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Jyoti Resins & Adhesives Ltd — Q1 FY27 earnings call

Call held 11 Aug 2026

Company page: Jyoti Resins & Adhesives share price, financials & guidance record

Management summary

Jyoti Resins reported a resilient Q1 FY27 with 17% revenue growth, driven by 10% volume growth and 7% price increases, despite a challenging raw material environment that compressed EBITDA margins to 14.4%. The company is progressing with capacity expansion to 3,500 tons/month and aims for INR 600-650 crores revenue from this capacity. Strategic investments in brand building, distribution, and carpenter engagement continue, alongside efforts to normalize receivables days and achieve a long-term EBITDA margin of 23-25%.

Highlights

  • Revenue growth of 17% in Q1 FY27, with 10% contributed by volumes.

  • Capacity expansion from 2,000 to 3,500 tons per month nearing completion (80% done, ready in 1-2 months).

  • Registered carpenter base increased to 210,000.

  • Maintained a strong balance sheet with zero debt and healthy cash generation (INR 160 crores).

  • Successful price increases (7% in Q1) without significant volume impact, demonstrating brand strength.

Concerns

  • Q1 FY27 EBITDA margin impacted, standing at 14.4% due to sharp spikes in crude prices and freight rates affecting raw material costs.

  • Receivables days are currently above 150 days, with a target to bring them down to 120 days within 2-3 quarters.

  • Raw material price volatility in March-April 2026 led to challenges in inventory planning.

Key financials

  1. Revenue Growth 17% +17%YoY
  2. Volume Growth 10% +10%YoY
  3. EBITDA Margin 14.4%
  4. Raw Material Price Increase 7%
  5. Cash ₹160 Cr
  6. Capacity Utilization 65%

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue65 71 79 75 74 +14%72 +1%93 +18%88 +17%
EBITDA19 22 24 21 20 +5%19 −14%25 +4%13 −38%
Net profit16 19 20 17 17 +6%15 −21%20 +0%12 −29%
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 internal accruals
    • Capacity expansion from 2,000 to 3,500 tons/month (Brownfield) ₹7 Cr
    • Initial Greenfield expansion for 1,500 tonnes/month capacity ₹45 Cr
    The asset light model, INR 7 crore we have invested in the brownfield and now the company is ready for the generating INR 650 crore rupees of revenue. (Page 24) and So, INR 45 crores to INR 50 crore initial CapEx and mainly that 50% will be the land part and 50% will be the constructions and remaining parts, machineries and everything. So, initially we will build the additional 1,500 tonnes per month capacity into that Greenfield and phase wise we will add as per the requirement. (Page 4)
  • Debt Gross ₹0 Cr · Net ₹0 Cr
    Importantly, we continue to maintain a strong balance sheet with zero debt, healthy cash generation, and robust return ratios. (Page 4) and We are able to maintain our company debt free. (Page 24)
  • Liquidity Cash ₹160 Cr
    We are sitting on the INR 160 crore of cash for the future expansions for future growth. (Page 24)

Guidance & targets

Profitability

  • EBITDA Margin Profitability · Q2 FY27 · High confidence 23-25%
    The price increases happened gradually in May and June, and this will help normalize margins at 23% to 25% levels in quarter two.

    — Utkarsh J Patel

  • EBITDA Margin Profitability · Longer term · High confidence 22-25%
    But all our guidance is we are very confident about the 22% to 25% of EBITDA what we have also earlier mentioned, already maintained last 4 - 5 years.

    — Utkarsh J Patel

Revenue

  • Revenue from 3,500 tons/month capacity Revenue · FY27 (from next month) · High confidence INR 600-650 crores
    So that can generate almost INR 600 crores to INR 650 crores of revenue from here.

    — Utkarsh J Patel

  • Revenue target Revenue · By end of FY29 · Medium confidence INR 500 crores
    For the '29, we can consider for the INR 500 crore revenue.

