Technocraft Industries (India) Ltd

Financial Performance

• Consolidated quarter: Scaffolding revenue Rs 240 crores; Mach One (Aluminium) revenue Rs 165 crores.
• Drum Closure EBIT margin reached 43% in the quarter.
• Sustainable margin guidance: Drum Closure ~ upwards of 30%.
• Unallocated MTM gains around Rs 27 crores in this quarter.
• Tariff refunds: majority in Scaffolding quarter; about USD 3 million.

Operating Update

• Aluminium Extrusion plant now running at 100% capacity; impact: EBIT improvement due to pricing.
• Mach One volumes: YoY decline; QoQ slight uptick; focus on profitability and select customers.
• Defence JT Cooler: orders from Israel; small order ~Rs 20 crores; margin ~15% for JT Cooler.
• Europe: B certification enabled selling for 2 quarters; market remains slow.
• Scaffolding demand driven by US activity since January; pipeline appears sustainable.

Capacity and Raw Materials

• Mach One extrusion capacity: 75-80% utilization; Scaffolding: ~95% utilization.
• Extrusion plant: 100% utilization; capacity expansion options being studied; lead times short (up to 3 months).
• Aluminium Formwork: 100% backward integrated; in-house aluminium extrusion requirement fully met.

Capital Expenditure and Projects

• This year: no significant CAPEX planned; maintenance CAPEX across divisions.
• CSN plant CAPEX completed in 2024-25; Phase 2 planned sometime next year.
• Aurangabad capacity expansion: Phase 2 planned next year.

Balance Sheet and Cash Flows

• Fabric division shutdown: working-capital release ~Rs 75-80 crores; machinery sale ~Rs 25-30 crores.
• Europe/defence: Canister orders ~Rs 10 crores; JT Cooler defence orders ~Rs 20-21 crores total.
• Tariff refunds: US$ ~3 million; majority in Scaffolding quarter.

Guidance and Outlook

• Scaffolding sustainable margin guided around 15%; actual 16-17% in current quarter; no revision.
• Engineering Services sustainable margin guided around 14-15%.
• Drum Closure sustainable margin guided around 30%.

Q&A Highlights

• JT Cooler development: fully developed; DRDO and Israel approvals obtained.
• Tariff headwinds: Scaffolding faces 50% tariff; China faces 75%; China price advantage ~25%.
• US demand for Scaffolding remains robust; volumes to be sustained over next 2 quarters.
• Defence product strategy: orders flow through DRDO-led processes; multiple products under development.
• Fabric closure: Yarn profitable (~13% EBITDA last quarter); Garment loss being restructured; break-even targeted in 2 quarters.

Meeting Details

• Communication date: August 17, 2026.
• Event: audio recording of investor/analyst concall on quarterly results (Q1 FY27).
• Organizer: Technocraft Industries (India) Limited.

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Discloses audio recording of investor/analyst concall on Q1 FY27 results (quarter ended June 30, 2026).

Additional Notes

• Audio recording of the concall is available; link provided in filing.

Business overview

• Core businesses: Drum Closures, Scaffolding & Formworks, Textile, Engg & Designing, plus Techno Defence.

Operational highlights

• Consolidated revenue Apr-Jun 2026: 80,497; total revenue 84,536 INR Lakhs.
• EBITDA (before exceptional) Apr-Jun 2026: 21,802; margin 27%.
• EBIT Q1 FY27: 18,913; margin 23%.
• Segment revenues Apr-Jun 2026: Scaffoldings 40,508; Drum Closures 19,718; Textiles 13,632; Eng & Designing 7,774.
• Drum Closures volume: India+China 199 Lakhs sets in Jun-2026.

Financial performance

• Revenue up 27% YoY to 80,497 in Apr-Jun 2026.
• PBT 17,495; Net margin 17% ( quarterly ratios ).
• ROCE (quarter) 32%; Debt-Equity 0.42x; Current ratio 1.99x.
• Debtors 87 days; Inventory 94 days.

Capital structure & liquidity

• Credit rating: Long-term AA-/Stable; Rs 976 crore facilities.
• No major Drum Closures capex; maintenance capex only.

Strategic priorities & outlook

• Infra-led growth supports Scaffoldings & Formworks; Textile focus on value-added products.
• Engineering & Designing services driven by offshore delivery model; AI adoption in US markets.
• Diversify Textile markets to de-risk; focus on new territories.

Risks & governance

• Geopolitical tensions and USA tariffs; management monitoring and diversification.
• Chairman & MD: Sharad Saraf; no governance changes reported.

Key financials

• Consolidated revenue from operations: 80,496.53 lakh for quarter ended 30 June 2026.
• Consolidated total income: 84,535.94 lakh in the same quarter.
• Consolidated net profit after tax: 13,774.95 lakh; EPS: 58.97.
• Standalone revenue from operations: 56,707.82 lakh; standalone net profit: 8,599.42 lakh; EPS: 37.93.
• Standalone total income: 59,061.63 lakh.
• YoY: consolidated revenue up ~27%; PAT up ~68% (30 Jun 2026 vs 30 Jun 2025).
• Standalone revenue up ~12%; PAT up ~45% YoY.
• Audit: Limited Review Report indicates no qualifications.

Meeting Details

• Conference call to discuss 1QFY27 results scheduled for Aug 17, 2026 at 11:30 IST.
• Rescheduled from Aug 14, 2026 to Aug 17, 2026 at 11:30 IST.
• Organised by 360 ONE Capital Market Research.
• Management representatives include Chairman & MD; Co-Chairman & Co-MD; Director & CEO; Director & CFO; Group CFO.
• Purpose: discuss 1QFY27 financial performance.

Meeting Details

• Conference Call scheduled for Friday, August 14, 2026 at 11:30 IST.
• Virtual group conference call.
• Organised by 360 ONE CM Research.
• Key participants: Chairman & MD; Co-Chairman & Co-Managing Director.
• Key participants: Director & CEO; Director & CFO; Group CFO.
• Purpose: discuss 1QFY27 financial performance.

Target entity

• Technosoft Integrated Solutions K.K., Japan; integrated engineering and technology services including design, software, IoT, and digital solutions.

Transaction details

• Acquirer: Technosoft Engineering Projects Ltd, a Technocraft subsidiary, acquires 100% stake.
• Consideration: cash of JPY 50,000 (approx Rs 30,000).
• Timeline: Completion within 90 days.
• Regulatory approvals: Not Applicable.
• Related party: Not applicable; no promoter/group interest.
• Shareholding: 100% acquired by Technosoft Engineering Projects Ltd.

Background

• Incorporated Nov 7, 2025 in Tokyo, Japan.
• Turnover NIL; not started business operations.
• Presence: Japan; sector: integrated engineering and technology services.

Discontinuation

• Discontinue Fabric Division manufacturing at Murbad due to adverse market conditions and ongoing losses.

Impact on segments

• Fabric Segment will be absent from standalone financial statements going forward.
• Garment business continues via Technocraft Fashions Limited with Amravati and Betul facilities.

Yarn and Garment Capacity

• Yarn Division remains in operation.
• Yarn facilities total 31,000 spindles at Amravati under TIIL and Technocraft Textiles Limited.

Financial details

• Financial details for the discontinued Fabric Division are provided below.

Dematerialisation status

• Dematerialisation requests were processed and confirmed to the depositories.
• Securities dematerialised were listed on the stock exchanges where earlier issues are listed.
• Physical certificates for dematerialisation were mutilated and cancelled; depository name substituted as registered owner within timelines.