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Yasho Industries Ltd
NSE: YASHO BSE: 541167 INE616Z01012 Commodities Energy 🔎 Screen
₹5,007 Cr
Market Cap
86.7
P/E
PEG
8.4%
ROCE
5.0%
ROE
1.26
D/E
18.3%
OPM
-7.5%
% from 52W High
99
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Yasho Industries Ltd is a manufacturer of specialty chemicals, food antioxidants, aroma chemicals, rubber accelerators and lubricant additives. It has a wide geographical presence with exports to Europe, America, Middle East and Asia.

✓ Strengths 1
  • Company is expected to give good quarter
! Concerns 4
  • Stock is trading at 11.6 times its book value
  • Company has a low return on equity of 7.98% over last 3 years.
  • Dividend payout has been low at 4.61% of profits over last 3 years
  • Promoter holding has decreased over last 3 years: -3.63%
Key Ratios Snapshot
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📈 Growth Pattern
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Strong beat — Q1FY27 revenue grew ~55% YoY with 42% volume growth, EBITDA margin expanded 772bps, and PAT surged from a weak base. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹307.74 Cr
+54.9% YoY (Q1FY26: ₹198.64 Cr); total income ₹309.06 Cr
EBITDA Margin
24.18%
+772 bps YoY (Q1FY26: 16.46%); EBITDA ₹74.42 Cr, up 127.6% YoY
PAT
₹36.05 Cr
vs ₹3.64 Cr in Q1FY26; PAT margin 11.72% vs 1.83%
Key Metric
1.86x Debt/EBITDA
vs 3.75x in Q4FY26; working-capital cycle reduced to 143 days from 190 days
What Went Right
  • Consolidated revenue from operations at ₹307.74 Cr, +54.9% YoY, aided by 42% YoY volume growth and new international customers.
  • EBITDA at ₹74.42 Cr, +127.6% YoY; EBITDA margin jumped to 24.18% from 16.46% on product mix, cost efficiencies and operating leverage.
  • PAT at ₹36.05 Cr vs ₹3.64 Cr in Q1FY26, a ~890% YoY jump; PAT margin improved to 11.72% from 1.83%.
  • Leverage improved sharply: Debt/EBITDA down to 1.86x in Q1FY27 from 3.75x in Q4FY26; working-capital cycle shortened from 190 to 143 days.
  • Ratings upgraded to A- by CRISIL and ICRA from BBB+; company expanded into Asian and African geographies.
What to Watch
  • Absolute debt remains elevated at ~₹550 Cr; the Debt/EBITDA improvement is largely arithmetic from EBITDA doubling, not from paying down debt.
  • PAT growth is heavily base-flattered — Q1FY26 PAT was just ₹3.64 Cr, so the 890% jump overstates the underlying earnings trajectory.
  • Capacity utilisation is only >65%, leaving ~35% idle capacity, yet management is doubling FY27 capex to ₹250 Cr, increasing absorption and execution risk.
  • MNC contract has consumed ₹70.89 Cr of vendor advances against ₹98.12 Cr received, but no revenue is expected until Q1FY28; delays in Q3FY27 equipment delivery or Q4FY27 trials would strain returns.
Management Guidance
  • FY28 revenue target revised to more than ₹1,600 crore.
  • Revenue growth target of 30-40% annually over the next 2-3 years.
  • Sustain current EBITDA margins (24.18% in Q1FY27).
  • FY27 capex increased from ₹125 crore to ₹250 crore; incremental borrowing of ~₹100 crore; maintain Debt/EBITDA below 2.5x.
Investor Lens
Q1FY27 is a strong operational beat — revenue grew ~55% YoY on 42% volume growth, EBITDA margin expanded to 24.18%, and Debt/EBITDA fell to 1.86x. The specialty-chemicals mix-shift thesis is intact, but the quality of the beat is less clean: PAT is up from a depressed ₹3.64 Cr base and the absolute debt pile remains ~₹550 Cr, so leverage improvement is largely arithmetic. Management has now committed to an FY28 revenue target of >₹1,600 Cr and doubled FY27 capex to ₹250 Cr, making execution the swing factor. Watch the MNC contract milestones (equipment delivery in Q3FY27, trials in Q4FY27, commercialization in Q1FY28), working-capital days staying near 143, and whether EBITDA margin can hold ~24% as industrial chemicals scale. If commissioning slips or new capacity fails to absorb, the current ₹4,652 Cr market cap leaves no room for error.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED 24% OPM and ₹36 Cr PAT, but no YoY baseline and rich valuation
Revenue for the quarter is ₹308.0 Cr. No YoY or QoQ comparison is available in the data provided, limiting growth assessment.
Net profit stood at ₹36.0 Cr with EPS of ₹29.90. PBT was ₹49.0 Cr after interest of ₹11.0 Cr and depreciation of ₹14.0 Cr, with an effective tax rate of 26%.
Operating profit margin is healthy at 24%, with operating profit of ₹73.0 Cr. The margin appears strong, but sustainability cannot be judged without historical comparison.
No cash flow data was provided.
Debt-to-equity ratio is elevated at 1.26. Return ratios are weak: ROCE at 8.95% and ROE at 5.85%, indicating capital-intensive operations.
Key risks include a very high PE of 184.63 against low ROE/ROCE, high leverage at 1.26 D/E, and lack of YoY data to confirm growth momentum.
The company needs to sustain its 24% OPM and improve return ratios to justify current valuation. Debt reduction and margin stability will be key monitorables.
Generated by AI · Jun 2026 results · Not investment advice
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