Yasho Industries Ltd

Financial Performance

• Q1 FY27 revenue was Rs 308 crores.
• EBITDA Rs 74.42 crores with a 24.2% margin.
• PAT Rs 36 crores with an 11.7% margin.
• CRISIL/ICRA upgraded bank loan ratings to A- from BBB+.
• Net debt to EBITDA stood at 1.86x as of June 30, 2026 (3.75x end FY26).
• Working capital cycle improved to 143 days from 190 days.
• Q1 capex was Rs 18.73 crores for Pakhajan expansion.
• FY27 capex guidance raised to Rs 250 crores; ~Rs 100 crores borrowings planned.
• Export share ~69% of revenue; industrial chemicals ~89% of quarterly revenue.
• Capacity utilization across facilities exceeded 65%.
• Long-term supply agreements progressing; commercialization expected in Q1 FY28.

Operating Update

• Export mix guidance around 70%–75%; not expected to reach 85%–90%.
• Industrial chemicals remain the primary growth segment (~89% of quarterly revenue).
• Exports driven by USA, Europe, Middle East with Asia/Africa in early inroads.
• Pricing is quarterly; passes through raw material costs; no frequent price hikes.

Projects and Capex

• FY27 capex guidance increased from Rs 125 crores to Rs 250 crores.
• Phase 1 capex about Rs 100 crores; Phase 2 about Rs 150 crores.
• Two new production buildings at Pakhajan facility to host high-potential products.
• Phase-1 expected to be operational by Q1 FY28; Phase-2 by Q4 FY28.
• Phase-1 revenue potential about Rs 100 crores in FY28 at 50% utilization.
• New molecules and existing products form the capex mix; pilot R&D at Pakhajan.

Outlook and Guidance

• FY28 revenue target > Rs 1,600 crores.
• Long-term revenue growth target of 30%–40% annually.
• Management expects to sustain the current EBITDA margin going forward.
• R&D focus continues; 50+ scientists; diversification across chemistries.

Q&A Highlights

• Margin sustainability attributed to better mix, utilization, and offtake commitments.
• Export mix expected at 70%–75%; not 85%–90%.
• Phase-1 capacity could yield about Rs 100 crores revenue in FY28 at 50% utilization.
• New molecules initial Rs 50–100 crores; mix with existing products.
• Top customer contributes about 7% of revenue.
• Delivery lead time remained 8–10 weeks.

Risks and Watchpoints

• Raw material supply constraints and export container bookings risk.
• NDA prevents naming customers; some contracts undisclosed.
• Tariff environment in the US recovering; global competition risk.

Standalone results

• Total income 31,540.13 lakh; QoQ +28% from 24,554.79.
• Revenue from operations 31,409.40 lakh; QoQ +28% from 24,509.10.
• Profit after tax 3,644.32 lakh; QoQ +284% from 948.50.
• EPS (basic/diluted) 30.23.
• Geographic mix: India 9,290.84 lakh; outside India 22,118.57.
• Cost of materials 20,862.03; total expenses 26,649.75.

Consolidated results

• Total income 30,905.58 lakh; QoQ +25% from 24,672.06.
• Profit after tax 3,605.24 lakh; QoQ +194% from 1,225.99.
• EPS 29.90.
• Geographic mix: India 9,290.84; Outside India 21,483.51; Total 30,774.35.

Board actions & approvals

• Borrowing limit increased to ₹1,250 crore; subject to shareholder approval.
• Charge on assets limit increased to ₹1,250 crore; subject to shareholder approval.
• Director remuneration up to ₹70 lakh/year; subject to shareholders.
• Auditor's review: standalone and consolidated results unmodified.

Rating Action & Details

• Long-term rating upgraded to A-/Stable for Rs 200 crore facilities.
• Short-term rating upgraded to A2+ from A2.
• Total bank facilities rated: Rs 200 crore.
• Bank-wise facility: HDFC Bank—Fund-based Rs 110 crore.
• Non-fund-based limit: Rs 30 crore.
• Proposed Term Loan: Rs 10 crore; Term Loan: Rs 50 crore.
• Outlook on long-term rating: Stable.
• Material change: Upgrades from BBB+/Positive (LT) and A2 (ST).
• Rationale: Upgraded ratings reflect improved credit quality per Crisil; detailed rationale not provided.
• Surveillance: Ratings kept under continuous surveillance.
• Rating letter valid till March 31, 2027.

