certificate )

Disc: hold a small tracking position, biased, waiting for the company performance and margins to start improving wef next FY, not SEBI registered, posted for educational purposes

[ranvir]

Carysil Ltd -

Q3 FY 26 results and concall highlights -

Q3 outcomes -

Revenues - 224 vs 206 cr, up 9 pc

EBITDA - 44 vs 31 cr, up 39 pc ( margins @ 22.5 vs 16.8 pc )

PAT - 21 vs 13 cr, up 66 pc

9M FY 26 outcomes -

Revenues - 695 vs 615 cr, up 13 pc

EBITDA - 137 vs 106 cr, up 29 pc ( margins @ 22.6 vs 18 pc )

PAT - 71 vs 45 cr, up 57 pc

Segmental sales for 9Ms FY 26 -

Quartz Sinks - 5.86 vs 4.72 lakh units, up 24 pc

Steel Sinks - 1.23 vs 1.09 lakh units, up 12 pc

Kitchen Appliances - 53k vs 42k units, up 26 pc

Product wise revenues for 9Ms FY 26 -

Quartz Sinks - 52 pc

SS Sinks - 10 pc

Kitchen appliances + Faucets - 12 pc

Surfaces - 27 pc

Geographical breakup of revenues for 9Ms FY 26 -

UK - 34 pc

US - 25 pc

India - 19 pc

EU - 14 pc

RoW - 8 pc

Company aims to grow domestic business by 3X in next 3-4 yrs. No of distributors now stand @ 107 vs 95 on 31 Mar 25

Major client relationships -

Carysil is the sole supplier of Quartz sink to Karran. Entered into long term agreement with Karran USA to supply 150,000 quartz sinks annually

Entered into partnership with IKEA Supply AG, Switzerland, in August 2020 for manufacturing and supplying Quartz Kitchen Sinks. Partnered IKEA to meet their global requirement of sinks. Major wallet share of IKEA’s non-US quartz sink sourcing is fulfilled by Carysil

GROHE is a dominant player in bathroom solutions and kitchen fittings. Association with GROHE (leading German sanitary brand) in 2019 to provide quartz sinks. Entered a tie-up with them for supplying of stainless-steel kitchen sinks. Carysil is the sole supplier of quartz sinks to Grohe

Manufacturing capacities -

Quartz Sinks - 10,00,000 units

Stainless Steel Sinks - 1,80,000 units

Kitchen Appliances - 50,000 units

Faucets 50,000 - units

6 state-of-the-art manufacturing plants 4 in India and 2 Overseas. Technology-driven, backed by strong R&D with patented innovations

Company was offering additional discounts to customers in US due 50 pc tariffs imposed on India. Company is now rolling back those discounts as the new tarrif rates stand reduced to 18 pc. This should naturally aid their margins

SS Sinks capacity slated to go upto 2.5 lakh units / month by Apr 26

Quarts Sinks capacity slated to go upto 11 lakh units / yr by Apr 26

Kitchen appliances capacity slated to go upto 1 lakh units / yr in FY 27. Previous capacity of 50k units was mainly that of Chimneys. New capacity additions are for - hobs, ovens, food waste disposers, wine chillers. Faucet capacity is also slated to be doubled by next FY

Going forward - will be targeting newer mkts like Qatar, Saudi, Oman,Morocco, Romania, Bulgaria, Egypt, NZL, Australia

Grohe and Kohler are procuring from the company for Indian mkts as well

Gross Debt @ 228 cr as on 31 Dec 25. Cash on books @ 12 cr. Capex in last 9Ms stood @ 45 cr - includes machinery, equipment, moulds etc

Company was offering discounts ranging from 20-50 pc ( product to product ) to the customers in US to combat tariffs

Non US IKEA sales continue to remain buoyant

Gross debt is expected to remain below 250 cr in next FY as well

100 pc of kitchen appliance sales come from India + UAE mkts

Getting into complex cutting work, exotic stone cutting etc to improve the gross margins of their surfaces business

WRT surfaces business - US business continues to grow nicely. UK mkt continues to be soft

GM expansion in Q3 is mainly attributable to lower RM prices for the company. Similar RM price trends are expected to continue in Q4 as well

ME, EU mkts should be new growth drivers for the company ( after India, US and UK )

Factoring in the Geo Political turbulence, should be able to grow their topline @ 15 pc CAGR over short to medium term

Percentage of company’s Sinks ( SS + Quartz ) business coming from Ikea + Grohe + Karran stands at aprox 60 pc

Disc: initiated a tracking position, biased, not SEBI registered, posted only for educational purposes

[ranvir]

Blue Jet Healthcare -

Q3 FY 26 concall highlights -

Vizag Greenfield expansion - ground breaking ceremony scheduled for end of Feb 26. Shall be spending 1000 cr over next 3-4 yrs

Hyderabad R&D center - construction should begin in H2 FY 27. Will be investing aprox 40 cr here. This facility shall focus on - peptides, GLP 1 intermediates, CDMO late stage development, bio-catalysis

Artificial sweeteners - initiating exhibit batches of the new sweetener developed by the company. This will compliment their existing portfolio of high intensity sweeteners

Mahad Unit - 3 - capex nearing completion. New products like - Contrast Media intermediates and KSMs ( for backward integration purposes ) shall be produced here. Should go commercial wef H1 next FY. Have spent 145 cr towards completion of this capex

Seeing a surge in RFPs - currently tracking about 20 RFPs ( 6 are high potential, phase 3 molecules + 1 contrast media NCE )

QoQ improvement in revenues is due to better off take of their contrast media molecules

GMs in Q3 @ 52 pc vs 55 pc ( in H1 ) due - change in product mix + one time inventory write off. EBITDA margin compression is also due to these factors + hiring of foreign consultant + implementation of new labour codes

De-stocking of Pharma Intermediate ( due excess channel inventory ) + Re-alingment of supply chains ( my guess - in favour of Neuland Labs ) iro Bempedoic acid - are the two factors leading to sharp fall in overall sales. Should take another 2 Qtrs or so be fully normalised. The end molecule - Nexletol, is showing MoM growth ( in double digits ). Plus new mkts like Japan, Canada are also opening up. Company continues to be bullish on long term prospects of this molecule ( ie till 2031 )

Company has 6 late stage Pharma Intermediates in its pipeline. Should start commercial work wrt these in about 2 yrs from now

Company doesn’t foresee them losing meaningful mkt share to Neuland for Bempedoic Acid. They expect their Bempedoic sales to revive in FY 27

Three growth levers for FY 27 wrt Contrast Media space for the company include - Advanced Intermediate for a contrast media product which the company already makes ( have capacities in place for next 5 yrs ) + CM NCE intermediate whose supplies started in Dec 24 + Backward integration wrt another CM molecule to help bump up company’s margins wrt this product. These three initiatives should drive the CM segment’s sales growth in next FY

Bempedoic Acid sales + Contrast media initiatives mentioned above - should help them report good numbers in FY 27 ( management is guiding for full FY 27 numbers to be similar to full FY 26’s numbers )

May announce new contract wins for newer API supplies probably by end of Q4. Some interesting stories are cooking in that space

As new Pharma intermediates + CM intermediates / CM products keep coming on stream, company’s client and product dependence should keep reducing with every passing year

Should be able to guide on Parma intermediate segment sales for next FY by the end of Q4 ( once some more clarity emerges )

Cash on books @ 410 cr - should help fund the future capex

Goods in transit ( wrt CM products ) at the end of Dec are greater than Goods in transit at the end of Sep. This would mean a good Q4 outlook wrt CM product sales

Disc: holding, biased, not SEBi registered, may add once I feel the worst is over ( still analysing ), posted only for educational purposes

[skamrann]

Thanks for the excellent analysis, yes, this aligns with neuland labs concall where they reported ramping up bempedoic acid production

[ranvir]

Eris Lifesciences -

Q3 results and concall highlights -

Revenues - 807 vs 727 cr, up 11 pc

Gross margins @ 72.3 vs 75.7 pc

EBITDA - 282 vs 250 cr, up 13 pc ( margins @ 34.9 vs 34.4 pc ) - due slower increase in employee costs + fall in other expenses

PAT - 109 vs 87 cr, up 25 pc ( due sharp fall in interest costs + depreciation )

Adjusted PAT - 120 vs 87 cr, up 38 pc ( adjusted for one time exceptional item of 17 cr - due implementation of new labour codes )

Q3 capex @ 78 cr - largely towards Insulins, GLP-1s and General Injectables

Net Debt @ 2270 cr. Aim to take it down to below 1800 cr by end of FY 27

Segment wise performance -

Domestic formulations -

Revenues - 696 vs 635 cr, up 10 pc

EBITDA - 254 vs 230 cr, up 10 pc ( margins @ 36.5 pc, flat YoY )

In Q3, company has decided to discontinue certain tail brands with low volumes and limited profitability. This should hit the domestic revenues by aprox 2 pc for FY 27 - but would improve business’s margins. Excluding these brands, domestic business grew @ 12 pc. Margins are excpected to inch higher towards 39 pc !!!

