Pyramid Technoplast Limited (PYRAMID) Q1 2027 Earnings Call Transcript

Thank you. We can't hear you, Swami.

Can you hear me now?

Yeah, I will. We'll go through the night.

No, we can't hear you.

Thank you. Thank you.

Sir, am I audible now?

I are audible. Go ahead, start the recording first.

Thank you.

Hello.

Yes, I'm good.

Okay. So, hi, everyone, and very good evening to all. I welcome you all to Pyramid Technoplast Q1FI 27 con call. Please note that discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks pertaining to the business. We have on call today Mr. Vijay Kumar Agarwal, the Managing Director, and Mr. Jai Prakash Agarwal, CFO and Whole-Time Director. I now request the management to just proceed with the opening remarks and post that we'll open the floor for Q&A. Thank you and over to yourself.

Thank you, Sonia. A very good evening, everyone, and welcome, everyone, and thanks for joining us for our Q1-2027 Unincom. So, we have started FI27 with a strong and structurally healthier operating platform. So, today we have an installed capacity of 20,936 metric tons per quarter, while volumes Stood at 1292 metric times, translating into a capacity utilization of around 62%, while volumes in the quarter were tremendously impacted, particularly by a little slowdown in the exports of various products. We believe this is a near-term demand disruption rather than a structural issue. Importantly, unit economics have remained resilient and are actually improving. EBITDA per ton increased to approximately 16,380 in Q1 FY26, compared with 11,252 in Q1 FY26 and 15,053 in Q4 FY26. This clearly demonstrates that despite the temporary volume impact, our pricing, product mix, and operating efficiency are supporting profitability at the unit level. Now coming to the strategic developments. So we are happy to announce that we are expanding in Kach. Western India. It's a progressive as planned. We are investing approximately 20 to 25 crore in a new facility with a capacity of 10,000 IBC units per month, which is expected to be commissioned by March 20, 2027. This facility will strengthen our presence in Kutch and Western India while providing logistical benefits through lower freight costs, faster deliveries, and customer service satisfaction. We have also received government subsidy approvals for our newly installed WADA unit and Baruch facility, amounting to approximately 24.9 crore for WADA and 10.5 crore for Unit 7 Baruch, which is spread over 10 years. These incentives will effectively reduce the cost of our investments and improve project economics, ROCE and payback over the long term. So our WADA facility is in full swing now across SDP, IVCs and MS DRUMS and is already operating above 70% utilization. We expect it to reach 80% during this year. The facility contributed approximately 43 crore or 19% of revenue from operations in this quarter Q1 FY27. The focus now is to sustain this utilization, extract further operating leverage from the infrastructure already built. Our green energy initiatives are also beginning to contribute meaningfully because of two reasons, not only due to the price advantage, but also we are getting ESG benefits out of it so that we can reduce our carbon footprint and represent India at the global level. The 6.6 MW solar plant was commissioned in October 2025, followed by an additional 5 MW in Buruj and 2.25 MW in Maharashtra. And 1 MW is still pending to be commissioned, which is going to be commissioned very soon, probably next quarter. We achieved approximately 2 crore of savings in this quarter of Q1 FY27, with a full 14.25 MW capacity expected to deliver Similarly, our recycling plant commissioned in October has an annual capacity of 5000 metric tons and can address around 10 to 12% of our raw material requirements. So this is again a meaningful ESG benefit and we are the only company in India that is into solar and recycling both. The plant processed around 150 metric tons in Q1 FY27 and generated around 25 lakh of EBITDA with FY27 EBITDA contribution estimated at around 2 crores. Our financial front revenue grew by 36% year-on-year to 222 crores. Growth has driven primarily by price increase as sharp increases in raw metal costs were passed through to customers. SDP polymer drum tonnage was down 4% year-on-year and IBC volumes were little hit as export demand suffered due to the war. This was partly offset by strong MS drum's growth and continued IBC polymers. Please mute. Gross profit rose 19% year-on basis, but gross margin compressed a little to 23% as raw metal costs rose in step with price increases. Importantly, gross margin in rupees-ton terms for HDP remained stable. The path through the protected per-unit profitability. EBITDA grew 50% year-on-year basis with margins at 10%, reflecting the operating leverage kicking in as the total expenses rose only modestly despite new plant commission. PAT grew by 32% year-on-basis to 10.5 crore with margins at 5% despite a sharp rise in financial cost. By 179% and depreciation by 61% year-on-year basis, tied to capacity expansion. For financial year 27, our objective remains to deliver approximately 15% revenue growth. And EBITDA margins on upwards of 10%. We expect this to be supported by higher utilization, volume recovery, greater contribution from value-added products, and solar savings and recycling benefits. We have also maintained a disciplined approach to capital allocation with F527 capex planned at approximately 20 to 25 per hour, primarily towards catch expansion and deployed in line. To summarize, the last phase was about building capacity. FY27 and the years ahead are about filling that capacity and converting it into stronger earnings and returns. With WADA ramping up, Kutch adding future capacity, unit economics strengthening, and our solar and recycling initiatives begin to contribute. We believe Pyramid is well positioned for the next phase of sustainable growth and improved profitability. Thank you very much. And thanks for continuing trust and support. Now I would be happy to answer all the questions. Swamya, over to you. Hello, Somi, are you there? Hello.

