Gayatri Rubbers & Chemicals H2 & FY26 Earnings Call: Revenue Up 30.85%, PAT Nearly Doubles
Gayatri Rubbers and Chemicals Limited submitted its H2 & FY26 earnings call transcript, reporting total income of ₹41.82 crores (+30.85% YoY) and PAT nearly doubling to ₹5.59 crores, with EBITDA margins expanding 629 bps to 21.11%. The company highlighted a ₹1.2 crore BEML order, 92% vendor rating with Indian Railways, and plans to enter bridge pads and export markets by 2027, targeting revenues of ₹55 crore in FY27 and ₹70–75 crore by FY28.
*this image is generated using AI for illustrative purposes only.
Gayatri Rubbers and Chemicals Limited has submitted the transcript of its H2 & FY26 Earnings Conference Call to the National Stock Exchange of India Limited, pursuant to Regulation 30 read with Clause 15 of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The call was hosted by ConfideLeap Partners on May 05, 2026, at 4:00 P.M. IST, and the transcript was filed on May 08, 2026. The company's Managing Director, Mr. Shilp Chotai, represented the management during the call. The transcript has been uploaded on the company's website and is accessible at https://gayatrirubberchemicals.com/investors/announcements.html .
FY26 Financial Highlights
Managing Director Shilp Chotai described FY26 as a landmark year for the organisation, citing strong revenue growth and a near-doubling of profitability. The company's strategic pivot toward high-barrier rubber solutions and specialised products was cited as the primary driver of margin expansion. The following table summarises the key financial metrics discussed during the call:
| Metric: | FY26 | FY25 | Change |
|---|---|---|---|
| Total Income: | ₹41.82 crores | ₹31.96 crores | +30.85% YoY |
| Profit After Tax (PAT): | ₹5.59 crores | — | Nearly doubled |
| EBITDA Margin: | 21.11% | 14.82% | +629 bps |
| Promoter Stake: | 74.06% | — | Increased |
Management confirmed that the 21.11% EBITDA margin level is sustainable, attributing it to the increased share of high-margin railway and smart meter products. The company also indicated it expects PAT margins of 13 to 17% over the coming two years. On borrowings, management noted a potential increase of ₹1.5 to ₹2 crore during the year to support working capital and inventory requirements, with existing borrowings at approximately ₹6 to ₹7 crore.
Business Segment Overview
The company's revenue is currently distributed across three primary verticals — railways (55%), smart meters (20%), and architectural and automobile (~25%). Management indicated a plan to increase the railway share by 5 to 10% and the smart meter share by a similar quantum, while maintaining diversification across sectors. Segment-wise EBITDA margins as disclosed by management are presented below:
| Segment: | Approximate EBITDA Margin |
|---|---|
| Railway: | ~35% |
| Smart Meters: | ~30% |
| Architectural & Automobile: | ~15–20% |
Within the railway segment, Gayatri Rubbers holds Class 1 supplier status and manufactures 65 out of 75 rubber products required for a single railway coach. The company recently launched specialised fire retardant silicone mobile holders for Vande Bharat and Amrit Bharat coaches, and received a ₹1.2 crore order from BEML for rubber gaskets — a development management described as establishing the vendor code necessary for large-scale future engagements. Management noted that the company's vendor rating with Indian Railways stands at 92%, and that its quoted rates are 20 to 25% higher than competitors, with orders secured on the basis of quality and timely supply.
In the smart meter segment, the company operates as a single-source vendor to Genus Power and HPL Power, supplying specialised 3mm neoprene fire retardant rubber, with agreements in place until 2030. The company has 14 production lines dedicated to this product and maintains 20% free utilisation capacity. Management confirmed active outreach to Secure Meters as a potential new client, with Adani also identified as a prospective addition to the client base. The current order book for smart meters stands at approximately ₹12 crore annually, with revenue from this segment growing 15 to 20% year on year.
Plant Utilisation and Capacity
The company operates two manufacturing facilities, both located in Faridabad, Haryana, within 1 km of each other. Key operational parameters for each plant are summarised below:
| Parameter: | Plant 1 | Plant 2 |
|---|---|---|
| Current Utilisation: | ~80% | ~30% |
| Target Utilisation: | 90–95% | 70–80% |
| Capex Required to Scale: | None | None (minor machinery additions if needed) |
| Primary Focus: | Architectural profiles | Specialised railway products |
| Timeline to Target Utilisation: | Near-term (labour additions) | 1.5 to 2 years |
Management clarified that reaching 90 to 95% utilisation at Plant 1 requires no additional capex, only labour team expansion and additional shift hours. Plant 2, which focuses on RDSO-approved specialised railway products, is expected to reach 70 to 80% utilisation in approximately 1.5 to 2 years, contingent on completing the RDSO developmental stage and transitioning to regular supplier status within 12 months.
Growth Strategy and New Verticals
Management outlined four key growth pillars for the next phase of expansion, with R&D already underway across all verticals. The company targets revenue of ₹55 crore in FY27 and ₹70 to ₹75 crore by FY28. Key strategic initiatives include entry into bridge pads and solar industry components, with bridge pads expected within six to eight months. R&D budget allocations as disclosed are approximately 3 to 5% for solar rubber and 5 to 7% for bridge pads. Export market entry is planned for 2027, supported by the India-Europe Free Trade Agreement, which eliminates the 6.5% tariff on the company's products. The intercar gangway product and EPDM bridge pads were identified as key pipeline items expected to contribute to revenue targets. Management also noted that in the railway pad segment, approximately 50 to 53 out of 70 registered vendors are blacklisted, leaving 15 to 17 active vendors and presenting an opportunity for entry.
Source: None/Company/INE0LVM01018/78eaa243eda3410e.pdf
Historical Stock Returns for Gayatri Rubbers & Chemicals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.88% | +26.79% | +49.80% | +37.85% | +18.83% | +1,359.86% |
How might Gayatri Rubbers' export strategy be affected if the India-Europe Free Trade Agreement faces delays or renegotiation, and what alternative markets could the company target?
Given that ~50-53 out of 70 vendors in the railway pad segment are blacklisted, how quickly could Gayatri Rubbers scale its market share in this niche, and what regulatory hurdles remain before achieving regular supplier status?
As the company pursues Adani and Secure Meters as smart meter clients, how dependent is its revenue growth trajectory on successfully diversifying beyond its current two anchor customers, Genus Power and HPL Power?
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