Sejal Glass Q2 FY27 Earnings Call — Analysis (NSE: SEJALLTD)
Sejal Glass posted strong Q2FY27 performance with consolidated revenue up 33.1% YoY to ₹139.86 Cr and PAT up 77.6% YoY to ₹14.42 Cr, reiterating full-year FY27 revenue growth guidance of 25-40% and EBITDA margin around 18%.
Result quality: strong — Margin expansion. Management sentiment: optimistic.
The take
Q2FY27 Consolidated Total Income ₹139.86 Cr ( +33.14% YoY ) , H1FY27 +41.84% . New guidance — FY28 peak revenue from existing infr… ₹600-650 Cr . New story: Strong order book providing near-term visibility .
Results
Q2FY27 consolidated revenue grew 33.14% YoY to ₹139.86 Cr, EBITDA rose 43.44% to ₹25.66 Cr with margins expanding 132 bps to 18.35%, and net profit jumped 77.61% YoY to ₹14.42 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Total Income | ₹139.86 Cr | +33.14% | yoy · Q2FY27 · vs ₹105.04 Cr in Q2FY26 |
| Consolidated EBITDA | ₹25.66 Cr | +43.44% | yoy · Q2FY27 · vs ₹17.89 Cr in Q2FY26 |
| Consolidated EBITDA Margin | 18.35% | +132bps | yoy · Q2FY27 · vs 17.03% in Q2FY26 |
| Consolidated PAT | ₹14.42 Cr | +77.61% | yoy · Q2FY27 · vs ₹8.11 Cr in Q2FY26 |
| Consolidated PAT Margin | 10.31% | +258bps | yoy · Q2FY27 · vs 7.73% in Q2FY26 |
| Consolidated Diluted EPS | ₹12.52 | +57.48% | yoy · Q2FY27 · vs ₹7.95 in Q2FY26 |
| H1 Consolidated Total Income | ₹259.29 Cr | +41.84% | yoy · H1FY27 · vs ₹182.81 Cr in H1FY26 |
| H1 Consolidated EBITDA | ₹43.68 Cr | +43.79% | yoy · H1FY27 · vs ₹30.38 Cr in H1FY26 |
| H1 Consolidated PAT | ₹21.63 Cr | +72.6% | yoy · H1FY27 · vs ₹12.53 Cr in H1FY26 |
| Domestic Order Book | ₹85 Cr | point_in_time · Q2FY27 · Sep-2026 |
Guidance
Management guided for FY27 YoY revenue growth in the range of 25% to 40%, sustained EBITDA margin around 18%, and PAT margin of approximately 10%.
What management committed to
- We remain focused on sustaining EBITDA margin at around 18% [in FY27]. — around 18%, FY27
- We are expecting 5% in this year [FY27] from the value-added products [fire-rated, bullet, railway, digital printed] and next year [FY28] 15% or 20%. — FY27 5%, FY28 15-20%, FY27, FY28
- Margins will be definitely more in terms of EBITDA, it is more than 30% [for fire-rated glass]. — >30%, FY28 onwards
- I think so we'll be able to reach [peak revenue of INR600-650 crores] in '28 [from existing infrastructure]. — INR600-650 crores, FY28
Key themes
Capacity ramp-up and specialty glass diversification
How the narrative shifted
- Strong order book providing near-term visibility: UAE order book reached AED78 Mn (up from AED72 Mn) and India orders ~INR85 Cr (up from INR50 Cr+), providing 6-9 months execution visibility.
- Capacity utilisation ramp-up driving margins: Erode now positive EBITDA 10%, Taloja near break-even.
- Geographic and product diversification: Fire-rated line on track for Q3 trial, Q4 commercial sales.
- Conservative guidance philosophy: No explicit reference to conservatism; guidance ranges reaffirmed without caveats.
- Geopolitical sensitivity of UAE operations: Shift from 'if stabilises' to 'doing well despite tensions'.
- Value-added product ramp-up: New thread this quarter; product-specific targets and margin guidance provided.
- Cost management and COGS improvement: Not a prior thread; surfaced as driver of margin expansion.
Operational commentary
- Capacity utilization at acquired Glasstech plants improved: Taloja tempering rose to 69% (from 55% in Q1) and IG to 40% (from 24%); Erode tempering reached >24% (from 13%) and IG rose to >18% (from <5%). Erode is operating at ~10% EBITDA margin while Taloja is at breakeven.
- Installed fire-rated glass manufacturing line with imported machinery; trial production scheduled for Q3FY27 and commercial sales targeted for Q4FY27.
- Order inflow in July 2026 included AED 27.6M (~₹71 Cr) in UAE across hospitality/residential/healthcare and ~₹150 Cr in domestic architectural glass.
- Commissioning UAE third line tempering and fire-rated glass capacity in Q3FY27 with an estimated capex of ~AED 20M funded via 60:40 internal accruals and bank debt.
- Active vendor qualification with 3 Indian railway coach factories for railway-grade glass; participating in ~₹100 Cr+ quarterly tenders with ~5% win/conversion rate as a new entrant.
Analyst Q&A
Q. What is the expected revenue contribution and EBITDA margin from fire-rated glass next year?
Guidance on specific revenue contribution will be given in Q1FY28 post testing, but EBITDA margin on fire-rated glass is expected to be >30% given its high value-add nature.
Q. What is the plan for debt reduction and prepayment?
Debt consists of long-term bank loans being serviced regularly via EMI; currently there is no plan for debt prepayments.
Q. Why is working capital cash flow weak and how is it managed?
UAE runs on credit/PDC though 25% is converted to LC discounting; in India, large projects require advance procurement of coated/reflective glass from primary manufacturers (e.g. Saint-Gobain) to align with campaign runs, tying up inventory.
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