So, are you there? So, we can come in.

Yes, yes.

Thank you for the opportunity. Sir, as you have outlined in your opening remarks that 62% of our capacity utilization levels are still on. So, going ahead and factoring into the vagaries of the RM fluctuation, what do we see in a steady state of 20,936 in the end of the year or in the coming quarters?

Thank you.

Hello? Yes sir, please.

Yes sir, please.

Yes sir, please.

Yes sir, please. Are you asking the Vada or the overall question?

Yes sir, I'm asking the Vada. I also ask the Vada.

Vada is also 10% of the year. I feel like this year's year will be completed. And the 72% of the year will be less than 70%. Good morning, everyone, and welcome to the call.

Sir, total mix of export is what percentage of

the total mix of the total mix of the total mix of the total mix of the total mix of the total mix? I.B.C. was my main export. Plus, the plastic drum, there was also a chemical paste in the media. That's not the case. The customer is buying the money and buying the customer. That's also a sale.

It's not a beam export.

It's not a beam export. We use the drum to export it. We sell the drum, we sell the chemical paste, and we sell the money. Good morning, everyone, and welcome to the call. If you look at the results of everyone, the volume is increased, but the volume is reduced in this part. Plus, the cost is so much bigger, so the cost is more than the cost.

Oh, yes, sir, just say that. No. 7. May for 10. Can you tell me about the price? 16,380. Yeah, yeah, yeah, yeah. I'm going to get to see. Going ahead. I'm going to get to see.

I'm going to get to see. Okay, I'm going to get to see. Yes, I'm sorry.

Yes, I'm sorry. Yes, I'm sorry. Yes, I'm sorry. Tell us more on in the coming years.

Oh, yeah, yeah, yeah, yeah, yeah. The E.P. data, which you are seeing, is about 10 percent. I think it will be about 11 percent.

Okay, sir, what is the correlation between the price and the customer?

No, no, no, no, no, no, no, no, no, no, no, no, no, no, no. Good morning, everyone, and welcome to the call.

Yes, sir, this is the phase two capex in which we are talking about 400 crore revenue, when we are going to kick in and exactly what we are going

to do in March.

Okay, so how much capex is going to be?

I think it's going to be one case. 20-25 ुट प्याओ लगिएगा रेकरेस आजाएगा.

I'm sorry, I'm sorry. Sir, you said that you are telling me that we need to improve our efficiency, which is our percentage margin, we need to be a major role in that. So, what are we doing? What is the work in progress for there? And how will that work?

What is the work in progress for there? Good morning, everyone, and welcome to the call.

We are processing material in this, it will be able to come.

Thank you.

Thank you, sir. Next question we have from Ankit Kanodia. Please go ahead.

Hello, Mr. Vijay and Mr. Jai Prakash. Sir, when our company took the IPO and the first call from the IPO, when we map our journey, we said whatever we had in our hands, we did it in terms of capacity expansion, and as we said in the first call, we did it in terms of capacity expansion. In fact, we didn't talk about solar and recycling. From a volume perspective, our growth has been good in the entire period. Product mix, like we were thinking about it, but the market is not controlled. I feel like it's polymer resin prices. And we have a lot of fluctuates. When our IPO came, it was 110-85 years ago, and then there was a short run-up in the last quarter. So I don't want any prediction or projection, but how we are prepared for the next 2-3 years, because I can see that the capacity has become complete, and there is a lot of efficiency and improvements.

