Jyoti Resins — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Jyoti Resins delivered a strong Q2 FY26, achieving 20% volume and adjusted revenue growth despite challenging monsoon conditions. The company maintained a healthy EBITDA margin of 27.5% and is actively expanding its brownfield capacity, with a CapEx of INR 5-7 crores, to reach 3,500 tons per month. Strategic investments in branding and geographic expansion are ongoing, with a clear vision to achieve INR 500 crores in revenue within three years.

Highlights

  • Achieved 20% year-on-year volume growth despite extended monsoon season.

  • Gross revenue, excluding GST, also grew 20% year-on-year, aligning with volume growth.

  • EBITDA margin, excluding other income, stood at 27.5%, consistent with Q1 margins and broad guidance.

  • Current capacity utilization is between 60% and 70%.

  • Brownfield expansion underway to increase capacity by 1,500 tons per month, reaching 3,500 tons per month within six months.

  • CapEx for brownfield expansion is estimated at INR 5 crores to INR 7 crores.

  • Targeting INR 330-340 crores in revenue for FY26 and INR 500 crores turnover within the next three years.

  • Marketing and branding campaign, including a brand ambassador, continues with 7-8% of revenue allocated for brand communication and trade marketing.

Key financials

  1. Volume Growth 20% +20%YoY
  2. Gross Revenue Growth (Adjusted) 20% +20%YoY
  3. EBITDA Margin (Excl. Other Income) 27.5%
  4. Capacity Utilization 60%

What they filed

Q1 FY27: revenue up 17.3%, net profit down 29.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue65 71 79 75 74 +14%72 +1%93 +18%88 +17%
EBITDA19 22 24 21 20 +5%19 −14%25 +4%13 −38%
Net profit16 19 20 17 17 +6%15 −21%20 +0%12 −29%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex ₹5 Cr
    • Brownfield capacity expansion (1,500 tons/month increase) ₹5 Cr
    • Repairs and maintenance at existing plant
    We have started work on repairs and maintenance at plant to increase our brownfield capacity by 1,500 tons per month over a period of next six months, which will take our total capacity from 2,000 tons per month to 3,500 tons per month, thereby enhancing our ability to produce and sell more, get operating leverage on higher volumes as well as be competitive in the market. The total CapEx expected in this brownfield expansion will be around INR 5 crores to INR 7 crores.

Guidance & targets

Volume

  • Volume Growth Volume · every year · High confidence 20%
    So, we have guided for the 20% and that is our -- the minimum guidance what we want to achieve.

    — Utkarsh J Patel

Profitability

  • Long-term EBITDA Margin Profitability · long-term · High confidence 25% plus or minus 2%
    We also continue to guide for a long-term EBITDA margin range of 25% plus or minus 2%.

    — Utkarsh J Patel

Revenue

  • FY26 Revenue Revenue · FY26 · High confidence INR 330 crore to INR 340 crores
    Yeah. So, we are targeting for the INR 330 crore to INR 340 crores.

    — Utkarsh J Patel

  • Long-term Revenue Revenue · next three years · High confidence INR 500 crore
    Overall, we continue to be focused on reaching INR 500 crore turnover mark over the next three years, led by volume growth.

    — Utkarsh J Patel

Marketing

  • Ad/Marketing Spends as % of Revenue Marketing · for the years · High confidence 7% to 8%
    So, it is about 7% to 8% we want to continue for the years for the brand communication and the trade marketing.

    — Utkarsh J Patel

Capacity

  • Total Capacity Capacity · within two quarters · High confidence 3,500 tons per month

    From 2,000 tons per month today

    within these two quarters, we are targeting that we will be ready with the capacity of the 3,500 tons per month.

    — Utkarsh J Patel

Other

  • NSE Listing Other · within one or two quarters · Medium confidence Approval
    I think maybe within one or two quarters, we'll get the approval for the NSE.

    — Utkarsh J Patel

Market Share

  • New State Penetration Market Share · within next year · High confidence 5-6 new states
    Yes, we are planning to add more states. And that are the Tamil Nadu, Kerala, Odisha, Bihar we are targeting. So, we are planning to add more five, six states within next year.

    — Utkarsh J Patel

What to watch in Q3 FY26

Brownfield Capacity Expansion Completion

within two quarters
Current Utilizing 60-70% capacity; maintenance and repair parts started for expansion.
Target Ready with 3,500 tons per month capacity.

Why it matters

Completion of capacity expansion is crucial for achieving higher volumes, operating leverage, and meeting future demand.

within these two quarters, we are targeting that we will be ready with the capacity of the 3,500 tons per month.

Risks & concerns

  • Monsoon impact and soft demand

    medium

    Heavy and long monsoon season, overall soft demand, and disturbances in dispatch and delivery chain impacted the quarter.

    Management acknowledged

  • Raw material price increase and competition

    medium

    Potential raw material price increases or heightened competition may necessitate passing discounts or increased brand investment, impacting long-term margins.

    Management acknowledged

  • Momentary margin impact from new hires

    low

    Hiring new senior talent may lead to a slight, momentary impact on EBITDA margins as they settle and deliver results.

    Management acknowledged

Q&A highlights

7 direct
Accounting for carpenter rewards and true revenue growth Partial
So, my first question that was the revenue which we report is like after being adjusted for the rewards which we give to the carpenters, is there a possibility or how does the accounting work to take it directly to the expenses so that the actual true revenue growth like-to-like with volumes can be seen to the investors?

Analyst sought clarity on revenue reporting methodology, specifically how carpenter rewards impact reported figures and if adjustments could provide clearer like-to-like growth.