Meeting Details

• Conference call on Monday, 3 August 2026 at 4:00 PM IST.

Participants

• Company participants: MD & CEO; CFO.

Purpose

• Discuss Q1 & FY27 results.

Additional Notes

• Pre-registration required; access numbers provided.

Demat/rematerialisation status

• Regulation 74(5) not applicable; all shares are in demat form.
• No dematerialisation/rematerialisation requests received for the reporting quarter.

AGM notice and access

• AGM 40th on Aug 6, 2026 at 4:00 PM IST via VC/OAVM.
• Electronic copies of AGM notice and FY2025-26 Annual Report sent to registered emails.
• Annual Report accessible on company website, RTA, BSE, and NSE.

Shareholder communications and contact updates

• Member emails not registered; Annual Report accessible via web links.
• To update email or contact details, contact DP or RTA via specified emails.

Key AGM and dividend dates

• Record date for final dividend: July 30, 2026.
• Cut-off date for e-voting: July 30, 2026.
• E-voting window: Aug 2, 2026, 9:00 AM to Aug 5, 2026, 5:00 PM.
• Final dividend payout date if approved: Sept 4, 2026.

Dividend details

• Record date for final dividend for FY 2025-26 is July 30, 2026.
• Final dividend of Rs 0.50 per share recommended by the Board.
• Dividend will be paid within 30 days of AGM approval.
• TDS will be deducted at payment as per Income Tax Act 2025.

Overview

• Standalone BRSR for FY2025-26; main activity: manufacturing and trading specialty chemicals.
• 100% turnover来自 basic chemistry and specialty products.
• Exports account for 62% of turnover; serves 21 Indian states and 50+ international markets.
• Domestic locations: 4 plants, 1 office; international offices: 2.
• Reporting boundary: standalone.

Key ESG Risks & Opportunities

• Import restrictions risk; shortlist products and monitor pricing; negative financial implications.
• Information security risk; strong controls and periodic testing; negative implications.
• Regulatory/compliance risk; e-enabled management and training; negative implications.
• Geopolitics risk; supply chain resilience across multiple geographies; negative implications.
• OHS risk; ISO 45001 framework; safety audits and training; negative implications.
• Transparency in disclosures opportunity; align with ISO/GRI/CDP; positive implications.
• Emissions/climate risk; focus on low-emission tech; negative implications.
• Water management risk; ZLD progress; 11.6% water recycling; negative implications.

Governance & Policy Highlights

• CSR Committee and Risk Management Committee oversee ESG; annual NGRBC review by Board.
• MD Parag Vinod Jhaveri responsible for implementation and oversight under Board guidance.
• Anti-bribery & corruption policy exists; policy link provided.
• Policies extend to value chain partners; Board-approved.
• Whistleblower/vigil mechanism in place; policy accessible online.
• Assurance: Not applicable for this filing.

Social Responsibility & Workforce

• Total workforce: 1,092; permanent 393, workers 699; female share 11% among permanent.
• Board female representation: 14%; KMP female: 50%.
• LTIFR is 0; no fatalities; ISO 45001 implemented; regular safety trainings.
• Well-being spend: 0.20% of revenue; health/accident/maternity coverage; retirement benefits 100%.
• CSR at Vapi sites; education project benefited 230 people, 80% from vulnerable groups.
• POSH complaints: nil; grievance redressal mechanism in place.

Environmental Performance

• Total energy: 268,349 GJ; renewable share 2,148 GJ; non-renewable 266,201 GJ.
• Scope 1: 16,270 tCO2e; Scope 2: 15,801 tCO2e; intensity 4.77 tCO2e/million INR.
• Water withdrawal 103,789 kl; consumption 104,934 kl; 11.6% recycled; one unit is ZLD.
• Waste total 877.1 MT; recycled 148.3 MT; hazardous waste 867.5 MT; landfilling 205.1 MT.
• Discharges to CETP: 3,517 kl; monitored discharge with treatment where applicable.
• GHG reduction project initiated with Bureau Veritas; ISO 14001/45001 in place.

