Pyramid Technoplast Limited ($PYRAMID)

Hi, everyone, and a very good afternoon. I welcome you all to Pyramid Technoplast Q4 and FY '26 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 risks pertaining to the business. We have on call today Mr. Bijaykumar Agarwal, the Managing Director; and Mr. Jaiprakash 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. Post that, we'll open the floor for Q&A. Thank you, and over to you, sir.

Yes. 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 operation, we further strengthened 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 tons 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 INR 20 crores of maintenance and balance CapEx during financial year '27. The Wada plant is now fully operational across IBC, HDPE and MS Drum segment. During FY '26, it has a contribution of around INR 65 crores 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 HDPE Drums, 68% for IBCs and 51% for MS Drum. The revenue potential for first phase, which has been completed is around INR 200 crores. Infrastructure has been built for second phase and only machines will be added as the demand will increase. And it has a potential to go up to INR 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% to 12% of our raw material requirement while reducing import dependence over the time. Our captive solar power initiative is also progressing well. The initial 6-megawatt plant in Gujarat commissioned on October 30 forms part of larger 15-megawatt 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 INR 60 crores and is expected to reduce annual power cost by around INR 15 crores. And we are expecting first year to be around INR 12 crores. With an estimated payback period of around 4 years, the contribution for Q4 FY '26 was only INR 1.5 crores. Coming to the segmental performance for Q4 FY '26 on a year-on-year basis. MS Drum revenue grew 29%, supported by strong volume growth of 25%. HDPE Drums 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 FY '26, our revenue grew 15% year-on-year basis, while PAT grew 52% on a 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 FY '26, revenue stood at INR 196 crores, registering 14% year-on-year growth, while FY '26 revenue increased 15% to INR 684 crores. Gross profit grew strongly 33% year-on-year basis to INR 56 crores during the quarter. The gross profit grew around 33% year-on-year basis to INR 56 crores during the quarter and by 28% year-on-year to INR 186 crores for financial year '26. More than 2/3 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 INR 20 crores, while FY '26 EBITDA rose 26% to INR 59 crores. EBITDA margins for the year improved to 8.6% from 7.9%, demonstrating healthy operating leverage across the business. PAT for FY '26 stood at INR 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, improved profitability and long-term value creation for all shareholders and stakeholders. Thank you so much. Now I'm opening the floor for the question and answers. Thank you so much.

[Operator Instructions] First question we have from [ Dipesh Sancheti. ]

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[Foreign Language] since the prices have gone up or not.

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[Foreign Language] INR 20 crores CapEx. [Foreign Language]

[Foreign Language] Working capital requirement gone up due to price increase. [Foreign Language]

Next question we have from [ Saket Kapoor ]

[Foreign Language] because of the improved utilization levels. [Foreign Language] depending upon how currently the crude prices are behaving, EBITDA margin trajectory [Foreign Language].

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Other that now what are the key risks in your segment? Demand outlook [Foreign Language]

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[Foreign Language] this business will continue for ever [Foreign Language] once the packing withdrawal, they will definitely come to us. [Foreign Language] We will keep on favoring this industry for ever and we will [Foreign Language]

Taking into account what should be the current EBITDA margin trajectory now and [Foreign Language] utilization levels 80% on extended capacity.

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[Foreign Language] How should we look into segment again?

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Just a ballpark understanding [Foreign Language]

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For next fiscal year, Polymer Drums, MS Drums and IBC business three vertical [Foreign Language] on expanded capacity and on improved utilization?

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[Foreign Language] but short term borrowing are significantly ramped up INR 110 crores. [Foreign Language]

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[Foreign Language] depending upon volatile market [Foreign Language]

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Next question we have from [ Saurabh Kumar ]

[Foreign Language] Thanks for the good results. [Foreign Language] I think IBC 61%, 62% utilization and Polymer Drums 71% [Foreign Language].

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Short term debt, working capital INR 100 crores turnover [Foreign Language]

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[Foreign Language] What is the reason, what has worked for us and how do you see chemical industry going forward [Foreign Language]

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We are increasing, based on their sales we are increasing.

Next question we have from [indiscernible]

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Next we have [ Saket Kapoor ]

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Good potential just waiting for license.

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There is some [indiscernible] capacity there also. We will start collecting waste from the market. This is where we are making right now.

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We can take next question by the time. Next question we have from [indiscernible]

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Next question we have from [ Saurabh Kumar.]

[Foreign Language] In the last 3 to 5 years, 17% to 24% lower, Polymer Drum 5% to 9%. [Foreign Language].

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IBC domestic 40% market share I think other big player is Time Technoplast. [Foreign Language]

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CapEx INR 120 crores plus CapEx. Could you give break-up [Foreign Language]

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Next question we have from [ Ganesh Nagasekhar ]

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Next question we have from [ Pratik Baria ]

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[Foreign Language] without middlemen we will start procuring material. [Foreign Language]

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Next question from [ Ganesh Nagasekhar ] Next question from [ Saket Kapoor ]

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[Foreign Language] taking into account expanded capacity, operating leverage, recycle benefit, solar benefit [Foreign Language]

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Meaningful business [Foreign Language] that is why we are calling it very -- we are not leaving any stone untouched [Foreign Language] so that is why we are creating environment [Foreign Language]

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Next question we have from [ Saurabh Kumar ]

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Last question operating cash flow [Foreign Language] operating cash flow 65%, 66% [Foreign Language]

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Next question we have from [indiscernible]

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[Operator Instructions] We will wait for 2 minutes if anybody has questions or otherwise, we'll just close the call. Okay. Sir, I think we are good. I request Jai sir to kindly say your closing remarks, and then we are good to wrap the call.

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 Advisors, and we sincerely appreciate your continued interest in your company, Pyramid Technoplast, and looking forward to stay connected and keep on giving good results like this quarter-on-quarter basis. Thank you so much.

Thank you.

Thank you, everyone.