Detailed Narrative
Strong Revenue Growth Driven by EPC Business
Jay Bee Laminations Limited reported a robust financial performance in FY26, with total annual revenue reaching INR 549 crores, marking a nearly 50% year-on-year growth. The second half of FY26 alone contributed INR 329 crores, also reflecting approximately 50% sequential growth. A significant portion of this growth, INR 141.5 crores (25% of total revenue), came from the newly scaled EPC projects business, which the company aims to further expand.
Profitability Impacted by CRGO Volatility
Despite strong revenue growth, profitability was challenged by extreme volatility in the CRGO business. EBITDA for FY26 declined to INR 34 crores from INR 43 crores in FY25, and profit after tax decreased to INR 18.2 crores from INR 25.4 crores. This was primarily attributed to a staggering 30-35% fall in CRGO raw material prices from March 2025 to March 2026, leading to margin pressure and increased fixed costs as a percentage of sales, despite a 25% volume growth in CRGO.
Improved Cash Flow and Working Capital Management
The company demonstrated strong cash flow generation, with cash flow from operations turning positive at INR 30.1 crores in FY26, a significant improvement from a negative INR 33.87 crores in the previous year. The cash conversion cycle also improved substantially, reducing to less than 70 days in FY26 from 116 days in FY25. However, receivables increased to INR 190 crores (from INR 78 crores in FY25) due to a spike in EPC sales, with INR 118 crores specifically from the EPC segment, which management expects to normalize in 3-4 months.
Strategic Expansion into Transformers and EPC
Jay Bee Laminations is strategically evolving into an integrated player in the power T&D sector. The company successfully delivered its first transformers, generating INR 6 crores in sales in FY26, and targets INR 20-30 crores in FY27. The EPC business, a new segment, is expected to contribute INR 100 crores in FY27 from existing orders, with a potential to secure up to INR 500 crores in new orders. Margins for EPC and transformers are targeted at 8-10%, with a focus on selective order booking to manage working capital intensity.
CRGO Business Outlook and Capacity Utilization
For the core CRGO business, the company aims to maintain a similar volume growth trajectory as FY26 (25%) in FY27, targeting 16,000-18,000 tonnes. Management believes CRGO prices have bottomed out and are showing signs of increasing by 5-7% (excluding rupee depreciation). With an installed capacity of 24,000 metric tonnes per annum, current utilization is around 65%, with no major CapEx plans for FY27, as the focus remains on improving utilization and protecting margins.
Long-Term Vision and Capital Allocation
The long-term vision is to become an integrated power player and achieve INR 1,000 crore revenue as early as possible. The company emphasizes efficient capital allocation, aiming for healthy ROC and ROE metrics. CapEx activities for the last two fiscal years amounted to INR 30 crores, completing planned manufacturing expansions. For FY27, there are no CapEx plans, with the strategy centered on optimizing existing capacities and being selective in new business undertakings to balance execution and scale-up effectively.