Jay Bee Laminati — Q2 FY26 earnings call

Call held 1 Nov 2025

Management summary

Jay Bee Laminations Limited reported strong top-line growth in H1 FY26, with revenue and volumes increasing by 40-45%. However, profitability was impacted by compressed gross margins due to high-priced inventory, which has now been consumed. The company is strategically diversifying into transformer manufacturing and EPC projects, securing significant orders in the latter. Capacity expansion for CRGO is on track, and management expects margin recovery in H2 FY26, though raw material price volatility remains a key concern.

Highlights

  • Revenue and volumes jumped 40-45% in H1 FY26, with a 12% volume jump on a half-year basis.

  • Inventory reduced by 24% and high-priced inventory consumed, positioning for margin improvement from October onwards.

  • Secured EPC orders worth INR220-225 crores (ex-GST) and targeting INR40-45 crores revenue from EPC in FY26.

  • Maintained a healthy balance sheet with a debt-to-equity ratio of 0.29 and a current ratio of 2.67.

  • CRGO processing capacity is being expanded to 24,000 MTPA, with installation expected by November-December 2025.

Concerns

  • Gross margins dropped in H1 FY26 due to the burden of high-priced inventory, leading to a decrease in profit after tax.

  • Raw material prices for CRGO are still volatile and softening, with a potential for further 5-10% decline.

  • Management declined to provide specific margin guidance for H2 FY26 due to market volatility, leading to investor concerns about predictability.

Key financials

  1. Debt-to-Equity Ratio 0.29
  2. Current Ratio 2.67
  3. CRGO Processing Volume H1 FY26 7,692 metric tons
  4. 400 kV+ Contribution H1 FY26 ₹25.5 Cr
  5. Inventory Days 49 days
  6. Receivable Days 74.5 days

What they filed

Q4 FY26: revenue up 120.8%, net profit up 50.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue154 149 153 214 219 +42%329 +121%
EBITDA15 17 23 20 10 −33%24 +41%
Net profit10 10 14 11 4 −60%15 +50%
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.

Order book

high confidence

Total value

₹222.5 Cr

as of 2025-09-30 range

Execution

One project is one year and for the other projects is two years. So in total about two years.

Composition

  • Utilities, Distribution & Transmission Lines (EPC) (client type) ₹222.5 Cr 100%

Pipeline

deal pipeline tcv

Pipeline for Core Coil Assemblies and Transformers

The company has cautiously limited its EPC order booking to manage risks, execution bandwidth, and capital availability, despite scope for more orders.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Gross ₹43 Cr
    Yeah, so total debt is about INR43 crores.
  • Liquidity Liquidity disclosed Working capital is under tight control, and the current ratio is 2.67.
    Our balance sheet continues to be healthy with debt-to-equity of 0.29, current ratio of 2.67 and working capital under tight control.

Guidance & targets

Capacity

  • CRGO Processing Capacity Capacity · by November-December 2025 · High confidence 24,000 metric tons per annum

    From 19,740 metric tons per annum today

    Our capacities for CRGO processing have been ramped up to 19,740 metric tons per annum... Further capacity is expected soon, reaching up to 24,000 metric tons. ... the installation of the capacity will probably will be completed by November, December.

    — Mudit Aggarwal

Volume

  • CRGO Volume Volume · FY26 · High confidence 16,000 tons
    On a full year basis, we are hopeful of reaching our target of about 16,000 tons in this financial year.

    — Mudit Aggarwal

Profitability

  • EBITDA Margins Profitability · long-term (stable market) · Medium confidence 12%
    So once the prices are stable, I think you are right, we will still continue to have a guidance or say a long-term guidance of 12% EBITDA margins.

    — Mudit Aggarwal

Revenue

  • EPC Revenue Revenue · FY26 · High confidence INR40-45 crores
    With respect to EPC, we are looking at about INR40 crores, INR45 crores in FY26.

    — Mudit Aggarwal

  • Transformer and CCA Revenue Revenue · FY26 · High confidence INR4-6 crores
    So this year we will be targeting about INR5 crores from both core coil assemblies and transformers.