Eris’s mkt share in RHI Cartridges market now stands @ 25 pc vs 15 pc in Sep 25 vs 8 pc in Apr 24 - sharp gains made by the company in this segment

At the time of acquisition of Biocon’s domestic business, company always aimed at achieving 25 pc mkt share in RHI cartridges business. Now they aim to achieve 25 pc share in RHI cartridges + Glargine business ( currently @ 17 pc ). This is a 3000 cr / yr mkt in India. Also witnessing strong tailwinds given strong prescriptions being generated by the company

Also aim to make strong inroads into the Insulin Analogues market comprising of Asphart, Degludec and Lispro ( analogue Insulins have various advantages over RHI but are more expensive ). Analogue Insulins total mkt size in India is around 1700 cr / yr

Company started making RHI Vials @ Bhopal facility in Aug 25. They started making Glargine vials wef Feb 26. Expect to start making RHI + Glargine cartridges, Degludec plain + Degludec + Liraglutide combo wef Q4 FY 26

Eris’s rapid gains in Insulins is also on the back of Innovator vacating the mkt

Eris is ready to launch Semaglutide in India in the first wave. Shall be performing the fill - finish job in-house @ their Ahmedabad facility

International business -

Revenues - 111 vs 76 cr, up 45 pc

EBITDA - 33 vs 22 cr, up 46 pc ( margins @ 29.7 pc, almost same YoY )

Margins did not expand as the company is investing heavily in people and capacity building for EU CMO opportunities

Should close FY 26 with international revenues of around 375 cr with EBITDA > 115 cr ( indicating a very strong Q4 for international business )

For FY 27, guiding for revenues @ around 600 cr with EBITDA > 180 cr wrt the international business on the back of - tail winds in base business, new product approvals in LatAm, exports from Ahmedabad site, Semaglutide CMO opportunities, strong build up in EU CMO book

Notes from previous concalls -

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

Company should also be the first to market wrt the GLP 1 opportunity ( post Mar 26 ). Their leading position in Insulins ( @ 25 pc Mkt Share ) should help them do really well in GLP-1 mkt

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

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 )

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

Notes from Q3 concall -

Q4 should see full impact of price hikes taken by the company in domestic branded business. Should bump up growth rates by 2 pc or so

Company continues to gain mkt share in RHI cartridges business in Jan as well

Company shall be making Semaglutide in-house @ their Ahmedabad facility. Process validation batches are undergoing stability trials at present

Company has also developed Esaxerenone - inhouse development. This drug has extremely positive effects on hypertension patients. Should launch it in next FY

Guiding for a full yr EBITDA of 1150 cr or so vs 1018 cr in FY 25 ( a growth of 13 pc )

9M capex @ 200 cr. Capex guidance for next FY @ 250-300 cr

Esaxerenone - is used to treat drug resistant hypertension. It’s a disease modifying drug. Has added benefits of minimal side effects on kidney functions. It’s a very promising drug

Semaglutide’s data wrt its effects on Cardio health is much better than that of Tirzepatide - another positive brought out by the management

Company’s RHI cartridges are priced @ 40 pc discount to that of the innovator ( who is now vacating the mkt ). Going forward, company also has the option to resort to gradual price hikes ( over next 2-3 yrs )

Disc: core portfolio holding, not SEBI registered, biased, added more - recently, posted for educational purposes

[ranvir]

Aeroflex Industries -

Q3 and 9M FY 26 results and concall highlights -

Company’s products -

Corrugated Stainless Steel Hoses - suitable for temperature ranges from (-) 270 to 700 degree C, fire and moisture resistant, automatically compensate for thermal expansion and contraction, ideal for flexible pipings in difficult locations, have excellent corrosion resistant characteristics, resistant to abrasion and penetration damages

Company offers a wide grades and sizes of these hoses. They r used in various end industries like - refineries, steel plants, paper plants, fertiliser plants, pharma plants, lubrication systems, pneumatic and vacuum systems, railways, AC and refrigeration, boilers

Steel Hoses with braids -

When pressurised above a certain level, unbraided corrugated hoses tend to elongate. To prevent this, an external layer of stainless steel wire braiding is added to the hose, which prevents longitudinal expansion and increases the internal pressure strength of the hose by many folds. The stainless steel braided hose is usually wrapped around an existing tube and is highly flexible, which ensures that it does not impede the movements of the hose

Aeroflex is a notable stainless steel braided hose manufacturer in India. Depending on the requirement, they can offer single-layered or double-layered corrugated stainless steel braided hose. Braiding can also be supplied in copper, tinned copper, or stainless steel AISI 316, in case of bulk requirements

SS hose assemblies -

A hose assembly comprises of the hose and the end fittings, and are determined by the application in which the hose assembly is going to be placed. Compared to rubber and other materials which are used for hose pipes, stainless steel hose assemblies are an excellent choice for a variety of industrial usage and are suitable for the most demanding technical specification

Aeroflex stainless steel hose assemblies are engineered to perfection and are flexible & durable. They also allow for quick and easy installation and replacement

These braided stainless steel hose assemblies are resistant to high pressure and have a higher tear and tensile strength. They are also resistant to fire, abrasion, humidity, moisture, and penetration

These stainless steel braided hose assemblies also absorb vibration and noise from engines, pumps, compressors, etc as well as compensate for thermal expansion/contraction of piping

Gas Hoses -

For a commercial kitchen that runs on either natural gas or liquid propane, Gas hoses and end connectors are essential as they make it easier to supply gas to different units, ensuring optimal operations either for heating or other functions

Solar Hoses -

Solar hoses are typically used for solar panel water connection and other heating items. They can be used to transport hot and cold water between solar thermal panels and a hot water storage tank. Flexible stainless steel solar hoses are available in single and double insulation and can be manufactured in coils of 10 to 50 meters

Fittings / End connections -

Company manufactures premium quality butt weld and flanged fittings/end connections that seamlessly complement with their stainless steel hoses. The fittings that they offer are available in mild steel, carbon steel, stainless steel, brass, gunmetal, and rolled bronze

Interlock Hoses -

The stainless steel Interlock hoses are helically coiled metallic strip that is mechanically locked with the adjacent edges folded together to form interlocked convolutions (two profiled lock sections). They are used in medium pressure applications (15- 20 PSI) and can also be used as an outer jacket for insulated pipelines

Plus, to minimise leakage and to make the hose pressure-tight, interlock flexible metal hose can be manufactured with various packing materials (fabrics and elastomer), which may be inserted along the entire length of the hose offering a protective/conduit casing

High Pressure Hoses -

Ideal for extreme working pressure, high-pressure hoses can help resolve a variety of issues such as flexure vibration as well as thermal or pressure-related problems related to liquid and gas transfer. They can be used for outer space or underwater purposes and have a long service life

Company’s capacities -

SS corrugated Hoses ( with / without braids ) - 17.5 million meters / yr - slated to go upto 20 million meters / yr by H2 FY 27

Assembly and fittings - 46 assembly stations - slated to go upto 52 assembly stations by H2 FY 27

Liquid cooling solutions ( used in data centers ) - 2000 pieces / yr - slated to go upto 15000 pieces / yr by mid of H1 FY 27

Metal Bellows ( made of SS and Nickel alloys ) - used to absorb vibrations, heat, misalignments - 1.2 lakh pieces / yr - slated to go upto 1.8 lakh pieces / yr

Breakthrough development -

Aeroflex signed a long-term agreement to supply liquid cooling solutions for data centres with a listed U.S. corporation valued at over USD 70 billion marking a significant breakthrough into next-generation cooling technologies

Continuous orders and dispatches under the agreement for advanced flow control components, reinforcing their R&D strength and positioning them as a trusted partner for mission-critical liquid cooling solutions in data centers. This will also help strengthen Aeroflex’s presence in the domestic markets as well

This milestone unlocks long-term growth opportunities as data centres worldwide shift to liquid cooling to meet rising computing, storage, and energy demands. Backed by advanced manufacturing and expertise in precision-engineered metal bellows, Aeroflex is poised to lead next-generation industrial innovation

Global Data center’s liquid cooling mkt is growing @ 33 pc CAGR. Currently valued @ $ 2.8 billion. Is expected to grow to > $ 20 billion by FY 32

Q3 outcomes -

Revenues - 120 vs 98 cr, up 22 pc

EBITDA - 28 vs 22 cr, up 28 pc ( margins @ 23.5 vs 22.2 pc )

PAT - 16.5 vs 15.2 cr, up 8 pc ( due 3X jump in depreciation charges )

Sales breakup - Hoses ( with/without braids ) : assemblies @ 54 : 46

Export : Domestic breakup of sales @ 27 : 73

Breakup of export sales -

North + South Americas - 59 pc

EU - 26 pc

Asia - 12 pc

Africa and others - 3 pc

Last 5 yrs sales CAGR @ 27 pc, EBITDA CAGR @ 38 pc, PAT CAGR @ 72 pc

Company is debt free

9M FY 26 outcomes -

Revenues - 316 vs 284 cr, up 10 pc

EBITDA - 70 vs 62 cr, up 12 pc ( margins @ 22.2 vs 21.8 pc )