Asked by Smith Gala

EBITDA margin sustainability with increased ad spends Direct
No, this year we will be able to maintain this 27% - 28% but this is for the longer-term guidance as we are expanding maybe the raw material price increase or maybe the competition increase into the market and we need to pass few discounts to the trades or we need to invest more into the brand communications or trade marketing. So, this is all over the very long-term guidance what I am giving but this year we can say that 27% - 28% EBITDA we can expect.

Questioned the sustainability of current EBITDA margins given planned increases in advertising and marketing spend, which is crucial for profitability outlook.

Asked by Smith Gala

Volume vs. Revenue Growth Discrepancy Direct
Sir, his question is Pidilite had around 10% volume growth in H1 with almost no change in value terms. We have had 20% volume growth but the revenue increase is lower. Are we having value degrowth due to higher discounts offered than last year for expansion?

Analyst highlighted a potential discrepancy between volume and revenue growth, suggesting possible value degrowth or higher discounts, prompting management to clarify the impact of prior year adjustments.

Asked by Dheeraj Kaswan

Product Portfolio Strategy Direct
See, all over we are focusing on the white glue. So, what the entire range required into the application of gluing the furniture by the carpenter. So, we have the entire range. ... So, we want to stick to this product portfolio right now at least four, five years. So, we are targeting ourselves that at least this is a INR 7,000 crore of market. So, we want to reach first INR 1,000 crores into this particular segment. Then after we can think about adding a few products into the portfolio. But right now...

Analyst inquired about the completeness of the product portfolio, and management clarified its strategic focus on the white glue segment and its substantial market opportunity before considering diversification.

Asked by Pawan Kumar

Brownfield Expansion & Capacity Utilization Direct
So right now, we are utilizing 60% - 70% of our capacity average cell wise. And we have started the maintenance and few repair parts as this plant is years old. So, we have started to improve that parts and within these two quarters, we are targeting that we will be ready with the capacity of the 3,500 tons per month.

Analyst sought an update on the brownfield expansion and current capacity utilization, which are key drivers for future volume growth and operating leverage.

Asked by Smith Gala

Senior Management Hiring & Margin Impact Direct
It will be momentary, yes. I mean, as we are building new territory simultaneously, protecting our market share in existing markets. And as we hire new talent, they will take some time to get settled in the system and start performing and start delivering results. So momentarily, you can say a slight impact on that. However, it's having a great output.

Analyst asked about the impact of senior management hiring on EBITDA margins, revealing a potential short-term margin pressure due to investment in talent for future growth.

Asked by Smith Gala

NSE Listing Plans Direct
We are planning to do that. And we are on that. I think maybe within one or two quarters, we'll get the approval for the NSE.

Analyst inquired about plans for NSE listing, which could enhance the company's visibility and liquidity for investors.

Asked by Smith Gala

Ad Spends vs. Sales Promotion Expenses Direct
Right, that is over and above. So that is the different sales promotion discounts where the offers, the schemes and the loyalty programs, points, etc. covers that. And what I'm giving the guidance for 7% to 8% that is the advertising, trade marketing, trade campaigns, dealer meets. So, all put together, you can say, yes, it's a 13%.

Analyst sought clarification on the distinction between sales promotion expenses (rewards) and advertising/marketing spends, which helps in understanding the company's overall cost structure and investment in brand building.

Asked by Madhur Rathi

2 min read 6 chapters

Detailed narrative

Q2 FY26 Performance and Growth Drivers

Jyoti Resins reported a robust Q2 FY26, achieving 20% year-on-year volume growth despite an extended monsoon season and soft demand. This volume growth translated directly into a 20% increase in gross revenue, excluding GST. The company maintained a strong EBITDA margin of 27.5%, consistent with the previous quarter and within its broad guidance, demonstrating resilience in operational efficiency.

Strategic Capacity Expansion and CapEx

The company is actively pursuing brownfield expansion to enhance its production capabilities. Work has commenced to increase capacity by 1,500 tons per month over the next six months, raising the total capacity from 2,000 to 3,500 tons per month. This expansion, requiring a CapEx of INR 5 crores to INR 7 crores, is aimed at improving operating leverage and market competitiveness. Jyoti Resins is also scouting land for future greenfield expansion.

Marketing and Brand Building Initiatives

Jyoti Resins continues its aggressive advertising, marketing, and branding campaign, featuring Brand Ambassador Mr. Pankaj Tripathi. The campaign utilizes TV channels and digital platforms like Instagram and Facebook to support pan-India growth. The company plans to allocate 7% to 8% of its revenue towards brand communication and trade marketing, focusing heavily on engaging carpenters and dealers through various meets and gatherings.

Geographic Penetration and Dealer Network

The company has established its presence in 14 states, with a strong focus on penetrating Uttar Pradesh and Delhi. In these newer geographies, Jyoti Resins has onboarded over 650 dealers, with more than 50% placing repeat orders. The strategy involves applying successful go-to-market approaches from Gujarat, emphasizing dealer onboarding and carpenter adoption through community engagement.

Product Portfolio and Market Focus

Jyoti Resins remains focused on its core white glue product portfolio, which covers the entire range required for furniture gluing applications. This includes products for PVC edge binding, PVC sheets, wood, plywood, MDF, veneer, and laminate. The company aims to capture a significant share of the INR 7,000 crore market segment for white glue before considering diversification into other products, with an initial target of INR 1,000 crores in this segment.

Organizational Development and Future Outlook

The company is strengthening its organizational structure with key hires, including a Chief Operating Officer (COO), Mr. Samit Shah, to support its '2.0 journey'. Investments are being made in HR, CRMs, and app development to professionalize operations. Jyoti Resins targets INR 330-340 crores in revenue for FY26 and aims to achieve INR 500 crores turnover within the next three years, driven by consistent 20% volume growth. Plans for NSE listing within one to two quarters are also in progress.

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