Yasho Industries Q4 FY26: Growth through utilization, capex, and a long-term MNC project

Yasho Industries closed FY26 with a stronger fourth quarter and a clear attempt to frame the next phase of growth around higher asset utilization and deeper engagement with large customers. The company reported consolidated revenue of 830.03 crore in FY26, up 22.7% year-on-year. EBITDA rose to 144.46 crore, up 21.0% year-on-year, while EBITDA margin for the year was reported at 17.4%. Profit after tax increased sharply to 25.26 crore in FY26 from 6.11 crore in FY25.

In Q4 FY26, consolidated revenue from operations came in at 246.26 crore versus 184.81 crore in Q4 FY25. EBITDA was 44.72 crore in Q4 FY26 with an EBITDA margin of 18.16%. PAT for the quarter was 12.26 crore compared with 5.03 crore a year ago.

Management positioned this performance against a difficult macro backdrop. The commentary highlighted tariff-related disruptions, geopolitical tensions, supply chain volatility, and higher raw material costs. Despite these headwinds, the company emphasized operational execution, sourcing discipline, and product mix decisions as the key reasons margins held up.

FY26 performance snapshot and what changed in Q4

The consolidated income statement shows that FY26 growth was accompanied by a different cost profile versus FY25. FY26 gross profit margin was shown at 39.73%, down from 42.55% in FY25. Q4 FY26 gross profit margin was 38.98% versus 43.27% in Q4 FY25, suggesting that raw material and pricing dynamics remained a headwind at the gross level.

However, EBITDA expanded on the back of operating leverage and execution. Q4 FY26 EBITDA grew 23.73% year-on-year and 33.01% quarter-on-quarter, while PAT grew 143.72% year-on-year.

Below is a consolidated summary based on the numbers disclosed in the presentation.

The cash flow statement disclosed operating cash flow of 151.29 crore for FY26, compared with negative operating cash flow in FY25. The company also reported a net cash balance of 3.52 crore at year-end.

Revenue mix: Industrial remains the engine

Yasho’s revenue mix remains heavily skewed to industrial chemicals. The company disclosed category and geography splits for both Q4 and the full year.

For FY26, industrial chemicals contributed 87% of revenue and consumer chemicals contributed 13%. In Q4 FY26, industrial chemicals were 88% and consumer chemicals were 12%. Management also stated in the concall that FY26 volume growth of 33% year-on-year was supported by customer traction and scale up, and that the volume growth came largely from the industrial segment.

Geographically, the export contribution moderated in Q4 but remains significant. In FY26, international revenue was 62% and domestic was 38%, while Q4 FY26 was 58% international and 42% domestic.

Management also spoke about shifting geographic opportunities. While Europe was acknowledged to be slower, the company highlighted improving traction in the Americas, and also stated it is venturing more into the Asian market where it was not highly penetrated earlier.

Capacity utilization and margin upside: the near-term lever

A recurring theme across the presentation and the call was utilization. FY26 operated at about 60% utilization, and management is targeting more than 75% utilization in FY27. The investor presentation stated that higher utilization should boost EBITDA margin by 2 to 3 percentage points through better demand absorption and efficiency gains.

This is also how management tied operating improvement to margin guidance. In the concall, management said they expect at least 2% to 3% higher EBITDA versus FY26, driven by operational efficiencies as utilization rises beyond 70%.

At the plant level, the company provided peak revenue capacity estimates. The presentation stated that at optimal utilization, the Pakhajan plant can potentially generate 700 to 750 crore of peak revenue and the Vapi plant can potentially generate 650 to 700 crore, implying combined peak potential of about 1,350 to 1,450 crore under current assets.

Capex and the strategic MNC project: visibility with timelines

The company highlighted several capex-led initiatives.

For FY26, the presentation stated that out of a total capex outlay of 100 crore, 75 crore was utilized, including R&D and two new manufacturing lines. Plant-wise, it disclosed 65.90 crore capex at Pakhajan and 9.3 crore at Vapi during FY26.

In the concall, management provided a slightly different breakup for the 75 crore FY26 capex: about 25 crore for R&D, about 40 to 42 crore for Pakhajan, and about 7 to 8 crore for Vapi.

For FY27, the company guided capex of 125 crore, and the presentation stated it will be fully funded through internal accruals. Management clarified multiple times that this 125 crore capex is separate from the strategic project with the MNC.

The strategic project itself is a major disclosed milestone. The company stated it has secured a 15-year long-term agreement with a large global MNC. The project is described as customer-funded, with an estimated project size of 85 to 90 crore. The company disclosed that it received 51.4 crore as advance as on date.

On timelines, the presentation stated equipment deliveries are expected in Q2 FY27 and commercialization is expected in Q1 FY28. In the concall, management stated equipment deliveries are expected to begin in Q1 FY27 and revenue from the project is expected to start realizing in FY28. Management also confirmed that the advances will be set off against future deliveries.

Balance sheet, leverage, and working capital discipline

The company emphasized financial discipline and deleveraging. The presentation stated debt-EBITDA improved to 3.75x in FY26 from 4.70x in FY25. It also stated the company prepaid 23.30 crore of term liabilities that were due in FY27, leaving only 15.60 crore due.

In the concall, management added that the comfort zone for debt-to-EBITDA is 2.5x. They did not commit that absolute debt will not rise, but reiterated the intent to bring the ratio down.

Working capital remains a key operating variable. Management acknowledged elevated inventory levels and explicitly stated that higher stock helped the company navigate supply disruptions in recent months. They noted working capital days reduced from around 215 in FY25 to about 190, and said they would like to bring it down further to around 175 to 170 over the next 6 to 12 months.

What to watch into FY27 and FY28

Yasho’s stated direction is anchored on utilization-led operating leverage, capex for new products and expansion at Pakhajan, and the ramp-up into FY28 including the strategic MNC project.

Management disclosed a revenue target of 1,500 crore by FY28 and an intent to improve EBITDA margins to more than 20%. On volume, management indicated FY27 volume growth expectations in a wide band, stating 35% to 45% (and also 40% to 50% at one point), linked to higher utilization.

At the same time, the call also highlighted risks that remain difficult to model. Management said Chinese competition is strong and very competitive. They also highlighted persistent supply chain delays due to geopolitical issues, and noted that in rising price environments the company cannot pass through 100% of cost increases.

The near-term investment case, based strictly on what management disclosed, rests on whether the company can translate the utilization target into sustained margin expansion, keep working capital under control in a volatile logistics environment, and execute the strategic project timeline into FY28.