PAT - 37 vs 41 cr ( due sharp rise in depreciation )

Notes from Q3 concall -

Exports in Q3 grew 30 pc - despite the tariffs related headwinds

Added 1 million meters capacity in Q3 which took the total capacity up to 17.5 million meters / yr

Completed the supply of first set of liquid cooling equipment and assembly in Q3. Expanding capacities in this space by 7.5 X from 2k to 15k assemblies. Capex for this is expected to be slightly less than 100 cr. Realisation per assembly should be around Rs 3 lakh / assembly. At peak capacity utilisation ( of aprox 80 pc ) - this division should generate revenues of aprox 350 cr

Company is supplying liquid cooling equipment to US company’s Indian subsidiary

Company had acquired Hyd-Air Engineering company in 2024. Hyd-Air’s facilities are currently running @ 70 pc capacity utilisation. Plan to add more machines to expand their capacity. Exact details of capex shall be shared subsequently. Hyd-Air is a manufacturer of Hydraulic Fittings, Fluid Connectors & Flanges etc

Hyd-Air can do 40-50 cr of annual revenues at peak revenue potential

EU FTA and lowering of US tariff rates are a natural tailwind for the company

For 9Ms FY 26, most of the growth has come from Domestic and not export markets ( mainly because of weak Q1, Q2 + Q3 saw descent recovery )

In the Domestic mkts, most of the growth is being driven by Steel and Ports + Terminals Industries. In addition, Hyd-Air is witnessing strong growth pickup from railways

Company has added new customers in Ports + Terminals and Chemical industries ( in the domestic mkts )

Capex in 9Ms FY 26 has been @ 36 cr. Bulk of capex in liquid cooling equipment shall happen going forward. Breakup of capex is as follows -

Liquid cooling equipment - 9 cr

Metal Bellows - 5 cr

Hoses and Assemblies - 22 cr

Cash on books @ 20 cr ( as on 31 Dec 25 )

The liquid cooling business is expected to be margin accretive for the company. Consol company level margins should inch upwards towards 24-25 pc as the liquid cooling business scales up

Metal Bellows currently @ 12 cr / yr kind of run rate. Should ramp upto 36 cr / yr by H2 FY 27. Should further ramp upto > 80 cr / yr kind of run rate by early FY 29

Liquid cooling should achieve peak revenue run rate of 350 cr / yr by second half of FY 29

Aeroflex is presently the only player in India supplying liquid cooling systems for Data centers. Except Aeroflex’s supplies, these components are being imported

Post the capex mentioned above, peak revenue potential from each unit should be -

Hoses and assemblies - 650 cr

Metal Bellows - 80 cr

HydAir - 40 cr

Liquid cooling - 350 cr

Grand total - Aprox 1120 cr vs 376 cr achieved LY. This should be achieved by FY 29

All the expected liquid cooling equipment sales ( as mentioned above ) are for Indian mkts. Additional export opportunities may open up at a later stage

The 350 cr revenue potential ( iro liquid cooling assemblies ) is estimated as per the demand projected by their end customer ( Indian subsidiary of US firm )

Once the new tariff rates of 18 pc kick in, company’s margins may expand by 3 - 4 percentage points

Their US customer is really serious about their India Ops. In future, they also intend to develop Indian ecosystem for their international supplies. This can be really beneficial for Aeroflex being their exclusive supplier for liquid cooling

Disc: initiated a tracking position, not SEBI registered, biased, will monitor company’s progress before adding more, posted only for educational purposes

[ranvir]

NALCO -

Q3 FY 26 results and concall highlights -

NALCO is an integrated Bauxite - Alumina - Aluminium -Coal - Power company. It is the global leader in producing bauxite and alumina at the lowest cost

Top 6 user Industries of aluminium -

Electrical

Transportation and Automobiles

Building and construction

Consumer durables

Machinery and Equipment

Packaging

Company expects the demand for aluminium in India to keep growing @ 6-7 pc CAGR for next 5 yrs

Company’s current capacities and expansion plans -

Bauxite - 7.5 million MTPA ( located @ Panchpatmali, Odhisa ) - total reported resources @ 310 million MT Expansion underway @ Pottangi Bauxite mines ( located @ a distance of 25 km from Panchpatmali ). It ll have a capacity of 3.5 MTPA with reserves of 110 million Tons. Expected to be commissioned in May 26

Alumina Refinery - 2.1 million MTPA ( producing alumina hydrate, special hydrates, Calcinated alumina ) - located @ Damajodi ( Odisha ) - aprox 14 km away from Panchpatmali. The mined-out bauxite is transported from captive mine to refinery by a 14.6 KM long single-light multi-curve 1800 tonnes per hour (TPH) capacity cable belt conveyor Expansion is currently underway at the Alumina refinery. Capacity is expected to go up by 1 MTPA. Expected to be commissioned in Jun 26

Aluminium Smelter - 0.46 million MTPA ( producing Aluminium metal - Ingots, Billets, Wire Rods, Rolled products ) - located @ Angul ( Odisha ). The alumina produced is transported to aluminium smelter at Angul (Odisha) and to Vizag ( for exports ) port by rail

Angul to Damajodi distance is aprox 450 km

Vizag to Damajodi distance is aprox 200 km

Smelter expansion shall double the company’s refined aluminium’s capacities. Likely to be commissioned in Dec 30

Captive coal mines - 4 million MTPA ( @ At Utkal coal mines in Angul district )

Captive thermal power capacities @ 1200 MW ( 10 X 120 MW ) - located @ Angul

Additional captive power plant with capacity of 1080 MW - expected to go live in FY 31

The location of captive thermal power plant at Angul is also strategic to the availability and supply of coal from nearby Utkal Coal mines ( in Angul district )

Wind power capacities @ 198 MW

Total capex requirement for all the a/m capex over next 5 yrs shall be aprox 30k cr

Company’s cost of production for aluminium for FY 25 was around $ 1900 / Ton

Company’s captive coal costs them Rs 1600 - 1700 / Ton while they buy Coal from Coal India @ Rs 2000 / Ton

The cost of production figures given ( above ) by the company includes depreciation costs - both for Aluminium and Alumina

Company can increase its Coal block’s production by 20 pc above 4 million MTA without environmental clearances

New Alumina refining capacity should go live by June 26. Should be able to produce additional 5 lakh MT of Alumina in FY 27 and 10 lakh tons ( full ramp up ) by FY 28

Capex for company’s Aluminium Smelter shall begin in FY 28. For Smelter, the capex should be around 17000 cr. For 1080 MW power plant, capex requirement should be around 13000 cr

Q3 outcomes -

Revenues - 4731 vs 4662 cr, up 1 pc

EBITDA - 2374 vs 2427 cr, down 2 pc

PAT - 1601 vs 1583 cr, up 1 pc

Physical performance -

Alumina export - 3.63 lakh tons, flat YoY

Alumina domestic - 39k tons, up 9 pc

Aluminium metal export - 7.1k tons vs NIL LY

Aluminium metal domestic - 1.19 lakh tons, up 12 pc YoY

9Ms FY 26 outcomes -

Revenues - 12830 vs 11520 cr, up 11 pc

EBITDA - 6066 vs 6042 cr, up 20 pc

PAT - 4098 vs 3246 cr, up 26 pc

Physical performance -

Alumina domestic + exports - 11 lakh tons, up 45 pc

Aluminium exports - 7.1k tons, up 16 pc

Aluminium domestic - 3.45 lakh tons, up 5 pc

Notes from Q2 concall -

KABIL JV ( between Nalco : Hind Copper : Mineral exploration and consultancy limited in the ratio 40 : 30 : 30 ) has 5 mines in Argentina ( Lithium mines ). Non invasive exploration is complete. Results were encouraging. Commercial mining may take > 2 yrs to begin ( once they ascertain commercial viability for which they ll take another 6 months )

Capex for Alumina refinery expansion has been around 4000 cr. Should spend another 1300 cr before the refinery goes live. Should be able to make Rs 10000 / MT ( aprox $ 109 / ton ) kind of margins ( post depreciation ) from this new refinery ( even at depressed alumina price levels )

2-3 new Alumina refineries have come up in Indonesia + 1-2 smelters have been shut in China and elsewhere. That’s why Alumina prices r weak but aluminium prices continue to rise

Company doest hedge Aluminium sales against price fluctuations

Employee costs is at around 18 pc of total costs ( @ a projected cost of 1900 cr for full FY 26 ). Next yr, it should fall to 16 pc as the no of retirements > no of recruitments in next FY. Plus the new hirings happen at far lower rates

Notes from Q3 concall -

Alumina prices in Q3 @ $ 380 vs $ 562 / ton ( sharp fall I Alumina prices )

Aluminium prices in Q3 @ $ 2867 vs $ 2538 / ton ( steady gain in Aluminium prices )

