Jyoti Resins & Adhesives Ltd

Financial performance

• FY2025-26 revenue from operations: ₹31,473.75 Lakhs, up 10.8% YoY.
• Total revenue: ₹32,631.27 Lakhs; PAT: ₹6,997.94 Lakhs.
• EBITDA: ₹9,451.79 Lakhs; margin impacted by brand investments.
• Basic EPS: ₹58.32; ROE: 27.02%.
• Net worth: ₹28,876.73 Lakhs; up 25.9%.
• Operating cash flow: ₹48.06 Crore; free cash flow ₹44.40 Crore.
• Debt-free balance sheet; treasury ₹165.93 Crore; no borrowings.
• Final dividend ₹9 per share; payout 15.4%.

Capacity and markets

• Expanded capacity to 40,000 TPA; Santej, Gujarat.
• Note 1 shows capacity 2,000 tonnes per month.
• Presence across 14+ states; 12,000 retailers; 350,000 carpenters.
• Reach in 100+ cities; 54 branches; 520+ sales executives.

Dividends & capital allocation

• Final dividend of ₹9 per equity share; record date 9 Sept 2026.
• Dividend payout around 15.4%; no reserves transferred.
• Board maintains debt-free status; treasury funds avail.

Governance & board

• Board: 6 directors; 3 independent; 1 independent woman.
• MD Utkarsh J. Patel reappointed for five years.
• WTD Jagdish Nathalal Patel reappointed for 3 years.
• Auditors: R Kabra & Co LLP reappointed to 2028.
• Secretarial auditor Utkarsh Shah & Co appointed for five years.
• Independent Directors met separately on 30.01.2026.
• Four board meetings held in FY2025-26.

Audits & internal controls

• Independent auditor's report unmodified; IFCs adequate with no material weakness.
• Internal audit by VMAN & Associates; reports reviewed by Audit Committee.
• Secretarial audit: SS-1/SS-2 compliant; no material non-compliances.

CSR & ESG

• CSR expenditure ₹0.25 crore; 2% average net profit requirement.
• Unspent CSR funds carried forward ₹1.20 crore.
• Contributed ₹0.70 lakh to Jyoti Social Welfare Foundation.
• CSR policy aligned with Schedule VII; ongoing projects.

Outlook & risks

• Outlook: target ₹500 crore revenue; 22-25% EBITDA margin.
• Risks: raw-material volatility, single-site concentration, credit risk, competition.
• Brownfield capacity addition ~1,500 tpm; greenfield ₹45 crore project.

AGM, NSE listing & investor access

• 33rd AGM on 16 Sept 2026 via VC/OAVM.
• Board approved direct NSE listing in June 2026 (subject to approvals).
• Remote e-voting window 12-15 Sept 2026.
• Record date for dividend entitlement: 9 Sept 2026.

Financial Performance

• Q1 FY27 revenue rose 17% YoY; ~10% from volumes, balance from price hikes.
• Q1 EBITDA margin 14.4% due to raw-material spike; long-term guidance 22-25%.
• Brownfield capacity expansion to 3,500 tpm; 80% complete; ready in 1-2 months.
• 3,500 tpm expansion can generate INR 600-650 crore revenue from existing plant.
• Raw-material volatility: VAM averaged 75-78 INR/kg; spiked to 170-180; now ~100.
• Advertising and branding spend targeted at 6-7% of revenue; currently ~4%.
• Employee costs rose; headcount up from 520 to 562; sales-force expansion.
• Receivables around INR 145-150 crore; aim to reach 120-130 days; bad debts under 1%.
• Carpenter base 210,000; 54 dealer meets; INR 4.5 crore dealer-meet investment.
• NSE listing in process.

Operating Update

• Current capacity utilization around 65-70% of existing 2,000 tpm.
• UP and Jharkhand expansions underway; markets into 210,000 carpenter network.
• Euro brand response encouraging; ongoing brand-building and distribution expansion.
• Capacity expansion adds 1,500 tpm Greenfield later; phased.
• Greenfield capex estimated INR 45-50 crore; 50% land, 50% construction; adds 1,500 tpm.
• Current quarter run-rate around INR 360 crore; top-line target INR 500 crore in 3-4 years.
• OEM revenue share currently ~6%; targeting 10-12%.

Balance Sheet and Cash Flow

• Debt-free; cash around INR 160 crore.
• Receivables around INR 145-150 crore; aim for a 120-day debtor cycle in 2 quarters.
• Direct-to-retailers model; about 13,000 retailers; bad debts historically below 1%.

Projects and Capex

• Brownfield expansion to 3,500 tpm; complete in 1-2 months.
• Greenfield capex INR 45-50 crore; 50% land, 50% construction; adds 1,500 tpm.
• Brownfield revenue potential INR 600-650 crore at full run-rate.

Outlook and Guidance

• FY27 EBITDA guidance 22-25%.
• FY29 revenue target INR 500 crore; 15-20% volume growth.
• OEM share to rise to 10-12%.

