Platinum Industries Ltd

Financial Performance

• Consolidated revenue: INR 108.9 crores in Q1 FY27 vs INR 115.4 crores in Q1 FY26.
• EBITDA: INR 13.44 crores; margin 12.34%.
• PAT: INR 11.13 crores; vs 13.07 crores prior year.
• EPS (Basic & Diluted): INR 2.03 per share.
• Standalone revenue: INR 110.4 crores; YoY +7.3%.
• Standalone EBITDA: INR 12.85 crores; margin 11.64%.
• Standalone PAT: INR 9.58 crores.
• IPO proceeds utilized in Q1: INR 15 crores.
• Cumulative IPO proceeds utilization: INR 165.9 crores; unutilized: INR 45.9 crores.

Capacity Expansion and New Projects

• Palghar ramp-up to 60k tpa; stearates 6k tpa start Sep/Oct 2026.
• Egypt project: 60k tpa; 3-year revenue potential 250-300 crores.
• Oleo: seed marketing; manufacturing in ~1.5 years; exports to Malaysia and Turkey.
• Metallic soap plant ready by Sep/Oct 2026; delay from August.

Oleo and CPVC Outlook

• Oleo FY27 revenue target: INR 65-70 crores.
• Oleo 3-year revenue target: INR 150-200 crores.
• CPVC margins currently ~18%; target 20-21% by Q4.
• Freight disruptions limit pass-through; normal scenarios allow price pass-through.
• Lubrizol/Grasim CPVC capacity supports additives; no direct threat to Platinum.

Guidance and Outlook

• FY27 revenue growth target: 40%; on track despite war-related softness.
• Egypt and Palghar to contribute meaningfully from FY28.
• Three-year CAGR top-line around 35% with commensurate profitability.
• Capex funded via IPO proceeds; disciplined capital allocation.

Q&A Highlights

• Pipe demand degrew in July–August; expected rebound from August through December.
• Oleo Q1 revenue: INR 5.3 crores; FY27 target 55-60 crores by year-end.
• CPVC margins: 18% now; target 20-21% by Q4; freight costs pressure margins.
• Metallic soap plant: ready by Sep/Oct 2026.

Meeting Details

• Earnings Call recording held on 11 August 2026 at 03:00 p.m. IST.

Availability

• Recording available on the company website.

Participants

• Key company participants not disclosed in filing.

Purpose

• Record of earnings call for investor access.

Issue Overview

• Type: IPO; securities: Equity shares.
• Total issue size and net proceeds disclosed; no undersubscription noted.
• Objectives: funding capex for two facilities, working capital, and general corporate purposes.

Utilisation of Proceeds

• Utilisation is as per disclosures; no material deviations.
• Delay in implementation due to regulatory approvals; to be utilized in FY2027.
• Egypt facility: partial utilization; remaining funds pending regulatory approvals.
• Palghar facility: majority utilized.
• Working capital: substantial utilization.
• GCP: nearly complete.
• Unutilised funds parked in fixed deposits and in the Egypt entity account.

Governance and Compliance

• Approvals: Egypt approvals obtained; Palghar approvals pending (fire NOC, weight & measure).
• Regulatory delays noted; no other material events reported.
• Board comments: sections not reviewed by MA.

General Corporate Purpose (GCP)

• GCP usage: funds largely utilized; unutilised balance remains; board approval not explicitly recorded.
• Unutilised GCP balance exists.

Business Overview

• Manufacturer of PVC/CPVC additives, stabilizers, metals soaps, and lubricants with Palghar base and Egypt expansion.
• Strategic multi-regional expansion to access USA, Middle East, and Europe via India and Egypt hubs.
• Targeting a high-margin export platform from Egypt to drive FY28 growth.

Operational Highlights

• Egypt plant capex ₹68 crore; 60,000 TPA capacity; commercial production targeted by Dec 31, 2026.
• Strategic location advantages: QIZ duty-free USA and FTAs with key South American markets.
• Palghar CPVC lead-free capacity 60,000 TPA; ramp-up began Aug 8, 2025; further May 21, 2026.
• Total India capacity to 85,000+ TPA post ramp-up.
• NSF certification for CPVC Uni Pack; DSIR recognition for in-house R&D.