Wrt the new Alumina refinery that’s gonna come up in Jun 26, company is also getting enquiries for long term contracts for 1/2/3 yr ( specially from Middle East ). They may go in for such contracts after they complete their due diligence

In talks with two companies to form JVs for extraction of rare earth minerals from Alumina Red Mud. Aprox 1-1.5 tons of Red mud is generated / 1 ton Alumina production

Also forming a JV with another company for extraction of Gallium from Liquid Residual of Alumina production

All these a/m extraction projects are currently in pilot stages

Company has saved aprox 40 cr on the consumption of Caustic Soda ( despite a 17 pc avg hike in caustic soda prices ) by reducing its consumption via more efficient processes

Company is consuming aprox 96 kg of caustic soda ( vs 120 kg in last FY ) for 1 ton of Alumina production

Avg Alumina prices in Q4 should be around $ 310 / ton. Avg Aluminium prices are holding above $ 3000 / ton

Aluminium cost of production in Q4 is running @ aprox $ 1750 / ton

Employee costs are expected to remain subdued for next 4 Qtrs. Next round of wage hikes are due in Jan 27

For 9Ms FY 26, avg price of caustic soda was @ Rs 40000/ton. This is expected to be @ Rs 45000/ton in Q4

1.93 tons of Alumina are required to produce 1 ton of Aluminium

Employees costs shall be falling by 70-100 cr in next 4 Qtrs as retirements exceed new hirings

Capex intensity in expected to rise wef next FY as company starts spending on its new Smelter project

Company’s avg selling premium in domestic mkt ( over LME prices ) was aprox $ 28

Export vs Domestic price difference in sales of Alumina is about $ 15 / ton

CP Coke ( calcinated petroleum coke ) is used as Anode in Aluminium Smelters. Its prices are expected to go up by 20 pc Q4 vs first 9M’s avg prices

Disc: hold a small tracking position, biased, posted for educational purposes, not SEBI registered

[ranvir]

Yatharth Hospitals -

Q3 FY 26 results and concall highlights -

Q3 outcomes -

Revenues - 320 vs 219 cr, up 46 pc

EBITDA - 74 vs 54 cr, up 37 pc ( margins @ 23 vs 25 pc )

PAT - 43 vs 30 cr, up 43 pc

Sec 20 Faridabad hospital and Model Town New Delhi hospitals ( both operationalised in last 3 months ) are now clocking avg monthly run rates of 8 cr and 5 cr respectively. Their ARPOBs stand @ 36k and 40k respectively. Both hospitals drive 100 pc of their revenues from Insurance + Cash payments with zero reliance on Govt business - a key positive wrt receivables and ARPOBs

Recently acquired Agra hospital ( 250 beds ) has been integrated into Yatharth’s fold on 1 Feb. Should start contributing to group’s revenues and EBITDA wef Q4

9M FY 26 outcomes -

Revenues - 857 vs 648 cr, up 32 pc

EBITDA - 203 vs 163 cr, up 24 pc ( margins @ 23.7 vs 25.2 pc )

PAT - 128 vs 92 cr, up 39 pc

Operating parameters for Q3 -

Bed capacity @ 2305 vs 1605 beds ( due operationalisation of 2 new hospitals )

Occupancy @ 67 vs 60 pc ( despite the expanded bed capacity )

ARPOB @ 33.7k vs 30.6k

ALOS @ 4.3 vs 4.3 days

IPD volumes - 22k vs 17k

OPD volumes @ 1.02 lakh vs .92 lakh

IPD revenues @ 287 vs 194 cr

OPD revenues @ 33 vs 25 cr

Hospital wise breakup of revenues in Q3 -

Noida extension - 30 vs 37 pc

Greater Noida - 27 vs 30 pc

Noida - 18 vs 20 pc

Jhansi - 7 vs 8 pc

Greater Faridabad - 9 vs 5 pc

Faridabad - 5 pc vs NIL

New Delhi - 4 pc vs NIL

Yatharth is now a leading healthcare player in Faridabad and Noida area. Also building strong adjacencies into Agra and Jhansi

Greater Faridabad hospital ( which went live LY ) - is now clocking EBITDA margins similar to group level margins - another key achievement

Jewar international airport is expected to go live in FY 27. Intensifying OPD ops in Mauritius, Nigeria, Turkmenistan - to attract medical tourism. Also reaching out to a number of other CIS and African countries for the same

Recent CGHS price revisions ( upward revisions ) are a welcome move for the company

At present - Govt’s share of revenues stands @ 35 pc - remaining being equally divided between Cash and Insurance. In next 2-3 yrs, company intends to bring down the Govt share of revenues down to 25 pc

Company intends to follow the brownfield expansion route to expand their bed capacity by another 3000 beds to > 5000 beds by FY 31

Cash on books @ 200 cr

Should be able to fund organic brownfield capex + inorganic acquisitions via - cash on books + internal accruals + debt

Dec end occupancy @ Delhi and Sec 20 Faridabad hospital were @ 38 and 43 pc respectively ( despite not being empaneled by all avlb insurers ). Both these hospitals should cross 50 pc occupancy levels by H2 in FY 27

Oncology contributes aprox 10 pc of company’s revenues vs about 5 pc in 2023. Going forward, company intends to ramp up Oncology to about 15 pc of company’s revenues by FY 29

No of international patients are showing an improving trend ( on a YoY basis ). Still in single digits ( wrt total IPD patients ). Should accelerate further as Jewar airport goes live

In the newer hospitals, company intends to cap Govt business’s mix @ 15-20 pc

Greater Noida and Noida Extension brownfield expansion should be completed by H2 FY 28 - ie the additional beds would go live by then

Adjusted for operationalisation of New Delhi and Sec 20 Faridabad hospital, company’s consol EBITDA would have been > 28 pc. Even with continuous capex + inorganic opportunities, company intends to maintain consol EBITDA in the 23-24 pc range

No of receivable days as on 31 Dec stood @ 116 days. On 31 Mar 25, the no of receivable days were @ 118 days. Guiding for receivable days < 110 by Mar 26. Aim to bring this down to below 80 days by end of FY 28

Consol ARPOBs should keep growing @ 10 pc YoY in short to medium term

New CGHS rates announced by the Govt in Dec 25, should further aid company’s EBITDA margins and ARPOBs going forward. On an avg, prices of various procedures have gone up by 15-20 pc

Capex requirements for next 5 yrs should be around 1500 cr - for the company to hit a bed capacity of > 5000 beds

Company’s receivable days from Govt Only business is @ aprox 200 days vs an avg of aprox 150 days for larger listed peers. Management indicated that their systems were not adequately streamlined for quick recoveries. They have now made necessary changes ie upgraded the systems + outsourced recoveries to specialised teams. In medium term, their receivable days should start to converge towards the larger peers

Greater Faridabad and Jhansi hospitals are operating @ aprox 18-19 kind of EBITDA margins

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

[ranvir]

Sandhar Technologies -

Q3 FY 26 results and concall highlights -

Q3 outcomes -

Revenues - 1184 vs 973 cr, up 21 pc

EBITDA - 110 vs 95 cr, up 16 pc ( due sharp increase in labour + RM costs )

PAT - 33.5 vs 30 cr, up 12 pc ( also impacted by 1 time impact of 2.8 cr due implementation of new labour codes )

Category wise breakup of Q3 revenues -

2Ws - 68 pc

PVs - 11 pc

OHV - 13 pc

Others - 8 pc

Product wise breakup of Q3 revenues -

Aluminium Dye Castings - 30 pc

Locking systems - 19 pc

Cabins and Fabrications - 12 pc

Assemblies - 11 pc

Sheet Metal - 21 pc

Vision Systems - 5 pc

Others - 2 pc

Geographical breakup of revenues -

Standalone - 62 pc

Indian subsidiaries - 29 pc

Overseas subsidiaries - 9 pc

Notes from previous concalls -

Locks and Mirrors are the highest EBITDA margin business in the company’s portfolio - followed by dye castings, followed by sheet metals business

Company’s assembly business is focussed on Wheel Spokes segment - which is being replaced by alloy wheels ( expected to remain a de-growing business )

All of company’s JVs ( all 5 of them ) gives them a great opportunity to participate in technologies of the future. As and when these technologies are introduced in India, Sandhar would then be ahead of the completion by virtue of their investments in their JVs

Company’s cabin fabrication business did witness a slowdown in H1 due kicking in of new emission norms for OHVs. Should see a decent recovery in H2

Capex outlay for full FY 26 should be around 300 cr ( expanding their dye casting facilities - both organic and Sundaram Clayton’s + Cabin fabrication facilities )

Notes from Q3 concall -

In Q3 ( led by GST cuts ) all Automotive segments - PVs, 2Ws, 3Ws and CVs reported their highest ever quarterly sales

All 5 JVs combined reported sales of 61 cr, EBITDA @ 7.5 cr for Q3

Overseas ( EU ) subsidiaries reported losses of 8 cr vs 11 cr losses in Q3 LY. Have intensified their cost cutting initiatives in the EU subsidiaries. Should further narrow their EBITDA losses in Q4

