Steamhouse India Q1 FY27 Earnings Call — Analysis (NSE: STEAMHOUSE)
Steamhouse reported Q1 FY27 revenue of ₹128.62 Cr (+13.35% YoY) with EBITDA surging 60.08% to ₹30.93 Cr as operating leverage and waste-to-energy mix drove EBITDA margin to 24.05%.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q1FY27 Revenue from Operations ₹128.62 Cr ( +13.35% YoY ) . New guidance — FY28 expansion capex outlay (under-c… ₹60-odd Cr and ₹170 Cr . New story: Community Boiler Outsourcing Adoption .
Results
Revenue grew 13.35% YoY to ₹128.62 Cr while EBITDA jumped 60.08% to ₹30.93 Cr (margin 24.05%, +702bps) on 16.7% volume growth and higher steam realizations.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹128.62 Cr | +13.35% | yoy · Q1FY27 · Q1FY26 ₹113.47 Cr |
| Steam Revenue | ₹123.37 Cr | +46.07% | yoy · Q1FY27 · Q1FY26 ₹84.46 Cr |
| EBITDA | ₹30.93 Cr | +60.08% | yoy · Q1FY27 · Q1FY26 ₹19.32 Cr |
| EBITDA Margin | 24.05% | +702bps | yoy · Q1FY27 · Q1FY26 17.03% |
| Profit After Tax | ₹18.34 Cr | +80.25% | yoy · Q1FY27 · Q1FY26 ₹10.18 Cr |
| PAT Margin | 14.26% | +529bps | yoy · Q1FY27 · Q1FY26 8.97% |
| Steam Sales Volume | 305,816 tons | +16.70% | yoy · Q1FY27 · 11.52% sequential growth |
| EBITDA per ton | ₹1,011 | +37.17% | yoy · Q1FY27 · Q1FY26 ₹737 per ton |
| Gross Debt | ₹359.48 Cr | point_in_time · Q1FY27 · Jun-26 (vs ₹281.62 Cr as of Mar-26) |
Guidance
Targeting expansion from 345 TPH to ~705 TPH capacity with 4 under-construction facilities commissioning in FY27, Tarapur in Q4FY28, and IPO projects in Q1FY29.
What management committed to
- Four under-construction facilities [Jhagadia, Vapi, Nandesari, and Pirana] should go live in current financial year [FY27]. — FY27
- The 60 tons per hour capacity, which is in Tarapur, should get live in Q4-FY2028. — 60 tons per hour, Q4FY28
- The IPO end-use facilities, which are in Dahej GIDC, Ankleshwar, and Panoli, should go live in Q1-FY2029. — Q1FY29
- We'll have to do around another INR60-odd crores of capex to take all these four projects live [and] another INR170 crores worth capex in next 15 months to 18 months [for IPO projects and Tarapur]. — INR60-odd crores and INR170 crores, FY28
- EBITDA per ton of INR1,000 can be safely assumed that it will be maintained in our steam generation and distribution sites for next few quarters. — INR1,000, FY27
- Our intent is to take this utilization to 60% to 65% [from current 41.4%]. — 60% to 65%
- Working capital days going forward between 35 to 40 days positive working capital cycle should be going forward. — 35 to 40 days, FY27
Key themes
Capacity ramp-up and operating leverage expansion
How the narrative shifted
- Community Boiler Outsourcing Adoption: Management positions centralized steam-as-a-service as a structural shift from inefficient captive industrial boilers, offering 25-35% cost savings and 80-83% thermal efficiency.
- Government Push and Park Mandates: CPCB guidelines pushing SMEs to common boilers and central subsidies for Bulk Drug and PM MITRA Parks create large EPC and long-term O&M pipeline opportunities.
- Industrial Gases Vertical Expansion: Leveraging existing overhead pipeline rights-of-way and civil structures to lay incremental nitrogen and oxygen pipelines at marginal capex.
- Operating Leverage from Capacity Ramps: Fixed pipeline and boiler infrastructure allows volume additions from 41% utilization toward 60-65% to flow directly into expanding EBITDA and PAT margins.
- Fuel Pass-Through and Waste-to-Energy Mix: Contracts feature monthly coal cost pass-throughs, while integrating industrial waste-to-energy boilers boosts realization per ton and protects against raw material volatility.
Operational commentary
- Awarded EPC mandate for a 300 TPH community boiler facility at Bulk Drug Park, Una (HP) valued at ~₹311 Cr (inclusive of GST) under an asset-light model funded by the state agency with long-term O&M.
- Executing 4 ongoing expansion projects at Jhagadia, Vapi, Nandesari, and Pirana (Ahmedabad), targeting commissioning within FY27 with ~₹60 Cr capex remaining.
- Planning 3 IPO-funded projects at Dahej GIDC, Ankleshwar, and Panoli (commissioning Q1 FY29) plus Tarapur (60 TPH, commissioning Q4 FY28), requiring ₹170 Cr capex over 15-18 months to reach 705 TPH total distribution capacity.
- Discontinued low-margin third-party coal trading business, resulting in higher blended EBITDA margins and clean revenue quality.
- Commenced industrial gas vertical with a 350 Nm3/hr PSA nitrogen generation and distribution setup at Ankleshwar, evaluating Air Separation Units (ASU) for cryogenic oxygen/nitrogen pipeline supply.
- Shifted fuel procurement from credit to cash purchases post-May 2026 to optimize fuel costs, supported by monthly/quarterly coal cost pass-through clauses in client contracts.
Analyst Q&A
Q. Bifurcation of EBITDA margin between own generated steam vs traded steam.
Declined to disclose the exact margin bifurcation citing commercial sensitivity and competitive reasons.
Q. Feasibility of 20-25% volume growth and sustainability of ₹1,000/ton EBITDA.
CFO confirmed 20-25% company-level volume growth is comfortably achievable with sector revival and new capacity, while ₹1,000/ton EBITDA is sustainable on an annual basis despite Q2 monsoon seasonality.
Q. Commercial terms and expected profitability on the ₹311 Cr Una Bulk Drug Park EPC & O&M mandate.
Asset-light project funded by the state body; Steamhouse will share 9% revenue with the authority which will be passed through to end-consumers, targeting an 8-10% clear operating margin.
Q. Related party transactions and steam purchases from Sanjoo Group post cessation of coal trading.
CFO clarified steam purchase from Sanjoo Dyeing & Printing Mills for the Sachin location will continue for the next few quarters until Steamhouse evaluates independent generation facilities in Sachin GIDC.
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