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Jyoti Resins & Adhesives Ltd — Q3 FY26 earnings call

Call held 10 Feb 2026

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

Management summary

Jyoti Resins reported a soft Q3 FY26 with flattish revenue and volume growth, contrasting with a strong 20% volume growth in Q2 FY26. For the 9 months of FY26, volume growth stood at 4%-4.5%. The company is focused on strategic investments in ATL/BTL marketing, capacity expansion to 3,500 tons per month to support a target revenue of INR 500-700 crores, and strengthening its market footprint, while maintaining a debt-free balance sheet.

Highlights

  • Q3 FY26 saw soft revenue and volume growth year-over-year, following a 20% YoY volume growth in Q2 FY26.

  • For the 9 months of FY26, volume growth was approximately 4% to 4.5%.

  • The company aims to achieve a first targeted revenue of INR 500 crores.

  • Current production capacity is 2,000 tons per month, with average utilization at 1,200-1,250 tons per month.

  • Planned capacity expansion to 3,500 tons per month is expected to enable revenue of INR 600-700 crores.

  • Advertising spend (ATL/BTL) for 9M FY26 was 4%-4.5% of revenue, with a target to increase it to 7%-8%.

  • The company maintains a strong cash and bank balance, reporting net cash of INR 170 crores in September, and is debt-free.

Key financials

3 periods

Headline

  • EBITDA Margin (Implied Current)
    25%

Q3 FY26

  • Volume Growth
    0%
    YoY 0%

9M FY26

  • Volume Growth
    4.3%
    YoY +4.3%
  • ATL/BTL Spend
    4.5 % of revenue

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
    • Capacity expansion to 1,500 tons/month ₹5.5 Cr
    • Brownfield expansion to 3,500 tons/month capacity (70-80% complete)
    • New greenfield expansion (post-FY27) ₹42.5 Cr
    No, see, our CapEx is not large at all. If you see, today we will increase from a revenue of INR 300 crores to a capacity of 1,500 tons per month. It is an investment of INR 5 crores to INR 6 crores. (Page 8) ... right now we are on to the brown field expansions and that is already 70%, 80% work is done. So, within next one or two quarters, it will be finished. And I think after '27, we can, we will assume that we will start for the new greenfield and that will be around INR 40 crores to INR 45 crore rupees of greenfield new expansion. (Page 22)
  • Debt Gross ₹0 Cr · Net cash ₹170 Cr
    today the company did not need any funds, it became debt-free (Page 7) ... net cash of around INR 170 crores in September (Page 5)
  • Liquidity Cash ₹170 Cr Company has a strong cash and bank balance.
    On the balance sheet front, we continue to have a strong cash and bank balance (Page 3) and net cash of around INR 170 crores in September (Page 5)

Guidance & targets

Revenue

  • Revenue Target Revenue · Mid-term · High confidence INR 500 crores
    to achieve our first targeted INR 500 crores revenue target. (Page 3)

    — Utkarsh J Patel

  • Revenue Potential from 3,500 tons/month capacity Revenue · After capacity completion (Q4 FY26 / Q1 FY27) · High confidence INR 600 to INR 700 crores
    So, in that, we will be able to generate a revenue of about INR 600 to INR 700 crores. (Page 14)

    — Utkarsh J Patel

Capacity

  • Production Capacity Capacity · End of Q4 FY26 or Q1 FY27 · High confidence 3,500 tons per month
    So, after one or two quarters, end of this quarter, maybe we will have the capacity of 3,500 tons. (Page 14)

    — Utkarsh J Patel

Marketing Spend

  • ATL/BTL Spend as % of Revenue Marketing Spend · Future · Medium confidence 7% to 8%

    From 4% to 4.5% today

    For the 9 months, we have done almost 4%, 4.5% of ATL, BTL. So, that we also want to take to the 7% to 8% around of revenue. (Page 9)

    — Utkarsh J Patel

Profitability

  • EBITDA Margin Profitability · Longer term · High confidence 22% to 25%
    See in a margin fund, I always guided with the 22% to 25% of EBITDA in a longer term. (Page 11)

    — Utkarsh J Patel

Market Expansion

  • Number of New States Market Expansion · Next 2 years · Medium confidence 5 to 6 more states
    planning to be present in 5 to 6 more states in the next 2 years. (Page 14)

    — Utkarsh J Patel

What to watch in Q4 FY26

Share Buyback Decision

Next quarter
Current Under internal discussion
Target Decision on buyback

Why it matters

A buyback could signal management confidence and improve EPS, addressing investor concerns about stagnant stock performance and cash utilization.

Okay. We will take this into account and discuss it internally in the Board. We will look positive around that, what we can do. (Utkarsh J Patel, Page 5)

Risks & concerns

  • Soft Demand/Market Conditions

    medium

    Q3 FY26 saw soft demand, particularly in October, for building construction materials, impacting revenue and volume growth, attributed to prolonged monsoons and festival seasons.

    Management acknowledged

  • Aggressive Competition

    medium

    Increased aggression from competitors, including new entrants like Astral, is a challenge, though management believes their established brand and ground-level work will help.

    Both acknowledged

  • Margin Compression due to Growth Spends

    medium

    EBITDA margins have compressed due to strategic investments in marketing and sales promotion aimed at market penetration and brand building, which management views as necessary for future growth.