New segment - Battery chargers and motor controllers have clocks 12 cr revenues in last 9Ms. This segment should scale up meaningfully in next FY

9M EBITDA losses in their EU ops are @ 24 cr. By Q1 FY 27, company expects their European operations to turn EBITDA positive

In 9Ms FY 26, company’s new projects / business segments have clocked revenues of 305 cr vs 3 cr YoY. Their EBITDA losses are @ 15 vs 8 cr YoY. These new projects are also expected to turnaround in next FY

Except for new projects + EU ops, company’s 9Ms EBITDA margins are @ 12 vs 10.5 pc YoY ( very healthy levels )

Company is guiding for a better Q4 vs Q3 ( as Q3 generally witnesses aprox 1 week maint shutdown towards end of Dec by most OEMs ). Should also see better margins in Q4 vs Q3

Sundaram’s acquired business clocked aprox 80 cr of revenues and EBITDA breakeven in Q3. Once the re-location of Sundaram’s plant and machinery to a new location is complete ( in H1 FY 27 ), should start clocking > 5 pc EBITDA margins in H2 next FY. Sundaram’s business should clock aprox 500 cr in revenues in next FY

Once the European business + Sundaram’s acquired business turns around - consol margins should see a meaningful improvement in next FY. Company expects, next yr’s PAT should be > 200 cr

The speed of adoption of smart locks is steady / gradual ( ie lesser than what was expected earlier )

Shall start supplying electronic mirrors to Hyundai wef Q1 FY 27

Sales of Off Highway Vehicles are now expected to pick up - post the price hikes that happened due implementation of new emission norms. This should help their cabin fabrication business going forward

By FY 28, company expects Sundaram’s business to clock EBITDA in the range of 8-9 pc ( ie in line with company’s other dye castings business ) - management indicated, there is no shortage of demand. Its just the initial teething issues

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

[ranvir]

Rainbow Children’s medicare -

Q3 FY 26 results and concall highlights -

Q3 outcomes -

Revenues - 445 vs 398 cr, up 12 pc

EBITDA - 147 vs 134 cr, up 9 pc ( margins @ 33 vs 34 pc )

PAT - 74 vs 69 cr, up 7 pc

Key operational matrices -

No of operational beds - 1758 vs 1523

In Patients attended - 27.9k vs 25.6k, up 9 pc

Out Patients attended - 4.17 lakh vs 3.54 lakh, up 18 pc

No of deliveries - 5.3k vs 4.6k, up 16 pc

Occupancy @ 47 vs 53 pc

ARPOB - 58.3k vs 53.4k, up 9 pc

ALOS - 2.73 days vs 2.91 days

Mature hospitals ( > 5 yrs of operations ) occupancy @ 52 vs 58 pc, ARPOB @ 62.3k vs 56.2k

New hospitals occupancy ( < 5 yrs of operations ) @ 39 vs 40 pc, ARPOB @ 49.9k vs 43.7k

Payor mix - Cash:Insurance @ 49:51

Current bed capacity @ 2375 beds

Current bed capacity -

Hyderabad + Telangana - 1040 ( include acquisition of Prasanthi hospital @ Warangal in Q2 FY 26 ) - 8 hospitals in Hyderabad + 1 in Warangal

Bengaluru - 532 ( Electronic City hospital commenced operations in last week of Jan 26 ) - 5 hospitals

NCR - 24 - 1 hospital ( excludes Malvia Nagar hospital where the company provides medical services )

AP - 359 - 3 hospitals

NE - 150 ( via acquisition of Pratiksha hospital @ Guwahati in Q3 FY 26 ) - 1 hospital

Chennai - 270 beds - 3 hospitals

Upcoming bed capacity -

Bengaluru - 60 beds in Q4 FY 26

Coimbatore - 130 beds in FY 27

Gurugram - 325 + 125 beds in FY 28

Pune - 150 beds in FY 29

Newly commissioned hospitals at Rajamundhry ( AP ) and Electronic City Bengaluru are off to a very good start. The two acquired hospitals are also performing as per expectations

Cash on books @ 597 cr - can support both organic and inorganic growth for the group

Q3 capex @ 57 cr

Drop in occupancy in Mature hospitals in Bengaluru and Hyderabad - seen in Q2 and Q3 due unusually lower incidence of illness / disease / infections. Base LY was also high

Once their occupancy ramps up, a lot of operational leverage is there for the taking. Also looking at / evaluating CGHS business ( post the rate revision ) in order to drive higher occupancies. Hoping to ramp up occupancies to > 55 pc to ramp up EBITDA growth

Have added a lot of new beds ( aprox 700 beds ) in last 2 yrs. Next round of meaningful bed additions should happen after 18 months or so. They have this interim window to ramp up occupancies

Two new Bengaluru hospitals should clock 5-6 cr EBITDA ( each ) loss for FY 27

Should come to a decision wrt pursuing of CGHS empanelment or not in another 2-3 months. Even if they go ahead, it would be restricted to hospitals with lower occupancies. Difference in rates between cash patients vs CGHS rates are substantial

Company does second highest number of Paediatric Liver transplants / yr in India ( showcasing their super speciality capabilities )

IVF business - currently @ 4 pc of company’s business, growing @ good pace

Butterfly essentials - @ 1 pc of company sales. Progress has been steady here

International patients contribute to aprox 2 pc of revenues

Guwahati and Warangal hospitals ( recently acquired ) contributed to 26 cr and 8 cr to company’s topline in Q3

Company has appointed a professional CEO, appointed new cluster heads, is now focussing on digital initiatives - all these should help company improve its topline ( and hence bottomline ) growth

Also Q4 LY had a tepid base ( unlike Q2 and Q3 ). This should also help

Once all their growth initiatives start kicking in, company is hopeful of a late teens kind of CAGR growth in topline over medium term ( personal view - that would be a great outcome. I would be happy even if they r able to consistently clock mid teens growth )

Company believes, they were trailing the mkt wrt their digital marketing initiatives. Have now identified this weakness and are now trying to fix it in an aggressive fashion. Digital reviews r replacing the word of mouth marketing. Company is now waking up to this reality

Disc: core holding, biased, not SEBI registered, not a buy/sell recommendation, may add if the performance improve going forward

[ranvir]

Windlas Bio -

Q3 FY 26 results and concall highlights -

Q3 outcomes -

Revenues - 233 vs 195 cr, up 20 pc

EBITDA ( excluding ESOPs ) - 32 vs 25 cr, up 26 pc ( margins @ 13.6 vs 12.9 pc )

PAT ( excluding ESOPs ) - 22 vs 16 cr, up 38 pc

Reported PAT - 15 vs 16 cr ( ESOP impact @ 7 vs 1 cr YoY )

ESOP expenses shall remain elevated at aprox Rs 7 cr / Qtr till Q2 FY 27. They ll being to taper off wef H2 FY 27 ( ie @ 3.8 cr / Qtr ). By H2 FY 28, it would be down to 2 cr / Qtr

Segmental revenues -

CMO - 167 vs 136 cr, up 23 pc

Trade generics - 53 vs 50 cr, up 7 pc

Exports - 13 vs 10 cr, up 30 pc

Notes from previous concalls -

Plant 2 extension ( went live in Q4 LY ) is now contributing meaningfully to their business. Injectable facility ( Plant 5 ) is ramping up well. Confident of commissioning plant 6 by end of this FY ( all 6 plants are located in Dehradun )

Company remains open to acquire good quality assets ( even if they have to pay some premium ) - in order to utilise the cash on books. Any good asset that also has prior regulatory approvals in overseas mkt would be a preferred acquisition tgt as it ll help them get mkt access without time delays

The Pharma biggies in India ( in the branded space ) are doing most of their capex in speciality, complex generics, biologics space for regulated / export mkts. They r happy to outsource their normal generic supplies to CMO operators like Windlas. That’s how the mkt is shaping up at present

As the company’s capacity utilisations improve + Injectables facility ramps up - margins ( Ex - ESOP ) should only inch upwards

Notes from Q3 concall -

IPM grew @ 11 pc in Q3. Volume growth was tepid @ 1.6 pc. Against this Windlas grew @ an impressive 20 pc

Plant 6 is expected to go live in H1 FY 27

Trade generics and exports grew @ 18 pc and 29 pc respectively in 9Ms FY 26 - led by jan Aushadhi Centers + greater penetration in RoW mkts

Current focus to complete the capex at plant 6. Once that is done and all plants ramp up to optimum capacity utilisations ( including the Injectable plant -5 ), company may go in for an inorganic acquisition or an organic expansion into a newer dosage form

Did not give specific growth guidance. However, reiterated their positive growth outlook for all three of their business verticals - CMO, exports, trade generics

Most of company’s growth is driven by volumes ( in all 3 verticals - since API prices have not risen ). The Injectables division and Plant 2 extension have helped bump up growth rates

Pant 6 commissioning should happen in H1 FY 27. Capex spends towards this has been 60 cr

Trade generic sales growth should be looked at from an yearly perspective as tender supplies tend to skew the Qtrly outcomes

