Pyramid Technoplast Limited (PYRAMID) Q4 2026 Earnings Call Transcript

Hi, everyone, and a very good afternoon. I welcome you all to Pyramid Technoplast Q4 and Fi26 con call. Please note that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risk pertaining to the business. We have on call today Mr. Vijay Kumar Agarwal, the Managing Director, and Mr. Jay Prakash Agarwal, CFO and Whole Time Director. So I now request, I would like to hand over this call to Jai, sir, to proceed with the opening remarks. For that, we'll open the floor for Q&A. Thank you, and over to you, sir.

Yeah, hi. Thank you, Soumya. Good afternoon, everyone. Thank you for joining again. And it is very, very warm welcome, everybody. Thanks for joining. So let me, we have just concluded our financial year 2026. So let me have a brief about it. So, this has been a year for Pyramid Technoplast as we successfully concluded a major phase of capacity expansion across all the products. With these capacities, new operations, we further expanded our manufacturing capacities and are well positioned to support future growth. While driving better operational efficiency and profitability. So our installed production capacity increased 22% year-on-year to 76,931 metric ton per annum, reflecting successful execution of our expansion strategy. Capacity utilization during the quarter improved to around 69%. And we expect this to gradually move closer to 80% in the next financial year. With the completion of this expansion phase, our major capex cycle is now largely behind us. And we expect only around 20 crore of maintenance and balance capex during financial year 2017. The WADA plant is now fully operational across IBC, HDP and MS DRUMS area. During FY26, it has a contribution of around 65 crore of revenue and we expect higher contribution going forward as utilizations continue to ramp up. Current utilization levels at plant stand at around 72% for HDP DRUMS, 68% for IBCs and 51% for MS DRUMS. The revenue potential for first phase, which has been completed, is around 200 crores. Infrastructure has been built for second phase, and only machines will be added as the demand will increase. And it has the potential to go up to 400 crores. On the recycling front, our plastic recycling plant processed around 200 metric tons during the quarter, Which I would say largely into a... Testing cycle. We are currently awaiting the final license approval from the Pollution Control Board government agency, which is expected by June-July 2026. As you know, the plant has an annual capacity of 5,000 metric tons and is expected to meet around 10-12% of our raw material requirement while reducing to import dependence over the time. Our captive solar power initiative is also progressing well. The initial 6 MW plant in Gujarat commissioned on October 30 forms part of larger 15 MW solar project spread across Gujarat and Maharashtra. Subsequently, an additional 5 megawatt capacity in Bharuch and 2.25 megawatt in Maharashtra were commissioned on February 2, 2026, while the remaining 1 megawatt in Bharuch is expected to be added shortly. This project backed by a total investment of around 60 crores and is expected to reduce annual power cost by around 15 crores. And we are expecting first year to be around 12 crores. With an estimated payback period of around 4 years, the contribution for Q4 FY26 was only 1.5 crores. Coming to the segmental performance for Q4 FY26 on a year-on-year basis, MS DRUM revenue grew 29%, supported by strong volume growth of 35%. HDP DRUM's revenue increased 20% with volume growth of 8%. IBC segment delivered 5% revenue growth along with 6% volume growth and 5% revenue growth. Before moving to detailed financial performance, we are pleased to share that during Q4 FY26, our revenue grew 15% year-on-year basis, while PAT grew 52% year-on-year basis. This performance was driven by healthy demand, improving operating leverage, and the benefits of having our expanded infrastructure fully operational. During Q4 F526, revenue stood at 196 crores, registering 14% year-on-year growth, while F526 revenue increased 15% to 684 crores. Gross profit grew strongly 33% year-on-year basis to 56 crores during the quarter. All right, everyone. Can I continue? The gross profit grew around 33% year-on-basis to 56 crore during the quarter and by 28% year-on-year to 186 crore for financial year 26. More than two-thirds of the incremental revenue growth across product categories was driven by higher volumes and an improved product mix along with a positive realization impact. EBITDA for the quarter increased 68% year-on-year basis to 20 crore, while FY26 EBITDA rose 26% to 59 crore. EBITDA margins for the year improved to 8.6% from 7.9%, demonstrating healthy operating leverage across the business. Pat for FY26 stood at 29 crores with margins at 4.2%. Despite higher interest and depreciation costs arising from the commissioning of new capacities, this improvement was primarily supported by better utilization levels across all DRUM categories. So with the expansion phase now substantially completed, substantially led cost initiative gradually coming on stream and utilization levels steadily improving, we believe Pyramid is well positioned to deliver meaningful operating leverage over the coming quarters. We remain confident in our ability to drive consistent growth, improve profitability, and long-term value creation for all shareholders and stakeholders. Thank you so much. Now, I'm opening the floor for the questions and answers. Thank you so much.

