Concall AI

Jyoti Resins — Q4 FY26 earnings call

Call held 8 May 2026

Management summary

Jyoti Resins reported a strong Q4 FY26 with 18% revenue growth and 16% volume growth, achieving its highest quarterly performance. The company is undergoing a strategic transformation, expanding into new geographies, and strengthening its OEM segment. Despite significant raw material price increases (60-70% for VAM) and rising receivables, management is confident in achieving 15-20% volume growth and reaching INR 500 crore+ revenue in the next 2-3 years, supported by capacity expansion and increased brand investment.

Highlights

Revenue for Q4 FY26 grew by 18% year-on-year.
Volume growth for Q4 FY26 was nearly 16% year-on-year.
EBITDA margin for Q4 FY26 remained steady at nearly 27%.
Achieved highest ever quarterly revenue performance in company history.
Strategic direction is translating into stronger execution and market traction, with a target of INR 500 crore+ revenue in 2-3 years.

Concerns

Raw material (VAM) prices increased by 60-70%, expected to impact Q1 FY27 margins.
Receivables increased to INR 160 crores, with a target to normalize debtor days to 120 within two quarters.
Challenging operating environment in Q4 FY26 due to extended monsoon season and West Asia conflict.

Key financials

3 periods

Headline

Receivables
₹160 Cr

Q4

Revenue Growth
18%
YoY +18%
Volume Growth
16%
YoY +16%
EBITDA Margin
27%

FY26

Volume Growth
8%
YoY +8%
Revenue Growth
11%
YoY +11%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	65	71	79	75	74 +14%	72 +1%	93 +18%	88 +17%
Expenses	46	49	54	54	54	53	68	75
EBITDA	19	22	24	21	20 +5%	19 −14%	25 +4%	13 −38%
Margin	30%	32%	31%	27%	28%	26%	27%	14%
Other income	3	3	3	3	3	3	2	3
Interest	0	0	0	0	0	0	0	0
Depreciation	0	0	0	0	0	0	0	1
Profit before tax	22	25	27	23	23 +5%	21 −16%	27 +0%	15 −35%
Tax rate	25%	24%	27%	25%	26%	28%	25%	24%
Net profit	16	19	20	17	17 +6%	15 −21%	20 +0%	12 −29%
EPS	13.58	15.88	16.48	14.48	14.30	12.81	16.73	9.79

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 Capex disclosed
- Brownfield capacity expansion from 2,000 tons/month to 3,500 tons/month
Yes. See, I can explain you how this business model is. Right now, we are operating about 65% of our capacity. So, basically, it is a 2,000-ton capacity per month and we have done almost 80% of brownfield expansions. And now within one or two quarters, it will be finished. Then the capacity will goes to the 3,500 tons per month. So, it is now the plant will be the capable to generate the almost INR 600 crores, INR 650 crores of revenue from that.
Debt Debt disclosed

Yes, sir. Sir, a small point in terms of the RM part, sir, if you could just explain to us how the RM have behaved in terms of the crude oil and the geopolitical issues and how are we trending for the month of April and May in terms of the business setup and the business environment? And one financial question was, sir, when we look at our current liability part, it is to the tune of INR 95 crores. So, that is the carpenter bonus account that we are maintaining.
Liquidity Cash ₹46.8 Cr The company holds INR 140 crores in Fixed Deposits and INR 46.8 crores in liquid funds, intended for market expansions and greenfield projects.

Sir, as we have seen that you have a FD of INR 140 crores. Since it's a long time that you are sustaining with this FD, why don't you invest your money in good mutual funds or stocks or why don't you buy back your stocks even? And other part, why don't you give a dividend pay-out ratio, giving more dividend to your investors, if you have such a huge amount of money in your FDs, that is giving you a very low margins, very low interest rates. Thank you. ... Further to add to this, if you see the latest balance sheet, we have deployed money into liquid funds to the tune of INR 46.8 crores.