Govt is now cracking down wrt Schedule M implementation like - no more extensions, frequent inspections and issuance of observations and closure orders etc

The no of CMOs in India are @ aprox 13k entities. This surely has to come down in a drastic fashion once the compliance burden mounts and Industry consolidation starts. This level is fragmentation in the Industry in counter productive

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

[ranvir]

Surya Roshni -

Q3 FY 26 results and concall highlights -

Revenues - 1927 vs 1868 cr, up 3 pc

EBITDA - 148 vs 156 cr, down 5 pc

PAT - 80 vs 90 cr, down 11 pc

Segmental performance -

Lighting and Consumer durables -

Revenues - 476 vs 451 cr, up 6 pc

EBITDA - 42 vs 45 cr, down 7 pc ( margins @ 8.9 vs 10 pc )

Revenue growth in lighting led by improved volume off take. Margin contraction due continued pricing pressures and elevated input costs for CDs. Wires and Cables business is showing good initial response. Company expects significant scale up in this business in next FY

Steel Pipes and Strips -

Revenues - 1451 vs 1417 cr, up 2 pc

EBITDA - 106 vs 111 cr, down 4 pc

EBITDA / MT @ Rs 4810 vs Rs 5163 in Q3 LY

Volumes sold in Q3 @ 2.37 lakh tons. Volume demand led by hollow section pipes used for construction and infrastructure segments

EBITDA / MT in Q2 was @ Rs 5013

EBITDA / MT in Q3 was adversely affected by Rs 500 / MT due inventory losses due fall in steel prices ( in Oct - Nov )

Company’s product portfolio comprises of - CR strips, Hollow section pipes, API pipes, black pipes and GI pipes. GI, API and Black pipes are the value added products commanding much higher EBITDA / Ton ( highest being for API pipes > GI pipes > Black pipes > Hollow Section pipes > CR strips / sheets )

Company’s mkt position -

GI pipes - no 1 in India. Primarily used in irrigation, plumbing, fire fighting, water pipelines

API - among top 5 in India. Primarily used in Oil and Gas, City gas distribution

Black pipes - among top 3 in India. Primarily used in construction, scaffoldings, fabrications, sign boards, other industrial applications

Hollow section pipes - among top 5 - Airports, Metro Stns, Railway Stns, warehouses, poles

CR Strips - serving Delhi NCR region - Auto components, CR stampings etc

Notes from previous concalls -

Recently launched Wires business should clock > 150 cr in revenues in H2 ( production started in Q2, its a new segment that the company has entered )

Ongoing capex of aprox 1.25 lakh tons ( through brownfield expansions - split at various locations ) + Greenfield capex of 3.5 -4 lakh tons should take company’s overall capacity to 20 lakh tons in next 18-24 months

Company’s sales of VAP products in steel pipes division currently stands @ 40-45 pc

Import content in company’s Lighting + CD business is aprox 30 pc

Company clocked volumes of 3.8 lakh tons in H1

Notes from Q3 concall -

Company is debt free. Cash on books @ 250 cr

Lighting and CD sales were up 10 pc on a QoQ basis due strong festive season demand

Saw strong volume growth in consumer lighting in Q3 ( in bulbs, batons and other luminaries )

Export volumes ( in pipes segment ) in Q3 improved by 10 pc on a YoY basis

EBITDA / MT for 9Ms FY 26 stood @ Rs 4320 vs Rs 4840

Company was aiming to clock volumes of 2.65 lakh tons in Q3 but could only achieve 2.37 lakh tons - due 35 de-growth in their Oil and Gas segment pipes ( ie API pipes ) and 8 pc de-growth in Black round pipes. Hollow Section, GI pipes, CR strips - grew smartly in Q3

Company is likely to see inventory gains in Q4 as the Q4 prices are higher than Dec prices ( till end of Jan )

Absolute value of inventory loss in Q3 stood @ 12 cr

Aiming to clock volumes of 2.9-3 lakh tons in Q4

EBITDA in Q4 should be 180 - 200 cr ( assuming better steel prices, pick up demand for API pipes - as indicated by the management )

Company has an existing order book of 150 cr for commercial lighting, to be executed over next 3-4 months

For next FY, company aims to clock volumes of aprox 11 lakh tons for FY 27 with ( achieving mid teens volume growth over FY 26 ). Also guiding for a min EBITDA / MT of Rs 5000. Also intend to clock > 2000 cr in sales in the lighting and CD segment. Will be aiming @ 750 cr of consolidated EBITDA for next FY

Most of company’s sales in steel pipes division comes from B2B and not B2G business. In fact, B2G business is minuscule

Commenced operations of their wires business on 15 Aug 25. Seeing out of stock situations in this business segment. In process of expanding their capacities so as to not lose business

Seeing indications of Oil and Gas companies shifting some of their piping demand from Seamless to ERW pipes. If this materialises, it can be a huge tailwind for the company

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

[ranvir]

Akums Drugs -

Q3 FY 26 results and concall highlights -

Revenues - 1160 vs 1010 cr, up 15 pc

Gross margins @ 41.5 vs 40.4 pc

EBITDA - 147 vs 121 cr, up 21 pc ( margins @ 12.7 vs 12 pc )

PAT - 68 vs 66 cr ( due exceptional charge of 18 cr towards implementation of new labour codes )

Segmental breakup of revenues -

CMO - 916 vs 787 cr, up 16 pc

Branded formulations - 115 vs 110 cr, up 4 pc

Branded formulation Exports - 50 vs 42 cr, up 18 pc

Trade generics - 25 vs 30 cr

APIs - 54 vs 40 cr

Segmental breakup of EBITDA -

CMO - 126 vs 121 cr, margins @ 13.7 vs 15.4 pc

Branded formulations - 25 vs 20 cr, margins @ 22.2 vs 18.5 pc

Branded formulation Exports - 13 vs 8 cr, margins @ 25.8 vs 18.3 pc

Trade generics - (-) 3 vs (-) 8 cr

APIs - (-) 7 vs (-) 11 cr ( losses in this segment in Q2 were @ 14 cr )

Some comments from previous concalls -

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 200 cr / yr. Aim to ramp it upto 900 cr / yr in next 5 yrs

Capex budgeted 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

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

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

Notes from Q3 concall -

Have received EU GMP accreditation for their Oral Liquids facility @ Plant-2 and Oral solid facility @ Plant 1

All the revenue growth in CMO + Branded formulations came from volumes as decline in API prices continued. GMs in CMO business was apex 38 pc

Cash on books @ 1500 cr ( as on 31 Dec 25 )

In FY 26, company’s primary focus has been on controlling costs / overheads and improving their margins

Open to inorganic opportunities ( actively evaluating the same ) to utilise the cash on books

In Q4 too, CMO business is likely to clock double digit volume growth ( as they have orders @ hand ). Company estimates, stricter implementation of Schedule M regulations is driving higher volumes for them

Sharp fall in Cephalosporin prices has been affecting the GMs of their API business

Shall be supplying formulations worth 250 cr / yr to govt of Zambia for next 2 FYs. FY 29 onwards, these supplies have to be routed via a manufacturing facility in Zambia itself. By then, their Zambia facility would be up and running. Margins in these supplies shall be similar to company’s existing CMO business

Expecting Q4 sales for their branded exports to again be strong ( like in Q3 )

Company believes, worst is over wrt both Trade generics and API businesses

Execution wrt their European contract ( @ aprox 350 cr / yr ) shall begin wef Q1 FY 28 ( by and large )

On ground implementation of revised Schedule M regulations have started wef 01 Jan 26 ( would be interesting to witness its effects on organised players like - Akums, Innova, Windlas )

Company has been commercialising their Injectables facilities in phases over last 2-3 Qtrs. Current capacity utilisation levels r on the lower side ( ie in teens ). Should start to contribute meaningfully to company’s CMO business by mid FY 27. At present, its loss making @ EBITDA level

Company’s overall capacity utilisation is @ 48 pc. Going forward, company can see further benefits of operating leverage

When the company starts supplying to their European clients ( wef FY 28 ), they ll also stop charging their P&L for the notional interest ( progressively as the contract is executed )

Capex in 9Ms FY 26 stood @ 165 cr

Since most of their selling / marketing infra is already n place wrt their domestic branded business, incremental sales are causing handsome margin improvements

Disc: holding, inclined to add more, not SEBI registered, posted for educational purposes

[ranvir]

Endurance Technologies -

Q3 FY 26 results and concall highlights -

Q3 outcomes -

Consol Sales @ 3646 vs 2881 cr, up 26 pc

Consol EBITDA @ 514 vs 394 cr, up 30 pc ( margins @ 14.1 vs 13.7 pc )

Consol PAT @ 222 vs 184 cr, up 20 pc ( margins @ 6.1 vs 6.4 pc )

Segmental Performance -

India sales - 2678 vs 2192 cr, up 22 pc

EU sales - 965 vs 692 cr, up 39 pc

Maxwell sales - 40 vs 26 cr

India EBITDA @ 339 vs 287 cr, up 18 pc ( margins @ 12.7 vs 13.1 pc )

