Financial Performance Analysis
Sejal Glass reported a significant 52.88% year-on-year increase in consolidated revenue for the June quarter, driven by aggressive execution in both domestic and international markets. The India business saw revenue grow by 67.03% to ₹36.43 crore, while UAE operations maintained strong momentum with revenue of ₹81.52 crore. Consolidated profit after tax (PAT) rose by more than 63% to ₹7.22 crore.
Despite these gains, EBITDA margins faced temporary pressure from a ₹1 crore incremental impact due to a new labor union agreement at the Taloja plant and rising logistics costs in the UAE.
Management Outlook and Guidance
The leadership team has provided a positive outlook for FY27, citing a healthy order pipeline and improved capacity utilization. While the minimum revenue growth guidance stands at 25%, management expressed confidence in reaching a 40% upward trend as geopolitical situations stabilize. The company aims for a blended PAT margin of 9-10% for the full fiscal year, expecting operating leverage to kick in significantly during the third and fourth quarters.
Management also highlighted a strategic shift toward value-added products, targeting a 10% revenue contribution from new verticals such as railway and fire-safety glass.
Operational Expansion and Capacity Utilization
- The UAE facility is currently operating at 71% utilization, with a target of 85% following the addition of a third tempering line.
- Domestic utilization stands at 77% for Silvassa and 55% for Taloja, with Erode ramping up from a low base of 15%.
- Total tempering capacity in the UAE is set to reach approximately 24 lakh square meters per annum upon completion of current capex.
- The company is exploring the automotive replacement market to further diversify its architectural glass core competency.
- Working capital cycles remain controlled at 98 days in India and 85 days in the UAE operations.
Key Strategic Initiatives
So, 25% is our minimum guidance, which we are, you know, 100% going to achieve. And secondly... once the situation will be stabilized, then we are hopeful that we will reach up to 40%.
What to Watch
- Commissioning of the fire-rated glass technology and the third tempering line in the UAE by Q3 end.
- Ramp-up of utilization at the Erode plant, which management targets to reach 25-30% in the coming quarters.
- Participation in Indian railway tenders as the company is now an approved vendor for Kapurthala and Chennai facilities.
- Impact of power factoring and cost-efficiency measures expected to provide a 0.25% improvement on operational costs.
