INDOBORAXANDCHEMICALS Q1 FY27 earnings call.
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Revenue
₹70.36 Cr
verification pending
Revenue YoY
31.34%
reported change
EBITDA
₹19.8 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Indo Borax delivered an exceptional Q1 FY27 with 31% revenue growth to ₹70.36 crore and 59% PAT growth to ₹16.25 crore, driven by new leadership, capacity optimization, and improved realizations. EBITDA margin expanded to 28.1% (up 530bps YoY) as raw material costs were largely passed through. The company reiterated FY27 guidance of ₹250-260 crore revenue with 20% EBITDA margins, noting Q2 will be seasonally weaker. The ₹250 crore Kronox acquisition (64.26% stake) provides cross-selling synergies through combined customer base and geographic reach, with Kronox's ₹110 crore capex to be funded by its existing ₹80 crore cash and internal accruals. Management targets ₹50 crore capex over 2-3 years for boron oxide and boric acid capacity expansion. DOT production guidance of 1,500 tonnes (from 900 last year) offers forward integration benefits. Key risks include boric acid price volatility from geopolitical factors, integration execution challenges across two listed entities, and the substantial ₹390 crore debt load for the acquisition relative to current profitability.
Colored figures show movement against the previous available record.
Guidance to track
- Full year guidance reaffirmed at ₹250-260 crore versus ₹215 crore in FY26, implying ~20% growth, with Q2 expected to be seasonally soft before recovery in Q3.
- Targeting 20% EBITDA margin for full year despite Q1's elevated 28.1%, acknowledging seasonal weakness and raw material cost pass-through limitations.
- ₹20 crore for boron oxide (used in fiberglass/steel) and ₹20-25 crore for additional boric acid capacity, with CEO confirming working with consultants on milestones.
- Production target for sodium octaborate tetrahydrate (agricultural micronutrient), up from 900 tonnes last year, leveraging backward integration from boric acid.
Risks flagged
- Turkey/Eastern Europe supply disruptions have pushed prices from ₹127 to ₹155-160; further war-related raw material cost increases may not be fully pass-through-able, pressuring margins in Q2 and beyond.
- Acquiring a company with completely different chemistry (high-purity fine chemicals vs boron-based) while managing ₹390 crore of debt across two listed entities. No firm decision made on consolidation structure.
- Outstanding acquisition debt ~₹255 crore with estimated ₹30 crore annual interest outflow. Management deflected questions on specific interest rates and debt repayment mechanisms, citing offline response.
- While management stated 100% acceptance seems unlikely given Kronox stock price, the ₹151 crore open offer contingency remains a funding variable that could increase debt beyond planned levels.
Key quotes
- We closed Q1 FY27 with a 31% growth in operating revenues and a 59% growth in the net profits. Our EBITDA and PAT margins were 28.1 and 22.3% respectively.
- The full year guidance which I said last time and I'll continue beyond that that we'll be closing at about 250 to 260 crores of revenue with the 20% EBITDA margins which is again a growth of 20% over last year's 215 crores.
- Why the previous promoters have exited the business, I would not be knowing it and would not be commenting on it.
- The world is changing and if there is any reason if you see is beneficial to the entire stakeholders and if it comes of course we'll be the first ones to share with the rest of the world but at this moment there is no such plan for us.
- We are not expecting a very big growth from Kronox side until that capex comes online (FY29-31).
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