Thank you, sir. May I please take over? Yeah. I request the participants to please raise their hand for the Q&A. First question we have from Dipesh Sancti. Please go ahead.

Yes, sir. Am I audible? Good afternoon, sir. Good afternoon, sir. Good afternoon, JG. Good afternoon, JG. Sir, congratulations, first of all, watch the results as well. And just wanted to understand. Power plant is a commission on one megawatt is a benefit of this month. Oh, yes, I will be here. Yes, sir, guidance. Yes, sir. Yes, sir.

Yes, sir. Yes, sir.

Okay, sir, this quarter, how many benefits have we got? Because last quarter, we had to keep 45 days.

No, no, no, no, no, no, no, no, no.

Okay, so this is the first quarter of all the benefits. Okay. Okay. So definitely inventory gain plus or rate has a right now. What is the rates? Abhi bhi bhi 150, 160 kai as-pas hi hai ya ya sada hai? Aur hume conversion abhi bhi wo 20 rupees, 25 rupees hi mil raha ya ya ya zada mil raha isma hai?

25 rupees ho ga.

25 rupees. It has increased the margin. Okay. Okay. So, great. And so, is there any other particular, you said, 20 crores, you can do a capex. So, is it required or is it required or is it required?

It is largely to add machinery as a demand comes or maintenance. Otherwise, there is no major capex required. Yeah, there is no major capex required. Right.

Right. This year, we are thinking about debt reduction or not? ॐ आपका ये वोजाएगा.

I am not a result. It is a 4-year repayment. And the earnings that are happening, the market has increased due to the price increase. If you are normalised, it will be surplus. First repayment will be the bank.

Great. Great, sir. All the very best, sir. I will ask the rest of the questions next. Thank you.

Thank you. Next question we have from Saakit Kapoor. Please go ahead.

Pranam, sir. Namaskar, Prakash.

Namaskar, Kapoor.

Sir, as you mentioned in the opening remarks, you have seen meaningful changes in the current year because of the improved utilization levels. So, for this year, depending upon how currently the crude prices are behaving, how do you see the EBITDA margin trajectory? Thank you.

Thank you. Yes, sir, other than that,

अभी क्या की बिजनस रिस्क है आपके सेग्मेंट में और डिमांड परसर कैसा अभी आउट्लूक बन रहा है जो आपने जैप्रकाश जी ने जो मीनिंग्फुल वाला शब्त कहा ता उसको कैसे एक्स्ट्रापॉलेट करना चाहिए इंवेस्टर्स को.

Good morning, everyone. Yeah, I'm sorry.

Yeah, I'm sorry.

Yeah, this business will continue forever, if any chemical company wants a packing material, they will definitely come to us. There is no risk as such. We will keep on serving this industry forever, and we will, and you will always be with us.

Sir, taking into account, what should be the current EBITDA margin trajectory now, and abhi ke heshaap se, early year ke liye, but jojo, chijja, a factor kar rahe hai, aap bata rhen ki, aap utilization levels eighty percent pounchengi on the expended capacity.

Roughly, we have to understand that it will remain in double digit, but it will remain in double digit I'm sorry, I'm sorry, I'm sorry, I'm sorry.

Okay, sir, double digit, we have posted this quarter in the next quarter, so how do we quantify that in terms of inventory dilute in the current quarter? Is there a meaningful number? How should we look into inventory gains?

Yes, sir, just a ballpark understanding of how much the raw material has been, how much the prices have been increased? The prices are increased by 50,000 kilos.

Yes, sir, we are seeing that the expended capacity of our IBC, which is the highest margin product, the contribution is lower, it is 5% growth.

No, no, no, it is 5% growth, quarter to quarter. Year to year, you will see the overall scale, the ratio of the last year was 34%. It's worth 41 percent, IBC guys. The total revenue you have seen is year to year.

Yes sir.

The total revenue you have seen is year to year. Yes sir. The third is the 34 and it has reached the 41. There will be so much ratio. If there will be 60-70% of this year. Yes sir. The 34 and 41 are now.