Guidance & targets

Revenue

Total Revenue Revenue · next 2-3 years · High confidence INR 500 crore+

Overall, we believe the company is entering a new phase of growth driven by stronger branding, wider distribution reach, improving organizational capabilities and deeper market penetration. While we remain mindful of macroeconomic uncertainties, we are confident that the momentum built in Q4 will continue as we progress on our journey towards becoming an INR500 crore plus revenue company over the next two, three years.

— Utkarsh J Patel

Volume

Volume Growth Volume · current year · Medium confidence 15-20%

Yes, we are expecting that we should aim for the 15% - 20%. But I think it is better that this quarter is very much not the suitable time that we can disclose.

— Utkarsh J Patel

Profitability

EBITDA Margin Profitability · long-term · High confidence 23-25%

So, 23% - 25% EBITDA margin, we have always guided for the longer term. So, we are aiming to sustain that.

— Utkarsh J Patel
Gross Margin Profitability · long-term · High confidence 65%

And yes, of course, we are aiming for the gross margin 65% for that.

— Utkarsh J Patel

Advertising Spend

Advertising & Trade Marketing Spend as % of Revenue Advertising Spend · coming years · High confidence 6-7%

From 4% today

Okay. So, for the advertising and trade marketing, actually, we have spent 4% of our revenue right now. So, it is now INR 50 crores, INR5 4 crores because it is, I think maybe you are saying with all the sales promotions offers and what the loyalty programs are there. So, if we talk about the trade marketing and brand communications, we have invested 4%. And we are aiming to take this at least 6% to 7% for coming years.

— Utkarsh J Patel

Working Capital

Debtor Days Working Capital · within two quarters · High confidence 120 days

So, we are aiming for that, that within these 2 quarters, we can control that.

— Utkarsh J Patel

Customer Engagement

Carpenters Registered on Platform Customer Engagement · year-end / near future · High confidence 2,50,000 by year-end, 3,00,000 in near future

From 2,00,000 today

So, now into the future, near expansion for this loyalty program is that we are aiming for more, almost 25,000 to 50,000 carpenters to on-board and engage with our loyalty program. As we are now penetrating and going deeper more into the newer states, UP, Delhi, West Bengal like and also now we are adding the Odisha and Chhattisgarh. So, new registrations will come into the pipeline. So, we are expecting 2,50,000 carpenters end of the year, we can say. ... So, we are aiming that at least 3,00,000 carpenters should be registered as we have gone in detail through the data and we have the assumptions about the per shop carpenters or that data we have. So, we are aiming 3,00,000 carpenters near future.

— Utkarsh J Patel

Market Share

OEM Revenue Share Market Share · after 2-3 years · High confidence 15%

From 6% today

So, we are assuming that after two, three years our revenue will be 85% into the retail and 15% around into the OEMs.

— Utkarsh J Patel

Capacity

Manufacturing Capacity Capacity · within 1-2 quarters · High confidence 3,500 tons per month

From 2,000 tons per month today

And now within one or two quarters, it will be finished. Then the capacity will goes to the 3,500 tons per month.

— Utkarsh J Patel

Revenue Potential

Revenue from Expanded Capacity Revenue Potential · High confidence INR 600-650 crores

So, it is now the plant will be the capable to generate the almost INR 600 crores, INR 650 crores of revenue from that.

— Utkarsh J Patel

What to watch in Q1 FY27

Debtor Days Normalization

within 2 quarters

Current INR 160 crores receivables (higher than 120 days)

Target 120 days

Why it matters

Normalization of debtor days is crucial for improving working capital efficiency and overall financial health.

So, we are aiming for that, that within these 2 quarters, we can control that.

Risks & concerns

Raw material price volatility (VAM)
high

VAM prices increased by 60-70% due to geopolitical issues, impacting Q1 FY27 margins, with uncertainty about stabilization.

Management acknowledged
Increased receivables and debtor days
medium

Receivables rose to INR 160 crores, attributed to new states and aggressive sales; management aims to normalize to 120 days within two quarters.

Both acknowledged
External headwinds (monsoon, West Asia conflict)
medium

Extended monsoon season and West Asia conflict created a challenging operating environment in Q4 FY26.

Management acknowledged
Potential demand destruction from price hikes
low

Analyst concern that 60-70% RM price hike could lead to demand destruction; management believes impact will be limited to 1-2 months as product cost is 5-10% of furniture cost.

