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Indo Borax & Chemicals Ltd-$Q1 FY27 earnings call

· All quarters

Summary generated by AI from the official transcript Indo Borax & Chemicals Ltd-$ filed with BSE on 08 Sept 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries

The short read

Indo Borax & Chemicals reported Q1 FY27 operating revenue of Rs. 70.36 crore, up 31.34% year-on-year, with EBITDA margin of 28.1% and net profit up 59.31% to Rs. 16.25 crore. Management attributed the growth to improved realizations, better capacity utilization, and the new leadership team installed after the ownership change to Zenrock Chemicals. The company also discussed its planned acquisition of 64.26% equity in Kronox Lab Sciences and outlined funding, integration and capacity expansion plans for both entities.

Numbers mentioned

Operating revenue: Rs. 70.36 crore (Q1 FY27)

p. 4
During Q1 FY 27, our operating revenue was Rs. 70.36 crore, representing a 31.34% increase against Rs. 53.57 crore in Q1 FY 26.

Shashikant Bharuka, page 4 of the filed PDF · View the filing

EBITDA: Rs. 19.8 crore (Q1 FY27)

p. 4
Our EBITDA for the quarter was up by 62.16% to Rs. 19.8 crore as compared to Rs. 12.21 crore in Q1 FY 26.

Shashikant Bharuka, page 4 of the filed PDF · View the filing

EBITDA margin: 28.1% (Q1 FY27)

p. 4
This accounted for an EBITDA margin of 28.1% for the quarter.

Shashikant Bharuka, page 4 of the filed PDF · View the filing

Net profit: Rs. 16.25 crore (Q1 FY27)

p. 4
Our net profit increased by 59.31% to Rs. 16.25 crore in Q1 FY '27, from Rs. 10.2 crore in Q1 FY '26.

Shashikant Bharuka, page 4 of the filed PDF · View the filing

PAT margin: 22.3% (Q1 FY27)

p. 4
The PAT margin improved by 430 basis points to 22.3% for the quarter under review.

Shashikant Bharuka, page 4 of the filed PDF · View the filing

EPS: Rs. 5.07 (Q1 FY27)

p. 4
The EPS stood at Rs. 5.07 in Q1 FY '27.

Shashikant Bharuka, page 4 of the filed PDF · View the filing

Boric acid production volume: 15,917 tons (FY26)

p. 11
I think it was 15,917 tons in the last financial year.

Suresh Kalra, page 11 of the filed PDF · View the filing

DOT production: 900 tons (FY26)

p. 9
and then we closed the year when we took over the last financial year at about 900 tons.

Suresh Kalra, page 9 of the filed PDF · View the filing

Kronox cash on balance sheet: Rs. 80 crores

p. 6
So, they have a very, I would say, they have land at a very suitable location in Dahej for the

Suresh Kalra, page 6 of the filed PDF · View the filing

Kronox cash on balance sheet: Rs. 80 crores

p. 6
which already is there about Approximately Rs. 80 crores now.

Suresh Kalra, page 6 of the filed PDF · View the filing

What management said it would do

A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.

Revenue — Rs. 250 crores to Rs. 260 crores · FY27

stated firmly by Suresh Kalra

p. 9
While the full year guidance, which I said last time and I will continue beyond that, that we will be closing at about Rs. 250 crores to Rs. 260 crores of revenue with a 20% EBITDA margin.

Suresh Kalra, page 9 of the filed PDF · View the filing

EBITDA margin — 20% · FY27

stated firmly by Suresh Kalra

p. 9
So, it will be about Rs. 250 crores to Rs. 260 crores versus Rs. 215 crores last year with an EBITDA margin of about 20%.

Suresh Kalra, page 9 of the filed PDF · View the filing

EBITDA growth — 11% to 12% · FY27

stated firmly by Suresh Kalra

p. 9
That is what our plan is and EBITDA would again be growing at about 11% to 12% on an absolute number.

