Ranvir's Portfolio

[ranvir]

Artemis Medicare -

Q4 and FY 26 results and concall highlights -

Q4 highlights -

Revenues - 279 cr, up 16 pc

EBITDA - 59 cr, up 23 pc ( margins @ 21 vs 20 pc )

PAT - 30 vs 23 cr, up 32 pc

ARPOB @ 84.5k vs 78.8k

Occupancy @ 64 vs 61 pc

IP volumes @ 8.7k vs 7.9k

FY 26 highlights -

Revenues - 1081 cr, up 15 pc

EBITDA - 218 cr, up 18 pc ( margins @ 20.2 vs 19.7 pc )

PAT - 103 vs 81 cr, up 26 pc

Bed capacity @ 620

Occupancy @ 63 vs 64 pc

IP volume @ 34.4k vs 31.4k

ARPOB @ 82.4k vs 76.4k

A 300 bed hospital at Raipur is expected to open in Q1 FY 27 @ Raipur

A 650 bed hospital in South Delhi is expected to go live in 2029

Current facilities -

Artemis Gurugram - 540 beds. Another 100 beds are expected to come on stream in H2 FY 27. Plus another 200 beds are expected to be commissioned at the same site in FY 28
Also manage a 100 bedded hospital @ Mauritius

Rest of the beds are distributed between - Daffodils ( South Delhi, Jaipur, Gurugram ) - Aprox 40beds ( Luxury mother and Childcare hospitals ) + Artemis Lite ( South Delhi, Gurugram ) - aprox 40 beds

Have also entered into an Operations and management contract for a 100 bedded hospital @ Mauritius. Expected to go live in Q1 current FY

Notes from Q4 concall -

Q4 payor mix -

International patients - 31 pc

Insurance patients - 31 pc

Cash patients - 22 pc

Govt schemes - 16 pc

See most of international patient inflow from - ME, CIS, Africa

Aim to reach 2000 bed capacity by 2030

Have announced 700 fundraise via QIP to fund their South Delhi expansion

Had previously raised 330 cr via Convertible Debentures. Shall be converted to equity in H2 current FY. Shall lead to an equity dilution of aprox 12 pc ( @ a conversion price of Rs 175 / share ). Out of these, 137 cr have been deployed in the business. Rs 193 cr lie parked in FDs

Aim to keep the share of international patients driven revenues @ 30 pc mark

Company’s ARPOB is the highest in NCR ( actually a big deal - wrt their reputation )

Their first hospital @ Mauritius has started making profits. Second hospital @ Mauritius went live towards the end of Apr 26

Expecting continued expansion in absolute EBITDA in FY 27 led by strong occupancy gains that are expected @ Gurugram + the addition of 100 new beds. This should offset the initial losses as the Raipur facility should take 12-15 months to ramp up

South Delhi capex estimates - First 450 beds @ 350 cr - Phase 1. Another 200 beds @ 150 cr - Phase 2. Total @ aprox 500 cr

Expecting Raipur facility to clock aprox 90 cr in revenues and 13-14 cr of EBITDA losses in FY 27. This should impact company’s overall EBITDA margins by 1-1.5 pc. Absolute EBITDA should still grow on back of strong ramp up @ Gurugram

In Phase - 1, shall open 150 beds @ Raipur. Then another 150 beds as the patient traffic improves

Additional 100 beds @ Gurugram are ready. Will commission them if they hit 70 pc occupancy in Q1/Q2/Q3 - as the case may be

FY 27 capex estimate @ 100 cr - residual capex for Raipur + towards incremental 200 beds @ Raipur

Saw a dip in international patients in March. Has reversed now ie in Mid May. Domestic demand kept improving in Q4. EBITDA margins @ Gurugram facility should be higher than FY 26

Confident of clocking 70 pc occupancy @ Gurugram by Q2 - that would unlock their additional bed capacity that’s already in place

Company’s ARPOB is so high because of their better case mix. Otherwise, they are cheaper than Fortis/Max

Company is going to have the first mover advantage @ a promising market like Raipur. Its densely populated + has high per capita + absence of national level players at the moment

Raipur hospital should go live in Jun 26

Expecting Raipur to clock 30-35k kind of Raipur - to begin with. As they start to better higher complexity case mix, ARPOBs should then increase. Expecting to start breaking even towards the end of FY 28

Tier 2 hospitals generally clock higher EBITDA margins vs Tier 1 hospitals due lower cost structures ( despite lower ARPOBs )

Expecting Gurugram hospital to grow topline by 15-17 pc in FY 27. Expecting similar growth from Gurugram in FY 28, 29 as well. Incremental revenues @ Gurugram should clock 30 pc kind of EBITDA from hereon

Should add more projects ( both Greenfield + Brownfield ) to their pipeline ( since their cash position would be further boosted post QIP ). Shall announce the same by Q2 or so

Have EWS commitment @ 20 pc at Gurugram, 10 pc at Delhi, expecting 10 pc at Raipur

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

[ranvir]

Mankind Pharma -

Q4 and FY 26 results and concall highlights -

Q4 outcomes -

Revenues - 3443 vs 3079 cr, up 12 pc

GMs @ 72.2 vs 71.6 pc

EBITDA - 910 vs 686 cr, up 33 pc ( margins @ 26.4 vs 22.3 pc - substantial margin expansion )

PAT - 559 vs 429 cr, up 30 pc

Net Debt @ 3932 vs 5784 cr - substantial deleveraging of balance sheet

Domestic business @ 2886 vs 2544 cr, up 13 pc. For full FY, domestic revenues grew by 14 pc to 12.21k cr. Domestic revenues were supported by BSV’s speciality business

In Q4, chronic therapies like Cardio, Anti-Diabetes grew by 14.7 and 11.6 pc respectively. Muted growth in anti infectives was countered by recovery in Gastro, VMN and Derma portfolios

Mankind’s Chronic contribution @ the end of Q4 stood @ 41.7 vs 39.9 pc YoY - a key positive for the company

BSV’s speciality business has a chronic contribution of 17.4 pc

Consumer healthcare business grew by a strong 20 pc and clocked sales of 213 cr in Q4. For full FY, consumer business grew by 9 pc to 879 cr

Exports business clocked 4 pc growth in Q4 @ 557 cr ( mainly due to geopolitical headwinds ). For full FY, exports business grew strongly by 31 pc @ 2061 cr

Notes from Q4 concall -

Organic volume growth ( Ex BSV ) in domestic business in FY 26 @ 2.4 pc - still on the lower side. Expected to go up in FY 27

No of brands with sales > 200 cr @ 13 vs 11 YoY

No of brands with sales > 50 cr @ 54 vs 49 YoY

Acquired Anti-Anxiety drug brand Rivotril ( Clonazepam ) from Roche in Q4

Gynae portfolio grew by 10.5 pc in FY 26

EBITDA margins expansion in Q4 is primarily attributable to operating leverage + slight increase in gross margins

R&D expenses @ 2.8 pc of sales in FY 26

Fin cost in Q4 @ 142 cr vs 157 cr YoY

Depreciation + Amortisation @ 223 vs 231 cr YoY

Expect finance costs to fall further ( substantially ) in FY 27 as company generates a lot of cash and can keep knocking off debt aggressively

Capex in FY 26 remained elevated @ 730 cr

Setting up a new BioTech facility near Vadodara. Guiding for a capex range of 800-900 cr for FY 27

Aim to pay off all the acquisition related debt by end of FY 28. This would bump up the PAT over next 2 yrs - as debt comes down progressively

As the manpower related disruptions are behind, acute business should start to recover meaningfully in FY 27 ( this part of the business was hit far more than the Chronic business as the company induced in a lot of hire and fire over past 12-15 months + Mankind is as such an acute heavy company )

Guiding for a double digit topline growth + EBITDA margins @ around 26 pc ( vs 24.5 for FY 26 ) for FY 27

Expecting the international business to grow in higher double digits in FY 27

Expecting acute therapy to match IPM level growth rates in FY 27

Normalisation in Acute portfolio, Continued traction in Chronic therapies, greater momentum in acquired / in-licensed speciality brands / products - should be the three pillars of growth in FY 27

Have taken an avg price hike of 4.2 pc in FY 26

Company’s share of sales from modern trade + E Comm at the end of FY 26 @ 13 pc vs 9 pc YoY

AntiD 300mcg/ml Injection ( sold by BSV ) is indicated to prevent infections. It prevents antibodies from forming after a person with Rh-negative blood receives a transfusion with Rh-positive blood or during pregnancy when a mother has Rh-negative blood and the baby is Rh-positive. Company sells these via 2 brands in house brands ( Trinbelimab and Rohclone ). Company’s products are the only products avlb in this space in India ( minus the imported substitutes ). These r growing @ mid teens levels. Currently clocking aprox 200 cr / yr. Aprox 5 pc of women in India face this issue. So the addressable mkt is huge

Phillipines, Malaysia, Africa are ket export mkts for BSV’s business. Expecting high teens and above growth in BSV’s business in FY 27 - led by Women’s health and IVF therapies

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

[ranvir]

Borosil Ltd -

Q4 FY 26 results and concall highlights -

Q4 outcomes -

Revenues - 278 cr, up 5 pc

EBITDA - 32 cr, down 15 pc ( margins @ 11.5 vs 14.2 pc - mainly due steep increases in gas prices )

PAT - 10.5 cr, down 5 pc

Segmental revenues -

Glassware - 65 cr, up 6 pc

Non Glassware - 115 cr, up 3 pc

Opalware - 98 cr, up 7 pc

FY 26 outcomes -

Revenues - 1195 cr, up 8 pc

EBITDA - 177 cr, flat YoY ( margins @ 15 vs 16.3 pc )

PAT - 75 cr, flat YoY

Segmental revenues -

Glassware - 295 cr, up 17 pc

Non Glassware - 464 cr, up 2 pc

Opalware - 411 cr, up 7 pc

Royalty income in Q4 and FY 26 stood @ 4.5 and respectively 12 cr ( as Borosil renewables uses Borosil brand name )

Capex plans -

Their fresh capacities to make vacuum insulated SS flasks, containers, bottles etc are expected to go live @ the end of Q1 and Q2 FY 27 ( in phases ). Have spent 65 cr towards the same

Current glassware making capacities @ 25 TPD. Have approved brownfield expansion to 32 TPD for an estimated capex of 50 cr

Have approved another capex @ Bharuch ( Gujarat ) for 42 cr to make glassware - mostly jugs, jars etc. Should go live by end of Q3 FY 27

Notes from Q4 concall -

FY 26 growth was impacted by capacity constraints that the company faced wrt their Hydra range of vacuum insulated products**.** Company sells > 100 SKUs under their Hydra brand

In Q4, lost sales due temporary production shutdowns @ their glassware and opal ware manufacturing facilities due gas shortages

Net Debt on 31 Mar 26 @ 50 cr

Adv and Sales promotions in FY 26 @ 81 cr

Vacuum insulted SS facility should have a revenue potential of 180 - 200 cr / yr

Once their Bikaner Solar Power plant ( of 20 MW - mentioned above ) goes live, total power savings should ramp upto 30 cr / yr from 13-14 cr / yr @ present. So - that’s an additional saving of 16 cr @ EBITDA level. Post this, company’s power supply from solar sources shall rise to 65 pc with a further roadmap to reach 100 pc

Borosil’s brand - Larah is now India’s no 1 Opalware brand. Company’s pan India mkt share in Opalware is aprox 30 pc

Company’s borosilicates glass plant is backward integrated and is margin accretive { Borosilicate glass offers superior thermal shock resistance, chemical durability, and strength compared to normal (soda-lime) glass }

Company had previously operationalised 2 solar power plants in Rajasthan of 16 MW capacity each

Borosil does charge a premium for its brand value in the Indian glassware mkt. However, the Chinese dumping into India is still an issue which exerts downward pressure on the margins

Company’s opal ware facility running @ 90 pc capacity utilisation. Looking to de-bottlenaeck their facility @ the moment. Not planning full fledged capex in this segment ( at the moment )

Post the crisis the gulf, glass have gone up more than they ve gone up in China. So - that’s an added headwind. Rupee depreciation does provide some relief as imports become more expensive

Have hiked prices of Glassware and Opalware by 8-10 pc to offset the RM price inflation caused by the Iran war

