Ganesh Benzoplast Limited (GANESHBE) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Ganesh Benzoplast Ltd. Q4-FI26 Earnings Conference Call.

A reminder, all parts of the line will

remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star, then zero on your charge tone phone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Rishi Pilani, Chairman and Managing Director of the company, for opening remarks. Thank you, and over to you.

Thank you. Good afternoon, everybody. Thank you so much for joining us for the Q4 FY26 conference call. We will initiate the call by taking you through the business highlights for the period under review, after which we will open the forum for questions and answers. Now I hand over the call to Mr. Amar Kabra, GM Finance and Taxation, to share the quarter numbers with you.

Yeah, hi. Good afternoon, everybody. This is Amar Kabra. So I will share you the numbers. On console basis, during the Q4 of financial year 26, the company achieved a total revenue of 1115 million as compared to 999 million for the corresponding quarter in the previous year with an increase of 12% Y&Y. The company earned PAT of 152 million as against loss of 132 million for the corresponding quarter in the previous year. For full year, for financial year 26, the company achieved turnover of 4114 million as compared to 3743 million in financial year 25 with an increase of 10% Y on Y and the profit after tax increased to 733 million as compared to 380 million in previous year with an increase of 93% Y on Y. EPS for financial aid 26 increased to 10.19 rupees versus 5.29 in the last year, which is nearly doubled. On standalone basis, during the Q4 of financial year 26, the company achieved a total revenue of 726 million as compared to 575 million for the corresponding quarter in the previous year, with an increase of 26% Y&Y. The company earned PACT of 122 million as against a loss of 158 million for the corresponding quarter in the previous year. For financial year 26, the company achieved a turnover of 2600 million as compared to 2154 million in financial year 25 with an increase of 21% Y&Y and the profit after tax increased to Rs 613 million as compared to 307 million in the corresponding period in the previous year with an increase of 99% Y&Y. EPS for FY26 increased to ₹8.52 vs ₹4.27 in previous year. This was the highlight of the Q4 of FY26 results. Now, I would like to open the forum for question and answer.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Nishita Shanklesha from Sapphire Capital. Please go ahead.

Yes, thank you for taking my question. So I just wanted to understand our current capacity is of around 350,000 K. So what is the capacity utilization there?

Hi, Nishita. So... In JNPT, our capacity utilization is almost 100%. In Goa, it is close to zero. And in Cochin, it is about 80% to 85%.

So, what is the reason?

So, overall, we are about 95%.

Right. In Goa, why is it close to zero?

See, Goa was mainly a bunkering terminal, and once the mining ban came in Goa, after that, the big ships have stopped calling Goa port, which is basically, so the bunker requirement has gone away. We are exploring other avenues, but as of now, the situation is not occupied.

Okay, okay, understood. So, are we doing anything, because we are at around 95% of utilization, are we doing any CAPEX, or do we have any CAPEX plan to increase our capacity?

Yeah, currently a CAPEX is going on to increase the capacity by another 50,000 K, approximately 50,000 KL in JNPT.

Okay, and what is the CAPEX plan for that?

So, the capex amount for that is approximately between 40 to 50 CR for that particular phase expansion.

And, like, have you already started the expansion or what's the update then?

So, the work is already ongoing and we are expecting that by end of this calendar year, we should be able to commission this phase.

Right, okay. And so I just wanted to understand, so like from what I did in the presentation, our path has reduced because our rental expense in JNPT has increased, like it's 10 times more than it was in FY25. So if you can throw some light on that, why has it increased so much?

So this is a, every 30 years, there is a reset in the rentals by the ports. So we got the lands, we got these lands in 1995. So this is a reset in 2025. And the next reset will happen in 2055.

Okay, okay, understood. So, okay, understood. So, going forward, what kind of margin can we expect?

Margin? Margin means? What do you mean?

EBITDA margin. Going forward, what sort of EBITDA margin and tax margin can we expect in F-27, F-28?

See, based on the current trend, which I've always maintained, the rental revenues keep going up by about 5-6% every year. That trend continues. Only difference is that now you have this reset of this rental, which happens once in 30 years. So, over time, as the rentals catch up on this reset over the next 2-3 years, Then the EBITDAs will keep on changing accordingly.

Plus, we are adding capacity, so obviously the new capacity will have more EBITDA percentage as compared to your past revenue, because already the fixed over rates have already been taken care of. So, obviously it will be upward trend only. Light.

Okay. Okay, okay, understood. But it will like take time for us to reach to the earlier EBITDA level.

Yeah, because this is a significant jump in the rentals.

Right, right, right. And anything on revenue growth? What kind of revenue growth can we expect?

