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    Jyoti Resins

    514448
    Chemicals·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

    8

    • 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.

    What Changed1

    vs Q3 FY26

    Guidance items6 → 8 (+2)

    Key financials

    Single quarter

    04 metrics
    1. 01Volume Growth20%+20%YoY
    2. 02Gross Revenue Growth (Adjusted)20%+20%YoY
    3. 03EBITDA Margin (Excl. Other Income)27.5%
    4. 04Capacity Utilization60%

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    ₹5 crores

    Guidance & targets

    8
    CategoryTargetPriority
    Volume
    Volume Growth
    20%
    		High
    Profitability
    Long-term EBITDA Margin
    25% plus or minus 2%
    		High
    Revenue
    FY26 Revenue
    INR 330 crore to INR 340 crores
    		High
    Revenue
    Long-term Revenue
    INR 500 crore
    		High
    Marketing
    Ad/Marketing Spends as % of Revenue
    7% to 8%
    		High
    Capacity
    Total Capacity
    3,500 tons per month
    		High
    Other
    NSE Listing
    Approval
    		Medium
    Market Share
    New State Penetration
    5-6 new states
    		High

    What to watch in Q3 FY26

    5

    Brownfield Capacity Expansion Completion

    within two quarters
    CurrentUtilizing 60-70% capacity; maintenance and repair parts started for expansion.
    TargetReady 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

    3
    RiskSeverity

    Monsoon impact and soft demand

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

    medium

    Raw material price increase and competition

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

    medium

    Momentary margin impact from new hires

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

    low

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.