Financial Performance

• Standalone Q1 FY27 revenue 1,103.8 Mn; gross margin 26.8%; EBITDA 128.5 Mn; PAT 95.8 Mn; PAT margin 8.7%.
• Consolidated Q1 FY27 revenue 1,089.4 Mn; gross margin 28.3%; EBITDA 134.4 Mn; PAT 111.3 Mn; PAT margin 10.2%.
• YoY: standalone revenue +7.3%; PAT −23.4%; margins declined.
• Consolidated revenue −5.6% YoY; EBITDA −11.3%; PAT −14.9%.
• FY27 revenue growth target >40%; 35% CAGR FY26–FY29.

Capital Structure & Liquidity

• Standalone borrowings declined from 16.9 to 13.6; current borrowings 3.0 to 3.4.
• Cash & cash equivalents rose from 59.5 to 120.2; consolidated cash from 123.4 to 628.9.
• Total equity increased; non-controlling interests remain modest in consolidated figures.

Strategy & Outlook

• Egypt facility to access Middle East, North Africa, South America; Europe/USA expansion planned.
• R&D ~1% of revenue; focus on lead-free and organic stabilizers; DRFRANK partnership.
• Target global leadership by 2030; multi-regional hubs; high-margin export platform.
• ESG focus: zero discharge, governance, certifications.

Risks & Governance

• Execution ramp-up risk in Egypt; mitigated by de-risked economics and track record.
• Regulatory/geopolitical risks in cross-border expansion; mitigated by regional hubs.
• DSIR registration for R&D; NSF certification; SEBI governance compliance emphasized in ESG.

Cost Auditor Appointment

• Board approved appointment of Ashish Bhavsar & Associates as Cost Auditor.
• Effective date: 10 August 2026.
• Term: financial year 2026-27.
• Firm profile: Cost accounting firm, FRN 000387.
• Reason: to audit cost records for FY 2026-27; AGM remuneration.
• Disclosure of relationships with directors: Not Applicable.

Certificate details

• Certificate under Regulation 74(5) issued for reporting quarter by the RTA; certificate enclosed.

Volume Movement Clarification

• Complies with SEBI LODR Reg 30 and discloses all material events.
• No material information withheld that could affect price or trading volume.
• Volume movement deemed market-driven and not due to company-specific disclosures.
• Acknowledges submission of clarification letter to BSE on 7 July 2026.

Business

• Manufacturer of PVC and CPVC additives, metal soaps, lubricants, and specialty chemicals.
• Serves 30+ countries from Palghar, Maharashtra, with India and Egypt growth hubs.
• Third-largest PVC additives player in India, with about 13% market share.

Operations

• Palghar CPVC commercial operations began; remaining facility expected to start shortly.
• Egypt plant is targeted for commercial production before 31 December 2026.
• Egypt facility planned at 60,000 TPA with total capex of about ₹68 crore.

Financials

• FY26 standalone revenue rose 33.7% to ₹4,343.6 million; PAT rose 9.6% to ₹535.3 million.
• FY26 consolidated revenue rose 14.8% to ₹4,504.4 million; PAT rose 3.7% to ₹512.3 million.
• Standalone FY26 EBITDA was ₹602.3 million, with 13.9% margin; consolidated EBITDA was ₹598.5 million, with 13.3% margin.
• Q4FY26 standalone revenue grew 60.4% YoY to ₹1,319.9 million; PAT rose 151.9% to ₹159.5 million.
• Q4FY26 consolidated revenue grew 36.8% YoY to ₹1,320.1 million; PAT rose 164.8% to ₹148.4 million.

Balance sheet

• Standalone total equity increased to ₹4,337.4 million in FY26 from ₹3,766.8 million.
• Standalone cash and cash equivalents rose to ₹120.2 million; bank balances outside cash fell to ₹319.5 million.
• Consolidated cash and cash equivalents increased to ₹628.9 million in FY26.
• Borrowings remained low, with standalone non-current borrowings at ₹13.6 million and current borrowings at ₹3.4 million.

Outlook

• Management expects revenue growth above 40% in FY27 and 35% CAGR through FY29.
• Growth drivers include Egypt ramp-up, Palghar utilization, geographic diversification, and new product launches.
• Egypt is expected to unlock export access to the Middle East, North Africa, South America, Europe, and the USA.

Risks

• Management highlighted regulatory, political, economic, and technological risks in forward-looking statements.
• Execution risk remains around commissioning and ramp-up of new Egypt and Palghar capacities.

Governance

• Bhagyashree Mallawat signed the filing as Company Secretary and Compliance Officer.
• The presentation lists Krishna Rana as CMD and Ashok Bothra as CFO.