I can expect approximately 5-6% on the current tanks that are leased out. That's what we hope to achieve every year.

Yeah, that's on only the LSC segment. On consolidated with the chemical segment as well, what kind of revenue growth can you see?

So, chemical is also running more or less on steady state. If you see over the last three years, the chemical path has almost gone up two and a half times. So, and right now, we are not doing any major projects for capacity expansion in chemical. Small D bottleneckings are going on, but there is no major project going on to, like, you know, increase the capacity by, you know, step jumps. So, chemical also will remain on this steady path going forward.

Okay, understood. Thank you so much.

Thank you.

Thank you. We take the next question from the line of Anukul Arora from Inved Research. Please go ahead.

Yeah, hi, sir. Thank you for the opportunity. Sir, I had a few follow-ups on the last participants. I think on the Goa terminal, we had certain pending approvals for petroleum products. So anything on that front?

Yeah, so we've got the statutory approvals in place to do some modifications on the tanks to handle blended petrol, which the approvals have been received by us. The work is expected to start post-monsoon and finish by March 31st of this of 2027. But as of now, we do not, so this is our attempt to add capabilities to that terminal, but there is no contract that we have signed as of now for handling petroleum on that terminal. So I just would like to clarify that, that we are trying to increase the capability of the terminal to create more options.

Understood, sir. Understood. Got it. See, if you can highlight more on the chemical division, I think there was a bit of slowdown in Q4. So, what was the particular reason for that?

So, there is no slowdown in chemical division. There are two, three exceptional items which has hit in the last quarter of this financial year. One is the REACH certificate. We got the REACH certificate from UK and Europe territory for that major expenses required, which has been debited to profit and loss account. So that is one of the things. And you are aware that chemical division management has been changed in last two years. Previously, some Ramaghan Pilani were handling. Now the control has been shifted to Rishi Pilani and his family. So, for that period, the dues and salaries hike of previous staff means of chemical division staff was pending since long time. And that was under discussion since last one and a half year, which was got settled in this quarter. So, these two impact was there in chemical. Otherwise, on year on year basis, if you exclude, so you will find the trend of at least 15% jump in the path of chemical division. So, I think that is pretty good.

Yes, yes, that answers well, sir. Sir, I think the lease renewal that you highlighted that happens every 30 years. So for the new tanks that we had recently done, Capex, so when is the lease renewal due for them?

As of now, the lease renewal for them is due in 2047 with the current sign leased.

Okay, 2047. For those two, for the two tanks that we have done, your KPEX.

Which two tanks?

So, the A-class tank.

So, we have built 19 tanks earlier, and now we are in this phase constructing three more tanks, big tanks, with 45,000. So, you are talking about that phase?

Yes, yes, yes, I was talking about that. Yeah, yeah. Got it, sir. I think one more question. I think our KPEX of A-class tank, I think we expect around 50% capacity by Q1. So, are we on track for that?

Yes, so we are expecting that by end of this calendar year, we should be able to commission that.

Okay, got it, got it. Lastly, sir, any in capex on the ammonia storage or additional bullets? I think we were planning for around 450, 500 karoche or apex.

No, see, that capex is still under discussion. So the land is earmarked for the bullets. It's kept aside for the LPG bullets and the ammonia tank, but that capex is still not initiated.

And so, sir. So, how much of the land is still available for us?

In the new plot?

In the GNPT. In the GNPT file.

Approximately 5 to 6 acres is available.

Got it. Got it. All right, sir. That's it from my end. I'll fall back in the future. Thank you, sir.

Thank you. Thank you.

Thank you. We take the next question from the line of Dharmir Parikh from TM Corporation. Please go ahead.

Yes, good afternoon. Am I audible?

Yes, good afternoon.

Yes, sir. Firstly, I wanted to know what are our plans with the wholly owned subsidiary which we are planning to open in Singapore?

So, uh... As of now, with the war and the new development and the fact that we have now taken over the management of the chemical division and we have a very good now inroads into the supply and distribution of chemicals with us, So, we are looking at opportunities that might open up for allowing basket trades. Now, what I mean by that is that suppose there is a supplier from whom we are buying chemical X, but they also make chemical Y, chemical Z, which goes to my sort of customer in Europe from whom I am supplying my fixed. With my produced material from my factory. Okay. So I can offer to that client in Europe that not only will I supply to you what I manufacture in my factory here in India, but from an international source from whom you are already buying, we do a basket for you, where we will also supply you the other products that you need. So, it's right now at a very preliminary stage. We have a few ideas that we are discussing to see what all can be implemented. But that's the primary purpose of this is to become like a one-stop supplier to your client for all his product needs.