Yes, sir. So, the next step is the polymer drums, MS drums, and IBC business. How do you see the split on the expanded capacity and on an improved utilization?

Look, the next step will be 43, 44, 45 percent will be under 45 percent. The rest will be 45 percent polymer drum. The rest will be MS drum.

Good morning, everyone, and welcome to the call. Yes, sir. हमारे देखें तो एंड़ी और वे में इस्पेश लीडी सेर्मारी लॉंग टारे लॉंग तो जोलर के प्रजेट के कारण में पैसे रॉकी यह तैर्ल करोड भी बाट शॉर्ट टार्म बॉर इंग सर्

Good morning, everyone, and welcome to the call.

So, how much will we get to the call?

Margin hit, where did we get to the call? Where did we get to the call?

If we get to the call, we will get to the call.

Yeah, so we have to get to the call. I'm sorry, everyone, and welcome to the call. Thank you very much.

Yes, sir. So, sir, in the past year, we had 70 crore of EBITDA, and at the end of the year, we came to the end of the year, and we will definitely be in your attention. Now, the expected capacity of this year, which we need to do, depending upon the volatile market, we can figure out what number we can figure out in the current year. ॐ ॐ ॐ ॐ ॐ

Thank you. Next question we have from Saurabh Kumar. Please go ahead.

Hello, sir. Hello. First, thanks for the great result. I think you said that Q1 will see margins from Q1, but Q4 is also showing. So, thanks for the good results. Two-three questions, sir. First, I think IBC is 61-62% utilization and Polymer Drum is 71%. So, how can it be peak utilization? How can it be peak utilization in the next two-three years?

How do we see the peak utilization of 70-75% of the volume of the volume? Hi, I'm sorry, I'm sorry, I'm sorry, I'm sorry,

Okay. So, sir, we make our future capacity, like now we have expanded capacity. So, what do we have to do with our planning?

Good morning, everyone, and welcome to the call.

Okay, okay, sir, debt may lock, short-term debt, working capital, jaysay 100 crore ke turnover pe, kitna working capital expect karna chahiyah add hooga?

100 crore pe, sir, e, dembhaji na, 50 din ka paisa lag jata hai. 50 se 50-60 din ke maal lana, maal karna, rakhna.

Okay, sir, 3-4 years of debt, do you see a growth?

Yes, sir, you see a growth rate. Okay, okay.

Yes, sir. And the last two-three years of chemical industry, at least in India, because of China, the pressure is not good enough, but then our performance is good. So, one of the reasons is what has worked for us, and the other, how do you see the chemical industry going forward? Oh,

अच्छा समय है यहाञा है हमारा वलूम हो रहा है.

We are increasing based on their sales. We are increasing. Got it, sir. Got it. Thanks a lot, sir. Thank you so much.

Thank you. Next question we have from Pratik Delia. Please go ahead. Hello.

Okay, thank you. So, congratulations, sir. I think last quarter, I think that we promised that we had delivered. So, congratulations on that. Sir, my two questions on the gross margin, on the EBITDA margin, you can see the bridge, you can see the bridge. So, we can understand Thank you. कि ये क्या प्राइजिंग डिस्काउंट था कि कुछ और इंपेक्ट था कि उसके बारें बात कर रहा है हाँ स्लाइड नंबर सेवेंटीन

Thank you. Good morning, everyone, and welcome to the call.

Thank you.

Thank you. Request the participants to please raise their hand for questions. Next, we have Saket Kapoor. Please go ahead.

Hello, sir, sir, sir, just to please tell us that you also have a reaction to the U.S.

Now, our WADA has been completed, so we will put it on the other side. Thank you very much.

We are exploring in both ways, location as well as product mix also. So very soon, we will come back obviously.

Correct. And, sir, recycling, uh, uh, contribution रहेगा, उसको आप, uh, factor करके ये, uh, figure 8085 का बता रहे हैं, क्योंकि, sir, ये quarter में हमने 20 को अभी तक कोई consider नहीं किया है, मेरा first license आ जाए.

I love you. It has a good potential, sir, just waiting some license. And very soon we will be adding capacity there also.

But we will start collecting waste from the market. This is where we are waiting right now.

Yes, sir. Yes, I'll correct it. Just a second.

Oh, I just shift it. Because you have 3 crore figure that I'm talking about, sir, which I'm talking about.

