# 1. Financial Performance ## A. Key Figures * Revenue: ₹105.04 Cr Q2 (+69.75%) · ₹182.81 Cr H1 (+59.03%) * EBITDA: ₹17.89 Cr Q2 (+106.34%) · ₹30.38 Cr H1 (+89.40%) * EBITDA Margin: 17.03% Q2 (+302 bps) · 16.62% H1 * Net Profit: ₹8.12 Cr Q2 (+231.43%) · ₹12.53 Cr H1 (+226.30%) * **EPS:** ₹7.95 Q2 · ₹12.28 H1 ## B. Revenue Growth * **Explosive Top-Line Momentum:** Revenue surged 75% YoY in Q2 and more than doubled in H1, driven by value-added products and international operations. * **UAE Plant Underperformance:** Current UAE revenue at ₹76 Cr remains below both peak capacity and full-year guidance, signaling untapped potential. * **Segment Transparency:** Standalone India and consolidated India+UAE results are provided, with separate UAE financials for March '25 available on the company website. ## C. EBITDA & Margins * **Margin Expansion Accelerating:** EBITDA margin improved sharply in H1 to 62%, reflecting operational efficiency and favorable product mix, with a clear path toward **>18% by year-end**. * **Capital Efficiency Strong:** Fixed asset turnover exceeds **2x in India** and reaches **~3x in UAE**, indicating effective asset utilization. * **ROCE Poised to Rise:** Current ROCE at **9%** expected to expand in line with improving profitability. ## D. Net Profit & EPS * **Robust Bottom-Line Growth:** Net profit grew 43% in Q2 and 30% in H1, with net profit margin reaching 73% and 86% respectively, underscoring strong earnings quality. * **EPS Reflects Profitability Uplift:** H1 EPS of ₹2.28 highlights enhanced shareholder returns amid sustained margin and volume expansion. --- # 2. Product & Segment Performance ## A. Key Figures * **Glasstech Revenue:** **₹11 Cr** in Q (post-acquisition) * **Domestic Market Target:** **₹300 Cr** turnover goal * **UAE Revenue Mix:** **~90%** IG, **~10%** laminated * **India Revenue Mix:** **~50%** toughened, **~35%** laminated, **15–20%** IG * **Product Margins:** IG **highest**, then laminated, toughened **lowest** ## B. Value-Added Products * **Strategic Expansion:** Entry into digital printed glass via Glasstech bolsters product diversification and high-margin offerings in the domestic market. * **Rail & Defense Ties:** Supply of value-added glass for Vande Bharat and Indian Railways underway; bulletproof and fire-resistant glass in development for UAE defense. * **Growth Runway:** Significant cross-sector potential in education, finance, and healthcare infrastructure, supported by Saint Gobain’s distribution network. ## C. IG & Laminated Glass * **Favorable Structural Shift:** Rising demand for insulated and laminated glass driven by safety, energy efficiency, and high-performance building standards in India. * **Margin Enhancement:** Strategic pivot toward higher-margin IG and laminated glass improving product mix, supported by capacity expansion and better utilization. * **Operational Leverage:** Lower fixed costs per unit and **1–2% raw material yield gains** expected to boost EBITDA; performance rigorously tracked monthly. ## D. Glasstech Integration * **Integration Underway:** Post-acquisition turnaround involves technology upgrades, workforce realignment, and expanded customer outreach; QoQ improvement expected. * **Path to Profitability:** Standalone and India business margins temporarily pressured by distressed acquisition, with **positive EBITDA anticipated by Q4**. * **Commercial Scaling:** Sales team nearly **doubled to 14 members**, now backed by dedicated customer care and support functions. --- # 3. Capacity & Utilization ## A. Key Figures * **Glasstech Turnover:** **₹11 Cr** in Q2 (20% capacity) * **UAE Plant Utilization:** **90%** for IG · **47%** for laminate * **Silvassa Plant Utilization:** **88%** for laminate · **30%** for IG · **65%** overall tempering * CAPEX Funding: ₹94.35 Cr approved via preferential issue for expansion, tech upgrades, and working capital ## B. Plant Utilization Rates * **Strong UAE Utilization:** IG lines operating near full capacity at **90%**, reflecting robust demand and efficient scaling of core products. * **Underutilized Domestic Assets:** Laminate and IG lines in Taloja and Erode remain largely idle, with utilization as low as **6%** and **2%**, indicating early-stage integration and ramp-up phase. * **Silvassa Efficiency:** High laminate utilization (**88%**) offsets low IG uptake, supporting incremental output gains from existing infrastructure. ## C. Brownfield Expansion * **Strategic Footprint Expansion:** Acquisition of Glasstech adds two domestic plants, establishing a three-factory network with targeted **₹300 Cr** combined annual turnover potential. * **UAE Capacity Boost:** New tempering line underway, part of broader brownfield push to scale total revenue capacity beyond **₹400 Cr**. ## D. CAPEX Plans * **Funded Growth Trajectory:** Capital raise of **₹94 Cr** enables targeted investments in machinery, technology re-engineering, and working capital to accelerate Erode and Taloja integration. * **Multi-Year Investment Roadmap:** Board-approved CAPEX spans FY25–28, prioritizing UAE expansion, Taloja re-engineering, and scaling the high-potential facade division. --- # 4. Geography & Market Mix ## A. Key Figures * **Revenue Mix:** **72%** international · **28%** domestic (H1 FY26) * **UAE Market Share:** **~10%** estimated * **Export Concentration:** **90%** from UAE/GCC · **10–15%** production share targeted for Africa * **Payment Terms (UAE):** **25%** via