    — Utkarsh J Patel

Volume

  • Volume growth rate Volume · Ongoing · High confidence 15-20%
    But yeah, we can say that we aim for always more than 15% - 20% of volume growth.

    — Utkarsh J Patel

Expenses

  • Sales promotion expense as % of revenue Expenses · Yearly · High confidence 6-7%
    And for advertising and branding, we have targeted for the 6% to 7% of the revenue.

    — Utkarsh J Patel

  • Employee cost as % of revenue Expenses · Ongoing · High confidence 11-13%
    But we are very much confident that we'll be in control of around 11% to 13% of around what are the mainly industry standard for the employee cost.

    — Utkarsh J Patel

Working Capital

  • Receivables days Working Capital · Within 2-3 quarters · Medium confidence 120 days
    So, I think within one or two quarters, we will be in a very good condition to maintain these ratios for the debtor side.

    — Utkarsh J Patel

Corporate Action

  • NSE Listing Corporate Action · Within this quarter · High confidence Completion
    NSE listing is in process. Within this quarter, I think you will have the NSE listing.

    — Utkarsh J Patel

Revenue Mix

  • OEM segment revenue as % of total Revenue Mix · Going forward · Medium confidence 10-12%
    But going forward, I think 10% to 12% will go in this from our revenue.

    — Utkarsh J Patel

What to watch in Q2 FY27

EBITDA Margin Normalization

Q2 FY27
Current 14.4% in Q1 FY27
Target 23-25%

Why it matters

Crucial for profitability and demonstrating ability to pass on costs and manage raw material volatility.

The price increases happened gradually in May and June, and this will help normalize margins at 23% to 25% levels in quarter two. (Page 3)

Risks & concerns

  • Raw Material Price Volatility

    high

    Sharp spikes in crude prices and freight rates led to increased raw material costs (VAM from INR 75-78 to INR 170-180/kg in March, now INR 100/kg), impacting Q1 margins.

    Management acknowledged

  • Elevated Receivables Days

    medium

    Trade receivables are around INR 145-150 crores, spread across 13,000 retailers, with current collection days above 150, targeted to be reduced to 120 days.

    Management acknowledged

  • Geopolitical Uncertainties

    medium

    Global uncertainties and unrest in West Asia contributed to raw material price volatility, impacting Q1 performance, though the company demonstrated resilience.

    Management acknowledged

Q&A highlights

8 direct
Capacity Expansion and Revenue Targets Direct
So that can generate almost INR 600 crores to INR 650 crores of revenue from here.

Clarifies the revenue potential from the immediate capacity expansion and the long-term vision for Greenfield.

Asked by Ritika Sheth

Q1 EBITDA Margin Impact and Future Outlook Direct
I think it will be effect obviously, Q1 EBITDA is now 14.4% around. So, it will affect all over four quarters. But we will try our best that how can we maintain above our 22% to 25% EBITDA guidance for the longer term.

Addresses the margin compression in Q1 and management's strategy to recover and maintain target margins.

Asked by Ritika Sheth

Employee Expenses and Dealer Meets Direct
Employee cost has increased because we have hired new talents also and now, we have increased our sales force from 520 to 562 people. (Page 8) and we have done almost 30 dealer meets and the expense was almost investment was almost INR 2 crores around. And this time, it is additionally INR 2.5 crores we had.

Explains the increase in employee and promotional expenses as part of aggressive growth and market penetration strategy.

Asked by Smith Gala

Raw Material Price Volatility and Price Hikes Direct
So, see, for this white glue adhesives the key raw material is VAM, vinyl acetate monomer. So, it is averagely INR 75 to INR 78 around per kg. And that in March, last 10 days, it went up to the INR 170, INR 180... But right now, it is set to almost INR 100 per kg.

Provides specific details on raw material price fluctuations and the company's response with price increases.

Asked by Saket Saraogi

Impact of Price Hikes on Sales Volume Direct
But though, what I explained that July month was that where all the sites are going very well and the demands are coming back to the routine. So, this is I think the situation happens to all companies right now.