Yeah. I'm talking about the line.

I'm talking about the line.

Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah.

Sir, we can take next question by the time. Next question we have from.

No, sir, tell me, sir. Sorry. Last conclude, do you have a line? Are you coming? Yes, sir, tell me.

What is the 3 crore? What is the 3 crore? We have the 3 crore. We have the 2 crore in the WADA. We have the provision of our certificate in this month or in this quarter. Thank you. Thank you. Next question we have from Saurabh Kumar. Please go ahead.

Sir, two questions are, so, if we look at growth in three businesses, IBC business last 3-5 years, 17-24% growth, polymer drum, 5-9%. So, if we look at the future long term, next 3-5 years, you think that IBC will grow up 15% and polymer will grow up 5-10%. Because that's why our realization is quite improved, but I think it will be 120-170 years.

Good morning, everyone, and welcome to the call. So, IBC growth is a lot of speed.

Okay, sir, IBC is a domestic market share. I think the other big player is Time Technoplast. So, is it technology or what is it that no other player is not? There are no more people in this market. What is it that the barrier to entry is?

There is a big difference in the world. There is a big difference in the world. If you are taking an average, you can see it. I have a great deal. Quality issue is still there. Quality will be there.

Okay. Last two years, I think, 120 crore plus capex, break up, which business in solar,

which was not a figure. It's not a figure. It's about 60 crore. It's about 10-12 crore. It's about 10-12 crore. It's about 50-60 crore.

Okay. Okay. Thank you, sir. Thank you. Next question we have from Dhanesh Navasekar. Please go ahead.

Hello, sir. Sir, first of all, congratulations. It was a good result. Our double-digit margin target finally hit. Sir, there are two questions. First, sir, inventory risk regarding. So, you said, first, we were importing from a local supplier. And the inventory we were keeping, we were keeping a little less than 25-30 days. So, do you see this as a risk? Good morning, everyone, and welcome to the call.

Thank you. Good morning, everyone, and welcome to the call.

Sir, second question. Sir, the last time we were thinking about a new product, we are thinking about a new product.

It's been happening today, but it's not finally happening. We will announce it in 10-5 days, then we will announce it in 10-5 days. The first contract will be signed, then we will do it.

Okay, sir. Thank you so much.

Thank you. Next question we have from Chatik Dedia. Please go ahead.

Hello, sir, I have told you about the recycling plant, so I have told you that the raw material procuring and licensing will continue, so the licensing will come in this quarter?

This quarter will come in June and July. I have applied to the GPCP on my final touch. I think it's about 40 days. It's been a long time for 10, 12, 15 days. It's been a long time for June to July.

Okay, sir, then our margin impact is next. You will see in Q3, right? You are not operational in the plan?

No, we are operational. We use the drum, we can get the VASC. Now, we will take the chemical drug we can't take. We can't take it. Chemical drug we can't purchase. The plant is a trial, the treatment is done for two months.

That is how Dr. Tanam has processed the process. Ultimately, after licensing, without middlemen, we will start procuring materials.

Okay, thank you, sir.

Thank you. Next question from Ganesh Nagasekar. Please go ahead.

Yes sir, I will answer all my questions. Thank you.

The next question is from Saakir Kapoor. Please go ahead sir.

Yes sir, the conclusion is that RM is our raw material, it is exactly what product we are sourcing locally in the vendors. If our RM basket is mainly polymers and resins.

Yes, sir. HMHDP or steel. Steel, we have local steel. Steel, we have used to do the first and today, local steel. Polymer, HMHDP, which is the same, we have used to do the same. We are doing the same. It is not that we are doing the same, but we are doing the same.

Okay. Oh, how many vendors are here locally, which we source?

HMEL, Reliance, Opal, IOTL, Haldiya, there are many people.

Okay, sir, just like we have a gross profit margin, so we have 26-27% in the region, now, taking into account expended capacity, operating leverage, recycle benefit, solar benefit, if we can accumulate it,

Good morning, everyone. Good morning, everyone, and welcome to the call.

My question is that you are getting the efficiency of products and products.

I understand the question, but I don't have a question.

Yes, sir, there is a total. We have our employee cost. It was the last year. Because the volume is bigger, it was 22 crore to 26 crore, it was about 40 lakhs. So, expectedly, sir, it's this run rate, 777 crore, or something else?