LC ## B. UAE & GCC Markets * **Strong International Demand:** Robust growth in GCC driven by facade systems, energy efficiency, and premiumization, with no signs of real estate slowdown across all six emirates. * **Market Position & Financial Discipline:** Sejal Glass holds a notable foothold in a highly organized UAE market, with improved financial security via increased LC usage. * **Operational Necessity:** UAE expansion is critical due to logistical constraints in Indian exports, despite higher operating costs. ## C. Domestic Expansion * **Favorable India Dynamics:** Healthy real estate and infrastructure activity fuel strong demand for premium architectural glass in commercial and residential segments. * **Targeted Regional Growth:** Expansion focused on South and North India, tier-2/3 cities, and new sales hubs to capture regional demand. ## D. Africa & Europe Entry * **Strategic Diversification:** New market entry into Africa and Europe aims to reduce concentration risk, with aggressive near-term share targets despite current early-stage penetration. --- # 5. Supply Chain & Partnerships ## A. Key Figures * **Raw Material Cost Share:** **50%** of inputs from glass * **Saint Gobain Market Share:** **~45%** in Indian float glass ## B. Saint Gobain Agreement * **Strategic Product Expansion:** Launch of a globally competitive fire-rated glass line enabled by partnership, enhancing technical and market reach in India and UAE. * **Exclusive Trial Supply:** Secured one-year exclusive material supply arrangement with market leader Saint Gobain, covering clear, reflective, and tinted glass variants. * **Operational & Commercial Upside:** Access to multiple glass sizes improves yield and reduces waste; quality and technology support expected to boost production efficiency and margins. * **Indirect Market Access:** Leverages Saint Gobain’s network with architects, façade consultants, and developers to strengthen sales pipeline and brand visibility. ## C. Raw Material Security * **Technology Lock-In:** Secured perpetual, royalty-free license from Polymer Technology SRO (Spain) for polymer gel-based tech, ensuring long-term control over advanced product development. * **Supply Stability:** Partnership ensures reliable, continuous glass supply—critical given its **50% share** of input costs—reducing inventory burden and disruption risks. ## D. Multi-Unit Resilience * **Logistics Optimization:** Proximity between Saint Gobain’s plants (Chennai, Jhagadia, Rajasthan) and Sejal’s units (Silvassa, Coimbatore, Erode, Taloja) enhances supply chain efficiency. * **Built-In Redundancy:** Multi-unit footprint provides resilience, ensuring uninterrupted supply even during localized operational disruptions. --- # 6. Demand & Order Book ## A. Key Figures * **Fire-Rated Glass Market Size:** **₹500 Cr** India & Middle East (growing) * **Order Book (UAE):** **>AED 60 million** (current) ## B. Project Enquiries * **Demand Catalysts:** Infrastructure push under **Viksit Bharat** driving strong project inflows across railways, metros, airports, and data centers. * **Market Expansion:** Growing adoption in high-specification segments such as hospitals, hotels, and cruise terminals signals rising safety standards. ## C. B2B Customer Reach * **Competitive Edge:** Differentiation via **superior product quality**, **premium raw materials**, and **reliable on-time delivery** for time-sensitive real estate projects. * **Sales Channel Strategy:** Primary order generation through **B2B partnerships with developers**, supported by architects as key specifiers; selective government project access via fabricators. --- # 7. Risks & Input Costs ## A. Key Figures * **Cost Pass-Through:** **70%** of glass cost changes passed to customers · **30%** absorbed by company ## B. Raw Material Volatility * **Stable Input Costs:** Glass raw material prices currently stable with no near-term supply challenges. * **Pricing Leverage:** High degree of pass-through on glass cost fluctuations, supporting margin resilience. * **Regional Cost Dynamics:** Cost structures shaped by national-level regulation of raw glass pricing; labor costs differ across India and UAE, while power costs are comparable. ## C. Force Majeure Exposure * **Limited Downside Risks:** Full-year revenue target remains achievable barring force majeure events or sharp raw material price swings. --- # 8. Guidance & Outlook ## A. Key Figures * **FY26 Revenue Guidance:** **₹400 Cr** (full year) · **₹180–181 Cr** achieved in H1 * **Sejal Glass Revenue Target:** **₹200 Cr** target from current run rate of **₹36 Cr** ## B. Revenue Targets * **Strong H1 Execution:** Over 45% of full-year FY26 revenue guidance already delivered, reflecting robust momentum and execution capability. * **Strategic Scaling:** Sejal Glass pursuing aggressive five-fold revenue expansion via internal restructuring and technology upgrades. * **Railways Segment Nascent:** Engagement with Indian Railways remains exploratory; no quantifiable contribution expected in the near term. ## C. Margin Expansion * **Margin Inflection Ahead:** Group-level margin expansion anticipated from FY27, driven by Glasstech reaching EBITDA breakeven. ## D. FY27 Clarity * **FY27 Outlook Pending:** No formal guidance for FY27; strategic direction, including bulletproof and specialty glass initiatives, under review. * **Timeline for Clarity:** Management expects to provide FY27 outlook by the fourth quarter.