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

Yes, sir. Now, sir, my second and last question is that I have seen in the B2B company that the first EBITDA per ton has an improvement, and then the EBITDA margin has an impact on the 2-3 quarter. Can we understand our business? Because EBITDA per ton has a good jump, so can we understand this directionally?

The market has not read its results, but it is very good. You will compare it to other CACs, but the market has also gained a good margin.

Thank you, sir. And all the best.

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

Congratulations on a good set of numbers, sir. My one question is, sir, we have given 11-12% margin guidance and 15% sales growth. And now we have about 9.5% margin. So the next three quarters, given the polymer prices and all the raising prices are running, are you confident that we will at least do at least? And if we will do, is it because…

Good morning, everyone, and welcome to the call. The price is lower, then the volume will be lower, and the value will be lower. The value we are selling for $120, it is selling for $160. The price of the price is lower, the price of the price is lower. The price of the price is lower, and the price is lower.

Okay, sir. And sir, the question is, last quarter, you said that we will be able to do 80 CR EBITDA, but if I have 11% of the number, we will be able to do 86 CR EBITDA. So, do we feel like we will be able to do 85-86 CR FY27?

I hope it is.

Okay, sir. Okay. And sir, last question, I think, you've got a welcome note, you've got a lot of realizations, and we've got a lot of volume, Given that we're working on chemical industry, and we're working on the market, it's like a chemical sector, but do you think that it's a volume-based revival, or is it just a realization, or inventory again, is it just a realization? It's not a realization.

Chemical, it's not a realization. Chemical, it's not a realization. Chemical, it's not a realization. Thank you. Thank you.

Okay, sir, and last question, sir, as you said, Middle East or export suffering Thank you, sir. Wish you all the best.

Thank you.

Thank you, sir. Next question we have from Ganesh Nagar Sekhar. Please go ahead.

Hello, sir. Sir, so my first question is about our Kajj plant. So, you said that there will be 10,000 per month of IBC capacity. So, is it right to say that there will be a revenue potential from that plant?

Yes, we will start the full-fledged production after the full-fledged production, but in the start, we will not accept it, we will accept it in the 50-60s.

I understand. And with F528, we will start commercial production.

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

Got it. And sir, if I look at our capacity, the capacity of our Q4 was about 16,000. It's about 21,000. But our production in the past six quarters is a little flat. It's about 13,000. So do we see some major drivers in Muretub, which are the chances of this ramp-up to you?

Good morning, everyone, and welcome to the

Do you see the numbers of July, will there be improvement in the full time?

Yes, yes, yes.

Okay, okay, okay, sir. Sir, there were two regular bookkeeping questions. One of them was that the PUC needed its pollution control. Did you get it?

No, I didn't get it. I didn't get it. It was 90% of the work. One license is not yet.

Okay.

One place is coming, the other place is not coming.

Okay, but we mean that we can run a partial capacity? Yes, yes.

We are focusing on this one, from this month on this one.

So, what are we planning on doing the volume?

Sir, we are already doing it.

Got it, got it. And sir, you said that in the last quarter, you are thinking about a new product line. So, that is still on the standstill, when will we launch?

We are still doing something in the testing phase, but it has been machined.

The customer has also taken some trial, they will send their customers, so this is a process of one-two-month process. When it comes to approval, we can't do much more.

Got it, got it, got it, sir. Sir, there is quite a lot of execution. Thank you so much. Thank you.

Thank you, sir. Next up, we have Sakit Kapoor. Please go ahead, sir.

Thank you. I have to go to the store. I have to go to the store. I have to go to the store.

It's been a long time.

So sir, this year will complete the solar installation. Next year, sir, what number is going to be?

Please tell us about the call.

No sir, if we install this year, we will not perform full budget, then the number of 15 crores will

not be able to install this year, but the number of 15 crores will not be able to install this year.

Yes, it will not be able to install this year. We will see this benefit in four quarters, then we will see this benefit in four quarters.

Okay, sir, gross profit margin, generally, sir, this is 26-27% range, and this is when the price decline will be normalized, then it will match the number. So, this is the understanding of 26-27% we will match the gross profit. Okay, sir. Sir, this is the question that you are putting on the expansion, sir, is that our understanding is that there is an existing industry or a cluster where we are doing our unit, or what is the incentive?

There is a market, sir, IBC.

We are already serving from our existing facility. We are estimating that volumes will increase, so better, Thank

you.

