CMR Green Tech.Q1 FY27
CMR Green Tech. Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹218P/E: 21.1Market Cap: ₹4.7K CrSector: Industrial Products
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
N/A
Order
N/A
Capex
Yes
1 of 3 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
Category 2Future growth expectations for CMR Green Technologies Limited:
- Volume Growth:
- Guidance of 25% volume growth for FY27.
- Capacity expansion from 6.15 lakh tons to 7 lakh tons by the end of FY27, with two new plants at Tirupati and Odisha ramping up.
- Growth driven by expansion in existing automotive customers and new greenfield and brownfield projects.
- Revenue and Sales:
- Revenue grew 65% year-on-year in Q1 FY27, supported by strong automotive demand and growing non-auto traction.
- EBITDA target maintained at around INR12 per kg sustainably.
- Market Position & Demand:
- India's aluminum extrusion industry expected to grow at 12% CAGR through FY29.
- Increasing EV penetration (8.26% in FY26) driving higher aluminum demand.
- Expansion in non-automotive sectors aiming to rebalance sales mix toward 60% automotive, 20% non-automotive, and 20% other metals.
- Working Capital & Sourcing:
- Focus on reducing inventory and optimizing working capital through AI-driven systems.
- Diversified scrap sourcing expected to support growth without supply constraints.
Margin guidance
Category 3- →CMR Green Technologies expects strong volume growth of 25% for FY27, driven by ramp-up of new plants at Tirupati and Odisha and increased orders from existing automotive customers.
- →EBITDA per kg is targeted to be maintained at around INR 12 sustainably, with improvements from operational efficiencies, hedging, and higher utilization.
- →Profitability in the liquid aluminium business is comparatively higher, with potential for better margins due to strong customer lock-in and value addition.
- →Expansion projects underway are expected to increase installed capacity beyond 7 lakh tons per annum by end of FY27, supporting long-term growth.
- →The company targets a balanced sales mix with greater non-automotive exposure, aiming for a resilient earnings profile.
- →Working capital optimization, including reducing inventory days via AI systems, will help improve cash flows and reduce debt levels.
- →Overall, CMR intends to deliver consistent, profitable growth in top line, bottom line, and EPS, while supporting India's circular economy.
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Fundraise plans
- →There is no explicit mention of any current or planned new fundraising through debt or equity in the call transcript.
- →The company is focusing on reducing debt levels by improving working capital efficiency, specifically by reducing inventory days and cash conversion cycle.
- →The Chief Financial Officer, Yugal Garg, mentioned maintaining a historical debt-equity ratio of around 0.5 in the future, down from the current 0.86.
- →No definitive plans for issuing fresh debt or equity were disclosed during the Q&A sessions.
- →The company is investing in capacity expansions through internal accruals and ramp-up of newly commissioned plants at Tirupati and Odisha.
- →The management emphasizes disciplined capital allocation and prudent risk management without indicating a need for fundraising.
Order book
The transcript provided does not explicitly mention current or expected orderbook or pending orders for CMR Green Technologies Limited. However, some relevant points indirectly related to orders and growth include:
- The company is ramping up two new plants commissioned at Tirupati and Odisha, contributing to production volume growth.
- Discussions and Memorandum of Understanding (MOU) exist with Hindustan Zinc, but no definitive orders or construction started yet.
- Strong growth expected with existing customers in the auto sector, supporting volume guidance of 25% for FY27.
- Company emphasizes growth driven by increasing domestic automotive demand and expanding non-auto traction sectors.
- Continuous efforts to enter niche export markets with specialized products, indicating ongoing and future demand pipelines.
No specific quantitative figures on order book or pending orders were disclosed in the call.
Capex plans
Yes- →During the quarter, CMR Green Technologies invested Rs. 53 crores in greenfield projects at Shoolagiri and Bawal.
- →They are advancing brownfield projects and technology-led initiatives at Tirupati and other locations.
- →These projects are progressing as planned and expected to increase installed recycling capacity beyond 7 lakh tons per annum by the end of FY27.
- →The company is building two new plants at Tirupati and Odisha which are currently ramping up.
- →No definitive construction activity has started for a plant with Hindustan Zinc; discussions are ongoing.
- →Focus on technology integration such as the AI-enabled inventory tracking system to optimize working capital.
- →Continued investments support growth, capacity expansion, and strengthening leadership in the aluminium recycling sector.
How does CMR Green Tech. rank vs peers in Industrial Products?
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