Any current/future new fundraising through debt or equity?

No plans for equity dilution or QIP (Qualified Institutional Placement) as confirmed by Parag Jhaveri. Current debt level has peaked; no intention to increase debt further. Term loan repayment starts April 2025, with expected repayment of INR 45-50 crores in FY '26. Company aims to restrict debt to 2-2.5 times EBITDA, currently targeting to be close to 3 times by end of FY '25. Any surplus cash generated is planned to be reinvested for future expansion rather than debt repayment. No new capital expenditure planned beyond repair capex of INR 5-10 crores for FY '25 until utilization exceeds 70%

Any current/future capex/capital investment/strategic investment?

Current Year (FY'25) planned repair capex is about INR 5 crores to INR 10 crores only; no major new capex planned yet. Further capex decisions will depend on achieving over 70% utilization at the Pakhajan facility, expected by Q4 FY'25 or Q1 FY'26. No immediate plans for new capex beyond maintenance, focus is on ramping up existing capacity. Once utilization target is met, company will consider next phase of expansion. Management does not plan to increase debt beyond current levels and aims to maintain debt to EBITDA ratio around 2 to 2.5 times. The fully commissioned Pakhajan facility with 20

Future growth expectations in sales/revenue/volumes?

Yasho Industries targets revenue of INR 900 crores for FY 2025 with an EBITDA margin of 19%-20%. The newly commissioned Pakhajan facility, with 20,000 MT capacity, is expected to ramp up utilization from 10% in Q1 to 70%-80% by Q3/Q4 FY 2025, leading to substantial volume growth. Full capacity utilization (~90%) for both Pakhajan and Vapi facilities is anticipated by FY 2026, targeting revenues between INR 1,200-1,300 crores. Volume growth is strong, with a 27% year-on-year increase in exports despite shipping challenges. The company plans to secure long-term supply contracts with cust

Future growth expectations in earnings/operating earnings/profits/EPS?

Yasho Industries expects volume growth with capacity utilization rising at the new Pakhajan facility from 10% in Q1 FY25 to 70-80% by Q3/Q4, and nearly 90% by FY26, supporting revenue growth. Revenue guidance for FY25 is around INR 900 crores with an overall EBITDA margin of 19-20%; FY26 revenue is projected between INR 1,200-1,300 crores. The company anticipates EBITDA margins to stabilize and improve from Q3/Q4 FY25 onwards as utilization ramps up. Operating leverage at full capacity is expected to increase profitability, with the new capacity alone targeting around INR 550 crores revenue at

Current/ Expected Orderbook/ Pending Orders?

Yasho Industries is currently conducting trials with a number of both domestic and international customers, including existing and new ones. Following successful trials, the company expects to enter into long-term supply contracts with these customers, ensuring better visibility and stable order flow. Utilization at the new Pakhajan facility is expected to ramp up from about 10% in Q1 FY25 to 70-80% by Q3/Q4 FY25, supporting order fulfillment. The company anticipates managing the scale-up without significant additional working capital debt due to efficient order flow and stabilized raw materia

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Yasho Industries LtdQ2 FY24Chemicals & Petrochemicals

Yasho Industries Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹2,868P/E: 113.4Market Cap: ₹2.0K CrSector: Chemicals & Petrochemicals

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→Yasho Industries targets revenue of INR 900 crores for FY 2025 with an EBITDA margin of 19%-20%.
→The newly commissioned Pakhajan facility, with 20,000 MT capacity, is expected to ramp up utilization from 10% in Q1 to 70%-80% by Q3/Q4 FY 2025, leading to substantial volume growth.
→Full capacity utilization (~90%) for both Pakhajan and Vapi facilities is anticipated by FY 2026, targeting revenues between INR 1,200-1,300 crores.
→Volume growth is strong, with a 27% year-on-year increase in exports despite shipping challenges.
→The company plans to secure long-term supply contracts with customers post-trials, enhancing visibility and stable revenues.
→Expansion beyond current capacities will be considered after reaching 70% utilization at Pakhajan, projected by end of FY 2025.
→Growth is supported by entering new domestic and international customers and leveraging a new U.S. subsidiary to expand market presence.

Margin guidance

Category 3

→Yasho Industries expects volume growth with capacity utilization rising at the new Pakhajan facility from 10% in Q1 FY25 to 70-80% by Q3/Q4, and nearly 90% by FY26, supporting revenue growth.
→Revenue guidance for FY25 is around INR 900 crores with an overall EBITDA margin of 19-20%; FY26 revenue is projected between INR 1,200-1,300 crores.
→The company anticipates EBITDA margins to stabilize and improve from Q3/Q4 FY25 onwards as utilization ramps up.
→Operating leverage at full capacity is expected to increase profitability, with the new capacity alone targeting around INR 550 crores revenue at optimum utilization.
→Despite near-term negative PAT due to depreciation and interest costs from the new facility, profit margins are expected to grow as operations stabilize.
→Expansion of international market presence (US, Europe, South America, Middle East) aims to increase volume and profit margins incrementally by 3-5% in the US.
→No immediate plans for additional capex until 70% utilization is reached; focus on improving operational efficiency.

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Fundraise plans

→No plans for equity dilution or QIP (Qualified Institutional Placement) as confirmed by Parag Jhaveri.
→Current debt level has peaked; no intention to increase debt further.
→Term loan repayment starts April 2025, with expected repayment of INR 45-50 crores in FY '26.
→Company aims to restrict debt to 2-2.5 times EBITDA, currently targeting to be close to 3 times by end of FY '25.
→Any surplus cash generated is planned to be reinvested for future expansion rather than debt repayment.
→No new capital expenditure planned beyond repair capex of INR 5-10 crores for FY '25 until utilization exceeds 70% in new facility.

Order book

→Yasho Industries is currently conducting trials with a number of both domestic and international customers, including existing and new ones.
→Following successful trials, the company expects to enter into long-term supply contracts with these customers, ensuring better visibility and stable order flow.
→Utilization at the new Pakhajan facility is expected to ramp up from about 10% in Q1 FY25 to 70-80% by Q3/Q4 FY25, supporting order fulfillment.
→The company anticipates managing the scale-up without significant additional working capital debt due to efficient order flow and stabilized raw material and selling prices.
→Export volumes have shown healthy growth (~27% YoY), indicating an expanding order book in international markets despite some shipping and pricing pressures.
→Management is confident of achieving revenue targets of around INR900 crores in FY25, driven by these orders and capacity ramp-up.

Capex plans

Yes

→Current Year (FY'25) planned repair capex is about INR 5 crores to INR 10 crores only; no major new capex planned yet.
→Further capex decisions will depend on achieving over 70% utilization at the Pakhajan facility, expected by Q4 FY'25 or Q1 FY'26.
→No immediate plans for new capex beyond maintenance, focus is on ramping up existing capacity.
→Once utilization target is met, company will consider next phase of expansion.
→Management does not plan to increase debt beyond current levels and aims to maintain debt to EBITDA ratio around 2 to 2.5 times.
→The fully commissioned Pakhajan facility with 20,000 MT capacity is a recent major capital investment, operational for growth and ramp-up.
→No immediate plan for equity dilution through QIP for margin improvement or balance sheet comfort.

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