EU EBITDA @ 174 vs 112 cr, up 55 pc ( margins @ 18 vs 16.2 pc )

Maxwell EBITDA @ 2.3 vs (-) 1 cr

India PAT @ 171 vs 157 cr, up 9 pc

EU PAT @ 51 vs 35 cr, up 48 pc

Maxwell PAT @ (-)1 vs (-) 3.5 cr

Product wise breakup of 9M FY 26 sales -

Suspension systems - 25 pc

Die Casting products - 46 pc

Disc Brakes - 12 pc

Alloy Wheels - 7 pc

Transmission systems - 3 pc

After mkt sales - 4 pc

Category wise breakup of 9M FY 26 sales -

Motorcycles - 52 pc

Scooters - 8 pc

3Ws - 8 pc

4Ws - 30 pc

Others - 2 pc

Notes from previous concalls -

Company’s dual channel ABS facility is under customer validation. Setting up additional facilities in view of new draft regulations making ABS mandatory for 2 Ws over a period of time

Planning to expand ABS capacity to 5 X of current capacities

Plan to increase the 4W mix to 45 pc of consolidated revenues ( over medium term ) - contribution should come from both EU + India - making mkt share gains in braking systems, drive shafts, suspension systems

In H2 FY 25, company acquired 60 pc stake in Stroferle Ltd Germany with a plan to acquire the rest of 40 pc over next 5 yrs. It specialises in machined Aluminum die-casting for auto parts. Stroferle’s LY revenues were aprox 750 cr

Capacity to make 1.2 million units of ABS are to be installed by Q1 FY 27. Another round of capacity expansion by 1.2 million units / yr shall happen when actual guidelines come out. ABS were already mandatory for 2W with engine capacity > 125 cc

Company has started civil work for setting up a new Chennai plant for disc brake systems, which includes the master cylinder, caliper, brake disc and brake hoses. Here they already produce 3 million disc brake assembly systems + 4 million disc brakes / yr. Plan to take this capacity up to 7.6 million disc brake assemblies + 8.6 million disc brakes

Company’s new alloy wheel plant ( @ AURIC Bidkin ) shall have a capacity of 3.6 million wheels / yr - should generate a revenue of 600 cr / yr. The new facility is already fully booked. Their existing alloy wheels plant produces 5.5 million alloy wheels

Company’s subsidiary - Maxwell Ltd achieved a turnover of 74 cr in H1. They supply battery management systems for 2Ws, 3Ws, tractors and construction equipment

Company continues to position their new AURIC Shendra facility as a key facility for critical machined castings for 4W and non-auto applications. They are therefore equipping this plant with highly sophisticated machining and finishing equipments. In the past, they mentioned about orders from marquee U.S. and UK-based OEMs and also orders from Valeo for electric platforms of Mahindra. And now they have added Yazaki as a customer taking the total sales close to Rs388 crores per annum at peak. SOP ( start of production ) for both the U.S. and UK OEMs will start in Quarter 2 of FY 27 and they will reach peak sales in FY 28. The SOP ( start of production ) for the AURIC Shendra plant is going to be in January 2026

Company’s new battery pack manufacturing facility has already won business worth 300 cr / yr from a 2W OEM

The new alloy wheel facility was recently commissioned with a capacity of 3.6 million wheels / yr - Its capacity is fully sold out

Company is a leading manufacturer of inverted front forks for 2W OEMs. Company supplies these to 4 Indian OEMs and one International OEM ( KTM ). One Chinese OEM will start sourcing these from the company wef next FY. Should be able to sell 6.5 lakh inverted front forks in FY 26

Company has also started selling Solar Dampers. Have won business worth 200 cr from a Spanish OEM for their Solar Dampers. This business ca potentially grow multi fold going forward

Four wheeler suspensions is a very tough business to get into. Undergoing trials with one of the OEM. Company has a tech tie up with a South Korean technology partner. The system being developed by them is suited for small cars. Company is expecting a major breakthrough in near future. Company is already a leader in suspension systems of 2Ws

Company’s mkt share in front forks ( 2Ws ) is @ 43 pc. In the inverted front forks, their mkt share is even higher. In shock absorbers ( 2Ws ) , their mkt share is @ 45 pc

Company solar dampers business has a huge mkt potential and can also grow @ rapid rates. In talks with 2 more OEMs ( beyond the Spanish OEM mentioned above ). This can be a huge growth opportunity going forward. Similarly, battery packs is another high growth area which also has a long growth runway

Notes from Q3 concall -

Company has hiked its Stake in Maxwell to 100 pc. Its European corporate structure has been simplified through merger of subsidiaries

India : EU sales breakup @ 72:28 vs 76:24 in FY 25

9M FY 26 capex @ 657 cr for India ops + 385 cr for EU ops

Lowering of GST rates have had a very positive rub off on Auto Industry ( in Q3 ) - all segments - PVs, CVs, 2Ws,3Ws displayed very strong demand trends in Q3

In Q3, EU PV mkt grew by 4 pc YoY. Aprox 66 pc of all vehicles sold in EU are now either electric or hybrid

New Capex going live in H1 FY 27 include -

(a) Chennai plant for making Disc Brakes - likely to go live in Q2 FY 27

(b) Company’s new Battery pack unit should start commercial production wef Q1 FY 27

(c) Their new Drum brakes facility for Tata Motors 4 Ws is likely to commence production in H1 FY 27

(d) 3W brakes volumes to be increased from 60 lakh to 120 lakh brakes / yr - to go commercial in H1 FY 27

(e) AURIC Shendra facility should start production for UK and US customers in Q2 FY 27

(f) Additional Die Castings facility @ Chakan for Tata Motors + Mahindra to go live in H1 FY 27

(h) AURIC Bidkin 2W alloy wheels facility - should start supplies to RE in Q2 FY 27, to Ather + Suzuki in Q3 FY 27. This unit started supplies to Bajaj Auto 2Ws in Q2 FY 26

H2 FY 27 should see all the a/m capex contributing significantly to company’s top and bottom-lines

The new ABS rules ( even for bikes < 125 cc ) are expected to be implemented sometime in future. Company already has a rich experience in making Single Channel ABS systems ( making them for more than 4 yrs ) and hence should be able to capitalise this opportunity

Company is also going to commence making the ECU ( electronic control units ) of ABS - in H1 FY 27, in order to improve their profit margins in the ABS business ( @ Sambhajinagar ). Shall also be making ECUs for dual channel ABS wef H2 FY 27

Maxwell Battery management systems already have 8 pc mkt share in Indian E-2W industry. Likely to ramp up further. Maxwell’s order book for FY 27 is shaping up well ( for BMS supplies to 2W, 3W and E-Rickshaw makers )

Inverted front fork supplies to Hero have started in Q4. Were already supplying these to TVS wef early FY 26. Supplies to a Chinese OEM for Inverted front forks shall begin in H2 FY 27. Supplies to KTM for these front forks are also seeing good demand momentum

Exported Solar Dampers worth Rs 25 cr in Q3 ( to their Spanish Client ). Should supply double this amount in next FY. Should also supply these dampers to an American client in next FY

Have commenced supplies to A&S ( assisted slipper clutches ) clutches to RE and Kawasaki. Should supplying these to Bajaj Auto in H2 FY 27. Premiumisation trends in 2Ws is a natural tailwind for their A&S clutch business

EV component supplies in 9M FY 26 stood @ 287 cr, up 65 pc YoY. CAGR growth in this business has been 70 pc - over last 4 yrs vs Industry growth of aprox 20 pc CAGR

Company’s EU business continues to grow at a good pace + good profitability despite the macro economic headwinds in EU ( however, most of this attributable to the Strofelle acquisition )

But for the implementation of new labour codes, company’s Q3 PAT would ve been higher by 15 cr @ 237 cr

Company expects to have some clarity by end of Q4 wrt likely date of implementation of new ABS rules for 2Ws below 125 cc

There are also rumours that GoI may mandate CBS instead of ABS ( to begin with ). Even then, company stands to gain meaningfully ( although the gains would be lower than mandatory ABS implementation )

Capex for FY 26 for India ops is likely to be at 800 cr vs 600 cr in FY 25. Unless there is an M&A opportunity, Capex in India should reduce in FY 27

Company’s future M&A shall focus on areas like castings / suspensions for Auto / Solar ( like dampeners ) / other applications

Disc: hold a small position, biased, inclined to add on dips, not SEBI registered, posted only for educational purposes, not a buy/sell recommendation

[ranvir]

Time Technoplast -

Q3 FY 26 results and concall highlights -

Q3 outcomes -

Revenues - 1567 vs 1389 cr, up 13 pc

EBITDA - 236 vs 202 cr, up 17 pc ( margins @ 15 vs 14.6 pc )

PAT - 126 vs 101 cr, up 25 pc

Value added products grew by 19% in Q3FY26 as compared to Q3FY25, while established products grew by 11%. The company’s focus remains to increase the share of value-added products in its revenue and improve margins