Addresses concerns about demand elasticity post-price hikes, indicating demand recovery.

Asked by Saket Saraogi

Export Market Exploration Direct
But right now, our target is to achieve at least INR 500 crore of top line because, see, we are investing into the existing territories, existing domestic market... So, it is still it's too far to think about to enter the different markets.

Clarifies the company's current focus on domestic market penetration before considering international expansion.

Asked by Dishant Shah

Trade Receivables and Collection Days Direct
It is improved. See, that is the main focus area for us. And we are trying our best to set back to the normal to the 120 days around. So, that is our first goal to achieve that.

Highlights the company's focus on improving working capital management and reducing receivables days.

Asked by Indresh Malik

Historical Growth vs Recent Performance Direct
I think nothing was gone wrong actually. But as I mentioned that the consolidation was needed because see size was also different. In 2020, we were doing INR 100 crores of revenue. Then we take a jump off to INR 181 crore. So that was 80% growth. That was a very exceptional growth what we have done.

Provides context on the company's growth trajectory, explaining recent consolidation phases versus earlier rapid growth.

Asked by Saket Saraogi

2 min read 6 chapters

Detailed narrative

Q1 FY27 Performance Overview

Jyoti Resins reported a 17% revenue growth in Q1 FY27, with 10% attributed to volume expansion and the remaining 7% from price increases. Despite a dynamic operating environment, the company demonstrated resilience. However, global uncertainties and raw material price spikes led to a Q1 EBITDA margin of 14.4%, below the targeted 23-25% for Q2. The company's performance reflects the strength of its Euro brand and deep distribution network.

Raw Material Volatility and Margin Impact

The quarter began with significant challenges due to geopolitical unrest, causing sharp spikes in crude prices and freight rates, which in turn impacted key raw material (VAM) prices. VAM prices surged from an average of INR 75-78/kg to INR 170-180/kg in March, though they have since settled around INR 100/kg. This volatility, coupled with light inventory, compressed Q1 EBITDA margins to 14.4%. Management expects margins to normalize to 23-25% in Q2 due to gradual price increases implemented in May and June and securing 90-day raw material contracts.

Capacity Expansion and Growth Strategy

The company is actively pursuing capacity expansion, with 80% of the work completed to increase manufacturing capacity from 2,000 tons per month to 3,500 tons per month. This brownfield expansion, costing INR 7 crores, is expected to be ready within one to two months and can generate INR 600-650 crores in revenue. Additionally, a greenfield facility is planned with an initial CapEx of INR 45-50 crores to add another 1,500 tonnes per month, supporting a long-term vision for INR 1,000 crores in revenue.

Market Penetration and Brand Building

Jyoti Resins continues to strengthen its market position through brand-led demand creation, strong carpenter engagement, and efficient distribution. The registered carpenter base has grown to 210,000. The company is aggressively expanding into new markets like UP and Jharkhand, with plans to open one more state in Q2. Sales promotion expenses are targeted at 6-7% of revenue, and employee costs are maintained at 11-13%, reflecting investments in sales force expansion (from 520 to 562 people) and dealer meets.

Receivables Management and Working Capital

Trade receivables currently stand at INR 145-150 crores, spread across 13,000 retailers, with collection days exceeding 150. Management's primary goal is to reduce this to 120 days within the next two to three quarters through network development, training, and maintaining strong relationships with dealers. The company emphasizes that bad debt has historically remained below 0.5%, indicating effective credit risk management despite extended terms in newer markets.

Future Outlook and Long-Term Targets

The company aims for a long-term revenue target of INR 500 crores by the end of FY29, supported by a volume growth rate of 15-20%. They are focusing on expanding the OEM segment, targeting 10-12% of total revenue from the current 6%. Jyoti Resins maintains a zero-debt balance sheet with INR 160 crores in cash, providing flexibility for growth investments. The NSE listing process is underway and expected to be completed within the current quarter.

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