This article first appeared on GuruFocus .
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9-Month Revenue:INR583.76 crores, 19% year-on-year growth.
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Quarterly Revenue:INR201.83 crores, 35% growth year-on-year.
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9-Month EBITDA Margin:17.06%.
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Quarterly EBITDA Margin:16.65%.
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Project Cost:Estimated at INR85 crores to INR90 crores, fully funded by customer.
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Advance Received for Project:INR19.9 crores.
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Investment in Manufacturing Lines:INR25.9 crores.
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Revenue Target for FY28:Approximately INR1,500 crores at 40% utilization.
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Cash Flow Optimization:Focus on inventory practices, receivable collections, and production cycle synchronization.
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Debt Management:Focus on reducing debt-to-EBITDA multiple and stabilizing gross debt levels.
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Warning! GuruFocus has detected 7 Warning Signs with BOM:541167.
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Is BOM:541167 fairly valued? Test your thesis with our free DCF calculator.
Release Date: February 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Yasho Industries Ltd ( BOM:541167 ) reported a 19% year-on-year revenue growth for the 9-month period, reaching INR583.76 crores.
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The company achieved an EBITDA margin of 17.06% for the 9-month period, indicating effective cost control and operational efficiency.
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Yasho Industries Ltd's European subsidiary benefits from strong demand visibility, positioning the company for accelerated growth in the region.
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The company is progressing with a strategic manufacturing project with a large MNC, fully funded by the customer, with commercialization targeted for Q1 FY28.
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Yasho Industries Ltd is diversifying its market presence by expanding into South America, Africa, and Asia, reducing reliance on traditional markets.
Negative Points
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The Pakhajan facility operated below optimal utilization, impacting margins despite efforts to contain the effect.
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Gross margin compression was noted due to a change in product mix and strategic sales of low-margin products.
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The company faced challenges from ongoing global uncertainties and macroeconomic headwinds in certain regions.
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There is a potential risk from increased competition, particularly from a Chinese competitor expanding in the lube additive market.
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Yasho Industries Ltd's debt levels remain a concern, with a focus on reducing the debt-to-EBITDA ratio rather than overall debt reduction.
Q & A Highlights
Q: Can you explain the reason for the gross margin compression observed sequentially or year-over-year? Is it due to tariff impacts or other factors? A: The margin compression is primarily due to a change in product mix and geographic market diversification. We strategically sold lower-margin products based on customer demand. - Parag Jhaveri, CEO
Q: With U.S. tariffs reduced to 18-19%, are you seeing an increase in inquiries? A: Discussions have started, but it will take time to convert into actual orders as the tariff changes have not been fully notified. - Parag Jhaveri, CEO
Q: What is the revenue potential by FY28, and is the guidance of INR1,500 crores realistic given the current environment? A: The INR1,500 crores is a potential target by FY28, achievable through existing capacity utilization and the long-term supply agreement revenue. It is challenging but feasible with current investments. - Parag Jhaveri, CEO
Q: How is Yasho Industries mitigating risks from potential tariff changes by the U.S. government? A: We are diversifying into new geographies like South America, Africa, and Asia, adjusting our product mix, and leveraging our R&D to streamline processes and reduce costs. - Parag Jhaveri, CEO
Q: Can you provide more details on the MNC contract and its impact on future revenue? A: Due to an NDA, we cannot disclose specifics until commercial production starts. However, the contract involves a unique molecule and process, with the customer funding the CapEx. - Parag Jhaveri, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