Did not lose sales in Q4 due shutdown of Borosilicate and Opalware furnaces ( temporarily ) - as they had adequate inventories. Did lose out on fixed cost absorption etc

Nobody except the company has a Borosilicate manufacturing pant in India. So the brands, that r procuring from China are hurting them. If GoI imposes Anti Dumping duty, they ll be benefited in a big way ( still 9-12 months away in best case scenario )

Have been hit by increased gas prices to the tune of 8 cr in Q4

Due to in house manufacturing of vacuum SS bottles ( wef Q2 ), company should be benefitted by 10 pc or so on the gross margins front. But - this benefit will only accrue once the facilities ramp up

Have lost sales of aprox 100 cr in FY 26 due supply constraints in SS vacuum products - mostly in H2

Capex for FY 27 should be around 115 - 120 cr

Disc: hold a small position, waiting for some green shoots of recovery before adding more, not SEBI registered, not a buy/sell recommendation

[ranvir]

Sandhar Technologies -

Q4 and FY 26 results and concall highlights -

Q4 outcomes -

Revenues - 1306 vs 1014 cr, up 29 pc

EBITDA - 144 vs 109 cr, up 32 pc ( margins @ 11 vs 10.5 pc )

PAT - 64 vs 42 cr, up 50 pc

Segmental Revenues / EBITDA -

India businesses - Revenues @ 1070 cr, up 19 pc. EBITDA @ 128 cr, up 28 pc

Overseas business - Revenues @ 121 vs 106 cr, up 8 pc. EBITDA @ 17 vs 9 cr - a clear turnaround

FY 26 outcomes -

Revenues - 4852 vs 3884 cr, up 24 pc

EBITDA - 512 vs 400 cr, up 28 pc

PAT - 198 vs 141 cr, up 40 pc

Segmental revenues / EBITDA -

India business - Revenues @ 3964 cr, up 16 pc. EBITDA @ 340 vs 233 cr, up 46 pc

International business - Revenues @ 468 vs 452 cr, up 3 pc. EBITDA @ 41 vs 43 cr

FY 26 sales breakup -

Standalone - 63 pc

Indian subsidiaries - 27 pc

Overseas subsidiaries - 10 pc

FY 26 segment wise sales breakup -

2Ws - 58 pc

4Ws - 22 pc

OHVs - 17 pc

Others - 3 pc

FY 26 product wise sales breakup -

Aluminium dye castings - 31 pc

Locking systems - 18 pc

Cabin fabrications - 12 pc

Sheet metal works - 18 pc

Assemblies - 10 pc

Vision systems - 5 pc

Others - 6 pc

Consol Debt on books @ 948 cr as on 31 Mar 26 vs 821 cr on 31 Mar 25

Important 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

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

New segment - Battery chargers and motor controllers have clocks 12 cr revenues in last 9Ms FY 26. This segment should scale up meaningfully in next FY

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

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

Shall start supplying electronic mirrors to Hyundai wef Q1 FY 27

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

Notes from Q4 concall -

Silver lining - EU business has turned around in Q4. Has clocked EBITDA margins of 14 pc in Q4

Company’s business for EV supplies stood @ 20 cr. Aim to double this in FY 27. Sold 1k battery chargers + 5.5k Motor Control Units in FY 26

Guiding for a 15 pc revenue growth for FY 27 - without accounting for price hikes that r expected to happen due higher RM costs

Demand environment in FY 27 in 2Ws and 3Ws continues to be very strong. Company’s revenue guidance given above is a conservative guidance

Company’s JVs -

1. Sandhar Han Sung Technologies Private Limited - A 50:50 JV with Han Sung Imp Co. Limited (South Korea). It manufactures high precision sheet metal parts, press parts, insert moulded Parts (Horizontals & Vertical insert moulding). This is essentially the high-precision stamping and contact-plate/switch business — feeding into electromechanical components

2. Sandhar Amkin Industries Private Limited - A JV with Amkin Group, where Sandhar Technologies Limited holds 69.12% stake of Sandhar Amkin Industries Private Limited and the remaining stake of 30.88% is held by Amkin Group Private Limited. It is set up to undertake the manufacturing of all types of Helmets and other Headgears, Hand protection gears, Foot protection gears, wears and guards, body protection gears, and other accessories. This is the personal protective equipment / helmets vertical — the only consumer-facing safety-gear JV

3. Sandhar Whetron Electronics Private Limited - A 50:50 JV with Whetron Electronics Co., Ltd. (Taiwan). This JV manufactures and sells products like Parking Sensors, Cameras, AVM, BSD, Traffic Alerts and DVR — i.e., ADAS-adjacent automotive electronics and vision/sensing systems for passenger vehicles

4. Winnercom Sandhar Technologies Private Limited - A 50:50 JV with Winnercom Corporation (South Korea). It is engaged in manufacturing and selling of electronic parts and accessories for the Automotive Industries in India including Shark Fin Antenna, Wiring Harness & Cable Assembly (Feeder Cable) and other products for the passenger vehicles. This is the antenna and wiring-harness electronics play

5. Sandhar Han Shin Auto Technologies Private Limited - A 50:50 JV with Han Shin Corporation (South Korea). It is set up to undertake the manufacturing and selling of futuristic high end data cables for the automotive industry in India including Radio Cable, AM/FM, GPS/DAB Cable, GNSS, LTE & eCall Cable and Antenna wires (Lead cables), for the passenger vehicles. This is the high-frequency/data-cable specialist complementing the antenna business

As is evident, all 5 JVs have attractive TAMs and bight prospects ( given execution challenges are handled well )

New projects / businesses ( including new AL- die casting lines, cabin fabrication lines ) clocked > 400 cr in revenues in FY 26. Should clock > 700 cr in revenues in next FY

Growth + Maint Capex requirements for next FY should be 270-300 cr

Clocked EBITDA margins of 10.5 pc in FY 26. Aiming for 10.8 - 10.9 pc kind of margins for FY 27. That would result in 17-18 kind of EBITDA growth - provided the revenues grow by 15 pc

Out of a Net debt of around 850 cr, working capital loan is around 540 cr

In talks with certain players for a ToT in order to foray into the telematics space. Not looking at JV route. Okay with paying royalties. Its a high TAM, fast growing space

Have started supplying aprox 5k smart locks per month and growing every month

Min Wage increases by various state Govts, RM price inflation due Iran war - are exerting upward pressures wrt input prices. Will be able to pass them on with a 1 Qtr delay

After the acquisition of Sundaram Clayton’s business + the acquisitions made previously - company is now fully integrated in the castings business. Company in now capable of HP casting, LP casting and machining. They can make extremely small to large components like engine blocks. These capabilities now provide them competitive edge over a lot of their competitors as they r now the one stop shop for their customers for Aluminium casting related work. In addition, the also do Zinc and Magnesium castings

Expecting growth to be broad based in FY 27 across all verticals - sheet metal, castings, locks, mirrors, EV components, cabin fabrications etc

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

[ranvir]

MedPlus health services -

Q4 and FY 26 results and concall highlights -

Q4 outcomes -

Revenues - 1864 cr, up 23 pc

Gross margins @ 26.5 pc, down 10 bps YoY

EBITDA - 189 cr, up 24 pc ( margins @ 10.2 vs 9.8 pc )

PAT - 63 cr, up 25 pc

Breakup of revenues -

Pharmacy - 1724 cr, margins @ 5.6 pc

Diagnostics - 347 cr, margins @ 15.3 pc

Others - 30 cr, margins @ 4.4 pc

FY 26 outcomes -

Revenues - 6892 cr, up 12 pc

Gross margins @ 26.2 pc, up 20 bps YoY

EBITDA - 678 cr, up 26 pc ( 9.8 vs 8.7 pc )

PAT - 219 cr, up 46 pc

Breakup of revenues -

Pharmacy - 6732 cr, margins @ 5.1 pc

Diagnostics - 1309 cr, margins @ 15 pc

Others - 88 cr, margins @ (-) 16 pc

Cash on books @ 594 cr. Inventories @ 1381 cr - as on 31 Mar 26

Total no of stores @ 5330 on 31 mar 26 vs 4712 on 31 Mar 25

State wise distribution of stores -

Maharastra - 610

Karnataka - 1022

Telangana - 875

AP - 652

TN- 1099

Kerala - 35

Orrisa - 187

Chattisgarh - 47

MP - 43

WB - 753

Puducherry - 5

Company provides a 2 hr delivery - Online only players can’t match this

Sell over 850 Pharma and 700 non Pharma products under private labels - the margins here are much better

Stores that are > 12 months old - clocked 18 pc revenue growth in Q4 and clocked an impressive 13 pc EBITDA margin. Growth was tepid in H1. Picked up meaningfully in H2

24 pc of their stores are less than 2 yrs old

Private labels contributed to 21.9 pc of company’s pharmacy revenues in Q4

Home delivery contributed to 93 cr in sales

Product wise gross margins -

Branded Pharma - 13-14 pc

Private label Pharma - 65-70 pc

Private label FMCG - 25-28 pc

Company generally offers a 15-20 pc discount on MRP on most pharma products

Notes from Q4 concall -

Added 218 stores in Q4

Aiming for a 800 new net store addition - including franchises ( adjusted for closures ) for FY 27

The stores that are less than 2 yrs old ( ie 24 pc of stores ) - can drive operating leverage over next 2-3 yrs for the company

Company’s avg store size is 530 SqFt

OCF/EBITDA for FY 26 @ 135 pc

Company closed 25 stores in Q4 - these stores were closed as they could not meet company’s expectations despite running them for 3 odd yrs

Company is restructuring their private label sales’s incentive structures. Hence they witnessed a slowdown in private label sales in Q4. Post restructuring, expecting private label sales to grow faster than the branded sales ( as was the case previously )

Expecting similar growth ( as in FY 26 ) to continue in FY 27 as well

Out of 618 stores added in FY 26, 310 were franchise stores. This was never the case previously. Their total franchise stores now stand @ around 500 stores. Previous expansions were mostly via company owned stores. Franchise stores start reporting profits from Day 1 vs a company owned store, where it takes around 12 months to start making money

Would need to add a few warehouses in MP + Chattisgarh - as they add more stores. Don’t need to add any more warehouses in other states ( for now and for FY 27 )

Spend aprox 10 lakh / outlet ( on fixtures, fittings etc ). Also spend similar amounts on a franchise store. In franchise stores, the franchise buys the inventory, pays the rent etc. The gross margins in a franchise store are distributed in the ratio 30:70 ( aprox ) in favour of the franchise

Company does manufacture some of the ( non Pharma ) FMCG products in house ( at present, I don’t know if it’s a positive or a negative ). They intend to keep doing it and also keep increasing ( incrementally ) the share of in house manufacturing

Will continue to focus on tier -2,3,4 cities for expansion over medium term. They believe, there is tremendous headroom here. The online sales that they drive from their stores - is presently viewed as an additional source of convenience for their customers. At present, 5-6 pc of their pharmacy sales come from online orders

Their popular private label brands include - WynClark Pharma ( for generic pharma products ), EatRite ( foods ), Avelia and Urbania ( home and personal care )

GLP products are now available across all their stores

Disc: bought recently, aim to add more, biased, not SEBI registered, not a buy/sell recommendation

[ranvir]

Sarda Energy and Minerals -

Q4 and FY 26 concall highlights -

Company’s current capacities -

Power segment -

Thermal - 2 X 300 = 600 MW near Raipur in Chhattisgarh

Captive Thermal - 81.5 MW @ Siltara, Chattisgarh + 80 MW @ Vizag, AP = 161.5 MW

Hyro - 4.8 MW in Uttarakhand + 24 MW + 25 MW in Chattisgarh + 113 MW in Sikkim = 54 MW

Solar - 50 MW in Chattisgarh - under construction. Expected to be commissioned in Q1 FY 27

Grand total @ 930 MW. Company intends to almost double their Power generation capacity to > 1720 MW

Mining segment -

Coal Mining - Gare Palma, Chattisgarh - 1.8 MTPA

Iron ore mining - Dongarbore, Chattisgarh - 1.5 MTPA

Coal washing - Tamnar, Chattisgarh - 1.8 MTPA

Additional coal mines in pipeline - Another block @ Gare Palma - 2 MTPA, Bartunga JV - 2.1 MTPA ( 67 pc share ), Shahpur West - 0.6 MTPA, Senduri - 0.6 MTPA

