Tarsons Products Ltd

Financial Performance

• Consolidated revenue: Rs 110.2 crores in Q1 FY'27, up 20.7% YoY.
• Standalone revenue: Rs 86.1 crores in Q1 FY'27, up 21% YoY.
• Domestic sales grew 17% YoY.
• Exports grew 29% YoY; order visibility improving.
• Standalone gross margin: 67.1% in Q1 FY'27.
• Consolidated EBITDA: INR 26 crores; EBITDA margin 23.6%.
• Cash profitability: INR 25.6 crores in Q1 FY'27; up 18% YoY.

Operating /Segment Update

• Domestic demand revival with broad momentum across end-use industries.
• Export rebound; 29% YoY growth; recovery in customer inquiries and orders.
• Nerbe Germany subsidiary revenue ~6% YoY in constant currency.
• White labeling to be a key export growth driver.
• Panchla facility: remaining lines commissioning; full commissioning in Q2 FY'27; H2 revenue contribution.
• Panchla revenue in Q1 mainly from existing products/capacity expansions; no cell culture revenue yet.
• Glass vs plastics cannibalization not central; market remains differentiated by quality and price.

Balance Sheet & Cash Flow

• Gross debt ~INR 380 crores; net debt ~INR 330-340 crores.
• Standalone depreciation this year ~INR 24.5 crores (Panchla 14, Amta 4).
• CWIP ~INR 160 crores; capex advances ~INR 20 crores.
• Depreciation for full year expected around INR 105 crores.
• Cash profitability for Q1 FY'27: INR 25.6 crores; up ~18% YoY.
• Debt-reduction target: ~INR 40-50 crores year-on-year.

Projects & Capex

• Four-year CAPEX program; large-scale capacity expansion; substantial portion commissioned.
• Remaining facilities to be fully commissioned in Q2 FY'27; revenue contribution from H2.
• Panchla & Amta to contribute 20-25% of standalone revenues in FY'28.
• Incremental revenue potential from CAPEX: around INR 400 crores on fixed asset basis.
• Peak sales potential from entire CAPEX plan: INR 750-800 crores.
• Fixed asset turnover target ~0.8x; maintenance capex guidance ~INR 20-25 crores per year.

Outlook & Guidance

• FY'27 growth trajectory around 15% (Q1 exceeded ~15%); domestic near late-single-digits, exports improving.
• Panchla/Amta revenue share of standalone in FY'28: 20-25%.
• New products and cell culture ramp expected to contribute meaningfully in FY'28; 65-70 crores full-year from entire new portfolio.
• Maintenance CAPEX expected at ~INR 20-25 crores annually; no major new CAPEX this year.
• Tariffs ~10% may impact exports; currency depreciation supports realizations in international markets.

Q&A Highlights

• Export strategy: Tarsons positioned as lean, quality-led; competition from global peers; breadth of portfolio matters.
• Panchla commissioning delay: scale and external engineering teams finalizing machines; revenue from Panchla includes existing lines.
• Debt plan: target ~INR 40-50 crores reduction; no major CAPEX planned; maintenance CAPEX only.
• CAPEX ramp timing: Panchla/Amta revenue begin in H2 FY'27; full ramp by FY'28.
• Tariffs & exports: 10% tariffs cited; inquiries up; logistics and input costs remain hurdles.
• GEM portal impact: government-volume share decreased; rate contracts phased into GEM bidding.

Meeting Details

• Date of investor conference call: August 11, 2026.
• Type: group investor conference call; mode: virtual.
• Organizer: Tarsons Products Limited.
• Key participants: CFO; Company Secretary & Compliance Officer.
• Purpose: discuss Q1 FY27 unaudited results (quarter ended June 30, 2026).
• Recording available: audio recording uploaded on the company website; transcript to be shared with exchanges and uploaded.

Business Overview

• Tarsons is a leading Indian labware company designing, manufacturing and marketing consumables and benchtop equipment.
• Diversified portfolio with 2,000+ SKUs across 350 segments and pan-India distribution.
• Expanded capacity across six own/leased facilities with Amta and Panchla scaling.
• Nerbe Hamburg acquisition to bolster overseas distribution and ODM capabilities.
• Strategy emphasizes branded and ODM sales, Make in India domestic focus, targeting 120 countries in 5–10 years.
• Target export expansion to ~120 countries over 5–10 years.
• Management team comprises Promoter Aryan Sehgal, experienced independent directors, and seasoned CFO.

Operational Highlights

• Q1 FY27 standalone revenue grew 17% YoY, supported by broad demand revival.
• Exports revenue grew 29% YoY in Q1 FY27 after geopolitical pressures.
• Amta facility started commercial supplies; Panchla cell culture lines expected by end of Q2 FY27.
• Revenue from Amta capacity commenced in Q4 FY26; Panchla capacity to support cell culture product lines.
• Nerbe acquisition strengthens overseas reach; 40+ countries served via 45 distributors.
• Expanded product portfolio with cell culture and robotic consumables; ongoing automation investments.

Financial Performance

• Q1 FY27 standalone revenue 86.1 cr; EBITDA margin 24.2%; PAT 0.7 cr.
• Q1 FY27 consolidated revenue 110.2 cr; EBITDA margin 26.0%; PAT -1.4 cr.
• Standalone PBT 0.9 cr vs 4.8 cr prior; consolidated PBT -1.3 cr vs 3.0 cr prior.
• Standalone PAT margin 0.8%; consolidated PAT margin -1.3%.

Capital Structure & Liquidity

• No debt or equity actions disclosed in this quarter's update.