Okay, sir, what's the run rate?

10,000 capacity, 80-80,000, it's all 8-80,000.

Full-play, 100-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0.

Thank you.

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

Thank you. Next question we have from Divesh Vora. Please go ahead.

Sir, congratulations. You have posted good numbers. Good numbers. I have to know some more information about Kach.

In Kach, the land is on land or lease. On land is on land, sir.

And the project cost, what will be wifurcation, machinery and machinery? Just an indicator.

Sir, there will be land and buildings in 10 crores.

The rest will be in the machine. Yes, and the approval of the approval of the WADA was issued for approvals. No approval of the WADA was issued for approvals.

There is no problem in the medical department. The government department was a little bit of a job in the Bahras and when did it happen? We thought that we would have to do 2-3 months and then we would have to start the plan.

So the orders of machinery are also placed? Yes, yes. Good morning,

everyone, and welcome to the call. Today we will see, so I will do it four times. Okay.

Why will I come in the queue? There will be another question.

Next question we have from Ganesh Nagar Sekar. Please go ahead.

My question is already answered. Thank you.

Okay. Participants who wish to ask questions, please raise your hand.

Sir, I had a question for you. You told the benefit of 35 crores.

Do you have a cash benefit or in GST's form?

I have a case from GST. My GST has already made a payment, so I have a case from the government. Check.

So, you are expecting the payment, because you have seen the sanctions, but you have to complete the process, so when are you expecting it?

I think the question is coming, sir.

But if it's every year, it will come. Will it come?

It will spread over 10 years.

I just spread over 10 years. Then you have to take a new debt for the Kach's plant.

No, sir, it's interrelated.

We have already earmarked for this year's deployment.

Sir, you have to announce the project after you announce. Last time, when you contacted me, I said that there is no project. I don't have any problem. It's a very good thing. You are doing good expansion and you are doing it right.

Sir, we are sitting in business. We will not go there. When we send it, we will send it to the rate rate.

It's a very good decision, sir. It's absolutely a good decision. But the issue is that if you are selling the customers here, then the new customers will have to find you here, Wada and them.

Wada would not go there. It would go there, sir. But if you are selling the market here,

you will get 10,000 to 10,000. Okay. And for the $2,000, the customer is ready. No problem is not.

Well, the market grows too.

Thank you very much, sir.

Thank you. We'll wait for a minute for participants to ask the question. Those who wish to ask the question, please raise your hand. Yeah, next we have from Ankit Kanodia. Please go ahead.

Ankit-sahab.

Sir, yeh...

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

Working capital is a simple thing that if our raw material prices are so high, then our working capital will remain in place, right?

Yes, that will remain in place. Working capital will remain in the market. So good guys, stock. It's a healthy balance sheet, sir.

Sir, can you tell something about the price? What do you think about the price of polymer resin next 2-3 years? I don't want to ask any number here.

I think it will go down to 2-4 months in 2-4 months.

Okay.

And after going on, the previous rate will be more than 10.000. It will be more than 10.000.

Right, right. Okay, sir. Thank you.

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

Okay, it's a number. Okay, and this number is a quarter of 3.5 crore. So, you know, how do you see this number? You should have to analyze the total year. How much are you doing? Thank you very much.

I'm not going to say that.

I'm going to say that in this quarter, you have to have 3.5 crore of 2.5 crore. You can tell us that our repayment cycle is also going to improve our utilization levels. We will also improve our efficiency.

We will go to the 5 crore. We will go to the 5 crore. Randomly.

Randomly. Normal course. And, sir, We are on a smooth. Right, sir. Right. But now, there is no fact that there is no fact. Okay.

Thank you, sir. I'll just announce your name.

Because this is recording, so we need to go with the format. Really sorry to interrupt you. Next question we have from Javeshwara. Please go ahead now.

Thank you. We'll see you next time.

Okay, we are sorry. An application error has occurred. Goodbye.

Okay, so are the margins intact, or are you seeing an improvement?

Yes sir, the improvement is maintained. Thank you. Okay.

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

Sir, Abit, हमारा ग्रोथ अच्छा रहा है, और यह CapEx के साथ अभी भी ग्रोथ दिखेगा, बट अगर नेक्स 4-5 यर्स देखें, तो जैसे इंडिया में we have a good market share, तो जो market का growth rate है, usually वही growth rate होता है, जब market share बहुत बढ़ जाता है, तो अगर हमें 15% प्लस पे ग्रो करना है अगले 4-5 साल के लिए, where do you see the growth opportunities product-wise and geography-wise?