    — Mudit Aggarwal

  • Transformer and CCA Revenue Revenue · FY27 · Medium confidence INR40-50 crores
    Next year, the target would be to go up to about INR40 crores, INR50 crores.

    — Mudit Aggarwal

Working Capital

  • Inventory Days Working Capital · going forward · High confidence around 49 days
    So currently, we are at about 49 days of inventory. It has reduced significantly. I mean, the aim was that since it is a volatile raw material pricing environment, we should be reducing inventory. And we did that. And going forward, there will be no impact of inventory as long as we keep inventory in check.

    — Mudit Aggarwal

  • Receivable Days Working Capital · post-optimization · Medium confidence 70 days

    From 74-75 days today

    So we believe that this is an optimum level. We probably could, you know, once we optimize on the quantities, we would be able to do it at a level of 70 days.

    — Mudit Aggarwal

  • Payable Days Working Capital · Medium confidence 50-55 days

    From 20 days (September) today

    Yeah. So payables will increase. ... So about 50, 55 days.

    — Mudit Aggarwal

What to watch in Q3 FY26

CRGO Capacity Expansion Completion

by November-December 2025
Current Installation underway, capacity at 19,740 MTPA
Target 24,000 MTPA capacity installed and production ramped up

Why it matters

Crucial for future volume growth and meeting demand in the core business segment.

Our capacities for CRGO processing have been ramped up to 19,740 metric tons per annum... Further capacity is expected soon, reaching up to 24,000 metric tons. ... the installation of the capacity will probably will be completed by November, December.

Risks & concerns

  • Raw Material Price Volatility

    high

    CRGO prices are still volatile and softening, with a potential for further 5-10% decline due to global oversupply from Chinese mills, impacting margins.

    Management acknowledged

  • Execution Bandwidth for New Verticals

    medium

    The company is in a 'learning phase' for EPC and transformer manufacturing, cautiously limiting order booking to manage risks and execution bandwidth.

    Management acknowledged

  • Delays in Customer Approvals for New Products/Capacities

    medium

    Approvals from key customers like PGCIL, NTPC, and Torrent Power for 400kV+ class and new facilities are taking longer than expected, potentially impacting H2 revenue realization.

    Management acknowledged

Q&A highlights

7 direct, 1 evasive
Gross Margin Compression & Inventory Loss Direct
we have seen a reduction in gross margins primarily because of inventory build up which was at higher price. The unfortunate part is that the raw material prices are still going down because of which there is still volatility hanging with respect to raw material prices.

Explains the primary reason for profit decline in H1 FY26 and management's strategy to address it (inventory reduction).

Asked by Aditya Sen

Capacity Expansion & Conservative Approach Direct
Our strategy is very simple that we would like to reach a certain optimum utilization level. And once we are optimized at that utilization level, we will further increase capacities. We don't want to put over capacity in any of our businesses, which is why we want to have more growth drivers rather than just focused on CRGO steel.

Clarifies the company's strategic rationale for measured capacity growth despite strong sector demand, focusing on utilization and diversification.

Asked by Aditya Sen

Diversification into EPC and Transformers Direct
what we're trying to do is we're going in -- we're going up the value chain, right? That is the idea with respect to transformers. And then further from that, EPC projects. What EPC projects will eventually do is give us a sales channel for our own transformers, as well as our own CRGO codes.

Explains the strategic synergy behind entering new verticals, aiming for value chain integration and new sales channels.

Asked by Miten Shah

EPC Order Book and Customer Details Direct
So the customer name is ABI Energy Solutions. They are a company based out of UP, Ghaziabad probably. We have been in touch with them since a while and they have been doing a lot of EPC work in utilities as well as distribution lines and transmission lines. And what we're trying to do with them is we want to do part of their work, which they would assign to us.

Provides specific details about the significant new EPC contract, including the customer and the nature of the work.

Asked by Saumil Shah

Margin Guidance & Trust in Commentary Evasive
Which is why I do not intend to give out any margin guidance.