Understood, sir.

Yeah.

So, okay. Secondly, in previous call, we were told that 50% of the ongoing APEX will be operational by Q1, which I heard even in previous questions. You said that it will be completed within this financial year. Within this financial year, entire KPEX will be finished or only 50% of the work will be finished?

No, so the entire 49,000 phase will be completed by this December.

Okay, so can we expect the revenues to reflect from Q4 of this year? Okay. Secondly, I'm assuming with my limited knowledge, our rentals in JNPT are on spot pricing. So, due to this war and everything, as per my observation, LSE companies around the world have made a killing because of the rates shooting up and trades getting disrupted. So, can we expect some good amount of higher realization, higher margins in Q1 this year?

I am not sure which companies around the world you are talking about, but as far as what JNPTU, you have to understand that JNPTU is already running at almost 100% capacity utilization. We have, it's not spot basis, it's a mix of primarily long-term storage contracts and some spots. And we have not observed any such exceptional demand or requirement that would allow us to take any opportunistic advantage of this situation in terms of pricing and or even, you know, throughput turnover. Because you have to realize that while... Some people may have been able to take advantage of a demand supply gap, but there was also a very, very reduced inflow coming into India because of the war situation. So it was not that the capacities were running over full and there was no place to keep cargo and so people, you know, like I could charge exceptional rates for this period.

Understood. And my last question would be that since our inception into LSE business, we have always been into three ports, which is JNPT, Cochin, and Goa. Why don't we look at expanding and adding some other port assets to our portfolio? Because we practically have everything, whatever LSD company requires. We have good promoters, we have good experience, we have entire ecosystem. But still, why we are only concentrated on these three ports?

See, that's a very good question, but I'll answer it in a very simple manner that we always look at any opportunity in terms of its ROI in the sense that we want to make sure that if we are committing company's capital and resources towards any other port, we should be able to give at least Equal or more ROI than what we are getting in JNPT because JNPT right now you have expansion possibilities, right? So if I have to deploy one rupee of the company's money, if I'm not deploying it in JNPT and if I'm deploying it somewhere else, Then there has to be that much reason and logic that it's going to give me a higher return than JNPT. And unfortunately, as of now, we've not found such opportunities where, you know, you get such high returns.

Understood, sir. It's not in India, maybe abroad.

Yeah, we can see we are open to everything. But the thing is that we need to be sure that we don't end up deploying companies resources in a manner that is not equivalent to what we can generate here.

Right.

That that surety we need. So if we get a back to back contract, we get a good deal, then definitely the company will go ahead and do it. Thank you.

We take the next question from the line of Krupa Desai from Electrum Capital. Please go ahead.

Yeah. So, just one follow-up question on the earlier participants' question. So, we had already signed some LOI with Vishaka Patnam government. We were planning to come up with some capacities in Vishaka Patnam, I believe. Can you update on that?

No, I believe that there is not involving us, but between the previous person who held this plot in Vishakha Patnam and Vishakha Patnam Port, there is some dispute going on. So, it has nothing to do with us, but due to which the LOI is on hold. I am not sure whether it is being put on hold legally or it supports internal decision, but because of that, the LOI is, right now, I should not say LOI has been put on hold, its progress further from LOI is on hold.

Okay, sir. And in this quarter, in the presentation, you have not given the segment by margin break-up. So, for this quarter, are we able to do like 45-47% of margins on the rental revenue business?

See, this time we have made a lot of changes in the presentation because since last four years we are giving the same presentation and we have made a lot of changes. So, might be that has been missed. So, we will incorporate it later on.

Yeah. So, has that margin changed, this 45-47%?

Yeah, that remains same.

That remains. And do we expect an improvement? Because I think in this year, we see a capacity coming in.

Yeah, that's already explained. Because with the new capacity, our EBITDA margin will definitely be going to increase.

Yeah. Yeah, and I just needed to confirm. So, in Q1, we expected 40,000 kilolitres of capacity to come live. So, is that on track?

Yeah, that's going on. And by this year, that will be completed. So by the Q1 of next year, next financial calendar year, that will generate the revenue for coming.

Okay, Q1 of next financial year or Q1 of F527?

Q4 of this financial year. You can say Q4 of this financial year.

Q4 of this. So by Q4 of this financial year, 40,000 kilolitres of capacity will be operation.

Yeah.

And next year, another 60,000 is coming, right?

Yes, that's what the plan is.

Okay. And how much CAPEX have we done for this and for the next year's capacity? Like, how much are we planning to do?

So, the combined CAPEX for both of the capacities together is approximately 100 crores.