Metals segment -

Iron Ore pellets - 0.9 MMTPA

Sponge Iron - 0.36 MMTPA

Steel Billets - 0.3 MMTPA

Wire rods - 0.25 MMTPA

HB wire - 45k MTPA

Ferro alloys - 147 MVA

Since ferro alloy production (ferrochrome, ferromanganese, silicomanganese, ferrosilicon) is highly electricity-intensive, furnace capacity is conventionally expressed in MVA (the rating of the furnace transformer) rather than tonnes. It indicates the size and power-handling capability of the furnace

Q4 outcomes -

Revenues @ 1410 cr, down 2 pc

EBITDA @ 348 cr, up 44 pc ( despite the shutdowns mentioned below ). Margins @ 28 vs 22 pc

PAT @ 155 vs 100 cr, up 55 pc

One of the 300 MW power capacity was down for planned maintenance for bulk of Jan 26 + one of the 30 MW captive thermal turbine has been inoperative for want of replacement since Dec 25 - has been affecting steel production

FY 26 outcomes -

Revenues - 6423 cr, up 21 pc

EBITDA - 1787 cr, up 47 pc ( margins @ 31 vs 25 pc )

PAT - 1109 cr, up 58 pc

Breakup of FY 26 revenues -

Power - 44 pc

Ferro alloys - 26 pc

Steel - 30 pc

Breakup of FY 26 EBIT -

Power - 65 pc

Ferro alloys - 16 pc

Steel - 19 pc

Notes from Q4 concall -

Thermal power generation @ 4155 million units, up 84 pc. Hydro power generation @ 661 million units, up 31 pc ( due commissioning of Rehar Hydro power facility ). Aprox 66 pc of company’s EBITDA came from power sector in FY 26 vs 47 pc YoY

Have acquired a majority stake in a 66 MW Hydro power project in Arunachal in Q4 FY 26- valued @ 25 cr. All approvals wrt acquisition of forest land has already been approved for this project. All the capex wrt this project shall happen from here on

Three more Hydro Projects are in various stages of development in Chattisgarh ( aprox 25 MW each ). This total of 75 MW should cost them aprox 600 cr or so ( ballpark estimate - not disclosed by the comapny )

These power projects of 75 MW + 66 MW should have an annual revenue potential of aprox 250 cr ( my estimates ). EBITDA margins in Hydro projects are north of 50 pc

Have approved expansion of iron pellets with a capital outlay of 500 cr. Should be completed within 3 yrs from now

Consol net debt @ 215 vs 1566 cr YoY - significant de-leveraging

Steel price hit a 5 yr low in Dec 25. have now recovered by aprox 15 pc from the lows

Expecting a lot of new Iron more mines to open up in Chattisgarh area in next 2-3 yrs. Hence - setting up the pellets plant. Demand trends for Iron Ore processing should be strong 2-3 yrs down the line. Hence the capex

Management thinks, steel + ferro alloys business margins / profitability has bottomed out. Things should only get better from heron ( provided the war does not resume )

Considering to de-merge their renewable energy business. Haven’t finalised

Aim to double the SKS’s power production output by 2030-31. Have applied for environmental clearances

Once the war in the Gulf ends / pauses - it should be a bullish signal for Iron/Steel’s long products, mostly used in Infra building. Flat product prices r already showing better resilience

Capex planned for FY 27 and FY 28 should be around 600-700 cr / yr ( this does not include the thermal power expansion of 600 MW for which they expect ECs to come by next FY )

The three hero power projects in Chattisgarh + the project in Arunachal shall all be going live by FY 30 or so

Avg realisation for thermal power in FY 26 was > Rs 5 / unit

Better Steel and Ferro alloy prices + being able to sell Solar power wef Q2 + better asset utilisations vs FY 26 should be the growth drivers. The 30 MW thermal turbine that was unavailable till recently should be functional by end of Q1/ start of Q2

Disc: initiated a small tracking position, shall be monitoring the business performance before adding / reducing, not SEBI registered, not a buy / sell recommendation

[ranvir]

Entero Healthcare -

Q4 and FY 26 results and concall highlights -

Q4 outcomes -

Revenues - 1910 cr, up 43 pc

Gross margins @ 10.9 vs 9.8 pc

EBITDA - 86 cr, up 76 pc ( margins @ 4.5 vs 3.9 pc )

PAT - 45 vs 31 cr, up 44 pc

Organic growth component @ + 16.6 pc

Inorganic growth component @ + 26 pc

OCF in Q4 @ 104 cr - driven by EBITDA margin expansion and lower net working capital

FY 26 outcomes -

Revenues - 6591 cr, up 29 pc

Gross margins @ 10.3 vs 9.5 pc

EBITDA - 266 cr, up 55 pc ( margins @ 4 vs 3.4 pc )

PAT - 146 vs 107 cr, up 36 pc

Organic growth component @ 13.4 pc

Inorganic growth component @ 16 pc

OCF in FY 26 @ 96 cr - led by EBITDA margin expansion and reducing trends in net working capital, specially in H2 FY 26

Completed - 7 acquisitions in FY 27 ( out of these, 3 acquisitions were in MedTech space ). The Med Tech acquisitions are expected to contribute to 1000 cr in sales in FY 27

Acquisitions made by the company in FY 26 -

Sai RK Pharma, acquired 70 pc

Well Wisher Pharma, acquired 70 pc

Ramson distributors, acquired 70 pc

Anand Medilink, acquired 80 pc

Ace Cardiopathy ( MedTech - Cardio ), acquired 60 pc

Bioade Technologies ( MedTech - Cardio, ENT, CNS ), acquired 80 pc

Anand Chemiceutics ( MedTech - IVD ), acquired 51 pc

Ballpark estimate - company would have paid in the range of 500 cr for all 7 seven acquisitions ( they have not disclosed acquisition prices for all 7 deals. I have made these estimates based on current going rates, adding up the assets addition + goodwill addition on books post these acquisitions etc )

Guiding for a 23 pc revenue growth with a 5 pc EBITDA margin for FY 27 with an OCF/EBITDA of 50 pc. That would translate to an EBITDA of 400 cr vs 266 cr clocked in FY 26 !!!

Company’s current Infra -

Customer hospitals @ 3600

Districts covered @ 523 vs 500 YoY

No of warehouses @ 136 vs 101 YoY

Retail customers ( basically pharma retailers ) @ 1.05 lakh vs 95k

Present coverage - 523 districts ( out of aprox 800 districts in India ) - company’s penetration is deeper in Southern States + UP, NCR, Haryana

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

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

The acquisitions made in FY 26 should add 1000 cr + to company’s revenues in FY 27

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

Private label sales currently represent a very small part of their business - in mid single digits or so. Can be growth driver in future and can also help in margins expansion

Notes from Q4 concall -

Already serve 1 in 10 pharmacies in India

The 23 pc revenue growth guidance given for FY 27 - doesn’t include any potential acquisitions

When they make acquisitions, they also specify valuation multiples and timelines for acquisition of the remaining / residual stakes in the acquired entity. All this is done @ the point of first contact. They generally acquire the remaining stake after 3-5 yrs on a case to case basis

There is also some low margin business that the company is planning to give up in FY 27. This is also included in the 23 pc revenue growth guidance for next FY

In the MedTech segment, the credit days provided by the suppliers to the company is much higher than what is typically provided by large Pharma companies

Guiding for 50 pc EBITDA to Operating cashflow conversion for FY 27

ETR for FY 27 should be around 22-23 pc

Have indulged in a lot of acquisitions in last 18 months. Shall focus on organic growth for next 6-8 months

Revenue contribution from Med Tech business in FY 27 should be around 15 pc of revenues. Aim to incline this upto 20 pc of revenues over medium term

In the IVD ( In Vitro Diagnostics ) business where the company is required to place assets / machines @ customer level against a 5 yr revenue contract with them, the depreciation is higher than typical pharma distribution business

Working capital as a percentage of sales is currently around 20 pc of sales. This should progressively come down going forward - as company is able to work more efficiently

Company typically acquires @ 5-7 times EV/EBITDA kind of valuations

Aprox 11 pc of the guided growth should come from the acquisitions made last yr and aprox 12 pc should come from organic growth

For many small / medium sized companies, Entero is the sole Pan India distributor. Here, the company is a key strategic partner for those companies vs just the fulfilment role. Hence they are able to command much better Gross margins in such cases. ( Ex - quoting from my memory - Entero is sole Pan India distributor for Jeena Seekho’s ayurvedic preparations ). Aprox 15 pc of company’s sales come from such exclusive tie-ups. Aiming to increase contribution from such partnerships

Entero’s core competitive advantage is tie-ups / partnerships with so many manufacturers and retailers. More retailers come to them because they have relationships with so many manufacturers. More manufacturers come to them, because they have relationships with so many retailers. So - it’s a two way closed loop kind of scenario for them

Two biggest threats - Appolo Pharmacy and MedPlus - together have just 12-13k stores in India. Other organised chains combined add upto another 8k stores. These organised players are adding aprox 2k stores / year - combined. This is against 9.8 lakh chemist stores - whom Entero is serving !!!

Disc : hold an investment position, biased, not SEBI registered, not a buy/sell recommendation

[ranvir]

Yatharth Hospitals -

Q4 and FY 26 results and concall highlights -

Q4 outcomes -

Revenues - 341 cr, up 47 pc

EBITDA - 80 cr, up 37 pc

PAT - 45 cr, up 15 pc

ARPOB @ 32.3k, up 5 pc

Occupancy @ 71 pc, up 10 pc

FY 26 outcomes -

Revenues - 1207 cr, up 36 pc

EBITDA - 292 cr, up 30 pc

PAT - 170 cr, up 30 pc

ARPOB @ 33.1k, up 7 pc

Occupancy @ 68 pc, up 7 pc

Operating cash flow @ 287 cr, up 82 pc YoY

Debtor days @ 112 vs 125

Adjusted for the initial losses incurred due ramp up of newer hospitals, EBITDA margins stood @ 28.5 pc for FY 26 !!!

Latest bed capacities / hospital facilities -

Noida - 250 beds

Greater Noida - 400 beds

Noida Extension - 450 beds

Delhi - 300 beds

Faridabad - 400 beds

Greater Faridabad - 200 beds

Agra - 250 beds

Jhansi - 305 beds

In Q4, acquired an under construction, 250 bedded hospital in Gurugram for 100 cr. Shall be required to spend another 100 cr to operationalise this facility. Located in high density, high per capita income locality with ARPOB potential of > 50k

New Hospitals ramp up update -

Faridabad - clocking 6-7 cr monthly revenue, ARPOB @ 38k, zero Govt business

Delhi - clocking 5 cr monthly revenue, ARPOB @ 40k, zero Govt business

Agra - clocking 6 cr monthly revenue, > 15 EBITDA margins

Notes from Q4 concall -

Scale up @ Delhi and Faribabad hospitals in Q4 is happening @ a rate ahead of company’s internal expectations

Agra + New Delhi + Faridabad hospitals contributed to 3 pc + 4 pc + 7 pc = 13 pc of company’s consol revenues in Q4 vs NIL in previous FY

Installed DaVinci robots @ their Agra facility. A first in Agra mkt

Greater Faridabad hospital was commissioned in FY 25. has now turned profitable

Total bed capacity now @ 2500 beds. Can open up another 700 beds @ existing facilities with not so expensive capex ( already approved ). Aim to reach 5000 bed capacity by FY 30

Occupancy in Q4 @ Noida, Greater Noida, Noida extension, Jhansi, Greater Faridabad stood @ 86 pc, 76 pc, 61 pc, 86 pc and 69 pc respectively

Noida Extension hospital reported company’s highest Qtly ARPOB @ 47k, up 23 pc YoY

Net cash on books ( after subtracting Debt ) @ 113 cr - indicating strong liquidity position for the company

Going from 3200 to 5000 beds would entail both Acquisitions + Greenfield expansions. Company estimates, the ratio between the two should be 70:30 or so

Guiding for better than FY 26’s EBITDA margins for FY 27 + a topline growth of > 30 pc !!!