Analyst downplayed

Q&A highlights

8 direct

Active carpenters on platform and future targets Direct

So, in this 19-20 years of journey, we have just almost 3,50,000 carpenters in this journey. And from that, when we started this digital platform in 2018 around, so till now we have registered almost 2,00,000 carpenters into our platform. So, from that, almost 60% are carpenters very much active, so, who are using regular our products and making these loyalty points. So, now into the future, near expansion for this loyalty program is that we are aiming for more, almost 25,000 to 50,000 carpenters to on-board and engage with our loyalty program. As we are now penetrating and going deeper more into the newer states, UP, Delhi, West Bengal like and also now we are adding the Odisha and Chhattisgarh. So, new registrations will come into the pipeline. So, we are expecting 2,50,000 carpenters end of the year, we can say. ... So, we are aiming that at least 3,00,000 carpenters should be registered as we have gone in detail through the data and we have the assumptions about the per shop carpenters or that data we have. So, we are aiming 3,00,000 carpenters near future.

Clarifies the scale of customer engagement through the loyalty program and future growth targets for carpenter registrations, which is key to market penetration.

Asked by Arjun Shah

Receivables increase and normalization timeline Direct

Yeah. So, yes, you are right that the number has gone out last two, three quarters, but we are aiming for that nearly what was we were into the '24, '25 that was 120 around. So, we are aiming that within two quarters will come with that. And the reason is, yes, we can say that newer state when we are starting that we need to build the more relationship and more engagement with the new dealers.

Addresses concerns about increased receivables (INR 160 crores) and provides a timeline (within two quarters) for normalizing debtor days to 120, linking it to building relationships in new states.

Asked by Arjun Shah

Volume guidance for current year and capacity expansion Direct

Yes. See, I can explain you how this business model is. Right now, we are operating about 65% of our capacity. So, basically, it is a 2,000-ton capacity per month and we have done almost 80% of brownfield expansions. And now within one or two quarters, it will be finished. Then the capacity will goes to the 3,500 tons per month. So, it is now the plant will be the capable to generate the almost INR 600 crores, INR 650 crores of revenue from that. So, we are aiming for that to reach within these 2 - 3 years of INR 500 crores of revenue.

Provides clarity on current capacity utilization (65%), planned capacity expansion (to 3,500 tons/month in 1-2 quarters), and the potential revenue generation (INR 600-650 crores) from this expansion, supporting the INR 500 crore revenue target.

Asked by Saket Kapoor

Raw material price behavior and impact on margins Direct

So, the RM part, the VAM is the key raw material of ours. So, it is crude derivatives. So yes, it is affected because of these situations. And I believe that if the situations get normal as a world level, then it can come within the line within three months around. But it is very much early to say that because the situation is not stable right now. But we have taken the price rise and almost 70% (of) price rise (of raw material) ... Almost 60% - 70% (of) price rise (of raw material) we have taken. But from the 1st May, so not April month from the 1st May.

Confirms the significant increase in VAM prices (60-70%) and the company's response with price hikes, highlighting the impact of geopolitical issues on raw material costs and the uncertainty around stabilization.

Asked by Saket Kapoor

Advertising expenses plan for FY27 Direct

Okay. So, for the advertising and trade marketing, actually, we have spent 4% of our revenue right now. So, it is now INR 50 crores, INR5 4 crores because it is, I think maybe you are saying with all the sales promotions offers and what the loyalty programs are there. So, if we talk about the trade marketing and brand communications, we have invested 4%. And we are aiming to take this at least 6% to 7% for coming years.

Details the company's strategy to increase advertising and trade marketing spend from 4% to 6-7% of revenue, indicating a strong focus on brand building and market penetration.

Asked by Pawan Kumar

Utilization of Fixed Deposits and dividend payout policy Direct

It's a very good question. Yeah. So, if you see last 6 years, we have given 15% of our PAT to the stakeholders as per the dividend, and that is very much maintained. One thing is that this FD is about the -- also the liability, INR 90 crores, INR 95 crores liability is there. So, it is there, but so the internal accruals, this fund, we will need it from the growth. So, as we are now moving to that journey that as a Euro now, we are almost reaching the second largest player, and there is a huge gap between the industry's dominant player and Euro. So, now we are moving towards that.