We will go to the south. We will change the geography. We will go to the north and south.

So we will go to the north and south. We will go to the north and south.

We will go to the north.

Okay, sir. And you said that solar has 15 crore benefit from FY28. So, 15 crore and recycling. So, FY28 Q1 has at least 4 crore benefit from the operating profit. Plus, the subsidy also has 10 years. So, how much will it be?

Thank you.

Mm-hmm. Okay. Okay. Okay, sir. Thanks a lot, sir. Thank you.

Thank you. Last question we have from Dipesh and Cheti. Please go ahead.

Sorry, sir. Late joined kia, kyunke, I had a conference pita. Hey, so, Pusa, sir. Inventory level, this time the maximum price fluctuations were in this quarter, in Q1. Oh, it's been the last

quarter.

But a major difference.

In March, the company was 160, it was 140 in this quarter.

In the last quarter, you said that the inventory gain will come due to the 45 days inventory. In March,

it was 2.1 crore, the result of March. So, in this quarter, there was no inventory gain. Good morning, everyone.

Okay.

Okay, okay, okay, okay, okay, okay, We have 2,000 dollars in supply, but we have 10,000 dollars in the market.

Right.

Okay.

So, when our facility is online, which will be around March 2027, then we will be able to get our customers from the plant.

Sorry, I didn't hear that. Thank you. But, when they come back, they will be more market share.

And, can we also share it with the customers?

We share with the market. Customer benefits. If you don't want to give them something, there will be a market asset. So, you have to share the market. Initially, you have to give them. Back in the process of the customer, 30% of the customer, or 30% of the customer.

Great.

Great, great.

And Is this when I compare it to the last quarter,

you're on here, last quarter said, when

I see the margins, EBITDA margins, EBITDA margins of the gross profit margin also. अगर ये gross profit margin का ये quarter में देखता हूं तो 23% आता है जो लास्ट दोनों quarter से कम था Thank you. I am sorry. I am sorry. I am sorry. तब मारकेट को यही फ्रैंकली डिस अपॉइंटिंग यही लगा कि यह कॉटर हमें बंबर कॉटर लग रहा था जो नहीं है इसके हिसाब से मार्केट ने शायद थोड़ा यह रियक्शन दिया है तो I just want to understand कि क्यों नहीं आया है और मार्जन इस तरह से क्यों नहीं है क्योंकि मार्केट हर जगह देख रहा था कि यह कौटर में सारी जो आपकी रिलेटेट कंपनीज है उन्होंने इन्वेंटरी गेम भी Yes, sir. Yes, sir. Absolutely.

In the last quarter, our selling price was 138 rupees, March closed. This time, our selling price is 193 rupees per kilo.

Okay.

55 rupees selling price has increased. The purchase price has increased. So, the question is, we were told that it's about $100,000, we have to sell it in $120, but we have to sell it in $120, but we have to sell it in $120, but we have to sell it in $120. So, the cost of the price of the price is about $50, the price of the selling price has increased, and the volume has increased. Thank you. Good morning, everyone, and welcome to the call.

Yeah, perfect, perfect, perfect. And the 34 close to this year, will we start this year? Or will we utilize this year?

Yeah, 32?

The subsidies will come.

The subsidies will come. This year will come.

This year will come. Sorry? But that's okay. Since it's going to come in this year, we can take a year-on-year performance also. Great, sir. Thank you so much and all the very best.

Thank you, sir.

I'll just hand over to Jaisar for closing remarks. We are good with the questions now. So, over to you, sir.

Thanks for joining us.

I want to say that, see, we have taken two major initiatives, that is solar and solar. Recycling, which will add up to the company's benefit also and also it will represent to reduce the carbon footprint of our company as well as India. And we are mapping and we are following India's country's Prime Minister's directive that we want to reduce our carbon footprint. So we are on track with that and we are... We are one of the few companies in India who has been installed solar and recycling both together. So thanks for supporting us. Keep supporting us and keep motivating us like this. Thank you so much. Thanks, Swami.

Thank you, sir. Thanks everybody for your time.

Thank you. Okay, Vijay Ji. Thank you.

Okay. Namaste, sir. Thank you, sir.

Okay. Thank you. Thank you, sir.