Expecting Faridabad and Delhi hospitals to start breaking even @ EBITDA levels in H2 FY 27

Aiming for Debtor days of 90-95 days for FY 27 vs 112 days in FY 26 vs 125 days in FY 25

Govt’s mix of business in FY 26 @ 35 pc. Aim to reduce this to 25 pc or so by FY 29 - 30. Newer hospitals like Delhi, Faridabad have minimal Govt business ( 10-12 pc or so )

Their newly acquired Gurugram Hospital should go live in Q2 FY 27 - should help drive growth in FY 27

CGHS,ECHS,CGI - are the three Govt schemes that the Hospital caters to

Company’s business saw an overall benefit of 5 pc of topline ( in Q4 ) due upward revision of rates of Govt Health Schemes wef Dec 25

At a group level, company’s Onco business is about 10 pc of their total business

Faridabad and Delhi hospitals reported a combined EBITDA loss of 30 cr in FY 26 ( 9 cr + 21 cr of losses respectively ). Agra is now clocking 18 pc kind of EBITDA margins in Apr, May

CGHS, ECHS, ESI - all three businesses have same margin profile as the rates of these schemes are the same. PMJAY - rates are lower

Agra hospital is currently clocking ARPOBs of 26k or so

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

[ranvir]

Surya Roshni -

Q4 and FY 26 concall highlights -

Q4 outcomes -

Revenues - 2163 cr, up 1 pc

EBITDA - 170 cr, down 19 pc

PAT - 98 cr, down 24 pc

Segmental revenues and EBITDA -

Steel pipes -

Revenues - 1662 cr, down 2 pc

EBITDA - 126 cr, down 23 pc

PBT @ 98 cr, down 24 pc

EBITDA / MT @ 5121, down 24 pc

Lighting and consumer durables -

Revenues - 501 cr, up 9 pc

EBITDA - 44 cr, down 6 pc

PBT @ 33 cr, down 11 pc

FY 26 outcomes -

Revenues - 7540 cr, up 1 pc

EBITDA - 541 cr, down 11 pc

PAT - 286 cr, down 28 pc

Segmental revenues and EBITDA -

Steel pipes -

Revenues - 5731 cr, flat YoY

EBITDA - 385 cr, down 14 pc

PBT @ 269 cr, down 16 pc

EBITDA / MT @ 4553, down 21 pc

Lighting and consumer durables -

Revenues - 1809 cr, up 7 pc

EBITDA - 156 cr, down 4 pc

PBT @ 115 cr, down 8 pc

Company is No 1 manufacturer of ERW pipes and their No 1 exporter from India. Company makes - GI pipes, Black pipes, API pipes and Hollow Section pipes - all via ERW process. In addition company also sells CR strips

FY 26’s sehmental EBITDA / MT -

GI pipes ( mostly used in irrigation, plumbing ) - Rs 6133 / MT

API pipes ( mostly used in Oil and gas sector ) - Rs 5600 / MT

Black pipes ( used on construction, fabrication, fencing, scaffoldings etc ) - Rs 4666 / MT

Hollow Section pipes ( used in infra projects like - railways, metros, Airports etc ) - Rs 2308 / MT

CR strips ( used in auto components, motor stampings etc ) - Rs 2522 / MT

FY 26’s sehmental EBITDA / MT -

GI pipes ( mostly used in irrigation, plumbing. Company is No 1 in India ) - Rs 6133 / MT

API pipes ( mostly used in Oil and gas sector. Company is among top 5 in India ) - Rs 5600 / MT

Black pipes ( used on construction, fabrication, fencing, scaffoldings etc. Company is among top 3 in India ) - Rs 4666 / MT

Hollow Section pipes ( used in infra projects like - railways, metros, Airports etc. Company is among top 5 in India ) - Rs 2308 / MT

CR strips ( used in auto components, motor stampings etc - company is selling these in NCR region ) - Rs 2522 / MT

Company’s current manufacturing capacity for steel pipes ( ERW process ) + CR strips/ sheets @ 12.15 LMTPA. Aprox breakup of the product wise capacity is as follows -

GI Pipes - 3.3 LMTPA

API/Spiral pipes - 0.6 LMTPA

Hollow Section Pipes - 0.36 LMTPA

CR strips / sheets - 1.5 LMTPA

Black pipes - 6.05 LMTPA

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. 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. ERW has largely closed the performance gap with seamless for most applications. The seamless premium today is justified primarily in high pressure, high temperature, sour/corrosive service, and IBR-regulated contexts. For structural, water, gas distribution, and standard line pipe — modern ERW is the rational choice on cost-performance basis. The old “seamless = superior” blanket view is outdated — it dates from the era of low-frequency ERW with poor seam quality. HF-ERW with inline seam annealing and 100% UT weld inspection is a fundamentally different product

Notes from Q4 concall -

Cash on books @ 340cr. have declared a final dividend of Rs 2.5 / share in addition to Rs 2.5 / share declared earlier

Did a business of 38 cr in FY 26 in the newly launched Wires and Cables segment. Aim to clock sales of 250 cr from this segment in FY 27 and 500 cr by FY 29

Company lost sales worth 12k MTs in Q4 wrt their steel pipes division in Q4 due to the crisis in ME

Q4 volume @ 2.6 lakh MTs vs 2.37 lakh MTs clocked in Q3. FY 26 volumes stood @ 9.04 lakh MTs, up 3 pc YoY. Capacity utilisation stood @ aprox 75 pc. VAP sales @ 43 pc

Exports for FY 26 stood @ 1.36 lakh MTs. Aim to double their export sales in FY 27

Order book @ 1000 cr - led by orders from both export and domestic mkts. H1 FY 27 should see best ever VAP percentage in total product mix

Aim to sell 11 lakh MTs, a growth of aprox 21-22 pc YoY

Have grown at a brisk pace in Apr/May - should get reflected in Q1 FY 27

Have been selling 10k MT to US in last 2 months. Were not exporting to US previously. These r mostly VAP sales

Guiding for a sales and EBITDA in the range of 7400 cr and 480 cr in FY 27 - basically expecting very strong growth in FY 27 over FY 26. Aim to clock EBITDA of around 200 cr in lighting division in FY 27

Should be able to clock volumes of aprox 2.6 lakh MTs in Q1 FY 27 vs 1.8 lakh MT in Q1 FY 26

Govt spending in Jal Jeevan + Oil & Gas infra missions in FY 26 ended up undershooting the budgeted figures by a wide margin. This was one of the major reason for company’s underperformance in FY 26. The same is likely to continue in FY 27 - given the kind of stress that there is on the Govt’s finances. Company has taken this into account and has guided accordingly

GoI’s capex spends drives 28-30 pc of company’s demand in their Steel pipes division

Guiding for a consol EBITDA of 680-700 cr for FY 27 ( vs 540 cr in FY 26 )

Aim to reach a total capacity of 16 LMTPA by FY 28 and 19 LMTPA by 2030

Disc: hold a small position, not SEBI registered, biased, not a buy/sell recommendation, shall be looking out for improvements in company’s performance before adding

[ranvir]

Cello World -

Q4 and FY 26 results and concall highlights -

Q4 outcomes -

Revenues - 654 vs 589 cr, up 11 pc

Gross margins @ 47 vs 52 pc - significant GM contraction

EBITDA - 137 vs 148 cr ( margins @ 21 vs 25 pc )

PAT - 90 vs 96 cr

FY 26 outcomes -

Revenues - 2324 vs 2136 cr, up 9 pc

Gross margins @ 49.8 vs 51.7 pc, down 190 bps

EBITDA - 526 vs 555 cr, down 5 pc ( margins @ 22.7 vs 26 pc )

PAT - 332 vs 365 cr, down 9 pc

Segmental breakup of revenues -

Consumerware - 69 pc

Writing instruments - 16 pc

Moulded furniture - 15 pc

Notes from previous concalls -

Consumerware sales de-grew in Q3 due 40 pc decline in sales of Insulated Steelware products due stock outs / supply challenges ( same thing happened with Borosil ltd ) - due implementation of new BIS norms. This also had an adverse impact on EBITDA margins due operating de-leverage

Contribution from Cello brand ( acquired in Q3 - were earlier selling only the UnoMax brand ) of writing instruments should start to happen wef Q4. This should bump up this segment’s revenues in a meaningful manner wef Q4. For FY 27 - Cello + UnoMax should clock a combined revenues of 500 cr or so vs 300 cr in FY 25 !!! ( should be a meaningful trigger going forward )

By H2 FY 27 - company should start to see meaningful improvements in business momentum { due ramp up in glassware ( was running at 60 pc utilisation levels in Q3 )+ resolution of steelware bottlenecks + additional sales from Cello brand’s writing instruments }

Around 75 of products that the company sells are made in-house

Capacity utilisations in Opalware are @ 85 pc ( as on 31 Dec 25 ). Will undertake expansion only when they approach 100 pc utilisation levels

Company believes, glassware is a long term bet for the company. This category should become large over next 4-5 yrs. There r pressures from imports but their quality is sub-optimal. Once the capacity ramps up beyond 75 pc - profitability improves dramatically

The Cello brand has a much better brand equity in the writing instruments mkt vs the UnoMax brand. This also gives the company to grow aggressively in the adjoining stationery mkt. Should be a big opportunity going forward

WIM PLAST’s merger should be completed by Q1 FY 27

Revenue growth in H1 and H2 FY 27 should be in single digits and mid teens respectively. Relatively muted H1 FY 27 is due to the fact that full steelware capacities will only come online by H2 ( they ll keep coming on stream in phases ). Steelware’s initial capacities should be able to clock 300 cr kind of annual sales with an option for brownfield addition of manufacturing lines

Notes from Q4 concall -

Operating margins in FY 26 remained under pressure due - GM contraction, costs associated with operationalisation of new glassware plant, operating de-leverage due stock out situations in steelware products

Have commissioned 6 new steel bottles manufacturing lines over last 2 months ( end of Q4 and in Q1 ). Aim to commission 2 more lines in Q1

Glassware capacity utilisation remains @ 60 pc due Chinese dumping. Operating @ breakeven levels

Writing instruments witnessed a 64 pc @ 128 cr growth in Q4 due recognition of sales of Cello brand. Even without Cello brand, this segment grew in double digits on the back of pickup in exports. Confident of clocking > 500 cr in revenues from this segment in FY 27

Moulded furniture de-grew 13 pc YoY in Q4 due subdued demand trends. Have completed the merger of WimPlast with Cello World. Should see better synergies going forward

Channel wise sales mix in Q4 - Online sales @ 9, Export sales @ 8pc, Modern trade @ 8 pc, General Trade @ 75 pc

Capex in FY 26 stood @ 219 cr

WimPlast’s merger effective wef 27 May 26

Lost 25 pc sales in the Hydra Steelware segment in FY 26 - due supply constraints

Capex guidance for FY 27 @ 100 cr ( out of this 70 cr shall be towards maint capex )

Operating @ 85 pc capacity utilisation in Opalware

Aim to grow revenues by 10-12 pc in FY 27 + an EBITDA margin expansion of aprox 2 pc ( as their own steelware capacities go live )

GM compression in Q4 and FY 26 - due margin compressions in glassware ( due Chinese dumping ) + Steelware ( due domestic sourcing in response to implementation of BIS norms ) + greater sales in small appliances which are lower GM products. As steelware and glassware facilities ramp up, overall company level margins should see an expansion

All the new SS lines should have a revenue potential of aprox 300 cr

Open to acquisition opportunities - to utilise the cash on books

Loss in steelware sales in FY 26 was around 75 cr ( ballpark estimate )

The topline growth guidance for FY 27 should be achieved - as they have already taken steep price hikes ( despite tepid demand conditions )

As the utilisation of their glassware plant improves, the profitability should get a bump. Glassware plant has a peak revenue potential of 300 cr with 25 pc kind of EBITDA margin potential

Trying to reduce their dependence on the Rs 10 / pen segment. Pushing the Rs 12/15/20 price points more aggressively. Also pushing markers, sketch pens, crayons etc to improve their profitability. Cello brand ( now acquired ) has great brand equity but was being run in a suboptimal fashion. Q1 and Q4 are the best Qtrs for the stationery business

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

[ranvir]

Rainbow Children’s Medicare -

Q4 and FY 26 results and conceal highlights -

Q4 outcomes -

Revenues - 460 cr, up 24 pc

EBITDA - 145 cr, up 26 pc

PAT - 78 cr, up 38 pc

Bed capacity @ 2375, up 23 pc

IP patients @ 27.2k, up 16 pc

Deliveries @ 5.1k, up 22 pc

Occupancy @ 45 pc, down 3 pc

ARPOB @ 62.4k, up 8 pc

Mature hospital ( > 5 yrs ) occupancy @ 52 vs 50 pc ( No of beds @ 1371, flat YoY )

