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Earnings Call Transcript

Banswara Syntex Earnings Call Transcript: Key Takeaways

Revenue grew 11.2% QoQ despite volume declines across segments by pivoting to high-margin value-added products.

Guidance and delivery
Management target Revenue 10.0% FY27
Highlights
Revenue growth₹358.4 Cr in Q2, up 11.2% QoQ, driven by value-added products.
MarginsEBITDA margin improved to 10.2% from 9.1% QoQ.
Order bookHealthy order book in garments and fabrics supporting H2 outlook.
Demand visibilityStrong export demand from EU/UK; structural shift toward man-made fibers.
Management confidenceConfident; focused on shifting mix to high-value fabrics and garments.

Growth

H1 FY27 revenue grew 3.6% YoY; EBITDA margins improved to 9.7% from 8.5% through better realization.

Outlook

Management reconfirmed FY27 guidance, targeting double-digit growth and EBITDA margins in the second half.

Risks

Raw material volatility (polyester up 30%) and high freight costs remain significant margin headwinds.

Last quarter's promises, checked

Delivered

  • Q2 rebound 'in Q2 & Q3' → Q2 ₹358.4 Cr, +11.2% QoQ (= BEAT)

Partly delivered

  • FY27 rev ₹1,450–1,500 Cr → H1 +3.6% YoY; guide restated +10% (= PARTIAL)
  • FY27 EBITDA 12% avg → H1 9.7% (= PARTIAL)
  • Capex ~₹140 Cr → ₹130–140 Cr (= PARTIAL)

Missed

  • Fabric +20% growth → +5% YoY (= MISS)
  • Yarn normalise to full ops → volumes down in all 3 verticals (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: BANSWRAS. Summary written with AI assistance from the document.

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Banswara Syntex Ltd: key numbers

Share price
₹98.67
Market cap
₹337.8 Cr
Revenue (annual)
₹1,356 Cr
Net profit (annual)
₹31.20 Cr
P/E (TTM)
8.9×Sector 48.4×
Promoter holding
54.13%-0.06% QoQ
FII holding
7.94%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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