This article first appeared on GuruFocus .
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Standalone Net Sales:INR 3,132 crores, up 14% from the previous quarter and 19% year-on-year.
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Standalone EBITDA:INR 536 crores, a 22% increase from the previous quarter and 10% year-on-year.
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Standalone EBITDA Margin:17.1% for the quarter, compared to 15.9% in the previous quarter and 18.4% in the previous year.
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Standalone Profit Before Tax:INR 276 crores, compared to INR 261 crores in the previous quarter and INR 290 crores in the previous year.
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Standalone EPS:INR 23.30, compared to INR 22.70 in the previous quarter and INR 25.80 in the previous year.
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Standalone EBITDA per Ton:INR 928, compared to INR 902 in the previous quarter and INR 1,022 in the previous year.
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Consolidated Net Sales:INR 3,383 crores, up 15% from the previous quarter and 20% year-on-year.
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Consolidated EBITDA:INR 558 crores, compared to INR 447 crores in the previous quarter and INR 492 crores year-on-year.
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Consolidated Profit Before Tax:INR 268 crores, compared to INR 243 crores in the previous quarter and INR 279 crores in the previous year.
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Volume Growth:20% quarter-on-quarter and 23% year-on-year.
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Project Expansion:Brownfield expansion of 6 million tons in Central India, with several units already commissioned.
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Release Date: January 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Net sales increased by 14% quarter-over-quarter and 19% year-over-year, indicating strong revenue growth.
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EBITDA for the quarter rose by 22% compared to the previous quarter, showcasing improved operational efficiency.
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The company is undertaking significant expansion projects, including a 6 million ton capacity increase in central India, which is expected to enhance future production capabilities.
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The Jaisalmer greenfield expansion is progressing well, with commissioning expected by September 2027, indicating long-term growth plans.
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The paint business is showing signs of improvement with a lower loss expected this year and a breakeven anticipated in FY '27.
Negative Points
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Profit before tax decreased by 5% year-over-year for the quarter, indicating some pressure on profitability.
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The EPS for the quarter decreased from INR25.80 in the previous year to INR23.30, reflecting a decline in earnings per share.
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Incentives booked for Q3 were lower due to a GST rate cut, impacting the financials by approximately INR25 crores.
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There is a potential risk of increased debt levels due to ongoing and planned capital expenditures, which could affect the balance sheet.
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Non-trade prices have been under pressure, affecting overall realizations and potentially impacting future pricing strategies.
Q & A Highlights
Q: Could you provide the incentive numbers for Q3 and any expectations for the future? A: The Q3 incentive was INR60 crores, down from INR86 crores in Q2 due to the GST rate cut. The run rate of INR60 crores is expected to continue in the current quarter, with potential increases as new units like Buxar become eligible for incentives.
Q: What are the expectations for volume growth in FY '27 and '28? A: We expect double-digit growth, though not as high as mid-teens. For FY '27, we anticipate reaching 22.5 to 23 million tons, and for FY '28, around 25.5 million tons, with growth ranging between 12% to 15%.
Q: How do you see the demand and supply situation evolving in the industry? A: We expect strong demand in the March quarter, potentially one of the best quarters. While there may be a slight dip in April due to March inventory, year-on-year growth should be better. Despite capacity additions, we do not foresee major pricing pressure unless multiple capacities come online simultaneously.
Q: Can you provide an update on the Panna Line-2 commissioning and its potential capacity? A: Panna Line-2 is currently at 3.3 million tons, with potential to reach 4 million tons. This increase will take about a year, as we need to optimize current capacity before considering further expansion.
Q: What is the status of the Jaisalmer project and future expansion plans? A: The Jaisalmer project is underway, with commissioning expected by September '27. Post-Jaisalmer, we are considering a 5 million ton expansion at Muddapur, but this will depend on market conditions and board approval.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