Strategic Priorities & Outlook

• Focus on expanding product portfolio and manufacturing capacity to sustain growth.
• Accelerate export expansion through branded and ODM channels; entry into cell culture products.
• Target export reach to ~120 countries over 5–10 years.
• Continue automation to improve productivity and reduce human error.

Risks & Mitigation

• Raw material price pressures and supply chain disruptions impacting margins; mitigated by capacity expansion and automation.
• Geopolitical tensions affecting exports; diversified markets and product segments to mitigate.

Governance & Leadership

• Promoter-led management with Aryan Sehgal as Whole Time Director; CFO listed; board includes independent directors.
• Nerbe acquisition integrated within governance considerations; experienced board members from ADV Partners.

Board results & review

• Board approved standalone and consolidated Q1 FY27 unaudited results for quarter ended 30 Jun 2026.
• Price Waterhouse Chartered Accountants LLP reviewed results with an unmodified conclusion.
• Consolidated results include Tarsons Life Science Pte Ltd (Singapore) and two indirect German subsidiaries.
• Standalone revenue from operations ₹861.47 million; standalone EPS ₹0.13 (basic and diluted).
• Group is a single-segment business: plastic laboratory products and scientific instruments.
• New Labour Codes framework discussed; past service costs recognized in prior periods.

AGM timings & governance

• 43rd AGM to be held via VC/OAVM on Sep 24, 2026 at 12:00 IST.
• Cut-off date for e-voting fixed at Sep 17, 2026.
• Annual report and AGM notice to be shared with exchanges and members in due course.
• Company website tarsons.com will host notices and related material.

Subsidiaries & business model

• Tarsons Life Science Pte Ltd, Singapore; Nerbe GmbH & Co. KG, Germany; Nerbe R&D GmbH, Germany.
• Consolidated results include subsidiaries; two interim subsidiaries not material to the group.
• Tarsons is primarily engaged in manufacturing and selling plastic laboratory products and scientific instruments.
• Ind AS 108 recognizes a single operating segment for Tarsons.

Demat/remat reporting status

• Details of dematerialised/rematerialised securities during the period were furnished to all stock exchanges.
• NSDL and CDSL registrars certify details were furnished to stock exchanges.
• Quarter ended June 30, 2026.

FY26 results

• Q4 FY26 consolidated revenue was ₹120.9 crore, up 7.3% year-on-year.
• FY26 consolidated revenue was ₹422.5 crore, up 7.7% year-on-year.
• Standalone Q4 FY26 revenue was ₹97 crore, up 4.4% year-on-year.
• Standalone FY26 revenue was ₹332.9 crore, up 6% year-on-year.
• Consolidated Q4 FY26 EBITDA was ₹34.3 crore, with 28.3% margin.
• Consolidated FY26 EBITDA was ₹117.9 crore.
• Standalone Q4 FY26 PAT was ₹5.5 crore; FY26 PAT was ₹22.7 crore.
• Consolidated FY26 adjusted cash PAT was ₹112 crore, up 21.4% year-on-year.

Drivers and outlook

• Domestic revenue grew 11.7% in Q4 FY26, while exports fell 13.4%.
• Export weakness was linked to Middle East disruption, tariffs, freight costs, and shipment delays.
• Gross margin was hit by February-March raw material spikes and supply-chain disruption.
• FY26 gross margin stayed around 71% to 72% overall.
• Higher depreciation and interest from new capex reduced PAT in Q4 and FY26.
• Management expects the full capex program to be commissioned in H1 FY27.
• Management expects operating leverage to improve margins as new facilities ramp up.
• Cash flow from operations improved to ₹118 crore from ₹114 crore.

Capex and balance sheet

• ₹158 crore of CWIP remains and will move to fixed assets in FY27.
• Standalone depreciation is expected at ₹105 crore to ₹110 crore in FY27.
• No major additional capex is planned beyond completion and maintenance.
• Maintenance and required commercial capex are expected at about ₹20 crore in FY27.
• Management wants debt to stay below 2x EBITDA in an ideal scenario.

Q&A Highlights

• Analysts asked about export competition; management said Tarsons faces price pressure from Indian and Chinese players.
• Analysts asked about domestic distributors; management said most lab consumable companies use exclusive channels.
• Analysts asked about FY27 depreciation; management said standalone depreciation should peak at ₹105 crore to ₹110 crore.
• Analysts asked about FY27 capex; management said there is no major capex beyond completion and maintenance.
• Analysts asked about cell culture ramp-up; management said meaningful scale-up should start around FY28.
• Analysts asked about export growth; management said raw material inflation and geopolitics limit visibility.
• Analysts asked about pricing; management said prices are being raised gradually, product by product.
• Analysts asked about inventory and supply; management said raw material availability remains an industry-wide issue.
• Analysts asked about margins in Q1 FY27; management said gross margin should not fall below 65%.
• Analysts asked about new markets; management said focus remains the U.S. and Europe, with Asia and Latin America growing.

Appointment of Senior Management Personnel

• Mr. Mani Kalyan Dusi appointed Head – Revenue (India & APAC), Senior Management Personnel
• Effective on or before May 20, 2026
• Mr. Dusi has 18+ years experience in life sciences and pharmaceuticals across APAC
• Currently Associate Director and Head – Commercial Enablement (APAC) at Merck Life Science
• Expertise in commercial leadership, strategic marketing, GTM strategies, and P&L management
• Holds M.Sc. in Biochemistry and executive leadership education from INSEAD
• No disclosed relationships with other directors or management