New hospitals ( < 5 yrs ) occupancy @ 36 vs 36 pc ( No of Beds @ 1004, up 76 pc )

Mature : New hospitals ARPOB @ 67.3k : 52.4k

FY 26 outcomes -

Revenues - 1703 cr, up 12 pc

EBITDA - 544 cr, up 11 pc

PAT - 281 cr, up 15 pc

Current bed capacity -

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

Bengaluru - 605 ( Electronic City hospital commenced operations in last week of Jan 26 and 1 more hospital @ HRBR went live in first week of May 26 ) - 6 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

Total - 23 hospitals

Upcoming bed capacity -

Coimbatore - 130 beds in H2 FY 28

Gurugram - 325 + 125 beds in H2 FY 28

Pune - 150 beds in FY 29

Bengaluru - 80 beds in FY 29

Indore - 100 beds in FY 29

Notes from previous concalls -

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

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

In the process of making a roadmap to open clinics in catchment areas to drive more traffic towards company’s speciality hospitals ( to ramp up their occupancies )

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

Notes from Q4 concall -

Net cash on books @ 575 cr - sufficient to drive all organic and inorganic growth initiatives ( as they also generate ample cash )

Capex in FY 26 stood @ 217 cr

Not looking to acquire assets below 50 beds ( with an option to expand to 100 beds or so ). Also looking to enter new micro markets

Construction of building @ Indore shall be done by company’s partner and then lease out the building to Rainbow. Company shall spend on the equipment / installations etc

IVF revenues in FY 26 stood @ 61cr. Revenues from International patients stood @ 29 cr for full FY

Also operate 3 standalone IVF centers ( 2 in Bengaluru + 1 in Hyderabad ). Rest are co-located with company’s hospitals. IVF business should keep growing @ 25 CAGR for next 3 yrs or so

Avg maint capex / yr is around 45 - 50 cr

Avg capex / new bed addition is generally @ 70 - 75 lakhs per bed

Have a very good mkt share in the super speciality paediatric / neonatal work

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

[ranvir]

Man Industries -

Company Overview and Q4 FY 26 highlights -

Company’s manufacturing capacities -

Anjar ( Gujarat ) - focussed on exports markets -

2 LSAW Lines

2 HSAW Lines

1 ERW pies unit

Anti Corrosion coating systems ( PE, FBE, CTE, PU coatings )

Total capacity @ 8 lakh MTPA

Pitahmpur (MP) - focussed on domestic markets -

HSAW Line

LSAW Line

ERW Line

PU coatings facility

Total capacity @ 4 lakh MTPA

National Pipes Company ( Dhahran, KSA ) - acquired in Q4 FY 26 ( for aprox 1000 cr ) -

HSAW and LSAW manufacturing lines

Combined facility of 4.3 lakh MTPA

Greenfield Capex @ Jammu -

To manufacture Seamless Pipes - expected capacity @ 20k MTPA @ an estimated cost of 560 cr

This plant is eligible for multiple benefits like - GST refunds ( max upto 90 cr / yr ), 6 pc interest subsidy, subsidised power

Seamless pipes have 3-4X realisations vs their existing products. Margins in Seamless pipes are also higher @ 16-18 pc kind of EBITDA

Q4 FY 26 outcomes -

Revenues - 1157 vs 1218 cr, down 5 pc

EBITDA - 147 vs 136 cr, up 8 pc ( margins @ 12.7 vs 11.2 pc )

PAT - 50 vs 68 cr, down 25 pc

FY 26 outcomes -

Revenues - 3563 cr, up 2 pc

EBITDA - 467 cr, up 31 pc ( margins @ 13 vs 10 pc - substantial margin expansion )

PAT - 170 cr, up 11.3 pc - due much higher depreciation and interest costs

Last 4 yrs annual EBITDA margins - 13 pc, 10.1 pc, 9.2 pc, 7.8 pc - very encouraging / continuously expanding trend

Primary uses -

HSAW ( Hellical Submerged Arc Welded ) Pipes - least expensive - water transmission, irrigation, sewage drainage, city gas distribution

LSAW ( Longitudinal Submerges Arc Welded ) Pipes - more expensive than HSAW - cross country oil/gas, offshore / subsea pipes, WindTower

Seamless Pipes - most expensive - Refinery process pipings, Boiler/Superheaters, HP Hydraulics, Drill Pipes

ERW pipes - made by Man are API grade pipes and not lower value add ones that r used in Tubing, Scaffoldings, Fencing etc. These r used in similar applications as LSAW / HSAW pipes but with a smaller diameter

Key competitive advantage enjoyed by Man Indus -

Pipe manufacturing + coating + bending + logistics (DDP) - they do everything. Customers don’t need multiple vendors. The upcoming coating plant in Dammam (by March 2027) will make Man fully integrated in Saudi Arabia

In essence, Man Industries is transitioning from a mid-sized Indian pipe exporter into a globally competitive, India+KSA integrated pipe manufacturing powerhouse, uniquely positioned to ride the Saudi Vision 2030 infrastructure supercycle while maintaining a strong domestic presence

In Saudi’s competitive landscape, NPC is one of the few that manufactures both HSAW and LSAW pipes under one roof — a distinction no other single entity in the market holds

Combined capacity of 1.2 million+ MTPA (India) + 430,000 MTPA (NPC, Saudi) makes Man one of the largest SAW pipe manufacturers globally. Six production lines across 3 plants (Anjar, Pithampur, Dhahran)

Notes from Q4 concall -

NPC carries a current order book of aprox 1050 cr. Company also has cash / liquid investments on books of aprox 780 cr.

Man shall be taking on debt of aprox 670 cr + shall fund 330 cr via internal accruals

Acquired NPC at Dirt Cheap valuations of 1.5X EV/EBITDA

Nippon Steel + Sumitimo Metals were the previous owners ( holding 52 pc stake ). They wanted to concentrate on their core business. Plus Man has been sourcing from them for a long time. Hence this lucrative deal was offered to them

Some thoughts ( to be taken with a rich of salt ) -

The Japanese have a strong cultural preference for selling to known, trusted counterparties rather than running competitive processes — especially for assets with deep Aramco relationships where buyer credibility matters

However, both the HSAW and LSAW plants of NPC are old ( 1980 and 2001 vintage ). Should require frequent / substantial maint capex

The Liquid assets on the books of NPC may not be as liquid. May also be linked to performance guarantees / some may be receivables etc

Back to concall -

Shall also be spending 400 cr to set up their coatings facility @ Dammam in Saudi Arabia and one at Dhahran ( co-located with NPC ). Dhahran to Damman is 14 kms by road. Coatings have EBITDA margins > 25 pc

KSA’s $ 80 billion water infra and $ 1 trillion physical infra projects are key demand drivers for NPC for next 3-5 yrs

Guiding for a consol revenue guidance of 5000 - 5500 cr for FY 27 ( out of which, 1500 cr shall come from KSA business ). This guidance doesn’t include any additional revenues / profits from Marino Shelters ( their RE subsidiary ) - doing a joint land development of 6 acres land parcel @ Navi Mumbai

Cash on books @ 657 cr

Jammu plant should go live in FY 28. First year’s capacity utilisation should be around 40 pc or so

For FY 27, estimating NPC’s Revenues @ > 1500 cr @ 15 pc + kind of EBITDA margins

Marino should generate PBT of around 70 cr each for for FY 27,FY 28, FY 29. Marino’s PBT accrual to Man Industries shall last for 5-6 yrs

Elevated other expenses due to change over from FOB to DDP model. Hence the freight / insurance / customs costs r also reflected in P&L. Consequently, revenues r also higher

Allegedly - Japanese owners were not allowed to buy Chinese steel. Hence we’re losing / declining business @ NPC. This was another reason for them selling out

The coating plant @ Dammam should go commercial by Q1 FY 28. There would be residual land left over ( for future expansions ) as this plant was originally supposed to make pipes - later scrapped due NPC acquisition

Cash on books @ NPC shall also be used for maint and plant upgrades

Expecting to clock > 6500 cr kind of revenues in FY 28

Shifted > 70 of their business to DDP model in FY 26

Capex for FY 27 should be around 700 cr ( @ consol levels ) - towards completion of Jammu and Dammam capex

Expecting Q1 FY 27 to be strong ( haven’t been impacted by war in any meaningful way )

Shall be required to spend around 50 cr / yr kind of upgradation costs @ NPC for next 3 yrs

Disc: hold a small position, may add/reduce depending on results going forward, not SEBI registered, not a buy/sell recommendation

[ranvir]

Jeena Seekho Lifecare -

Q4 FY 26 results and concall highlights -

Q4 outcomes -

Revenues - 215 cr, up 55 pc

EBITDA - 78 cr, up 70 pc ( margins @ 36 vs 33 pc )

PAT - 45 cr, up 80 pc

In Patients @ 10.9k vs 6.41k, up 70 pc

Out Patients @ 150k vs 96k, up 56 pc

FY 26 outcomes -

Revenues - 801 vs 469 cr, up 71 pc

EBITDA - 349 vs 140 cr, up 148 pc ( margins @ 44 vs 30 pc )

PAT - 222 vs 80 cr, up 178 pc

The sequential moderation in margins was largely on account of higher provisioning relating to labour code

amendments ( they took the hit in Q4 vs most other companies that took the hit in Q3 ), ESOP provisioning, and certain performance-linked bonuses paid to employees at the close of the financial year

For FY26, EBITDA margins improved to 44% compared to 30% in FY25, reflecting operating leverage, improved asset utilization, and increasing scalability across both business verticals

Company’s infra -

61 operational hospitals

58 operational clinics

2300 operational beds, 2861 total beds

No of SKUs of ayurvedic medicines that the company sells @ 330. Have been selling Ayurvedic medicines and related products since 2009

Company’s cost of new bed addition stands @ Rs 4 lakh / bed vs an allopathic hospital where this cost is usually > 50 lakh per bed

Notes from previous concalls -

Have launched 1 new OTC product ( Pet Yakrit Pleeha Suddhi Kit ) in FY 26. Has started to clock sales of Rs 10 cr / month - very encouraging response. Should launch a total of 5-6 products by Dec 26

Have opened 2 hospitals in ME. Going to open hospitals / clinics in US, 6 more in ME, Kazakhstan. International expansion should be a key focus area going forward

Company’s key focus areas wrt treatment at their hospitals include - body detox, improving metabolic and gut health, addressing joint pains, stress relief, improving immunity, improving skin conditions

Have also started diagnostic services ( via a tie-up with Chandan Healthcare ). Should be able to clock 15 cr kind of revenues from this vertical in FY 27. At present, have 34 operational centers for diagnostics. Should ramp up to 70 centers by end of FY 27

Company’s ARPOB in Q3 stood @ Rs 8400

Have entered into a distribution agreement with Entero Healthcare for distribution of their Ayurvedic medicines and OTC products. Entero’s reach covers aprox 10 pc of Indian chemists

Going to launch a herbal Multi Vitamin to cure common vitamin deficiencies in India. It’s a twice daily syrup by the name - NutriRoz. It’s being made out of 33 herbs. The addressable mkt for this is huge. Will also be launching Ayurvedic products for blood purification, diabetes, BP etc in next 1 yr

As the health insurance companies have started recognising Ayurvedic treatments - it is turning out to be a significant tailwind for the company

Have identified 15 OTC products that address a person’s day to day nutritional / wellness requirements. Have only launched 1 out of them ( 2nd launch is imminent ). These set of 15 products can really help the company ramp up its sales and profitability in a big way. These products will also include products for ppl who are pre-diabetic and pre-hypertensive. These areas have huge growth and profitability possibilities

Chandan Healthcare is Jeena Seekho’s exclusive partner for their diagnostic services. Jeena Seekho has picked up stakes in Chandan Healthcare. Chandan also gives out a percentage of revenue to Jeena Seekho for the patients referred by them