    Both acknowledged

Q&A highlights

6 direct
Share Buyback and Investor Confidence Partial
Okay. We will take this into account and discuss it internally in the Board. We will look positive around that, what we can do. (Page 5)

Analyst challenged management on stagnant EPS and suggested a buyback to restore investor confidence, given significant cash reserves. Management acknowledged the suggestion but did not commit.

Asked by Keshav Garg

Effectiveness of Marketing Spend and Flat Sales Partial
It is not about anything we are adamant on. We are working on different strategies also. But see, sometimes we believe in ourselves and what we have experienced in 17 years, that confidence we have. (Page 6)

Analyst questioned the efficacy of heavy marketing expenditure and brand ambassador given flat sales for three quarters, suggesting the strategy is not delivering results and hitting margins. Management defended their long-term vision and current corrections.

Asked by Smith Gala

Competition and Pricing Pressure Direct
It is not about the pricing pressure. Yes, it is about the competition that has become aggressive. There is nothing bad in that. But as I said that the competition was there from the first day and it was with a very strong name. (Page 9)

Analyst asked about pricing pressure and market challenges, noting peers reported double-digit growth. Management clarified it's aggressive competition, not pricing pressure, and emphasized their ground-level work and debt-free status.

Asked by Aachal Pal

Declining EBITDA Margins Direct
See in a margin fund, I always guided with the 22% to 25% of EBITDA in a longer term. So, this is the exceptional EBITDA what we have delivered in last three years. So long term we have always guided to this. The reason is that 7% to 8% is the different situations what we need to face and we need to put that for the growth front. (Page 11)

Analyst pointed out a consistent decrease in EBITDA margins and asked for reasons. Management attributed it to growth-focused spending (trade marketing, ATL) and reiterated their long-term target of 22-25%.

Asked by Vatsal Shah

Reputed Auditor Appointment Direct
So, you are very right and we are on to that also. So, we have always made improvements in each and every part. So, we respect the advice and suggestions of yours. So, we will do this as well. (Page 12)

Analyst suggested appointing a more reputed auditor to build confidence with large investors and institutions. Management acknowledged the suggestion and stated they would consider it.

Asked by Vatsal Shah

Growth Guidance Consistency Direct
You are very right that -- but see, we want that growth actually. This was our plan. And if see, we have consolidated for one year... But you are very right, we had a growth plan of 20%. But anyhow, because of so many circumstances, we were not able to deliver. (Page 12)

Analyst questioned why the company continues to give 20% growth guidance despite consolidating for the last two years. Management admitted they aimed for 20% but couldn't deliver due to circumstances, promising better planning and transparency.

Asked by Kevin Gala

Marketing Strategy (ATL vs BTL) Direct
So, as you see that our major, our major marketing spend is skewed towards trade marketing because that's our key trade people, right? So that will always be there. However, brand marketing also we are very conscious about and we have started investing in that after onboarding Pankaj Tripathiji also as our brand ambassador. (Page 16)

Analyst questioned the return on investment for ATL marketing versus BTL. Management clarified their strategy is skewed towards trade marketing (BTL) but also includes selective ATL for brand building.

Asked by Mudit Minocha

Professionalization of Management Direct
we as a leadership team, we want to focus on the further growth prospects and all across and we'll try to scheme as much as possible, the market potential. Hence, we already started onboarding the professionals from outside organizations or from the various multinationals also in our company and find it quite attractive, company to enter into. (Page 18)

Analyst asked if the company plans to professionalize management, especially for distribution, advertising, and marketing. Management confirmed they have already started onboarding professionals from multinationals to drive business growth.

Asked by Amit Agicha

2 min read 5 chapters

Detailed narrative

Q3 FY26 Performance and Market Conditions

Jyoti Resins experienced a soft Q3 FY26 with flattish revenue and volume growth year-over-year, following a robust 20% volume growth in Q2 FY26. Management attributed this softness, particularly in October, to prolonged monsoons and festival seasons, impacting demand for building construction materials. Despite the challenging quarter, the company's exit rate in December was strong, matching its Q3 growth, and it aims to recover lost ground in Q4 FY26.

Strategic Investments and Capacity Expansion

The company is actively investing in focused ATL (Above The Line) and BTL (Below The Line) marketing spends, with 9M FY26 ATL/BTL at 4-4.5% of revenue, targeting 7-8% in the future. Brownfield capacity expansion to 3,500 tons per month is 70-80% complete and expected to be finished within one to two quarters, which will enable a revenue potential of INR 600-700 crores. A future greenfield expansion of INR 40-45 crores is planned post-FY27.

Long-term Vision and Market Penetration

Jyoti Resins aims to achieve a first targeted revenue of INR 500 crores, driven by increasing market share in existing states and expanding its footprint into 5-6 new states over the next two years. The company emphasizes its strong ground-level work, particularly with carpenters and dealers, and its debt-free status, which provides a strong fundamental base for future growth.

Margin Management and Competitive Landscape

While EBITDA margins have seen a consistent decrease from 32-34% to 25-26% over recent quarters, management views this as a strategic investment for growth, aligning with their long-term EBITDA margin guidance of 22-25%. The company acknowledges aggressive competition but asserts that competition has always been present and their focus on white glue and customer relationships helps maintain their position.

Corporate Governance and Investor Relations

Management acknowledged investor concerns regarding the appointment of a more reputed auditor and committed to discussing it internally, aiming for improvements. They also addressed feedback on poor communication from the investor relations team, promising to correct it. A suggestion for a share buyback to boost investor confidence was also noted for internal board discussion.

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