Okay. And one more question on the EPC side. So, we got this one large 175 crore JSW port order. So, how much of that is executed and how much of that is pending to execute?

So, the engineering for that is over.

Okay.

And we are expecting that once this monsoon finishes, the actual groundwork can start.

Okay, value-wise, how much is done?

Value-wise, I would say about, I will have to check back on that and get back to you.

Okay, and margins, there are like higher single digits?

Yes.

Okay, yeah, that was all. And one more last question, sorry, if I can take it.

Yes, yes.

So, when you used to give that margin break-up, I used to see that this trading business always used to have this negative EBITDA margin. So, why was that?

See, trading includes your EPC, trading includes your other like unallocable income and unallocable expenses, so obviously that is a variable thing, you cannot expect similar thing over past quarter or future quarter, so there might be a plus or minus, but your rental income remains stable, it's upward trend only, and EBITDA margin also remains stable.

Okay, okay. And sir, can you please continue to give that margin break-up, segmental margin break-up in the presentation?

Yes, we have noted the point, we will incorporate that.

Yeah. Yeah, thank you.

Thank you. Thank you. We take the next question from the line of Harish, Shiaad, an intellectual investor. Please go ahead.

Good afternoon, sir. I am in my audience. My question is regarding your Goa assets. What is the total investment you have done in the Goa assets so far?

So, Goa was built in the year 2020-2001.

Okay.

So, we'll check on that, that what's the current investment on that and get back to you.

Okay, now we are going to do some modifications to the same time. So, what is the capital outflow for that?

Hmm?

What is the capital outflow for that?

That will be close to about 2 crores.

And you said that we are not tied up with any company body use of those assets. Are there any negotiations on that? That's why we are going ahead with the multiplicity.

So we've not had negotiations, but we've had discussions. There is a demand for petroleum in Goa. So, we are trying to make a case to shift that demand fully or partially to our terminal. So, yes, there are discussions going on, but we have not reached any negotiation stage on that.

Any ballpark figure? How much is your potential from that?

No, as of now, there is no ballpark figure.

Okay, now coming back to your presentation, slide number 8, where you have given the fat breach. And there you have given a detail of JNPT plot 17 and 13 leaves renewal and negative 175. Can you explain me what it is? I do not understand what exactly it is.

Yeah, so this year the JNPT plot rental for 7 and 13 plots has increased by 23 million almost, 23 crores. Previously it was 2 crore per annum and now it has been increased by 23 crore. So total 25 crore is the lease rental for the old plot. And there was an excessional income of 9 crore, which we got on account of that termination of that LPG thing. Hello, yeah.

When did it happen?

Sorry, we can't make out what you are saying. It is around March, February end or March 1st of 2025.

Okay, so the full year impact is during this year? Okay. But are we not able to pass on these additional rentals to the customer?

Yeah, we are doing that, and we expect that over the next two to three years, we should be able to achieve that. And then again, for the next 27 years or 26 years, you don't have this kind of impact.

Okay. Now, coming back to your slide number 12, where the 14 and 15, some new 10K you are doing, this is the same expansion you have been talking, under the code CAPAC being done. When did you get the operationized?

See, I already explained this few times on this call before. That the first phase of this, which is approximately 50,000 KL, is expected to commission at the end of this calendar year.

Okay. Okay. Okay. Okay. Okay. Thank you. Thank you very much, and all the best.

Thank you. Thank you very much.

Thank you. We take the next question from the line of Anukul Arora from Inved Research. Please go ahead.

Yes, sir, I have two follow-up questions. I think, sir, what was the reason for the impact in EBITDA margins with the LST division for us?

I just explained, the lease rent has gone up by 23 crores.

Okay, and anything in the mix, like EPC mix versus what we have been doing?

No, that will not have an impact on your LST division.

Understood. Lastly, what would be the case, what are the growth triggers we are seeing in FY27? What would be the growth triggers?

Like I explained, that we are doing the expansion, and that is the growth trigger that will come because that will increase our overall installed capacity by almost 15%.

Got it, sir. Got it. Sir, just to clarify on the margins part that I was asking, I think we have taken roughly 17-18 crores of hit in the lease until Q3. And I think we had made around 21-22 odd percent EBITDA margin on a controlled basis. And Q4 was due around 6 odd crores. But I think Q4 we did on a controlled basis roughly 18-19 percent margin. So, wanting to understand what was the reason for a… Shift downwards from 21-22% to 18% Q4.

