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    Jyoti Resins

    514448
    Chemicals·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

    5

    • 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

    3

    • 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

    Metrics

    6

    Periods

    3

    Headline

    1
    • Receivables
      ₹160 Cr

    Q4

    3
    • Revenue Growth
      18%
      YoY+18%
    • Volume Growth
      16%
      YoY+16%
    • EBITDA Margin
      27%

    FY26

    2
    • Volume Growth
      8%
      YoY+8%
    • Revenue Growth
      11%
      YoY+11%

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Liquidity

    Cash ₹46.8 crores

    The company holds INR 140 crores in Fixed Deposits and INR 46.8 crores in liquid funds, intended for market expansions and greenfield projects.

    Guidance & targets

    10
    CategoryTargetPriority
    Revenue
    Total Revenue
    INR 500 crore+
    		High
    Volume
    Volume Growth
    15-20%
    		Medium
    Profitability
    EBITDA Margin
    23-25%
    		High
    Profitability
    Gross Margin
    65%
    		High
    Advertising Spend
    Advertising & Trade Marketing Spend as % of Revenue
    6-7%
    		High
    Working Capital
    Debtor Days
    120 days
    		High
    Customer Engagement
    Carpenters Registered on Platform
    2,50,000 by year-end, 3,00,000 in near future
    		High
    Market Share
    OEM Revenue Share
    15%
    		High
    Capacity
    Manufacturing Capacity
    3,500 tons per month
    		High
    Revenue Potential
    Revenue from Expanded Capacity
    INR 600-650 crores
    		High

    What to watch in Q1 FY27

    5

    Debtor Days Normalization

    within 2 quarters
    CurrentINR 160 crores receivables (higher than 120 days)
    Target120 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

    4
    RiskSeverity

    Raw material price volatility (VAM)

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

    high

    Increased receivables and debtor days

    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

    medium

    External headwinds (monsoon, West Asia conflict)

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

    medium

    Potential demand destruction from price hikes

    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

    low

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    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.