The company has announced that it will consider the proposal for buyback of shares along with the Quarterly results , in the board meeting on 03 August . This will be the Third buy back undertaken by the company ( but the first one after spilt of shares has taken place).
Sharing the latest investor presentation
https://www.bseindia.com/xml-data/corpfiling/AttachLive/fe9af0f1-c123-4964-a8a1-216792f89924.pdf
Building on the margin/crude-price correlation discussed earlier in this thread and the Panama Petrochem comparison from previous posts, a few things I couldn’t find anywhere in the last 4 ARs or the FY26 investor deck:
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Ester revenue split: Company reports only 2 segments (petroleum specialty + wind power) in the audited financials, so Transformer Oil/White Oil/Ester products are all clubbed together. Synthetic ester plant at Mahad has disclosed initial capacity of ~3,000 MT (AR24-25) vs total FY26 volume of ~5,13,000 KL, so ester looks like <1% of volume today even with all the “platform” messaging. Anyone have an actual ester-attributable revenue number, from an AGM Q&A or elsewhere?
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Is the FY26 recovery (EBITDA/KL from 3,691 in FY25 to 4,555 in FY26) purely the crude/base-oil cycle turning, or is there a mix-shift component from ester/premium products showing up already? FY22 EBITDA/KL was 9,137 for reference , still a long way from that even after the “record” FY26.
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BRSR disclosure (AR25, Principle 2) shows % of R&D/capex directed to ester tech at 1.61% in FY25 vs 0.60% in FY24 of what’s already a small total R&D base. Does this match the scale of investment behind the ester/EV-cooling/data-centre-cooling narrative, or is this BRSR line measuring something narrower (e.g. only incremental capex, not full plant/opex spend)?
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Given state utility/discom procurement is heavily L1-tender driven, has anyone seen ester fluid actually specified as a requirement (not just an option) in any recent POWERGRID/discom tender? Feels like the swing factor for how fast the domestic ester story scales vs. it staying an export/industrial niche.
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On the moat question, company claims to be “one of the only global manufacturers” spanning mineral + natural ester + synthetic ester. Has anyone benchmarked this against M&I Materials (Midel) or Cargill (Envirotemp FR3) specifically, beyond the Panama Petrochem comparison already discussed here?
Disc: Tracking, no position yet.
The Q1 results declared today have been splendid in the entire company’s history. The operating profit margins ( OPM) which were always in the range of 4 - 6 percent have jumped to 25 percent. The revenues have grown to Rs 1480 Cr a major 40 percent leap YoY. As a result of increased revenues improved OPM the NP has zoomed to Rs 288 Cr a 5 fold jump YoY and 6 times increase QoQ. Incidentally the NP for the entire FY 2025 - 26 was Rs 182 Cr. So Q1 has surpassed the NP of the previous FY. Worth while to see what happens in balance of the FY 2026 - 27.
The management does not hold any Concall hence any clarification will only be available in the forthcoming AGM or the investor presentation. It will be interesting to witness the share price & volumes in the days ahead. A small equity base of just Rs 14 Cr and public share holding of 16.86 percent translates to just 33500 odd share holders. See the results attached.
Disc - Holding a reasonable qty since past few years , hence biased.
SOTL.pdf (181.7 KB)
New presentation posted today. Management quote - “We are pleased to report a record quarterly performance, with total income growing 49% YoY in Q1FY27 and PBT rising 435%. This performance was supported by double-digit volume growth in the Lubricant and Export divisions. We expect the export demand to remain buoyant in the coming quarters as well. The Company’s newly launched portfolio of Ester based fluids is rapidly gaining traction with several significant important OEM approvals and we remain very optimistic about the future growth volumes for this range. The Company is now focused on developing innovative new products to address the emerging opportunities in Data Centres, Energy Storage and Electric Vehicles—sectors that are expected to offer substantial growth prospects in the years ahead.”
Savita seems to be on track to beat its covid era record annual profits (FY21 EPS - 31.81, FY22 EPS - 37.70). Q1 EPS was 42 !
savita-pres-sep1.pdf (7.5 MB)
Company has not disclosed if (or how much) the better margins are partially because of inventory gains.
I was going through their Other Expenses and found they are paying royalty As a % of sales its around 3.5% (10yr). I couldn’t find any data related to it in the annual reports. Does anyone have any idea about this part who exactly are they paying royalties? in my AI search it said they had a co-branding arrangement with Hero Motocorp but there is no way to confirm that from public disclosures by company