Maximus International Q1 FY27: Export-Led Growth, But Margins And Cash Flows Need Monitoring

Maximus International Limited started FY27 with a sharp jump in scale. Consolidated revenue from operations rose to 59.91 crore in Q1 FY27 from 39.52 crore in Q1 FY26, a 51% year-on-year increase. The management attributed the growth to continued scale-up of international operations and higher business volumes across its export markets.

But the quarter also showed the other side of rapid scaling in a commodity-linked business. EBITDA increased to 4.58 crore from 3.88 crore, yet EBITDA margin declined to 7.64% from 9.81%. Profit after tax came in at 2.05 crore, down from 2.33 crore. On the earnings call, the CFO linked the margin movement to a change in business mix and a rise in input costs, citing the impact of the ongoing Middle East war on base oil prices and logistics costs such as freight and insurance.

A Business Built Around MEA And Export Markets

Maximus operates through three business verticals: lubricant manufacturing, toll blending, and petrochemical trading. It has manufacturing operations in the UAE and Kenya, and management stated an overall installed blending capacity of approximately 50,000 KL. The company also emphasized its scale and reach, with 400 plus customers across 25 plus countries and 50 plus industries.

The investor presentation provides a geographical revenue split that highlights the company’s export-led profile. Middle East contributes 58% of revenue, East Africa 34%, South East Asia 7%, and Others 1%. Major export markets mentioned include the UAE, Oman, Iraq, Kuwait, Saudi Arabia, Qatar, Kenya, Uganda, Egypt, Libya, Angola, and Singapore.

The company’s positioning is tightly linked to MEA market growth. The deck cites MEA market size growth from 9.1 billion dollars in 2024 to 12.4 billion dollars in 2034. The management reiterated this opportunity on the call, stating that Maximus is well positioned to participate in the region’s long-term demand drivers.

Q1 FY27 Financial Performance: Scale Up With Margin Pressure

The quarter’s headline number is the revenue expansion. But profitability did not track the same trajectory. EBITDA increased 18% year-on-year, while the EBITDA margin fell by more than 200 basis points.

Management’s explanation was specific and grounded in current conditions. Input costs inflected during the quarter due to geopolitical disruptions, and logistics expenses rose as well. This matters because lubricants manufacturing and trading are both sensitive to base oils and related raw materials. The company also acknowledged that revenue mix can shift as volumes rise, which can change margin outcomes between manufacturing, toll blending, and trading.

Finance costs were another moving part. Financial costs rose to 1.53 crore in Q1 FY27 from 0.92 crore in Q1 FY26, an increase of about 0.60 crore. Management linked this to topline growth and the incremental finance cost required as the business scales.

Working Capital And Cash Flow: The Key Watch Area

Across FY24 to FY26, consolidated operating cash flow remained negative as per the cash flow statement in the investor presentation. Net cash flow from operating activities was minus 8.18 crore in FY24, minus 14.57 crore in FY25, and minus 8.25 crore in FY26.

The balance sheet also shows trade receivables rising with growth. Trade receivables increased from 43.84 crore in FY24 to 78.42 crore in FY25 and 121.95 crore in FY26. On the concall, management stated that receivables have risen in line with topline growth and the increase in product prices and landed expenses.

This matters for two reasons. First, growth funded through working capital often increases finance costs, which is visible in Q1 FY27. Second, negative operating cash flow over multiple years requires close monitoring even when reported profits are positive.

Expansion Roadmap: Kenya Grease, Tanzania, And Inorganic Growth

The company’s near-term initiatives are oriented toward widening the product portfolio and expanding its manufacturing footprint.

One of the few initiatives with a specific timeline is grease manufacturing in Kenya. Management stated it plans to commission a grease manufacturing facility at its Kenya plant in Q3 FY27. In the presentation, grease manufacturing is also positioned as part of the capacity and product expansion agenda.

Tanzania is another stated growth lever. The company’s approach is phased: warehousing and distribution first, followed by manufacturing once the business achieves the necessary scale.

Inorganic growth also remains on the table. Management stated it is progressing with acquisition of an additional manufacturing unit as an associate, though no further details or timelines were shared.

A more concrete inorganic step is the Quebec Petroleum investment. The presentation mentions acquisition of a substantial stake in Quebec Petroleum, and on the call management stated it has acquired a 40% stake as an associate. Management described Quebec as an established lubricant player in India with modern manufacturing facilities and a robust distribution channel, giving Maximus a stronger footing in the Indian market. As an associate, Quebec’s profits would be reflected in consolidated results through the share of profits.

What Management Highlighted On Mix And Scale

When asked about profitability by vertical, management stated that manufacturing offers the highest EBITDA margins, including historically. The company also stated it is becoming more aggressive in toll blending and mentioned it is in talks with an MNC in East Africa.

Management also provided a directional view on future mix. Over the next three years, it expects manufacturing and toll blending together to contribute about 75% to 80% of revenue, with trading at about 20% to 25%.

Capacity utilisation is not stretched at this point. The CFO stated that current utilisation is around 45% of the 50,000 KL installed blending capacity across UAE and Kenya. Management indicated capacity is sufficient for the next 2 to 3 years based on a single shift, though additional storage capex may be required if utilisation rises materially.

Takeaways

Maximus is scaling fast in its export markets, and the Q1 FY27 topline growth reflects that momentum. The company also has a visible expansion pipeline, including a grease facility in Kenya planned for Q3 FY27 and a phased entry into Tanzania.

However, the quarter also showed that growth does not automatically translate into higher profits. Margin compression, rising finance costs, and the company’s history of negative operating cash flows are key areas investors will likely track closely. In a business exposed to base oil and freight volatility, execution on working capital discipline and product mix improvement will be central to sustaining profitability as scale increases.