All of company’s products go through ICMR approvals before hitting the markets

Notes from Q4 concall -

Revenues from healthcare services - 385 cr

Revenues from sale of Ayurvedic products - 416 cr

Capex estimates for a typical 100 bedded hospital -

Furniture and Fixtures @ 50 - 60 lakh

Medical Equipment @ 65 - 70 lakh

Other Infra @ 250- 260 lakh

Grand total @ 3.5-4 cr or 3-4 lakh / bed

Opex estimates for a typical 100 bedded hospital -

20 Ayurveda docs

80 support staff

100 contractual staff

Total salary bill of around 55 lakh / month

10-12 lakh of monthly rental

Variable costs - 12-15 pc of monthly sales

Revenue potential from a typical 100 bedded hospital -

ARPOB @ aprox 8500 ( including panchkarma )

Avg occupancy @ say 70 pc ( after 12-18 months )

Avg monthly revenue @ 1.8 cr / month

Hospitals start breaking even @ 35-40 pc occupancies

Insurers that r now empaneled with Jeena Sikho include - ICICI Lombard, Bajaj Allianz, SBI General, HDFC ERGO, Ifco Tokio etc

33 of their hospitals r run by Franchisees. All expenses ( except Doctor’s salaries r bourne by the franchisee )

Key focus disease @ Jeena Seekho include -

Thyroid

Obesity

High Cholesterol

Depression/Anxiety

Migraine

Joint and Muscle pain

Skin care

Psoriasis

Asthma

No of operational beds should jump from 2300 to 3000 by Q2 FY 27

Company is also empanelled with CGHS, ECHS. Also empaneled with state Govts of Punjab, Haryana, UP

They made an ECL provision of 5 cr in Q4 - again, surpassing profitability

Did see some cancellations of advance bookings in Mar - due breakout of Iran war. Already seeing these preventive customers coming back in Q1

Aim to more than triple their consol ( both hospital + medicines ) sales inside next 5 yrs

Company has stopped recognising advances received ( against appointments booked ) as sales. Sales r only recognised when the patient actually receives the bill post receipt of treatment. This has also led to non-recognition of certain revenues in Q4

Adjusted for impact of new labour laws, additional bonus to employees, ECL provisions, Gratuity - EBITDA margins would ve been around 43-44 pc

Company has tied up rates of 8.8 to 9.2k / day with various health insurance companies

GoI’s Ayushmann Bharat scheme is also planning to empanel company’s Ayurvedic treatments. If this happens, company’s occupancy may just shoot up ( timely payments would still remain a concern - imho )

Company’s adv and promotions cost reduced to 8 pc of revenues from 12 pc in FY 25 - despite a steep increase in revenues - very encouraging trend

Govt sales in FY 25 was 118 cr. In FY 26, the same was at only 36 cr. They did this deliberately because of long payment cycles wrt Govt business

Two yrs back, contribution from health insurance to total revenues was 4 pc. Has jumped to 26 pc in FY 26 - very encouraging trend. This is also a proof of concept - If Insurance companies are paying up, the treatments offered by them must be really effective

Going to open 2 luxury hospitals @ Panchkula and Manali. The one @ Manali is ultra luxury

Confident of achieving a PAT of 300 cr in FY 27 !!!

Chandan Diagnostics helped them clock PAT of aprox 1 cr in FY 26 - growing @ a brisk pace

New hospitals are gonna come up in Ahmedabad, Kolkata, Patna, Lucknow, another one in Pune, adding beds in Mumbai

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

[ranvir]

V2 retail -

Q4 and FY 26 results and concall highlights -

Q4 outcomes (Pre IndAs) -

Revenues - 797 vs 498 cr, up 60 pc

Gross margins @ 30.3 vs 27.6 pc

EBITDA - 54 vs 27 cr, up 100 pc ( margins @ 6.8 vs 5.5 pc )

PAT - 25 vs 11 cr, up 120 pc ( margins @ 3.2 vs 2.3 pc )

Operating parameters -

Sales / Sq Ft - Rs 794 vs Rs 896

SSSG @ 7.7 vs 24 pc

Avg bill value - Rs 925 vs Rs 877

Avg selling price - Rs 321 vs Rs 308

FY 26 outcomes (PreIndAS) -

Revenues - 3067 vs 1884 cr, up 63 pc

Gross margins @ 32 vs 30 pc

EBITDA - 277 vs 151 cr, up 83 pc ( margins @ 9 vs 8 pc )

PAT - 162 vs 86 cr, up 87 pc ( margins @ 5.3 vs 4.6 pc )

Operating parameters -

Sales / Sq Ft - Rs 925 vs Rs 1017

SSSG @ 8.6 vs 29 pc

Avg bill value - Rs 925 vs Rs 853

Avg selling price - Rs 327 vs Rs 297

Total store count now @ 325 vs 189 on 31 Mar 25 ( very aggressive store openings in last 12 months )

Notes 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

Avg store rentals hover @ around Rs 50 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

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

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

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 )

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

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

Notes from Q4 concall -

As of end May 26, company store count has crossed 350

Did build up additional inventories in response to geo political uncertainties

Aim to open > 170 stores in FY 27 ( imo - this is both a good thing and a key risk to monitor. I hope, they keep executing despite such aggressive expansion ). Don’t need to raise capital for the moment

Shall maintain their GMs ( despite RM price hikes due war in ME ) by indulging in measured price hikes

Because of broad based commodity price hikes, capex / new store shall now be in the range of 2.7 cr

Not seeing any major impact on demand trends because of the ongoing war ( specially in tier -2/3/4 towns )

Guiding for revenue growth of 50 pc CAGR for next 2 yrs

Top 10 States wrt store count -

UP - 54

Bihar -49

Odisha - 32

MP - 23

Karnataka - 20

PB+HR+DL - 28

Assam - 24

HP + UK - 13

WB - 15

NE ( Ex - Assam ) - 8

New states shortlisted for expansion - Gujarat, AP, Goa, Maharashtra, Telangana. Should open 40 pc of new stores in these states and 60 pc of the stores in which they r already strong

Since the expansion tgts for next 2 yrs are aggressive, don’t expect a margin improvement. Margin improvements shall start only when they go slow on expansion ( imo - that should be a post 2030 kind of story )

Long term aim is to have 2500 V2 stores in India. Its a blue ocean ( as per the management )

Company categories all stores opened before Mar 24 as old/mature stores

Aim to open another 30-35 stores in Q1 ( after opening 25 odd stores in Apr - Mid May )

SSSG is calculated on stores opened before Mar 24

Guiding an SSSG of > 8 pc for FY 27

Marketing spends for FY 26 stood @ 0.5 pc of sales - mostly directed towards newer stores

Aprox 15 pc of every season is generally left unsold. The same is sold in the next season. They don’t dispose it off

It generally takes 3-4 yrs for a new store to cross PSF sales of > Rs 1100 ( super profitable territory ). These stores clock aprox 12 pc EBITDA margins vs 5-6 pc clocked by newer stores

As company’s product assortment and prices are becoming more attractive and competitive + their brand name is gaining traction - their store closure rates are falling dramatically. This is a key positive

90 pc of their sales are happening @ MRP

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

[ranvir]

Windlas Bio -

Q4 and FY 26 year end concall highlights -

Q4 outcomes -

Revenues - 238 cr, up 18 pc

Adjusted EBITDA - 33 cr, up 25 pc ( margins @ 13.6 vs 12.8 pc ) - Adjusted for an ESOP expense of 7.3 cr for Q4

Adjusted PAT - 23 vs 17 cr

Segmental performance -

CMO - 176 cr, up 20 pc

Trade generics - 46 cr, flat

Exports - 17 cr, up 67 pc

FY 26 outcomes -

Revenues - 904 vs 760 cr, up 19 pc

Adjusted EBITDA - 121 vs 97 cr, up 26 pc ( margins @ 13.4 vs 12.7 pc ) - Adjusted for an ESOP expense of 16.6 pc

Adjusted PAT - 83 vs 63 cr, up 31 pc

Segmental performance -

CMO - 664 cr, up 20 pc

Trade generics - 195 cr, up 13 pc

Exports - 46 cr, up 40 pc

ESOP expenses for FY 27, 28 and 29 are expected to be - 22 cr, 11 cr, 5 cr ( ESOP is actually a non cash expense and doesn’t affect company’s operating cash flow )

Notes from previous concalls -

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 ( went live in middle of FY 26 ) - margins ( Ex - ESOP ) should only inch upwards

Plant 6 is expected to go live in H1 FY 27 ( all six plants are located in Dehradun ). Capex spends towards this has been 60 cr

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. Ramp up of plant - 2 expansion is also under progress

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

Notes from Q4 concall -

The business generated Rs 105 Cr of net operating cash flows, enabling them to close the year with a strong net liquidity position of Rs 251 Cr

Growth is being led by ramp up of Injectables facility and Plant 2 extension

Top 10 and Top 20 customers contribute to 32 pc and 41 pc of their CMO segment’s revenues

Expecting good growth in trade generics to continue over medium and long term ( due supportive Govt policies ). Lost some sales in this vertical in H2 FY 26 due new QR Coding requirements mandated by GoI ( specially cough syrups ). Should be resolved in FY 27

Have added some non - coding requirements based cough syrups ( where the potential of misuse is lesser ) + ayurvedic cough syrups to their product portfolio

Already capable of making GLP-1 vial forms. As the volumes grow, companies may resort to outsourcing their manufacturing to CMOs like Windlas

Their export margins are much better vs Trade generics + CMO business. Once exports pick up, should be a major trigger for the company. Company is investing significant money, time and bandwidth towards accelerating their exports

There r about 1000 towns in India with populations > 50 thousand ppl where the model of MRs generating prescriptions and customers buying branded products can work. In 5lakh + villages with lesser populations, this model is not scalable. And hence, these markets r very well served by trade generics. This also gives a long runway for trade generics to keep growing for a long time. Cipla and Alkem’s trade generics are great success stories capturing these markets

Will be able to pass on the API price hikes to their customers. Will do the same in their trade generics + exports business

Should be able to clock 1200 - 1250 cr kind of peak revenues ( with plant 6 operational ). Will have to go in for organic / inorganic capex by next FY

Not present in dosage forms like ointments, eye drops, B-Lactums, steroids, soft gels, hormones. Expanding into these dosage forms should be their future growth drivers

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

[ranvir]

Sumitomo Chemicals -

Q4 and FY 26 results and concall highlights -

Q4 outcomes -

Revenues - 684 cr, up 1 pc

Gross margins @ 42.3 vs 40 pc

EBITDA - 134 cr, up 12 pc ( margins @ 19.6 vs 17.6 pc )

PAT - 112 vs 100 cr, up 12 pc

FY 26 outcomes -

Revenues - 3238 cr, up 3 pc

Gross margins @ 42 vs 41 pc

EBITDA - 671 cr, up 6 pc ( margins @ 20.7 vs 20.1 pc )

PAT - 543 cr, up 7 pc

Exports De-Grew 7 pc in Q4 and by 1 pc in FY 26. African business however did exceptionally well, going by 26 pc and 30 pc in Q4 and FY 26 respectively

Herbicides grew strongly in Q4 and FY 26, growing by 87 pc and 19 pc respectively. Metal Phosides grew by 16 pc and 11 pc in Q4 and FY 26

Product-led execution remained a key focus area during FY26. Newly launched products including Lentigo ( next generation Paddy herbicide ), Excalia Max ( next generation Fungicide for Paddy crop ), Powerpull ( broad spectrum insecticide ), Advika ( broad spectrum insecticide ), Envoy ( broad spectrum insecticide ) and Oslava ( received encouraging market response. Registration of Topgrain ( BioStimulant ) was also completed during the year - strengthening the future product pipeline

FY 26 domestic:export sales @ 79:21

Breakup of Branded:Bulk sales in domestic mkt @ 81:77

Breakup of Branded:Bulk sales in export mkt @ 40:60

Breakup of company level patented:generic mix of sales @ 29:71

Company makes 14 AIs in house, has 5 manufacturing facilities ( 3 AIs + 2 formulations ), has a field force @ 1500 employees

Key export destinations include - LatAm, Japan, Africa, Asia ( ex-India )

Notes from previous concalls -

Company continues to work towards strengthening Sumitomo Japan’s supply chains and concentrating them in India for future exports to RoW with India as a key manufacturing base

Company is in the process of registering its formulations in various export mkts. Registration of these take time ( 2-3 yrs, depending on country to country ). As these registrations keep maturing, company’s share of formulations in their export business shall improve ( this segment has better margins vs AIs ). At present, most of company’s export sales are AIs and share of Formulations in export sales is far lower

