Inflame Applian. Q3 FY26 Earnings Analysis

- Inflame Appliances targets a consistent 15% year-on-year revenue growth for the next 3-4 years (Page 22). - By FY28, new products like dishwashers, wine chillers, and built-in ovens are expected to contribute 30-35% of total revenue, reducing chimney revenue share to 60-65% (Page 28). - Chimney production volumes are expected to reach around 4 lakh units in FY27 with potential to exceed this as capacity utilization improves and demand grows (Pages 15, 22). - Capacity expansions in Panchkula and Hyderabad plants will support higher volumes with a combined capacity of 6 lakh chimneys; near full utilization is planned as demand solidifies (Pages 22, 15). - Market share guidance aims to grow from around 10% in 2022 to over 30% in next couple of years (Page 19). - Improved asset turnover and working capital management coupled with expanding product mix supports sustained growth (Page 29).

- The company targets a consistent revenue growth rate of around 15% year-on-year for the next 3-4 years (Page 22). - EBITDA margins are expected to improve as production volumes increase; manpower cost reduced from ~14% to 10-11%, positively impacting margins (Page 22). - Current EBITDA margins are around 12%, with expectations of further improvement with higher volumes (Page 22). - PAT margins are not explicitly guided, but management is confident about sustained growth and profitability (Page 21). - Expansion plans at Panchkula and Hyderabad plants aim to increase capacity and revenues, with potential for substantial increases in asset turnover and earnings next financial year (Page 29). - Introduction of new products and diversification (hobs, built-in refrigerators, wine coolers) will help de-risk and support revenue growth (Page 14). - Cost of raw materials has stabilized and improved, supporting margin expansion (Page 19).

- CapEx for Panchkula plant expansion is estimated at INR 9-10 crore, primarily for constructing a multi-storey building and upgrading assembly lines and test labs. (Page 6) - The construction has already begun, funded through sanctioned bank debt. (Page 6) - Hyderabad plant currently has no immediate further modifications planned; focus is on reaching optimal utilization first. (Page 6) - Further expansion or modifications at Hyderabad will be considered once capacity utilization reaches around 18,000-20,000 chimneys per month. (Page 6) - New products (2-3) to be launched soon, requiring additional infrastructure and manufacturing capabilities; the company has formed joint ventures with specialized companies holding majority stakes to improve component sourcing and quality. (Pages 4, 28) - Plans to increase land space and working sheds at Hyderabad, including converting an existing shed into a multi-storey building to boost capacity. (Page 4)

- There is no mention of any current or planned equity fundraising in the call. - The company is undertaking CapEx of approximately INR 9-10 crore for expansion at the Panchkula plant. - This CapEx is being funded through bank debt, as debt has already been sanctioned and construction has commenced. - No indication of additional equity or debt fundraising beyond this sanctioned bank loan was provided. - The company is comfortable with its current working capital management and debt levels as of Q2 FY26.

- As of April, order visibility was around 14,000–18,000 units monthly. - By September, monthly order visibility increased to approximately 42,000 to 45,000 units. - November order visibility stands at 38,000 to 40,000 units. - Current run rate is about 30,000 to 32,000 units per month. - Order book has seen peaks up to 60,000 units in some months. - Capacity constraints limit order acceptance, capping current supply for some customers (e.g., Hindware order reduced from 10,000 to 6,000–7,000 units). - New Panchkula expansion planned to add 15,000 units capacity from April to meet growing demand. - Multiple customers have expressed demand for 7,000–8,000 units per month starting April. - Visibility firmly established for 35,000–40,000 units monthly for 10 out of 12 months annually. - Built-in product demand is rising, supporting extended order book.