It will be better.

Okay, sir, as KMPs, you have drawn amount of total employee cost, you have to be merged? Yes, sir, it's in the audit report, it's in the audit report, it's in the audit report, I'm going to ask you in the 26th, I'm going to ask you in the portion of the charge.

Which is the same, which is the same.

Okay, sir. No, sir. Baki to sab prasno ka utar mila hai. Bers, he, he, he, he, he, rujhahn leker sir, Hom lho conclude karna chaheenghe ki q4 ke bhi joh results ayan wo humarere neya paradigm bana ta hai, or joh base humnne bana ya hai, is, pa rhum yer number ko one of karke nai raksakte. In fact factors hain jis se yer number me mjbūtti rheegi. This understanding is right, sir.

That is why we are calling it meaningful. We are not leaving any stone untouched that you will have income from recycling, solar, business, so that is why we are creating an environment in which the company will get the maximum benefit of the company, the shareholder will get the maximum benefit of the company.

Oh, yes, sir.

All right, sir.

Different art. Hashtun 50% आपने रखा है.

जैसे जैसे हमारी रैंप बढ़ रही है. We might announce further both. That's the.

जी के सार. अभी अब में प्रोपिटिब्लिटी को इंप्रूब करने में पुरा गम लगाएं, sir. और कैश्वों बाकी चीज़े आ जाएंगे. I'm कुरून का और अच्छा प्रेजे ठेंटेसीन आपने सरह से इसको मेंटेन रचने से.

Thank you. Thank you. Next question we have from Saurabh Kumar. Please go ahead.

Sir, this quarter may almost, sir, I think 43 days ho chuka hai. और अभी जैसे last week Modi ji ka बयान है, आप petrol ऐसे use करो, तो काफी मतलब लोगों को लग रहा है कि challenging times आने वाला है. तो, sir, आप लोग on ground business कर रहे हैं, आपका भी क्या experience, सब कुछ normal चल रहा है business में, आप short term challenges देख रहे हैं, demand supply, logistry.

It's all right. See, price can happen. If you have to pay, you don't have to pay. You can't go without paying.

Okay, sir. And last question was just about operating cash flow. Just a little bit of operating cash flow remains a little bit. And my understanding is that this year we have 60 crore capita. In the short term debt, you have 8-10% interest in the short term debt. So, 8 crore was there and the tax was there. So, net net 60 crore to 40 crore, we have operating cash flow. 65-66%. This conversion ratio is okay or is it something that needs to be changed?

Yes, it is.

Okay, okay. Sir, so future me, short term debt gha'tanay ka plan hai, ya, pahle long term debt gha'tanay ka, kyunki hamaara pact ka almoos 30% interest pe jala hai.

Dekhe, dekhe. Yeh, paesa joh hai, koji joh bank ko biaz dhya jata hai, woh mažburi me dhete hai. Koji jahan buch ke bank se paesa leker aapne interest dhe raha hai, aysa nahi hai. Jho long term liya hoa hai, uska repayment chalou hai. Okay, sir. Thanks a lot, sir.

Thank you.

Thank you. Next question we have from Nikud Khutriya. Please go ahead.

Sir, FI 27 or 28, how much revenue can we be able to achieve?

What do you think?

FI financially or 28?

The next year's target is about 800 crore. As soon as we leave it, we will be able to achieve it.

And EBITDA double jet?

Yes.

Okay.

Next question we have from Mayang Sanghai. Please go ahead.

Okay, so, I mean, we have no difference between the end product.

No, no, no. We import the cost savings, so we import them. If we import them, we take it.

Okay, sir, thank you.

Thank you. Participants who wish to ask questions, this is our last call, so you may kindly raise your hand. We'll wait for two minutes if anybody has questions or otherwise we'll just close the call. Okay, sir, I think we are good. I request Jay, sir, to kindly say your closing remarks, and then we are good to wrap the call.

Thank you Sona. Well, thank you all the participants for your insight questions. Thoughtful created by you. And we always learn a lot by this question and answers. And should you require any further information, please feel free to reach us through our relationship with Soumya, Go India Advisor, and we sincerely appreciate your continued interest in your company, Pyramid Technoblast, and looking forward to stay connected and keep on giving good results like this, Potter and Potter pieces. Thank you so much. Thank you. Namaste.

Thank you, everybody. Thank you. Thank you so much. Okay, thank you.