Yasho Industries Ltd

Summary of postal ballot resolutions

• Purpose: three Special resolutions to expand borrowing limits, create charges on assets, and pay non-exec director commissions.
• Resolution 1: Special, borrow limit up ₹750 Cr to ₹1,250 Cr; approved 99.9976% in favour.
• Resolution 2: Special, limit for charges on assets increased; approved 99.9976% in favour.
• Resolution 3: Special, continuation of non-exec director commissions; approved 99.9976% in favour.

Rating action

• Bank loan facilities of ₹4,170.06 million: rating IND BBB+/Positive/IND A2+, affirmed then withdrawn.
• Withdrawal follows lender no-objection letter and company request per policy.
• Press release link for rating rationale provided.
• Intimation to stock exchanges dated 30 September 2026.

Purpose

• Approval for three special resolutions: borrowing limits, charges on assets, and director commissions.
• Resolutions relate to enhanced borrowing limit, security on assets, and continued director commissions.

Resolutions

• Item 1: Special Resolution to raise borrowing limit to ₹1,250 Cr.
• Item 2: Special Resolution to enhance charges limit to ₹1,250 Cr.
• Item 3: Special Resolution for continuation of non-exec director commissions up to ₹70 Lakh.

Key terms

• Item 1: Borrowings may be in INR or foreign currency; cap ₹1,250 Cr.
• Item 2: Security over assets up to ₹1,250 Cr; ranking by Board.
• Item 3: Commission up to ₹70 Lakh per financial year; may exceed 1% net profits.

Process & timeline

• E-voting window: 13 Sep 2026 to 12 Oct 2026.
• Results to be declared within two working days after period.
• Scrutinizer appointed; results displayed on company and Bigshare websites.

Shareholder impact

• Higher leverage and security could affect capital structure.
• Asset security up to ₹1,250 Cr creates collateral requirements.
• Remuneration continuation may increase NED/Independent Directors' compensation.

Meeting Details

• Date and time: Tuesday, 8 September 2026, 4:00 PM IST.
• Type and mode: Group meeting, in-person.
• Event: Group Meeting with Analysts/Investors.

Participants

• Key company participants: Company representatives including the Company Secretary and Compliance Officer.

Purpose

• Purpose: Discuss publicly available information; no unpublished price-sensitive information.

Additional Notes

• Notes: Meeting subject to end-minute changes.

Meeting Details

• Date & time: Sept 1, 2026, 4:00 PM IST
• Mode: In person; Type: Group meeting
• Organizer/interaction: Analysts (sell-side) meeting

Participants

• Key company participants: representatives from the company (specific roles not disclosed)

Purpose

• Purpose: interaction with analysts/investors; based on publicly available information

Additional Notes

• Discussion will be based on publicly available information; no unpublished price-sensitive information will be shared

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.

AGM details

• AGM held on 06 Aug 2026 at 4:00 PM via VC/OAVM.
• Record date: 30 Jul 2026; shareholders on record: 22,810.
• Meeting conducted through Video Conferencing / Other Audio-Visual Means.

Resolutions & outcomes

• Resolution 1 (Ordinary): Adopt audited financial statements for FY2026; passed.
• Resolution 2 (Ordinary): Declare dividend on equity shares for FY2026; passed.
• Resolution 3 (Ordinary): Re-appoint Yayesh Jhaveri as Director; passed.
• Resolution 4 (Ordinary): Ratify remuneration of Cost Auditor for FY2027; passed.
• Resolution 5 (Special): Re-appoint Ravindra Bhat as Independent Director; passed.
• Resolution 6 (Special): Re-appoint Anurag Surana as Independent Director; passed.
• Resolution 7 (Special): Revise remuneration of Parag Jhaveri, MD & CEO; passed.
• Resolution 8 (Special): Revise remuneration of Yayesh Jhaveri, WTD; passed.
• Resolution 9 (Special): Revise remuneration of Parag Jhaveri, MD & CEO; passed.

Dividend

• Dividend approved on equity shares for FY2026; per-share amount not disclosed.

Directors / key management changes

• Re-appointment of Yayesh Jhaveri as Director (retiring by rotation).
• Independent Directors re-appointed: Ravindra Bhat; Anurag Surana.

Auditors

• Cost Auditor remuneration for FY2027 ratified.

Material related party transactions

• No material related party transactions approved.

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.