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    Yasho Industries

    YASHO
    Chemicals·19 May 2026
    Management Summary

    Yasho Industries delivered a resilient performance in Q4 FY26 and full year FY26, demonstrating strong revenue and EBITDA growth despite a challenging global environment. The company achieved significant volume growth and improved its debt-to-EBITDA ratio. Management outlined ambitious targets for FY27 and FY28, including INR1,500 crores revenue by FY28, driven by enhanced capacity utilization and strategic investments in R&D and Pakhajan expansion, while navigating supply chain and pricing pressures.

    Highlights

    7

    • Consolidated revenue reached INR830 crores in FY26, up 22.7% year-on-year.

    • EBITDA stood at INR144 crores with margin improving to 17.4% in FY26.

    • Q4 FY26 revenue was INR246.72 crores, up 33% year-on-year, with EBITDA at INR44.71 crores and 18.1% margin.

    • FY26 volume growth was 33% year-on-year, supported by stronger customer traction.

    • Debt-to-EBITDA improved to 3.75x from 4.70x in FY25, and INR23.30 crores of FY27 liabilities were prepaid.

    • Secured a 15-year long-term agreement, receiving an advance of INR51.4 crores.

    • R&D facility completed in October '25 is now fully operational, accelerating innovation.

    Concerns

    5

    • FY26 was marked by a challenging global environment for specialty chemicals with price disturbance, geopolitical tension, supply chain volatility and cautious procurement impacting demand and pricing.

    • Prices were always under pressure and margins were under pressure in FY26.

    • Imports are experiencing delays (3-4 weeks to 8-12 weeks) and exports to the U.S.A. are taking longer (25 days to 60-70 days) due to supply chain disruptions.

    • Raw materials are either not available or available at very fancy prices due to petrochemical challenges, and there is a challenge to get sulfur.

    • Strong competitive intensity from Chinese suppliers in lubricant additives and industrial chemicals.

    Key financials

    Metrics

    11

    Periods

    3

    Headline

    2
    • Working Capital Days
      190 days
    • Raw Material Price Increase
      10%

    Q4 FY26

    3
    • Revenue
      ₹246.72 Cr
      YoY+33%
    • EBITDA
      ₹44.71 Cr
      YoY+23.7%
    • EBITDA Margin
      18.1%

    FY26

    6
    • Revenue
      ₹830 Cr
      YoY+22.7%
    • EBITDA
      ₹144 Cr
    • EBITDA Margin
      17.4%
    • Volume Growth
      0.33 decimal_fraction
    • Cash from Operations
      ₹152.75 Cr

    Segment breakdown

    Industrial Chemicals
    87% Revenue Contribution
    Exports
    62% Revenue Contribution
    List

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹125 crores

    completely funded through internal accruals

    Debt

    3.8x EBITDA

    Liquidity

    Liquidity disclosed

    FY '26 generated positive cash from operations of INR152.75 crores.

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    Revenue Target
    INR1,500 crores
    		High
    Capacity
    Capacity Utilization
    over 75%
    		High
    Margin
    EBITDA Margin
    2-3% higher
    		Medium
    Margin
    EBITDA Margin
    20% or so
    		Medium
    Volume
    Volume Growth
    40-50%
    		High
    Working Capital
    Working Capital Days
    170-175 days
    		High
    Debt
    Debt-to-EBITDA Ratio
    2.5x
    		High

    Capacity Utilization

    in FY '27
    CurrentAbove 60% (FY26)
    TargetOver 75%

    Why it matters

    Increased utilization is key to achieving higher EBITDA margins and overall revenue growth.

    With improving sentiment and enhanced customer engagement, we target over 75% utilization in FY '27, supporting EBITDA margin expansion.