Have approved a Greenfield capex @ Dahej - to expand company’s manufacturing footprint for local and global supplies. Company is evaluating manufacturing of 7 new products ( AIs ) @ Dahej Greenfield facility. Company has submitted feasibility reports iro these products to its parent in Japan. If all are approved to be made in India ( @ Dahej ), company may incur a capex of aprox 500- 600 cr over next 3 odd years @ Dahej

Company’s semiconductor chemicals shall be used in fabrication. Company is monitoring the progress of corporates ( specially TATAs ) setting up fabrication plants in India. Once that happens, company shall begin their Semi Conductor chemicals business

Notes from Q4 concall -

FY 26 was one of the most challenging years in Indian Agrochemicals industry due persistent and prolonged rains well into Oct 25. PGRs, Biologics solutions were severely impacted. Exports were hit in Mar 26 due war in Iran. Consumption of insecticides was also affected adversely due unseasonal rains

Company’s share of revenues from Biologics @ aprox 10 pc vs industry avg of sub 5 pc. Should see accelerated growth in Biologics wef FY 27

Lentigo and Excallia Max are both patented molecules ( launched LY ) - both did exceedingly well LY

Products launched in last 3 yrs now contribute to 8 pc of their revenues

Will introduce another 2-3 patented products in India over next 1-2 yrs

Risks for FY 27 - constrained availability of Fertilizers due Iran war, El-Nino induced below normal rainfall, escalating RM prices

At present, aprox 56 pc of Indian net sown area is covered by assured irrigation facilities - making Indian agriculture relatively insulated by vagaries of weather

Have been passing on the RM prices in a calibrated manner. Demand continues to hold up in Q1 FY 27

Cash on books @ 2133 cr

India has been upgraded to same level as North America, Japan, LatAm - for testing and early stage introduction of new / patented molecules developed by company’s parent ( SCC Japan ). Have received 2 molecules for local trials. Its a very positive development

Discussing a new Royalty arrangement with their parent ( previously were not paying any royalty ) - in return for flexibility to SCIL to procure RMs/Technicals locally. At present, such arrangement will be limited to only 2-3 products

Insecticides share of company’s revenues is the highest @ 41 pc

Companys exports and RM imports are roughly equally matched @ aprox $ 70-80 million each - insulating them from currency movements

All the meetings with GoI wrt manufacturing and commercialisation of speciality chemicals for Semi Conductor manufacturings are being jointly attended by SCIL and SCC Japan. Should hear some good news in future

Custom synthesis revenues are roughly around 120 to 150 cr - company does this for their parent. Should see good growth in this segment in medium term

Committed to sustain their margins in FY 27 - despite the challenges in RM prices. Have already taken 3 price hikes post the breakout of war in the Gulf

Have deliberately over produced in Q4 - to insulate against supply shocks

Expect to launch TopGrain ( BioStimulant )+ 1 more speciality product in India in FY 27

Phase 1 of Dahej capex should cost them aprox 150 cr - to be completed over next 18 odd months. Expect a series of more announcements going forward

Company reduced its animal nutrition trading and distribution business in FY 26. Adjusted for that, their core agrochemicals business grew by 6 pc in FY 27

PGRs were affected in FY 26 due excessive rains that led to sharp decline in Grapes output. In addition, there were additional approvals as mandated by GoI for sale of PGRs in India. Company has completed most of them. FY 27 should be a good year for their PGR business

Similarly, fungicide and insecticide sales were badly affected due excessive rains

The cash on books shall be used for organic capex in both agrochemicals and semiconductor chemicals related expansion projects

In general, farmers are more concerned about electricity, fertiliser prices vs agrochemicals ( as agrochemicals r generally used at later stages when the farmer has a good visibility on the crop and their cost vs fertilisers r also lower )

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

[ranvir]

Sun Pharma -

Update on the acquisition of Organon -

Sun pharma acquired Organon Ltd for 1.12 lakh cr in late Apr 26 - in all cash deal ( shall be paying aprox 30k cr to Organon’s shareholders + shall retire their debt worth aprox 81.6k cr ). They have cash on books of aprox. They have a cash on books of aprox 30k cr. Shall take on US denominated Debt for the residual funding. The deal shall close by early CY 27

The merged entity’s combined EBITDA shall be 18k cr ( Organon’s LY EBITDA ) + 15.2 k cr ( Sun’s LY’s EBITDA )= 33.2k cr. Debt on books for the combined entity should be in the range of 81.6k cr. Annual debt repayment burden shall be around 5.7k cr ( assuming borrowing costs @ around 7 pc ). Prima facie - looks like a lucrative deal for Sun Pharma

Some highlights wrt Organon’s business -

Has 6 manufacturing sites across EU and EMs

Has 15 brands clocking annual sales > 900 cr each

Has commercialised 7 Biosimilars with revenues > 6300 cr

Has been maintaining EBITDA margins > 30 pc over last 5 yrs

Before paying interest costs, have been generating cash > 9500 cr for last 2 yrs

Organon has a proven track record of commercialising complex products like - Nexplanon ( hormone-releasing birth control implant used by women to prevent pregnancy up to 5 years ), NuvaRing ( a small flexible vaginal ring that releases a combination of estrogen and progestin to prevent pregnancy ). Naxplanon and NuvaRing have annual revenues of 9100 cr and 1080 cr respectively. Combined, they clock sales > 10k cr

Organon’s popular brands include -

Biosimilars -

Hadlima ( Adalimubab ) > $ 200 million, sells in US, Canada, Aus, Brazil, KSA

Renflexis ( Infliximab ) > $ 200 million, sells in US, Canada, Brazil, Aus

Ontruzant ( Trastuzumab ) > $ 140 million, sells in US, EU, Brazil, Canada

Aybintio ( Bevacizumab ) > $ 60 million, sells in EU, Canada

Women’s health -

Nexplanon ( contraceptive implant ) > $ 900 million, sells in US,LatAm, EU, Aus, EM

Follistim ( FSH stimulation ) > $ 260 million, sells in 90 + countries

Marvelon ( daily oral contraceptive ) > $ 130 million, sells in Asia, LatAm, EU

NuvaRing ( monthly vaginal contraceptive ring ) > $ 90 million, sells in US + EU + Aus

Ganirilex ( GnRH antagonist for IVF ) > $ 100 million, sells in US, EU, Canada, Aus, ME

Elonva ( sustained release FSH for IVF ) > $ 60 million, EU, select non US mkts

Other brands -

Vtama ( plaque psoriasis ) > $ 120 million, sells in US

Emgality ( prevents migraine ) > $ 170 million, sells in EU, Canada, ME, LatAm

Nasonex ( to treat allergic rhinitis ) > $ 300 million, sells in China, Japan, ME, EU

Singulair ( used to treat asthma ) > $ 200 million, sells in China, Japan

Arcoxia ( used to treat osteoarthritis ) > 300 million, sells in Asia, latAm, EU, ME

The combined entity is expected to produce free cash worth > 17k cr after paying annual interest payments of aprox 5.7k cr. Theoretically, Sun pharma ( combined entity ) may be able to pay off the entire debt in about 4-5 yrs

Sun Pharma’s 20 pc revenues come from innovative / speciality products. The combined entity’s share of revenues from speciality / innovative products would now stand @ 27 pc

The merged entity ( being a large one + a major player in Women’s health and Derma segments ) should get a lot of in-licensing opportunities in future. This also gives a clean entry to Sun in Biosimilars business

Notes from concall held post the acquisition -

Management sounded committed to pay down the debt as soon as possible

The combined entity shall be clocking > 1000 cr in sales in 18 countries

Innovative brands contribute to 33 pc of Organon’s revenues

Biosimilars contribute to aprox 6500 cr in sales for Organon ( growing @ a CAGR of 13 pc over last 5 yrs )

Some of Sun Pharma’s top brands include -

Illumya ( to treat plaque psoriasis ) > $ 700 million

Odomzo ( to treat basal cell carcinoma ) > $ 200 million

Cequa ( to treat dry eye disease ) > $ 150 million

Winlevi ( Anti Acne ) > $ 100 million

Levulan ( to treat keratosis ) > $ 50 million

Absorica ( anti acne ) > $ 50 million

Leqselvi ( to treat Alopecia Areata ) > $ 50 million

Unloxcyt ( cutaneous SCC ) > $ 50 million

Rosuvas ( cardiovascular drug ) > $ 50 million

Volini ( anti inflammatory ) > $ 40 million

Over and above the 15 odd innovative drugs + Biosimilars that clock > 1000 cr in sales ( each ) for Organon, they also have a set of another 50 odd very strong branded generics sold worldwide ( with healthy sales run rate ). These brands can help Sun cross sell its own brands across a wide geographical spread

Combined entity’s geographical split of revenues -

US - 27 pc

India - 17 pc

EMs - 29 pc ( includes China, LatAm, Africa, Russia, CIS, SE Asia, Eastern Europe, ME, SK )

RoW - 28 pc ( includes Western Europe, Canada, Japan, Aus, NZL, Israel etc )

Combined entity’s brand positioning wise sales -

Innovative products - 27 pc

Branded generics - 51 pc

Generics - 15 pc

Biosimilars - 6 pc

APIs - 2 pc

Sun’s entry into China via Organon is a key positive for the company. Organon currently clocks > $ 800 million in sales in China. They have 8 large brands present in China - growing in single digits. It gives a ready platform to Sun to introduce their innovative products into China. SK is another key mkt where Sun would get an entry

Aim to save costs worth > 3000 cr / yr in next 3-4 yrs !!!

Organon’s current cost of debt is around 5-5.5 pc

In-Licensing innovative drugs and Biosimilars shall be major growth drivers going forward. With the improved scale and reach, their ability to in-license and sell across the globe shall improve meaningfully. In-Licensing would require additional investments. They won’t shy away from the same

According to the management - cross selling and sales synergies opportunities in EU and EMs is a mouth watering opportunity for the combined entity. Haven’t put a number to it as yet

Aim to launch a number of brand extensions iro Organon’s established ( branded generics ) products - in order to rejuvenate their growth rates

Acquisition is going to be EPS accretive from Day 1

Sun’s innovative portfolio shall now have a wider platform ( globally ) - so they can now be commercialised in mkts where they r presently absent

Disc: studying, not SEBI registered, posted only for educational purposes

[ranvir]

Insecticides India -

Q4 and FY 26 results and concall highlights -

Q4 outcomes -

Revenues - 426 cr, up 19 pc

Gross Margins @ 30.2 vs 36.6 pc

EBITDA - 26 vs 28 cr ( margins @ 6 vs 8 pc )

PAT - 12 vs 14 cr

FY 26 outcomes -

Revenues - 2140 cr, up 7 pc

Gross Margins @ 31.5 vs 32 pc

EBITDA - 227 vs 221 cr ( margins @ 10.6 vs 11.1 pc )

PAT - 139 vs 142 cr

Cash generated from operating activities @ 100 vs 93 cr

Premium:Generic sales @ 58:42 for full FY. This ratio was 51:49 in FY 22

B2C:B2B:Export sales @ 73:22:5 for full FY

Product wise sales breakdown -

Insecticides @ 49 pc

Herbicides @ 37 pc

Fungicides @ 10 pc

Biologics + PGRs @ 4 pc

WC days @ 168 vs 172 days

No of focus Maharatna brands @ 16 ( mostly have a pan India presence )

No of Maharatna brands @ 43 ( relatively smaller, regional brands )

These Maharatna + Focus Maharatna products have gross margins > 35 pc vs 15 pc for plain vanilla generics

Manufacturing footprint -

3 - Active ingredients plants ( @ Chopanki, Sotanala and Dahej )

6 - Formulation plants ( @ Chopanki, Dahej - 1, Dahej -2, Udhampur, Samba, Sotanala )

1 - Biologics plant ( Shamli )

4 - R&D centers

Comments from previous concalls -

Dahej Technical plant went live in Q2 FY 26. Expecting good ramp up in FY 27

Sotanala AI plant expected to go live in Q4 FY 27. Sotanala Formulations plant should go live in Q3 FY 27

Most of the AIs ( > 70 pc ) that go into Maharatna + Focus Maharatna products are made in house or sourced through their MNC collaboration partners

Recent launches like - Sparkle ( Insecticide - InLicensed from Corteva - aimed at controlling brown plant hopper in paddy crops ), Centran ( broad spectrum Insecticide ), Torry Super ( post emergence herbicide ), Million ( herbicide for wheat crop ), Altair ( InLicensed from Nissan Corp, under patent - post emergent herbicide ) - are all doing well in the mkt place