Main, I explain you, it's a lease rental. We are now, up to last quarter, there was pro rata provisioning of this lease rental, and the cumulative total 25 crore, we have made the provision in the last quarter of the financial year 26. So, if you can compare year on year, then you will see, there is a downward trend of just a 6 crore, as against a lease rental increase of 23 crore, but there was a profit margin down by only 6 crore. So, to some extent, we have passed on that burden to the customer, that additional, but yes, in this year, that additional 6-7 crowd downside of that path will definitely be going to pass on to the customer. So, that effect will be neutralized in this current financial year. And that one 9 crore, that exception item was there, obviously, that was one-time income from BW. So it will take roughly, I can say, 15 to 18 months to recover the entire thing.

Got it. Got it. So roughly, going back to the same trend would roughly take us two to three years in terms of the income margin.

Yeah.

Yeah. Got it. Thank you so much. Thank you.

Thank you. We take the next question from the line of Ketan R. Theda, an individual investor. Please go ahead.

Hi, thanks for the opportunity. Rishi, on the Goa terminal, how much are we spending in terms of expenses every year?

Every year, see, we are just doing the normal maintenance KPEX that we need to do to keep the terminal in good shape, which is approximately close to about 10 lakh rupees a month or so.

And some lease rentals are there.

And these rentals are there.

Skeleton staff.

Total is about 10 to 12 lakh rupees a month.

10 to 12 lakh a month. Okay, 10 to 12, okay, fine, fine, yeah.

And, obviously, the depreciation is a non-cash item, so, in P&L, that is, but that is not affecting my cash flow.

Sorry, sorry, say again that, Mr. Kavad.

Apart from this, there is a non-cash item depreciation, obviously.

Of course, of course, yes, yeah. No, I meant in terms of the expenses that you clarified, 10 to 12 lakh a month. And this increase in the lease rental that we have experienced, so how much is the capacity affected because of that?

Capacity is not affected because of any lease rental.

No, no, my question is, say, for example, out of the 100% capacity that we have at GNPT, and, you know, we've got... Thanks on different plots. Now, not all plots, your leave rentals are short of 10x, right? Only some...

Okay, so we don't look at that, we look at it as a single business unit. So, we look at JMPT as a single business unit, but I get your question. So, out of the total installed capacity of roughly about 3 lakh KL, almost 2,80,000 KL is on these plots.

Oh, there's a significant capacity. Yeah, I have. Yeah. So then, see, what I'm trying to get around is when our rentals have increased 10x, but we are still expecting the rentals to increase the rate of inflation in the next. So how would we be able to recover or reach to the same levels of margins in the next two to three years? Because you've been explaining that, you know, you will reach the margins in two to three years at the same levels that we used to do before. But 10x increase in rentals, but your, you know, expenses, but the income rental is not increasing at the same rate, will not increase the same rate in the next year.

Yeah, but you have to understand that So, the lease rent is not the 100% portion of your lease rental, right? If the logic was that 100% expense is allocated to lease rent, then I agree with you. So, suppose if every year, for example, if we are able to increase our revenue by 5 to 7 crores, for example, right? In three crores, your revenue has gone up by 21 crores,

but

lease rental has not gone up by 21 crores. So you have covered whatever was increased now. Over the next three years.

And secondly, with this new upcoming expansion, obviously this 45,000, then later. So you will get the EBITDA margin of more than almost 80% with the new tank. So that will be going to compensate in 15 to 18 months.

Okay. Okay. Got it. All right. Yeah. Those were my questions. Thank you so much. Thank you.

Thank you, Kesar.

Thank you. We take the next question from the line of Darbyn Parikh from DM Corporation. Please go ahead.

Yes, thank you for giving me opportunity again. I just want to understand why having our receivable over six months increasing?

Receivable constitutes your chemical as well as your EPC as well as your rental. So, in overall, Like EPC is going on. So there are some terms conditions that we have to extend the credit terms by more than 50 days, 90 days. So that is the reason one of the reasons.

And the retention money gets paid after one year and all that.

That is a mixed match of all these things. But ultimately there is no problem in recovery or anything.

So we are not facing any bad debt issue. That's your question. Yes, I should not say any, I should say there is no significant or major, minor, small, small things keep happening, but that's not significant.

Understood, sir. That's it for myself. Thank you.

Thank you.

Thank you. Ladies and gentlemen, I have the run of further questions from the participants. I now have the conference over to Mr. Rishi Pilani for closing comments.

Thank you, everyone, for joining us for the quarterly update for FY26, quarter 4. If I have any further questions, please feel free to reach out to any of us. Have a good evening, and have a great day.

Thank you, all. Thank you. Thank you, sir. On behalf of Ganesh Benzo Flash Ltd., that concludes this conference call. Thank you for joining us, and you may now disconnect your line.