Sarthak Metals

- The steel sector is undergoing CapEx cycles with major steel plants like JSPL and JSW continuing their investments, though the urgency to complete these projects quickly has decreased (Page 11, 12:34-12:57). - Sarthak Metals is not currently focusing on government grants or incentives for its biotech division but is actively seeking external partnerships with established players to share technology (Page 16, 20:44-21:25). - The company made a strategic decision to temporarily step back from the aluminium flipping coil segment to protect profitability amid unethical competition, with plans to resume full capacity when market conditions stabilize (Page 6, 5:23-5:58). - The biotechnology division represents a future growth engine with ongoing advanced discussions and a significant market opportunity driven by the government’s biofuel mission (Page 7, 7:11-8:23). - Overall, the company remains financially strong and virtually debt free, enabling investment flexibility in new growth areas without strain (Page 8, 9:18-9:40).

- Welding division targets ₹25 crore sales revenue in the next 2 years, with current growth trajectory supporting this confidence (Page 12, 14). - Plans to expand welding SKUs from 5 to 10 within 12-24 months (Page 13). - Biotech revenue expected to start very soon, with positive industry discussions underway (Page 13, 16). - Core business volumes declined 14% YoY in Q2 FY26 due to monsoon and competition but viewed as temporary setback; focus on regaining market share through service quality (Page 14). - Company aims for diversified growth with three pillars: core cored wire and aluminum wires, welding consumables, and biotechnology (Page 7, 8). - Biotech market size estimated over ₹1,000 crore with huge opportunity due to government biofuel policies (Page 7). - Strong optimism on infrastructure-driven steel demand long-term despite short-term challenges (Page 5). - Expectation of improved EBITDA margins once sales targets and brand establishment are achieved (Page 14, 16).

- Biotech revenue expected to start soon with healthy double-digit margins (Page 16). - Welding division targeting ₹25 crore sales in next 2 years with EBITDA margins improving to 9-10% once brand is established (Pages 12-15). - By FY28, biotech and welding divisions aiming comfortable double-digit margins; core businesses may contribute 10-15% EBITDA, but 25% per business is unlikely (Page 16). - Focus on establishing strong brand in welding to achieve sustainable margin growth (Pages 14-15). - Company expects growth driven by diversification into biotech and welding alongside core cored wire business, which faces short-term cyclicity but has strong long-term potential (Pages 7-9). - Committed to improving profitability while maintaining financial discipline and no significant reliance on government incentives (Pages 8, 16). - Management optimistic about long-term value creation despite short-term steel sector challenges (Page 9).

- The demand for steel and related products remains robust with order books at fabrication and construction houses filled. (Page 12, 14:03) - Despite a 14% YoY decline in Q2 volumes in the cored wire segment due to monsoon and intensified competition, the company retains existing orders and focuses on ethical execution to regain market trust. (Page 14, 16:35; Page 14, 17:30) - No explicit numerical value for current order book was disclosed, but the management remains optimistic due to robust demand and filled order books in fabrication/construction sectors. (Page 12, 14:03) - The company is closely watching market conditions, prepared to scale production when feasible, especially in the aluminium flipping coil segment. (Page 6, 5:47) - Overall, the company is confident of growth and anticipates continued order inflows driven by infrastructure projects and government initiatives. (Page 5, 3:22)

- There is no mention of any current or planned new fundraising through debt or equity in the transcript. - The company emphasizes a strong, virtually debt-free balance sheet providing financial firepower and flexibility to invest in new growth areas without straining resources (Page 8, 9:18-9:44). - The focus is on funding future growth internally from a position of strength rather than relying on external capital raising. - The management's financial strategy is disciplined prudence, without references to upcoming capital raising (Page 8). - No questions were raised or answered regarding new fundraising during the Q&A session.