Q&A Highlights

• Q&A confirms 3,500 tpm brownfield; INR 600-650 crore revenue from existing plant.
• Q2 margins may not sustain 28-29%; volatility in raw materials.
• Current utilization around 60%; 3,500 tpm online soon.
• Receivables cycle target 120 days; normalization in 2-3 quarters.
• NSE listing in process; Big Four auditor discussions ongoing.

Filing status

• Audio recording of conference call on Q1 and FY 2026-27 results is available.

Business Overview

• Core business: synthetic resin wood adhesives under Euro 7000 brand.
• Asset-light model with high ROCE and low capex intensity.
• Strategic goal: lead India's wood adhesives retail segment.
• Current plant: Santej, Ahmedabad, capacity 2,000 TPM (24,000 TPA).

Operational Highlights

• Q1 FY27 revenue at ₹877.1 mn, up 17% YoY.
• Q1 EBITDA ₹126.6 mn; EBITDA margin 14.4%.
• Gross margin 59% in Q1, down from 72.5% prior year.
• Jharkhand market entry completed in Q1 FY27.
• Sales force expanded to 562 from 525.
• Registered carpenters: 2,10,000; carpenters touched: 3,50,000+.
• Presence in 15 states; 54 branches; 65 distributors.
• Odisha targeted as state for Q2 expansion.
• Q2 EBITDA margin expected to be 23-25% with price hikes.

Financial Performance

• Q1 net sales ₹877.1 mn; PAT ₹117.5 mn; PAT margin 13.4%.
• Annual FY26 net sales ₹3,147.4 mn; EBITDA ₹849.5 mn; EBITDA margin 27%.
• FY26 PAT ₹699.8 mn; PAT margin 22.2%.
• FY26 total equity ₹2,887.6 mn; total assets ₹4,255.9 mn.
• Cash & cash equivalents ₹394.8 mn; investments ₹468.6 mn.
• Net debt negative; company remains debt-free since FY18.

Capital Structure & Liquidity

• Net debt negative since FY18; no external debt raised.
• Internal accruals funded brownfield and greenfield capex; no external funding.
• Liquidity supported by cash and investments, with steady operating cash flow.

Strategic Priorities & Outlook

• Long-term EBITDA guidance: 23-25%.
• Path to ₹500+ Cr revenue; ₹1,000 Cr revenue vision enabled by expansions.
• Greenfield Phase 1: 1,500 TPM; capex ₹45-50 Cr; expandable to 5,000 TPM.
• Brownfield expansion: 2,000→3,500 TPM; ~₹7-8 Cr capex; funded internally.
• Capex potential around ₹600 Cr for scale-up.

Risks & Mitigation

• Raw material prices remain elevated; inventories built to mitigate shortages.
• Q2 seasonality: monsoon quarter; activity typically softer.
• Price increases already implemented in Q1 to offset costs.

Governance & Leadership

• MD: Utkarsh Patel; Chairman: Jagdish N Patel.
• Brand ambassador: Pankaj Tripathi.
• IR advisory: KAPT I FY Consulting.

Financial results

• Revenue from operations: ₹8,771 lakh in Q1 FY2026.
• Total income: ₹9,102 lakh for quarter ended June 30, 2026.
• PBT ₹1,546 lakh; tax ₹371; PAT ₹1,175 lakh.
• Cost of materials ₹5,221 lakh; changes in inventories ₹(1,628) lakh; employee cost ₹1,065.
• Depreciation ₹51 lakh; other expenses ₹1,202 lakh; total expenses ₹7,556 lakh.
• Earnings per share (continuing operations): ₹10 basic.
• Board approved unaudited results; Limited Review Report by R Kabra & Co LLP.
• Single segment; segment reporting not applicable.
• Equity capital ₹1,200 lakh; Other equity ₹25,996 lakh.
• Board meeting on 11 Aug 2026.

Meeting Details

• Date: 13 August 2026; Format: Group/One-On-One investor meeting.
• Organizer: Equirus Institutional Investor; Place: Mumbai (physical).

Participants

• Managing Director to participate as company representative.

Purpose

• Investor meeting to discuss company updates with Equirus.

Additional Notes

• No unpublished price sensitive information will be shared during the meeting.

Meeting Details

• Date and time: Tue, 11 August 2026 at 05:00 PM IST
• Type and mode: group conference call; virtual via Zoom
• Event: Q1FY27 Post Earnings Conference Call organized by Jyoti Resins & Adhesives
• Recording: call will be recorded

Participants

• Management team represented by Managing Director and Chief Operating Officer

Purpose

• Discuss Q1 FY27 results in post-earnings conference format

Additional Notes

• Joining details sent to registered email after registration

Meeting Details

• Board meeting on 11 August 2026 at the Registered Office.
• Time of meeting not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone financial results for Q1 ended 30 June 2026 and ratify Limited Review Report.
• Discuss any other business with permission of the Chair.

Other Notes

• Trading window closure periods not specified.

Resignation of KMP

• Resignation of Ms. Tejal Varde as Company Secretary & Compliance Officer, effective 10 July 2026.
• Reason for resignation: personal reasons.
• Resignation letter enclosed; company to file intimations with stock exchange and ROC.