Margin Improvement Target
Management targets at least 1% year-on-year improvement in gross, EBITDA, and PAT margins. Company aims to reach 41-42% gross margins over the next 3 years from current ~39%.
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margins
Cash Debt-Free by FY26 End
Working capital debt reduced to ₹80 crore from ₹160 crore. Management is confident of bringing cash debt closer to zero by March 2026 (fiscal year-end).
IKEA Business Commencement
IKEA production to commence by end of Q4 (March 2026) after test protocol delays. First meaningful revenue contribution expected from FY27.
Double-Digit Domestic Growth
Despite Q3 weakness (Diwali timing effect), management maintains expectation of double-digit domestic growth for full year, likely above 9% baseline.
Revenue growth >15% in FY27
Management expects revenue growth upwards of 15% in FY27, driven by small appliances, export stabilization, and IKEA revenue.
EBITDA margin ≥11% in FY27
Management is confident of protecting 11% EBITDA margin and improving from there, with operating leverage as revenue scales.
IKEA revenue of ₹40-50 Cr in FY27, ramping to ₹200-250 Cr at full capacity
IKEA production starts Q1 FY27; three product lines will be operational by Q4 FY27, targeting full capacity revenue of ₹200-250 Cr.
Capex of ~₹40 Cr in FY27
Capex for FY27 is guided at around ₹40 Cr, primarily for maintenance and small assembly lines, with no major capacity expansion.