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Earnings Call Transcript

Prasol Chemicals Earnings Call Transcript: Key Takeaways

Record Q2 revenue ₹413 Cr (+38.6%), EBITDA ₹58 Cr (+86.1%), PAT ₹38 Cr (+122.2%); Q1 ₹25 Cr inventory gain flatters H1; FY27 guidance reiterated.

Highlights
Revenue growthRevenue +38.6% YoY; mostly price realisations, single-digit domestic volume growth.
MarginsH1 EBITDA margin 17.5%, inflated by ₹25 Cr Q1 inventory gain.
Order bookManagement says order book strong; no quantified order book or ratio disclosed.
Demand visibilityHealthy demand; last month highest-ever sales; exports ~25% of revenue.
Management confidenceUpbeat tone; reiterates guidance; sidesteps FY28 and long-term margin questions.

Growth

Revenue +38.6% mainly price-led; single-digit domestic volume growth. H1 EBITDA +106% includes ₹25 Cr one-off Q1 gain.

Outlook

FY27 guide: revenue ₹1,550–1,650 Cr, EBITDA ₹240–250 Cr; Phase 1 capex ₹250–300 Cr; ₹2,800–3,000 Cr revenue in 5 years.

Risks

Working capital 63 to 76 days; H1 operating cash flow negative; freight up to 8x; 5-year margin target withheld.

Last quarter's promises, checked

Delivered

  • Guided ₹60 Cr IPO debt repayment → ₹60 Cr repaid (= BEAT)
  • Guided FY27 EBITDA margin 15–16% → H1 17.5% incl ₹25 Cr one-off (= BEAT, flattered)

Partly delivered

  • Guided Phase 1 capex ₹250–300 Cr over 2 yrs → ₹75 Cr spent in H1 (= PARTIAL)
  • Guided antibacterial launch in ~6 months → 'ramp-up in progress' (= PARTIAL)
  • Guided FY27 EBITDA ₹240–250 Cr ex-one-off → Q1 ₹90.3 Cr, Q2 ₹58 Cr incl one-off (= PARTIAL)

Missed

  • Guided working capital 60–70 days → 63–76 days (= MISS)
  • Guided exports 27% and growing → ~25% of revenue (= MISS)
  • Guided pricing normalise from Q1 peak → Q2 revenue +38.6%, price-led (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: PRASOLCHEM. Summary written with AI assistance from the document.

Read the document ↗

Prasol Chemicals Ltd: key numbers

Share price
₹790.90
Market cap
₹4,681 Cr
Revenue (annual)
₹1,233 Cr
Net profit (annual)
₹83.12 Cr
Promoter holding
75.25%
FII holding
0.02%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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