Felix Industries Ltd Q1 FY27 Earnings Analysis

- FY27 revenue guidance is ₹180-200 crores with EBITDA margin of 31-32% and PAT margin of 17-20%. - Targets crossing ₹200 crores in the current financial year and expects landmark growth in subsequent years. - Potential to reach around ₹1,000 crores by FY30, though this is an aspirational, long-term estimate. - Oman operations expected to ramp up to full capacity in 3-6 months, with possible expansion thereafter. - Plastic recycling plant capacity is aimed to increase steadily, focusing initially on Ahmedabad and Surat, with enough feedstock for coming years. - Recurring revenue streams (O&M, BOO, BOOT) are expected to strengthen, with recurring business becoming dominant over 4-5 years. - Expansion in Middle East and increased institutional participation expected to support growth. - Working capital limits expected to rise to ₹35-40 crores to support growth.

- Revenue from Operations showed strong growth, increasing by 178% from ₹36.82 crore (FY25) to ₹102.21 crore (FY26). - EBITDA grew approximately 131% from ₹13.79 crore to ₹31.88 crore in the same period, with margins around 30-31% expected to be maintained going forward. - Profit After Tax increased nearly 100% from ₹9.11 crore to ₹18.18 crore in FY26; Q4 PAT was ₹4.34 crore. - Management expects recurring revenue to grow, with EPC business shrinking over time, leading to more stable earnings. - Oman operations are ramping up and expected to contribute significantly, targeting capacity doubling after sustained operations. - Expansion in metal and plastic recycling is underway, expected to add to revenues from next month and beyond. - Working capital and operational efficiencies are being improved to support targeted revenue of around ₹200 crore next financial year. - Mainboard migration expected to enhance visibility and liquidity, supporting long-term growth prospects.

- The metal recycling plant has already been acquired; retrofitting and modifications are in progress and expected to complete by month-end, with revenues to start next month. - Plastic recycling plant acquisition is still under discussion and not yet finalized. - No immediate plans to expand plastic recycling units to other cities; focus is on increasing capacity at existing plants in Ahmedabad and Surat. - Plans to ramp up oil processing capacity from 40 TPD to potentially 100 TPD after achieving consistent operations post this financial year. - Potential incremental capacity expansions planned if orders and market conditions remain favorable—capacity additions are infrastructure-ready but not yet activated. - Working capital limits and bank funding are being arranged, including new limits in Oman (expected ₹20-25 crores), with overall working capital in India expected to rise to ₹35-40 crores next year. - No equity funding currently planned; debt raising for working capital is ongoing and considered a continuous process.

- **Debt Fundraising:** - Ongoing process to raise working capital as needed. - Planning to increase bank working capital limits in both India (Felix Industries) and Oman. - Current working capital debt around ₹21 crores, expected to rise to ₹35-40 crores in the coming financial year. - In Oman, seeking working capital limits of ₹20-25 crores; so far funded through equity. - **Equity Fundraising:** - No current plans to raise equity in the near future. - Management has not finalized any equity raising but remains open to working capital debt as operations grow.

- Current orders for oil processing plant in Oman are strong, aiming for 100% capacity utilization this year (40 TPD capacity). - Discussions ongoing for additional orders in Oman and with large waste management companies and government entities in Rajasthan. - Expansion plans in Oman to potentially double capacity post current financial year once steady operations are established. - The plastic recycling business has ongoing MOUs with clients but business structuring and revenue projections are still being finalized. - Metal recycling plant acquisition completed; revenue generation expected from next month onwards after retrofit/modifications. - Focus on moving towards recurring business from EPC. - Working capital and manpower are being expanded to support order execution and growth. - No concrete orders yet from Saudi or UAE refineries, but discussions are in progress. - Guidance for FY27 expects revenues between ₹180-200 crores, reflecting current and expected order inflows.