India volume growth @ 15.2 pc

Overseas volume growth @ 17.2 pc

Debt on books @ 266 vs 646 cr - debt reduction of 380 cr led by infusion of QIP funds

9Ms FY 26 capex @ 177 cr

9M breakup of India : Overseas business @ 64 : 36

Composite Cylinders witnessed 23 pc growth in 9Ms FY 26

Notes from previous Concalls -

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

Equity dilution caused due a/m QIP @ 8.7 pc

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

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

Committed to source 75 pc of its energy requirements to Solar sources - to reduce its energy costs. This would result in annual energy savings of 20-30 cr

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

OP-Z batteries (Ortsfest Panzerplatte - Stationary Tubular Plate Flooded batteries) are high-performance, 2V industrial-grade lead-acid batteries used extensively in the power sector for critical backup and energy storage. They are characterized by a long service life of over 15-20 years and excellent deep-cycle capabilities

Utilisation of QIP funds -

Reduced debt by 380 cr

Purchase of machinery and equipment - 125 cr

Investment in Time Ecotech - 55 cr

Money kept for inorganic opportunities - 240 cr

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

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 submitted its designs to IOL, HPCL, BPCL for its 14.2 kg gas cylinders. Approval should only be a matter of time ( was previously making and supplying only the 10 kg Cylinder ). Company may have to undertake capex to expand their capacities, post approval

Company’s tgt 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

Notes from Q3 concall -

For 9Ms FY 26, growth in sales of VAP @ 17 pc. Share of VAP now stands @ 30 pc vs 27 pc as on 31 Dec 25

India vs Overseas margin profile is very similar

Company aspires to be debt free by H2 FY 27

Commercialisation of composite fire extinguishers ( both 6kg and 9 kg products ) should happen in Q1 FY 27

Company’s CNG cylinder ( 250 lit ) should also go commercial in Q1 FY 27. Their 136 Lit CNG cylinder is already commercial

Have submitted all the documents for approval of Hydrogen cylinders for drone applications

Time Technoplast Ltd.'s subsidiary, PowerBuild Batteries Pvt. Ltd. (PBBPL), is focusing on advanced VRLA (Valve-Regulated Lead-Acid) stationary batteries that serve mission-critical applications, including data centers

Partnership and Supply: PBBPL has signed a multi-year exclusive agreement with Bulgaria’s listed company Monbat AD (Europe) to supply these advanced VRLA stationary/reserve-power batteries in India. This includes pan-India technical support, installation, commissioning and after-sales service

Time Ecotech’s first plant should go commercial wef Q1 next FY. Ecotech intends to set up 2 more plants for their recycling business ( a total of 3 plants ie )

Composite facility @ Daman could make 30k composite cylinders 480 / cascades per yr. Capex was under taken at that plant. It’s nearing completion now. Commercialisation should begin in Apr. This plant’s new + old capacity together now has a revenue potential of Rs 800 cr / yr. Company can also make Hydrogen cylinders from this plant

Have been investing aggressively behind automation. Their Silvasa plant is now highly automated. Saves a lot of money on manpower costs. This plant’s Phase 1 is now operational - can make 1.5 lakh IBCs / yr. Phase 2 shall go commercial at a later date

Another of their plant near Chennai - Making packaging materials + PE pipes - should go operational by Q1 next FY

Company’s new plant @ US is now completely ready. Helps them circumvent the tariffs. They previously had 4 plants in US. This is their 5th plant

Guiding for a consolidated topline growth of 15 pc CAGR for next 3 yrs - should be led by composite / value added products

Have been allotted with a new land parcel in Orrisa. Shall be setting up packaging + PE pipes facility here

Another land parcel in Maharashtra has been allotted to the company - shall set up IBC manufacturing capacity here. Its located near a big chemical manufacturing zone - should be able to easily find customers here

Company’s packaging products should grow @ 10-12 pc CAGR, Composite products should grow @ 24-26 pc CAGR - resulting into a 15 pc CAGR growth at a company level

Company’s existing PE pipes manufacturing facilities are located near Silvassa and Hyderabad

Company intends to expand EBITDA and PAT margins by > 100 bps / yr on the back of - cost reduction programs + automation + better product mix + lower finance costs + lower power costs ( by using greater share of renewables ) + lower working capital days

Current share of composite product sales is around 27 pc of total company sales. Company estimates - this should be > 35 pc after 3 yrs or so

Should clock EBITDA of around 900 cr in current FY ( indicating an EBITDA around 250 cr for Q4 ). Interest cost savings should incline the PAT by a greater percentage

Should announce the acquisition of - Ebullient Packaging Pvt Ltd by Q1 FY 27. Should be a value accretive acquisition for them ( as explained above ) + it has the potential to grow its topline @ 20 pc CAGR over medium term

PE pipes can clock 450 cr / yr kind of max sales ( vs 350 cr expected to be clocked in FY 26 ). With Odisha + Chennai investments, potential topline of this business can keep growing in a handsome way over medium term

TPL Plastech ( their 75 pc subsidiary ) is growing at a descent rate. They r expanding their facility @ Lote Parshuram. This should help them sustain their growth momentum. At present, they contribute 8 pc to company’s consol revenues. TPL’s ROCE is > Time Technoplast

Availability of solar power is good in TN, Karnataka, Gujarat, Maharashtra and Odisha. Company has 33 manufacturing plants in India, 17 outside India

Company intends to consolidate some of its Indian manufacturing facilities

PAT growth should inch towards 25 pc CAGR over next 3 yrs

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

[Jbo]

The Great Corporate Magic Trick: How Cello World Absorbed Wim Plast’s Cash for Pennies

Have you ever wondered why parent companies love complex mergers with their own subsidiaries? Often, it’s not just about “operational synergies”—it’s a masterclass in valuation arbitrage.

Let’s break down the recent corporate restructuring between Cello World and Wim Plast. On the surface, it looks like a standard consolidation. Underneath, it’s a textbook example of how promoters can legally transfer massive intrinsic value from retail minority shareholders to themselves.

Here is exactly how the “shenanigans” unfolded, step by step.

Step 1: Meet the Players

• Cello World Limited (CWL): The giant, listed parent company. The promoters own 75%, and the public owns 25%. It trades at a rich premium (roughly 28x PBT).

• Wim Plast Limited (WPL): The much smaller, listed subsidiary. CWL (and promoter group) holds 56%, and the public holds 44%. WPL runs a profitable manufacturing business but is largely ignored by the market, trading at a massive discount (around 8.6x PBT).

Step 2: Spotting the “Honeypot”

Wim Plast wasn’t just making plastic products; it was sitting on a goldmine. The company had roughly ₹342 Crores in pure liquid cash and financial investments on its books. Because the public owned 44% of WPL, roughly ₹150 Crores of that cash essentially belonged to minority shareholders.

Step 3: The Two-Part “Complicated” Deal

Instead of just paying out that cash as a special dividend to everyone, the promoters engineered a two-step scheme to absorb WPL into Cello World.

1. The Demerger: WPL’s manufacturing factories (doing ~₹31 Cr PBT) are stripped out and put into a 100% unlisted subsidiary of Cello World. For giving this up, WPL shareholders get 55 shares of CWL for every 100 shares of WPL.

2. The Merger: The “leftover” part of WPL—which is basically just a shell holding the ₹342 Crores in cash—is merged directly into the parent, Cello World. For this, WPL shareholders get 31 shares of CWL for every 100 shares.

WPL is now effectively stripped bare, de-listed, and swallowed.

Step 4: The Math (Where the Magic Happens)

When the dust settles, the public shareholders of WPL exchanged their 44% stake in a cash-rich, profitable business for a tiny 1.51% stake in the combined Cello World.

Let’s look at the numbers:

• At Cello World’s market cap (₹14,015 Cr + WPL’s ₹610 Cr = ₹14,625 Cr), that 1.51% stake given to the public is worth roughly ₹221 Crores.

• But wait… WPL had ₹342 Crores in pure cash alone!

• This means the promoters used ₹221 Crores of their highly-valued “paper” (shares) to buy the public’s share of ₹342 Crores in hard cash, plus they got the entire manufacturing business essentially for free.

Step 5: The Grand Robbery (Legal Edition)

What should WPL have been worth if valued fairly?

• If we apply Cello World’s premium 28x multiple to WPL’s ₹31 Cr manufacturing profits, the factories are worth ₹868 Crores.

• Add the ₹342 Crores in cash, and WPL’s true intrinsic value is ₹1,210 Crores.

• The public’s 44% rightful share of that true value is ₹532 Crores.

The Verdict: Minority shareholders were handed ₹221 Crores in stock for an asset fundamentally worth ₹532 Crores. A staggering ₹311 Crores of intrinsic value was legally transferred away from the public and directly into the pockets of the parent company, where the promoters hold 75% control.

The promoters recognized a massively undervalued piggy bank in their own backyard, weaponized the market’s ignorance of it, and used their inflated parent-company stock to buy out the public for pennies on the rupee. Neat, isn’t it?

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