Sejal Glass Ltd Q1 FY27 Earnings Analysis

- FY27 total consolidated revenue target: Rs. 500+ crores, with 60% from UAE and 40% from India. - India business expected to grow around 20% in the current quarter and double in size, aiming for Rs. 200 crores in FY27 from India. - Glasstech India unit expected to cross Rs. 110 crores in FY27, targeting EBITDA positivity with ~10% margin this year. - UAE operations anticipate 20% growth in FY27, with capacity expansions planned and new machines to be installed by Q2/Q3. - Focus on capacity utilization improvement in India: Silvassa plant tempering to reach ~75%, IG above 50%, lamination 90-95%; Glasstech units targeting 50%+ tempering utilization. - New product segments (fire safety glass, bulletproof glass, railway glass) to contribute 5-7% this year, expected to increase to 15-20% next year. - Medium term (2-3 years): target 25-40% annual growth, balanced 50-50 revenue mix India-UAE, expansion through organic growth and acquisitions.

- Sejal Glass expects around 20% quarter-on-quarter growth in India business for the current year. - Full year FY27 India revenue target is approximately ₹200 crores, with consolidated revenue expected over ₹500 crores (60% UAE, 40% India). - EBITDA margin in India is projected at around 15% for FY27; the established Silvassa plant yields 17-18%. - Glasstech (acquired entity) aims for EBITDA breakeven and expects about 10% positive EBITDA margin this quarter, with profitability anticipated for FY27. - Consolidated EBITDA margin improved to 16.5% for FY26; management targets maintaining EBITDA margin around 17.5%-18% in FY27. - New product lines (fire safety, value-added glass) and acquisitions expected to drive margin expansion and revenue growth. - Long-term vision includes becoming the largest capacity player in India with strong operating EBITDA and PAT growth, aiming for balanced India-UAE revenue mix (50:50 over next 2-3 years).

- The company has ordered new machines for the UAE operations, with installation expected in Q2 or Q3, indicating ongoing capacity expansion. - The UAE expansion is funded through a mix of internal accruals and some local bank debt. - There is intent to continue acquisitions, with a second acquisition currently under due diligence. - Equity warrants call expected within 18 months, with proceeds likely to be used for acquisitions and strategic investments. - In India, there is ongoing expansion including acquired plants ramping up to target around 200 crores revenue for FY27. - Focus on capacity utilization improvement and product mix shift (e.g., laminated and IG glass) to enhance margins. - The company plans to increase capacity and expand presence geographically in India and GCC regions. - New product lines, including fire safety glass, railway segment products, and digital printed glass are being developed and commercialized. These points reflect current and future capex and strategic investment plans.

- The company currently has outstanding debt of around Rs. 138 crores, largely from term loans, with around Rs. 70 crores funded through the promoter group. - There are 4 lakh equity warrants outstanding, with approximately 75% yet to be called; the call is expected within 18 months and proceeds may be used for acquisitions or strategic plans. - For funding new machines in UAE, the company plans a mix of internal accruals and additional debt from local or UAE banks. - No immediate new equity fundraising is explicitly mentioned, but warrants will be exercised as per plan. - The company is focused on reducing debt using cash flows generated, and has already repaid some promoter loans recently. - A second acquisition is under due diligence, which may involve structured funding including equity or debt.

- Current order book position in UAE is approximately AED 60 million. - In Q1 FY27, the company achieved a turnover of around AED 10.2 million per month and expects to maintain this level in May 2026. - With a slight improvement and stable conditions, Q2 FY27 turnover is expected to reach approximately AED 35 million. - The company has a strong order book and pipeline of pending orders across UAE and other regions including Africa. - Focus is on expanding geographical reach, including exports from UAE to other countries. - In India, the company is expecting around 200 crores revenue for FY27, with anticipated 20% quarter-on-quarter growth. - New verticals such as fire safety glass, bulletproof glass, and railway product lines are in the pipeline, which will contribute incrementally to orders and revenues.