Indo Borax Q1 FY27: higher utilization lifts margins as the company reshapes its portfolio

Q1 FY27 consolidated revenue was INR 70.36 crore, EBITDA was INR 19.80 crore, and PAT was INR 16.25 crore, as stated in the investor presentation and concall.

The presentation and concall state Boric Acid capacity of 20,000 MTPA and DOT capacity of 6,000 MTPA at the Pithampur, Madhya Pradesh facility.

Management guided to FY27 revenue of INR 250 to 260 crore with about a 20% EBITDA margin, while noting Q2 is seasonally weaker and Q1 margin levels may not repeat.

Management stated a capex plan of about INR 50 crore over the next two to three years, mainly for Boron Oxide (around INR 20 crore) and additional Boric Acid capacity (around INR 20 to 25 crore).

The Board approved acquiring 64.26% of Kronox by purchasing 2,38,44,000 shares for INR 246.11 crore under the SPA at INR 103.22 per share, per the exchange filing and presentation.

Indo Borax, along with Zenrock Chemicals as a person acting in concert, approved a mandatory open offer for up to 95,70,000 shares (about 25.79%) of Kronox at an offer price of INR 157.27 per share, as per the exchange filing.

Management stated DOT contribution was about 7% last year and is expected to be about 9% this year.