Highlights a key concern from investors regarding the reliability of past margin guidance and management's current reluctance to provide specific forward-looking margin numbers.

Asked by Ankur

Raw Material Price Trend & Inventory Valuation Direct
Yeah, it was around INR235 at the end of the financial year. And right now it is hovering around INR210. ... Our inventory is around the level of INR215.

Provides specific data points on the declining raw material prices and the current valuation of the company's inventory, crucial for understanding future margin potential.

Asked by Rajesh Jain

EPC Business Margins and Execution Direct
Yeah. So we have -- see the guidance that we've given is 8% to 10%. I mean, you know, on an optimistic side, there could be a higher margin as well, right? ... The point that there is no experience, like I said, we have a team who has experience who has joined us.

Addresses concerns about entering a potentially lower-margin business with new experience, detailing margin expectations and execution strategy.

Asked by Rajesh Jain

Debt Structure and Cost Direct
So there are three components to interest that we pay, right? One is the CC interest, that is the short-term and I mean, even including the long-term borrowings. So the borrowing interest. The second is LC discounting interest, which forms a major part of our interest cost... And the third is bill discounting.

Provides a clear breakdown of the company's interest cost components, offering transparency into its financing structure.

Asked by Rajesh Jain

2 min read 6 chapters

Detailed narrative

H1 FY26 Performance Overview and Margin Compression

Jay Bee Laminations Limited reported a significant top-line performance in H1 FY26, with overall revenue and volumes increasing by 40-45% and half-year volumes up 12%. However, this growth was overshadowed by a drop in gross margins, which consequently led to a decrease in profit after tax. Management attributed this margin compression primarily to the burden of high-priced inventory carried over from the previous period, which has now been fully consumed. The company's current inventory stands at a lean 49 days, down 24% from previous levels.

Strategic Diversification into Transformers and EPC

The company is strategically diversifying its business by venturing into transformer manufacturing under the new brand 'INTELLICORE' and undertaking EPC projects. This move is aimed at achieving long-term scalability, stability, and margin predictability by creating synergistic growth drivers. The EPC segment is expected to serve as a new sales channel for the company's transformers and CRGO cores, integrating further up the value chain. Management emphasized that these strategies were carefully planned and not undertaken in haste.

New Order Wins and Pipeline in EPC and Transformers

Jay Bee Laminations has secured EPC orders totaling INR220-225 crores (excluding GST) from ABI Energy Solutions, an experienced player in utilities and T&D. These orders are expected to be executed over the next one to two years. For core coil assemblies and transformers, the company has an existing pipeline of INR3 crores from ongoing discussions. The company targets INR4-6 crores in revenue from these new segments in FY26, with an ambitious target of INR40-50 crores for FY27.

CRGO Capacity Expansion and Utilization

The company's CRGO processing capacity has been ramped up to 19,740 metric tons per annum, with H1 FY26 volumes reaching 7,692 metric tons, representing 78% utilization. Further capacity expansion is underway, aiming to reach 24,000 MTPA, with installation expected to be completed by November-December 2025. For the full financial year 2026, the company is hopeful of achieving a CRGO volume of 16,000 tons.

Raw Material Price Volatility and Margin Outlook

Raw material prices for CRGO have seen a significant decline of approximately 12% from March 2025 levels, currently hovering around INR210/kg, with the company's inventory valued at INR215/kg. While management believes the worst of the price decline is behind them, further 5-10% softening is possible due to global oversupply. Despite this volatility, the company expects EBITDA margins to increase from current levels starting October onwards, reiterating a long-term guidance of 12% for a stable market, though specific short-term guidance was withheld.

Balance Sheet and Working Capital Management

Jay Bee Laminations maintains a healthy balance sheet, reflected by a debt-to-equity ratio of 0.29 and a current ratio of 2.67. Total debt stands at INR43 crores. The company has focused on tight working capital control, reducing inventory days to 49. Receivable days are currently 74-75, but the company aims to optimize this to 70 days. Payable days are expected to increase to 50-55 days from the current low levels, reflecting a shift in purchasing strategy.

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