Steamhouse India Q2 FY27 Earnings Call — Analysis (NSE: STEAMHOUSE)
Steamhouse India reported Q2FY27 revenue of ₹128 Cr (+2.4% YoY) and EBITDA of ₹24.68 Cr (+73.4% YoY) with margins expanding to 19.28%, while maintaining full-year volume growth guidance of 25% driven by H2 project ramp-ups.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Revenue from operations ₹128 Cr ( +2.4% YoY ) , H1FY27 +7.63% . Guidance raised — FY27 fy27 volume growth 25% growth (from 10.66 lakh tons) . New story: Community Boiler Outsourcing Adoption .
Results
Revenue reached ₹128 Cr (+2.4% YoY) with EBITDA of ₹24.68 Cr (+73.4% YoY) and PAT of ₹7.77 Cr (+167.1% YoY).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from operations | ₹128 Cr | +2.4% | yoy · Q2FY27 |
| EBITDA | ₹24.68 Cr | +73.38% | yoy · Q2FY27 |
| EBITDA Margin | 19.28% | +789bps | yoy · Q2FY27 |
| Clean EBITDA | ₹22.50 Cr | +79.15% | yoy · Q2FY27 |
| Profit After Tax | ₹7.77 Cr | +167.14% | yoy · Q2FY27 |
| PAT Margin | 6.07% | +374bps | yoy · Q2FY27 |
| Steam Sales Volume | 301642 tons | +12.06% | yoy · Q2FY27 |
| Capacity Utilization | 42.41% | +713bps | yoy · Q2FY27 |
| Revenue from operations | ₹256.62 Cr | +7.63% | yoy · H1FY27 |
| EBITDA | ₹55.62 Cr | +65.72% | yoy · H1FY27 |
| EBITDA Margin | 21.67% | +759bps | yoy · H1FY27 |
| Profit After Tax | ₹26.11 Cr | +99.56% | yoy · H1FY27 |
| Net Debt to Equity | 0.16x | point_in_time · H1FY27 · Sep-26 |
Guidance
Management guided for 25% volume growth in FY27 (~13.25 lakh tons) and upwards of 35% in FY28, with full-year EBITDA per ton reaching ₹1,100–₹1,200 in FY28.
What management committed to
- We are targeting a volume growth of 25% compared with FY 2026 [10.66 lakh tons] for current financial year [FY27]. — 25% growth (from 10.66 lakh tons), FY27
- The volume for next financial year [FY28], it should be upwards of 35% [growth]. — upwards of 35% growth, FY28
- The next full year's [FY28] EBITDA per ton should be between INR1,100 to INR1,200 per ton. — INR1,100 to INR1,200 per ton, FY28
- Jhagadia facility gets live in next 2 to 3 days. — Q3FY27
- At our existing Ankleshwar facility, an additional 750 nm3 per hour PSA plant is planned, with commissioning expected by the end of calendar year 2026. — 750 nm3 per hour, CY26
Key themes
Capacity ramp-up and waste-to-steam transition
How the narrative shifted
- Community Boiler Outsourcing Adoption: New geographic wins (Una, Haryana MOU) are now used as primary evidence that the community boiler model is gaining tangible traction beyond Gujarat.
- Government Push and Park Mandates: The focus shifted from general policy support to specific, signed projects (Una EPC, Haryana MOU framework) demonstrating monetization of the macro trend.
- Industrial Gases Vertical Expansion: Timeline for the first nitrogen project was hardened (commissioning expected by end of calendar year 2026), moving from exploratory to executable.
- Operating Leverage from Capacity Ramps: Management explicitly linked the leverage thesis to margin expansion, showing H1 PAT grew faster than revenue, though Q2 monsoon seasonality was framed as the primary friction.
- Fuel Pass-Through and Waste-to-Energy Mix: Waste-to-steam is now the primary margin expansion driver, with management guiding an explicit INR1,100-1,200/ton EBITDA target for FY28, directly attributing it to the commissioning of these lower-opex facilities.
- Monsoon Seasonality / Q2 Structural Softness: This is a new defensive framing for the business model, lowered the run-rate guidance to an annual average to absorb the quarterly trough.
- Geographic Expansion via Asset-Light / Government Partnerships: Newly prominent strategy that repositions the company as an operator/partner rather than just a capex-intensive utility, reducing financial risk in expansion.
Operational commentary
- Jhagadia facility (30 TPH capacity) is progressing toward commissioning in November 2026, with ~14.8 TPH already contracted.
- Una, Himachal Pradesh bulk drug park project involves a 300 TPH community boiler facility with an EPC mandate of ~₹311 Cr (incl. GST) plus long-term O&M, funded by the client without Steamhouse capex.
- MOU signed with Haryana Enterprise Promotion Centre to evaluate industrial cluster common boiler infrastructure with a proposed investment of ₹500 Cr.
- Under-construction expansion pipeline includes Nandesari, Vapi, Tarapur, Pirana (Narol textile cluster), alongside distribution tie-ups at Dahej SEZ and Haldia.
- IPO-funded projects slated for execution include Ankleshwar Phase 3, Panoli Phase 2, and Dahej GIDC Phase 2.
- Complementary industrial gases entry underway with an additional 750 nm3/hr PSA nitrogen plant at Ankleshwar facility commissioning by end of CY2026.
Analyst Q&A
Q. What is the reason for sequential EBITDA and PAT decline in Q2 despite higher utilization?
Q2 is seasonally soft due to monsoon rains causing higher coal moisture, increased transmission losses, and regional industrial flooding in Gujarat, alongside a brief scheduled shutdown by a steam supplier.
Q. What is the margin differential between coal-fired and waste-to-steam projects?
Coal-fired projects earn ₹800–₹1,000 EBITDA per ton, whereas waste-to-steam projects have 50-55% lower opex and significantly higher margins with a 2.5–3.5 year payback despite 1.5x–1.75x higher capex.
Q. What are the specific realization and purchase costs for third-party purchased steam versus captive generation?
Declined to disclose exact purchase costs and separate realizations citing customer- and competition-sensitive commercial terms, but noted blended realizations are roughly in line.
Q. Why were operating cash flows negative in H1FY27?
IPO proceeds were deployed to pay down trade creditors early to capture cash discounts, bringing payables near zero; normal working capital cash flow will resume.
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