XPRO India

Xpro India reported Q4 FY26 revenue from operations of INR 134.37 crores, a decrease from INR 158.2 crores in Q4 FY25, while PBT improved to INR 16 crores from INR 11.5 crores YoY. For the full year FY26, net revenues declined 5.6% to INR 505.5 crores from INR 535.28 crores in FY25. Aggregate production volume decreased by 5% to 31,335 metric tons. Full-year PBT stood at INR 41 crores, down from INR 58 crores in FY25, primarily impacted by INR 11 crores in unrealized forex losses. Despite these challenges, total exports increased to INR 22.5 crores from INR 14.20 crores in FY25.

The new dielectric film line at Barjora was successfully commissioned on March 27, 2026, marking a significant capacity expansion for precision-engineered ultra-thin films (2-16 micron). This segment's contribution to overall turnover increased from 25% in FY25 to 29% in FY26, with sales revenue remaining stable at INR 140-142 crores. The company aims for at least 50% utilization of this new line in FY27 and is actively onboarding new customers, focusing on high-value applications like EV inverters and solar systems. The Barjora line has been capitalized to the extent of INR 240 crores.

The Coex division, which manufactures coextruded sheets and thermoformed refrigerator liners, experienced a volume decline in FY26. This contributed significantly to the overall 5% reduction in aggregate production volume from 33,014 metric tons to 31,335 metric tons. The segment's share in total turnover decreased from 75% in FY25 to 71% in FY26. Management attributed the slowdown to moderated refrigerator production and softer raw material prices, but anticipates a pickup in volumes in FY27, especially with favorable weather conditions in Northern India.

The subsidiary project in Ras Al Khaimah, UAE, is broadly on track, with key equipment already at the site and advanced implementation underway. Trial production is expected by August-September 2026, with commercial operations anticipated by Q3 FY27, aiming for over 50% capacity utilization in FY27-FY28. However, geopolitical conditions in West Asia remain fluid, contributing to heightened uncertainty, elevated costs, and potential disruptions to trade and transport, which could impact the project timeline.

Xpro India maintains a strong financial position with no outstanding long-term borrowing for existing operations. Supplier credit (ECB) was utilized for the new Barjora line, with three installments already repaid. The net debt to equity ratio remained negligible, and the company achieved a return on capital employed of over 5.3%. A dividend of INR 2 per equity share has been recommended. Furthermore, INR 74.63 crores from preferential issue and QIP proceeds are held in banks, earmarked for stated purposes.

The dielectric film market is experiencing steep price increases, with modal prices now exceeding INR 550 per kilo. This surge is primarily driven by the West Asia crisis, impacting polymer costs and shipping. The company maintains a strategic inventory of raw materials, ensuring over 3 months of stock. Despite the highly competitive global market, Xpro India has maintained its position without tariff protection, and management emphasizes the importance of market stability over volatile price movements.

The Board has approved the appointment of Mr. Girish Behal as Managing Director from January 1, 2027, with an immediate redesignation as Managing Director Designate and CEO. This strategic move is part of a planned succession to align with the company's materially larger ambitions, leveraging Mr. Behal's extensive commercial and operational expertise to lead Xpro India through its next phase of growth and scale.