Stakeholder Engagement & Complaints

• Key stakeholder groups: employees, shareholders, customers, communities, suppliers, regulators.
• Engagement channels: AGM, website, email, meetings, investor/analyst briefings; ongoing.
• Grievance mechanism in place; community CSR programs; complaints largely Nil in FY25-26.
• Formal communications track stakeholder concerns for transparency and accountability.

Other Notable Metrics

• 40% of raw materials sourced sustainably.
• Related-party transactions: purchases from related parties Nil; sales to related parties 5.19%.
• Investments in related parties: 99.95% of total investments.
• Life-cycle assessment started for one product; progress ongoing.
• Cybersecurity framework; data privacy policy; no data breaches reported.
• Product labeling aligned with GHS/CLP; consumer satisfaction surveys conducted.

Financial highlights

• Consolidated revenue ₹830 crore, up 22.85% YoY.
• EBITDA ₹144 crore, margin 17.4%.
• PAT ₹25 crore, up 312.7% YoY.
• Exports 62% of revenue; Industrial Chemicals 87% share.
• Debt/EBITDA at 3.75, improved from 4.70.
• Term liabilities prepayment ₹23.3 crore.
• Total capex ₹75.20 crore; two lines installed, R&D lab.
• Pakhajan capex ₹65.90 crore; 60% capacity utilisation.
• Lubricant additives contract: 15 years, ₹85-90 crore outlay; ₹150 crore/yr revenue; start FY27-28

Growth and expansion

• 15-year customer-funded supply for lubricant additives; revenue ₹150 crore annually.
• Pakhajan greenfield facility expanded; 42 acres; capex ₹65.90 crore including ₹25.30 crore R&D.
• Two new manufacturing lines installed; commissioned FY2027-28.
• R&D lab at Pakhajan commissioned; ₹25 crore investment; 50+ scientists.
• Capacity utilisation targeted higher; current around 60% across facilities.
• Long-term supply agreement with global MNC progressing; strengthens growth visibility.
• Subsidiaries: Yasho Europe B.V. and Yasho Inc. 100% owned; European/US presence

Operations and capacity

• 4 manufacturing units located at Vapi and Pakhajan.
• Exports account for 62% of revenues, domestic 38%.
• Ramping up capacities with two new lines at Pakhajan.
• Overall capacity utilisation around 60% for the year.
• Pakhajan facility ramp-up supports scalable growth.
• Expenditure on capex and expansion aligned with growth roadmap.
• US and European subsidiaries strengthen global reach

R&D and innovation

• R&D centers house 50+ researchers.
• New R&D laboratory commissioned October 2025 at Pakhajan.
• R&D opex ₹5.73 crore in FY2025-26.
• Labings support higher value, differentiated products.
• Innovation theme: Innovation In Every Process; process improvements ongoing.

ESG and CSR

• CSR committee active; CSR policy aligned with Schedule VII.
• CSR expenditure ₹65.32 lakh; unspent ₹115.20 lakh carried to CSR account.
• Education project Kocharva Patel Shala benefited 230 people; 80% from vulnerable groups.
• Water conservation under 3R; 11.6% of water recycled.
• Multiple certifications: ISO 9001, ISO 14001, ISO 45001, REACH, FSSC, HALAL, Star-K, etc.
• ZLD implemented at one unit; all plants targeted for ZLD status.
• CSR spending details and policy available on company site.

Governance & board

• Board size seven: 3 Exec, 4 Independent including one woman.
• Dr. Prakash Bhate reappointed Independent Director for 2025-2030.
• Ullal Ravindra Bhat and Anurag Surana reappointed for 2026-2031.
• Yayesh Jhaveri to retire by rotation; Parag Jhaveri to continue as MD & CEO.
• Remuneration and diversity policies in place; board evaluated annually.

Outlook and risks

• India GDP projected ~6.9% in FY2026-27; manufacturing supports growth.
• China+1 sourcing strategy benefits Indian manufacturers.
• Global chemical industry expected growth ~2% in 2026; supply chain diversification mitigates risk.
• Continued capacity expansion, product introductions, and customer diversification expected to drive growth.

Dividend and shareholding

• Final dividend ₹0.50 per equity share for FY2025-26; payable within 30 days of declaration.
• 40th AGM scheduled Aug 6, 2026 via VC/OAVM.
• Promoters hold 67.91%; public 32.09%; total Equity shares 12,057,095.