    How to verify

    key_financials.metrics[label='FY26 Capacity Utilization']

    Risks & concerns

    5
    RiskSeverity

    Global Economic Environment & Pricing Pressure

    Challenging global environment in FY26 with price disturbance, geopolitical tension, supply chain volatility, and cautious procurement impacting demand and pricing, leading to margin pressure. — Management acknowledged

    high

    Supply Chain Disruptions

    Imports delayed (3-4 weeks to 8-12 weeks) and exports to the U.S.A. delayed (25 days to 60-70 days) due to Middle East issues. — Management acknowledged

    medium

    Raw Material Availability and Pricing

    Raw materials not available or at fancy prices due to petrochemical challenges; specific challenge in obtaining sulfur. — Management acknowledged

    medium

    Competition from Chinese Suppliers

    Strong and very competitive environment from Chinese suppliers in lubricant additives and industrial chemicals. — Management acknowledged

    medium

    EV Penetration Impact on Lubricant Business

    EV penetration is not seen as a significant threat in the next 5-10 years, with potential impact in 15-20 years, offset by growth in other industrial segments. — Management downplayed

    low

    Q&A highlights

    8

    “Well, let me be honest, we are not we will always talk about the Yasho level rather than I'll talk about the individual capacity level. So I'd like to stick to the Yasho level capacity.”

    Management declined to provide granular data on individual plant utilization, which could obscure performance differences between facilities.

    asked by Laveena Jagwani

    2 min read6 chapters

    Detailed Narrative

    01

    FY26 Performance and Growth Drivers

    Yasho Industries reported a resilient performance in FY26, with consolidated revenue reaching INR830 crores, a 22.7% year-on-year increase. EBITDA stood at INR144 crores, with the margin improving to 17.4%. The company achieved a 33% year-on-year volume growth, primarily driven by the Industrial Chemical segment, which contributed 87% of the revenue. Exports accounted for 62% of the total revenue, underscoring resilience despite global challenges🌐.

    02

    Q4 FY26 Highlights and Margin Expansion

    The fourth quarter of FY26 demonstrated strong momentum, with revenue growing by 33% year-on-year to INR246.72 crores. EBITDA for the quarter was INR44.71 crores, reflecting a 23.7% growth and an improved margin of 18.1%. This margin expansion was attributed to disciplined execution, strategic decisions, and operational efficiencies, including better capacity utilization, which was above 60% in FY26.

    03

    Strategic Investments and Future Capacity

    Yasho Industries is investing in its long-term platform, with a capex of INR75 crores in FY26, including INR25 crores for R&D and INR40-42 crores for Pakhajan expansion. For FY27, the company plans a capex of INR125 crores, entirely funded through internal accruals and focused on Pakhajan. The R&D facility, completed in October '25, is now fully operational, accelerating innovation and strengthening the product portfolio.

    04

    Long-term Agreements and Revenue Visibility

    A key milestone was securing a 15-year long-term agreement, reinforcing capabilities and enhancing revenue visibility. An advance of INR51.4 crores has already been received for this contract, with revenue realization expected to commence in FY28. This project, along with optimal asset utilization of 85-90%, is expected to drive the company towards its INR1,500 crores revenue target by FY28.

    05

    Financial Discipline and Debt Management

    The company demonstrated strong financial discipline, with cash from operations reaching INR152.75 crores in FY26. The debt-to-EBITDA ratio improved significantly to 3.75x from 4.70x in FY25. Yasho Industries also prepaid INR23.30 crores of its FY27 liabilities, leaving only INR15.6 crores due, easing repayment pressure and enhancing financial flexibility. The company aims to further reduce its debt-to-EBITDA ratio to 2.5x.

    06

    Market Challenges and Mitigation Strategies

    The global specialty chemicals environment in FY26 was challenging due to price disturbance, geopolitical tension, and supply chain volatility. Management noted significant delays in both imports (up to 8-12 weeks) and exports (up to 60-70 days for the USA). Raw material availability and pricing, particularly for petrochemicals and sulfur, were concerns. These challenges were partially mitigated by maintaining high inventory levels and optimizing product mix towards higher-margin offerings.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.