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Operating performance below expectation

• Consolidated revenue declined 2% YoY/19% QoQ to INR13.6b in 1QFY26 (est. INR15.2b).
• Consolidated EBITDA declined 14%/39% YoY/QoQ to INR1.8b (est. INR2.4b), with EBITDA margin contracting 190bp YoY/440bp QoQ to 13.6% (est 15.5%), driven by an increase in employee expenses/raw material as a % of sales by +130bp/+120bp YoY.
• Adj. PAT declined 33% YoY/55% YoY to INR811m (est INR1.3b).

Segment-wise performance

• Plumbing: Revenue stood at INR9.5b (-6% YoY, -22% QoQ), EBIT at INR989m (- 29% YoY, -51% QoQ), and EBIT margin at 10.4% (-340bp, -590bp QoQ). Volumes remained flat YoY, while declining 17% QoQ to 56KMT. EBITDA/kg stood at INR27.9 (-14% YoY,-25% QoQ).
• Adhesives and paints: Revenue stood at INR4b (+10% YoY, -10% QoQ), EBIT at INR196m (-25% YoY, -53% QoQ), and EBIT margin at 4.8% (-220bp, -430bp QoQ). EBITDA stood at INR375m (-16%YoY,-38% QoQ ). EBITDA margin stood at 9.2% (down 280bp, down 410bp).

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