HLE Glascoat

HLE Glascoat delivered a strong Q4 FY25, with revenue from operations growing 8.7% YoY to INR 334 crores. EBITDA for the quarter increased by 41.1% YoY to INR 54 crores, achieving an EBITDA margin of 16.3%. Net profit for Q4 FY25 saw a significant jump of 113.8% YoY to INR 32 crores, with a PAT margin of 9.5%. For the full FY25, consolidated revenue grew 6.2% to INR 1,028 crores, and EBITDA increased by 16.6% YoY, resulting in an annual EBITDA margin of 13.7%.

The company observes a positive macroeconomic outlook, with India entering a multi-year CAPEX cycle driven by public and private investments. Stable demand in pharmaceuticals and expected recovery in specialty chemicals and agrochemicals (post-global trade uncertainty) are anticipated to drive growth. HLE Glascoat is strategically positioned to capitalize on these tailwinds through its robust product portfolio, long-standing customer relationships, and continuous focus on improving internal efficiencies and balance sheet optimization.

Kinam Engineering has successfully initiated supplies for its first large oil and gas order, which is expected to be fully executed in Q1 FY26. This marks a strategic entry into a high-potential vertical, diversifying HLE Glascoat's end-market exposure. Furthermore, the NCLT Ahmedabad Bench has scheduled the final hearing for the scheme of amalgamation of Kinam Enterprise Private Limited with HLE Glascoat Limited in July 2025. Upon approval, this will complete the multi-state acquisition and result in HLE Glascoat owning a 70% stake in Kinam Engineering Industries Private Limited, aiming to unlock operational synergies and enhance shareholder value.

HLE Glascoat demonstrated strong cash generation during FY25, which enabled the company to reduce both long-term and short-term debt obligations by approximately INR 50 crores. This aligns with the company's commitment to strengthening its balance sheet and reducing interest costs. The company maintains a healthy order book, providing over 6 months of visibility for the India business and over 7 months for the international business, supporting sustained growth.

The Glass-lined Equipment business generated FY25 sales of INR 582 crores, reflecting a 17% growth YoY, with Q4 FY25 EBIT growing 85% to INR 54 crores. The Heat Transfer Equipment business also showed strong growth, contributing INR 122 crores to FY25 sales, up 38% YoY. In contrast, the Filtration, Drying, and Other Equipment segment experienced a 5% de-growth in Q4 FY25 and a 16% de-growth for FY25, although a strong order book is expected to drive its recovery in the coming year.

HLE Glascoat has inaugurated a state-of-the-art Center of Excellence at Anand, Gujarat, dedicated to glass lining research, new product development, and advanced production techniques. This facility, while not directly increasing overall capacity, is designed to improve product quality, enhance material realization, and foster long-term innovation. It also supports joint development efforts with the Thaletec team for the Indian market, reinforcing the company's commitment to delivering innovative solutions.

The company plans for minimal maintenance CAPEX, estimated to range between INR 12 crores to INR 15 crores annually across its five plants. No major CAPEX is planned for new plants this year, as the focus remains on leveraging existing capacity, which is currently utilized at approximately 75% on a weighted average basis. The significant debt reduction of INR 50 crores in FY25, achieved through strong operational cash flows, highlights the company's disciplined financial approach and commitment to a stronger balance sheet.