Yasho Industries Q2 FY27 Earnings Call — Analysis (NSE: YASHO)
Yasho Industries delivered strong Q2FY27 performance with revenue up 89.5% YoY to ₹347.92 Cr and EBITDA doubling, while announcing ₹250 Cr capex for Pakhajan expansion.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Total Income ₹347.92 Cr ( +89.5% YoY ) . New guidance — FY28 revenue target more than 1,600 . New story: Capacity Ramp-up and Operating Leverage .
Results
Revenue grew 89.5% YoY to ₹347.92 Cr with EBITDA up 118.2% to ₹72.92 Cr and PAT up nearly 7x to ₹33.68 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Total Income | ₹347.92 Cr | +89.5% | yoy · Q2FY27 · vs ₹183.6 Cr in Q2FY26 |
| EBITDA | ₹72.92 Cr | +118.2% | yoy · Q2FY27 · vs ₹33.42 Cr in Q2FY26 |
| Profit After Tax | ₹33.68 Cr | +593.0% | yoy · Q2FY27 · vs ₹4.86 Cr in Q2FY26 |
| H1 Revenue | ₹656.98 Cr | +71.7% | yoy · H1FY27 |
| H1 EBITDA | ₹147.33 Cr | +122.8% | yoy · H1FY27 |
| Total Debt | ₹615 Cr | point_in_time · Q2FY27 · Sep-26; Short-term ₹329 Cr, Long-term ₹286 Cr | |
| Debt to EBITDA | 2.09x | sequential · H1FY27 · vs 3.74x in FY26 |
Guidance
Targeting >₹1,600 Cr revenue by FY28 with EBITDA margins maintained at 20%+ and trial production for MNC contract in Q4FY27.
What management committed to
- [The company] will maintain EBITDA margin of more than 20% going forward. — 20%+, FY27
- [The company] targets revenue to be more than ₹1,600 Cr by FY28. — more than 1,600, FY28
- [The MNC supply contract] will commence trial production by Q4FY27 and commercialization in Q1FY28. — Q1FY28
- [The company] will deploy ₹250 Cr capex in FY27 funded through ₹100 Cr internal accruals and ₹150 Cr sanctioned debt. — INR250 crores, FY27
- [Building 3 and Building 4 at Pakhajan] will start commercializing by Q4FY28 or early Q1FY29. — Q1FY29
Key themes
Capacity expansion and volume ramp-up
How the narrative shifted
- Capacity Ramp-up and Operating Leverage: Utilization ramp-up from 66% toward 80%+ will drive fixed-cost dilution, enabling competitive pricing and steady 20%+ margins.
- Logistics and Energy Cost Pass-through: Spot surges in freight and natural gas compressed sequential margins by ~200-300 bps in Q2, with pass-through taking effect in Q3 contract renewals.
- MNC Sourcing and Additives Localization: Global lubricant and specialty chemical players are seeking Indian manufacturing partnerships, expanding Yasho's global and domestic market addressability.
- Export Market Penetration: Exports reached 70% of revenue, targeting market share gains in the $15 billion global industrial chemicals addressable market.
Operational commentary
- Committed ₹250 Cr capex for FY27 to construct two new manufacturing buildings (Building 3 and 4) at Pakhajan site, funded via ₹100 Cr internal accruals and ₹150 Cr term loan.
- MNC supply contract progress on track: ₹120 Cr received to date, trial production planned for Q4FY27 and commercial launch in Q1FY28.
- Capacity utilization improved to 66% in Q2FY27 from 60% in Q4FY26; management expects higher utilization in H2FY27 (Q3 and Q4).
- Exports contributed 70% of revenue in Q2FY27, up from 65% in Q1FY27 and 63% in FY26.
- Input cost headwinds: Freight increased by ₹10 Cr QoQ to ₹20 Cr in Q2, and gas costs rose by ₹1.8 Cr; price pass-through expected from Q3 onwards.
Analyst Q&A
Q. MNC contract product details and customer concentration breakdown.
Declined to answer citing non-disclosure agreements (NDA).
Q. Can EBITDA margins expand to 23-24% next year given operating leverage?
Maintained stance of 20%+ EBITDA margins as floor/aspiration; operating leverage benefits may be passed on to customers to gain market share.
Q. Timeline and occupancy for Phase 2 (Buildings 3 and 4) expansion at Pakhajan.
Buildings 1 & 2 will be fully operational by end of FY27 / Q1FY28; Buildings 3 & 4 will commercialize by Q4FY28 / Q1FY29 with initial 50-60% utilization.
Research and educational content only. Not investment advice.