Backward Integration in AI manufacturing is a continuous process that the company engages in { they keep going back in terms of performing N-1, N-2, N-3, N-4 ( and so on ) steps - in house as the molecule’s traction keeps improving }

Expanding their technicals manufacturing capacities and deepening the backward integration of technicals is a conscious decision that the company has made

Altair ( in licensed from Nissan ) and Sparkle ( in licensed from Corteva ) were launched in Q1 and Q2 FY 26. Also launched a patented mixture - Amuse ( a fungicide ) - developed in house ( only the formulation patent )

Company’s list of In-Licensed products -

From Nissan Chemical Corp - 7 ( Pulsar, Hakama, Kunoichi, Hachiman, Shinwa, Izuki, Altair )

From Corteva - 2 ( Sparkle, Granuvia )

From Nihon Nohyaku - 3 ( Suzuka, Hakko, Aikido )

From OAT Agrio - 2 ( Root Bead, Tadaaki )

American Vanguard Corp - 2 ( Thimet and Nuvan - branded generics )

Momentive - 1 ( Spread Max - its a super spreader added to the spray to improve its coverage )

Comments from Q4 concall -

Expected to launch 8th product - in licensed from Nissan in the upcoming Kharif season

Their subsidiary - Kaeros - generated a PAT of 5 cr in FY 26 ( its second year of operation ) on a revenue base of 112 cr. Expecting to double its revenue in FY 27

Have taken 2 price hikes in Q1 ( in response to RM price inflation ). First one - well absorbed. Second one needed some discounting in May. Mkt was sluggish in May due extreme heat

Should end up making some inventory gains in Q1

Clocking double digit EBITDA in Q1. Guiding for a 5 pc volume growth in FY 27

Total capex towards Sotanala AI + Technicals plant should be around 150 cr ( bulk of it has already been spent )

In Q4, premium products grew by 24 pc

Launched Granuvia ( in licensed rom Corteva ) in Q1. It’s a next gen insecticide. Shall be launching Spinoace ( bio insecticide ) and GreenMix ( herbicide ) in FY 27 - again - in licensed from Corteva

After the Sotanala projects are commissioned - their capex requirements should taper off for next 2-3 yrs

Revenues from Patented products + in licensed products @ 546 cr

Revenues from Combination products @ 324 cr

Also expected to launch another patented product in FY 27 - in licensed from OAT Agrio

LY saw substantial herbicide returns - due excessive rains ( a key drag on the Industry )

Have approved an ESOP plan to attract better talent for the company

Volume growth in Q4 and FY 26 stood @ 5 pc and 4 pc respectively

Inflation in manual labour costs is a natural tailwind for their Herbicides business. If the monsoon is descent, it should pick up meaningfully

B2B business has grown in Apr and May vs LY

Aim to ramp up export sales to 10 pc of company’s revenues in next 3 yrs ( from 5 pc @ present )

Maharatna + Focus Maharatna products contributed to 63 pc of company’s B2C sales in FY 26 ( that would be aprox 50 pc of company’s total revenues ). Aim to take this contribution up to 70 pc in next 2-3 yrs

Company is appointing a different set of Distributors for Kaeros vs IIL’s distributors. That ways - company can expand its distributor footprint, without offending the IIL distributors ( as they would ve raised concerns if IIL were to appoint their competitors as a part of company’s expansion strategy ). So basically, company shall now have 2 mother brands - Tractor ( under which all of IIL’s brands are sold ) and Kaeros

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

[ranvir]

EIH Ltd -

Q4 and FY 26 results and concall highlights -

List of the properties

Oberoi - Domestic - total of 15 properties. 12 of them are owned ( directly or via subsidiaries ) . 03 of them are managed. Total keys @ 1673

Oberoi - International - total of 6 properties. 03 of them are owned. 02 are run via JVs ( equity stake @ 50 pc and 70 pc respectively ). 01 of them is managed. Total keys @ 408

Trident - Domestic - 09 properties. 02 of the are owned ( both @ Mumbai ). 07 are managed. Total keys @ 2122

Grand total of Keys - 4209

Properties that were commissioned in last 1 yr ( included in the above list ) -

Oberoi - Khajuraho - 65 keys. Owned

Oberoi - Bandhavgarh - 21 keys. Owned

Oberoi - 02 Nile Cruisers - 14 keys. Managed

Company’s development pipeline -

FY 27 -

Oberoi Diriyah ( KSA ), 02 X Oberoi Nile cruisers - all r managed. Total of 60 + 14 = 84 rooms

FY 28 -

Trident Vizag - 150 rooms, owned via EIH Associates

FY 29 -

Oberoi Goa and Oberoi London - 90 +22 = 112 rooms, both r owned

Oberoi Clarks, Bogmalo, Nile Cruiser - 39 + 20 + 25 = 84 rooms, all r managed

FY 30 -

Trident Tirupati - 124 keys, owned

Oberoi @ Hyderabad, Khatmandu, Kabini, Hampi, Gir, Bardia ( Nepal ) - 220 + 60 + 60 + 60 + 20 + 18 = 438 rooms, all r managed

Q4 outcomes -

Revenues - 954 vs 866 cr, up 10 pc

EBITDA - 393 vs 389 cr, up 1 pc

PAT - 249 vs 262 cr, down 5 pc

Q4 occupancy @ 78 vs 82 pc

Q4 RevPar @ Rs 20.7k vs 19.3k

Q4 ARRs @ Rs 26.5k vs 23.6k

FY 26 outcomes -

Revenues - 3106 vs 2878 cr, up 8 pc

EBITDA - 1190 vs 1153 cr, up 3 pc

PAT - 657 vs 770 cr, down 15 pc ( company incurred an exceptional charge of 132 cr in FY 26 vs 28 cr in LY. 102 cr were due to settlement against Oberoi Wildflower and 30 cr due implementation of new labour code )

Cash on books @ 1335 on 31 Mar 26 vs 1051 cr on 31 Mar 25. CFO was @ 993 cr. Spent 680 cr towards capex in FY 26

FY 26 RevPar for Oberoi hotels @ Rs 22k vs 19.3k

FY 26 RevPar for Trident hotels @ Rs 11.7k vs 10.6k

Factors that impacted growth in FY 26 -

H1 FY 26 was hit by excessive rains and flooding @ Shimla, Chandigarh + Op Sindoor which affected travel and tourism across North India in May 25. In Mar 26, business was hit by West Asia crisis

Oberoi Mumbai Airport Lounge’s lease ended in FY 26

Oberoi Kolkata was under renovation for bulk of FY 26

Notes from Q4 concall -

As of the most recent reports, EIH/Oberoi Group is still running Wildflower Hall on an interim basis. The HP Cabinet approved a global online tender through MSTC (Government of India’s e-commerce platform). EIH shall also participate in the same

Business in Jan 26 was weak ( negative ARR growth ). Management couldn’t point out as to why that happened. ARR growth in Feb 26 was @ 25 pc. Saw strong demand from foreign travellers in Feb ( but not in Jan - probably due concerns over poor air quality )

Oberoi Kolkata should open in FY 28 - will add 200 rooms to company’s available inventory

With the loss of business due Oberoi Kolkata and Mumbai Lounge in base year ( FY 26 ), growth rates for FY 27 should look better from hereon

Apr and May 26 business trends have been better than company’s expectations given the disturbances in West Asia - mainly led by strong domestic demand

Revenues from flight catering business in Q4 stood @ 145 cr

Developing 7.6 million sq ft of commercial site ( office + retail ) + 01 Oberoi Hotel ( 120 rooms ) + 01 Trident hotel ( 250 rooms ) near Hebbal Lake ( Bengaluru ) - all this should go commercial in FY 31. This would be completely owned site

In Q4, 50 pc of their business is historically driven by foreign visitors

Capex projections for next 2 yrs should be around 500-600 cr / yr. Should inch higher in FY 29,30

Shall be running Wildflower Hotel till Oct 26

Trident - Nariman Point, Oberoi - Mumbai - shall undergo renovation in current FY. Trident’s renovation shall take 6 months - already on. Shall be doing the renovation @ Oberoi Mumbai - in a floor wise fashion. It has 4 floors. Both these hotels r adjacent

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

[ranvir]

Sai Silks -

Q4 and FY 26 results and concall highlights -

Company’s State wise store count + their state wise annual revenue distribution -

Telangana - 29 stores - 500 cr

AP - 24 stores - 474 cr

TN - 14 stores - 370 cr

Karnataka - 13 stores - 286 cr

Puducherry - 1 store - 21 cr

Total - 1653 cr from 81 stores ( across 24 cities )

Avg store area @ 9.7k sq ft

Aggregate retail area @ 7.84 lakh sq ft

Avg revenue / store @ 20 cr

Avg revenue / sq ft @ 1750 / month

Brand wise store count -

Vara Mahalakshmi - 38 stores

Kalamandir - 10 stores

KLM fashion mall - 19 stores

Valli Silks ( new format, launched in 2025 ) - 11 stores

Mandir -03 stores

Q4 outcomes -

Revenues - 419 cr, up 5 pc

GMs @ 42.1 vs 41.7 pc

EBITDA - 61 cr, up 5 pc ( margins flat @ 14.6 pc )

PAT - 32 cr, up 140 pc ( LY - paid deferred tax liabilities in Q4 )

FY 26 outcomes -

Revenues - 1653 cr, up 13 pc

GMs @ 42 vs 41.8 pc

EBITDA - 260 cr, up 23 pc ( margin @ 15.8 vs 14.5 pc )

PAT - 140 cr, up 65 pc ( tax rates in last FY were elevated as the company paid an extra tax of aprox 20 cr against demands made by the IT department )

Notes from Q4 concall -

Added 24k sq ft of retail space in Q4. Added 69k sq ft in FY 26

Even adjusted for elevated tax rate in LY, PAT growth was @ 35 pc

Plan to add aprox 1 lakh Sq Ft of retail space in FY 27

SSSG for FY 26 was @ 3 pc. Should be able to clock similar SSSG for FY 27

Maintaining their GMs is a top priority for the company

50 pc of their new stores addition for FY 16 happened between Dec 25 - Mar 26. Hence the employee costs and other costs were elevated in Q4

Guiding for 17-18 pc kind of EBITDA margins for FY 27

VaraMahalakshi, Valli and Kalamandir stores - should lead the expansion for the company. Not looking to add any KLM stores in FY 27

Vara Mahalakshmi stores contributed to 52 pc of company’s sales in FY 26 - Vara Mahalakshmi’s contribution to company’s total sales has been rising continiously

KLM sales de-grew by 3 pc in FY 26. Will be tinkering with KLM’s product offerings to generate growth in FY 27

State wise growth rates in FY 26 -

Telangana - 2 pc

AP - 15 pc

Karnataka - 27 pc

TN - 14 pc

Puducherry - 167 pc

Company’s SSSG and sales growth from Telangana have been under pressure because of the sales sluggishness seen by KLM mall format + 60-65 pc of KLM malls are located in Telangana. Company has been facing this issue for last 3 yrs now. Minus KLM, other formats are doing far better

Avg store sizes -

KLM malls - 18.4k sq ft

Kalamandir - 10.4k sq ft

VaraMahalakshmi - 6.5k sq ft

Valli Silks - 6k sq ft

Mandir - 9.6k sq ft

SSSG for VaraMahalakshmi format for FY 26 was in high single digits

Sarees have no issues wrt sizes + they have much longer shelf lives - a key advantage vs other / typical fashion retailers

Karnataka state and Kalamandir format ( followed by VaraMahalakshmi ) should lead company’s expansion spree in FY 27

Saw a low single digit growth in Apr 26 vs Apr 25

FY 27 has aprox 5-7 pc extra wedding days vs FY 26

Aim to clock > 15 pc revenue growth for FY 27 on the back of aggressive stores addition ( vs 13 pc in FY 26 )

VaraMahalakshmi stores clock better EBITDA margins than corporate avg

Net cash on books @ 328 cr

Current inventory @ 821 cr ( aprox 180 days of sales )

Generally, a new store matures after 18-24 months

Disc: hold a small tracking position, monitoring company’s progress, may add if company’s performance improves, not SEBI registered, posted only for educational purposes