Explains the rationale behind holding INR 140 crores in Fixed Deposits, clarifying it's for growth, market expansion, and internal accruals, while also confirming a consistent 15% PAT dividend payout.

Asked by Vatsal Shah

Penetration in matured markets vs. expansion into new states Direct

Yeah, you are very right that because it's an ocean of that. So, that's why we have that opportunity. And that's why we are aiming for that. It's more than INR 7,500 crores of market. And we have reached almost INR 300 crores. ... So, these are the opportunities lies into the market. And you are very right that it is we can say that out of 3 or 4 counters, we have presence into 1 counter. That's why we are into the 20% of market share into the Maharashtra. So, it is long miles to go from here. And that's why the growth will become from the existing states also and the newer states also. So that's why we have decided that we'll state these 14 states plus two states we are adding. And we are going much more deeper.

Clarifies the company's dual strategy of deepening penetration in existing, matured markets (e.g., 20% share in Maharashtra) while simultaneously expanding into new states, recognizing the vast market opportunity.

Asked by Harsh Chaurasia

NSE Listing plans Direct

It is in process. We are into the process and very near, maybe it will be listed on the NSE. So, we are into that process.

Provides an update on the company's plans for listing on the NSE, indicating it is in advanced stages, which could enhance market visibility and liquidity.

Asked by Participant

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Detailed narrative

Q4 & FY26 Performance Overview

Jyoti Resins delivered a strong Q4 FY26 performance, with revenues growing by 18% year-on-year and volume growth of nearly 16%. This marked the highest ever quarterly revenue performance in the company's history. For the full fiscal year FY26, the company reported an 8% volume growth and 11% revenue growth. EBITDA margin remained robust at nearly 27% in Q4, aligning with the guided range for FY26.

Strategic Transformation and Growth Initiatives

The company initiated a comprehensive transformation journey in the second half of FY26, spanning HR, technology, sales, marketing, distribution, and operations. These initiatives are foundational for scalable growth, with initial positive outcomes visible from Q4. Management is highly optimistic about the wood adhesives industry, targeting to become an INR 500 crore+ revenue company within the next 2-3 years, driven by a projected 15-20% volume growth.

Raw Material Volatility and Pricing Strategy

The key raw material, Vinyl Acetate Monomer (VAM), which constitutes almost 90% of raw material cost, experienced a significant price increase of 60-70% due to geopolitical issues. In response, Jyoti Resins implemented price hikes of 4-5% in April and an additional 10% from May 1st. Management anticipates an impact on Q1 FY27 margins but expects the situation to normalize within three months, though current stability is uncertain.

Market Expansion and Distribution Strategy

Jyoti Resins is actively deepening its presence in existing markets while expanding into new geographies, with operations commencing in Odisha and Chhattisgarh in May 2026. The company is also strengthening its OEM segment, which currently contributes 6% of revenue, with a target to increase this to 15% within 2-3 years. This strategy involves a focused OEM distribution approach and leveraging a strong network of 12,000 retailers across 14 states.

Capital Allocation and Financial Strength

The company maintains a strong financial position, holding INR 140 crores in Fixed Deposits and INR 46.8 crores in liquid funds, which are earmarked for growth and market expansion. An ongoing brownfield expansion, almost 80% complete, will increase manufacturing capacity from 2,000 tons/month to 3,500 tons/month within 1-2 quarters. This expanded capacity is projected to generate INR 600-650 crores in revenue, supporting the company's growth ambitions.

Brand Building and Customer Engagement

Jyoti Resins undertook a major brand-building initiative in Q4, including an ATL campaign during the ICC T20 World Cup. The company plans to increase its advertising and trade marketing spend from the current 4% of revenue to 6-7% in the coming years. The loyalty program currently has 2,00,000 registered carpenters, with a target to reach 2,50,000 by year-end and 3,00,000 in the near future, fostering strong customer relationships and market traction.

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