Suresh Kalra, page 9 of the filed PDF · View the filing

DOT sales volume — 1,500 tons · FY27

stated firmly by Suresh Kalra

p. 9
This year, my official target plan is 1,500 tons for this product and even going forward maybe even more because my current capacity levels, my nameplate capacity is 6,000 tons

Suresh Kalra, page 9 of the filed PDF · View the filing

Boric acid production — 18,000 tons · FY27

stated firmly by Suresh Kalra

p. 11
This year, we look forward to increase it further, to about 18,000 tons.

Suresh Kalra, page 11 of the filed PDF · View the filing

Capex — Rs. 50 crores · next two to three years

stated firmly by Suresh Kalra

p. 10
We are looking forward to about a Rs. 50 crores of Capex over the next two to three years.

Suresh Kalra, page 10 of the filed PDF · View the filing

Kronox capex plan — Rs. 110 crores

stated firmly by Suresh Kalra

p. 10
So, the current plan of Kronox is about Rs. 110 crores of Capex plan, which we already have.

Suresh Kalra, page 10 of the filed PDF · View the filing

Kronox revenue potential post-Dahej capex — 3 to 3.5x current revenue · FY29-FY31

stated as an aspiration by Suresh Kalra

p. 14
I would say it would be at least 3 to 3.5x, depending on product mix also.

Suresh Kalra, page 14 of the filed PDF · View the filing

Kronox Dahej capex benefits timeline — FY29 onward, full impact FY30-31

stated conditionally by Suresh Kalra

p. 14
It would be Financial Year '29, we will start seeing the benefits. And I think Financial Year '30 and '31 would be the 100% impact on the full capex.

Suresh Kalra, page 14 of the filed PDF · View the filing

DOT revenue contribution — 9% · FY27

stated firmly by Suresh Kalra

p. 15
I will take help of the CFO here, about 9% of the total profile would be coming from DOT this year.

Suresh Kalra, page 15 of the filed PDF · View the filing

Q&A highlights

Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.

Management said it would not comment on why previous promoters exited, but described the acquisition rationale based on complementary strengths and confirmed the Dahej expansion plan and design were already in place.

Answered by Suresh Kalra

Asked by Dhruv Bajaj: Why did the previous Kronox promoters exit and what is the status of the Dahej capex?

p. 6
I think the plans are already at a level where the entire design of the plant is ready.

Suresh Kalra, page 6 of the filed PDF · View the filing

Management said no decision has been made yet and the two entities will continue as separate listed legal entities for now.

Answered by Suresh Kalra

Asked by Dhruv Bajaj: Will Kronox be merged into Indo Borax or operated separately?

p. 6
I believe till the time it is said otherwise or there is any such plan come, these two entities will continue to operate as separate legal entities, both listed at the exchanges.

Suresh Kalra, page 6 of the filed PDF · View the filing

Management said Q1 margins benefited from pre-war pricing decisions and that Q2 would be softer due to raw material costs and a seasonally weak monsoon quarter.

Answered by Suresh Kalra

Asked by Darshil Jhaveri: Are Q1 margins of 28% sustainable into FY27-28?

p. 8
So, I am not expecting that we would be at the same level of EBITDA percentage and revenue as we were in Q1 historically and it is expected , as it has historically been .

Suresh Kalra, page 8 of the filed PDF · View the filing

Management explained DOT is forward-integrated from Boric acid and offers higher margins, targeting 1,500 tons this year.

Answered by Suresh Kalra

Asked by Darshil Jhaveri: What is the margin profile and growth plan for DOT?

p. 10
So, overall, selling DOT is beneficial to us because it is a forward integration for us.

Suresh Kalra, page 10 of the filed PDF · View the filing

Management said utilization has improved significantly this year versus historical levels due to a planned maintenance schedule.

Answered by Suresh Kalra

Asked by Dhruvin Kadakia: What is the current Boric acid capacity utilization?

p. 11
So, whatever is that practically achievable capacity, it means after the maintenance days are taken away from 365 days, we are going to be working on 96% to 98% of the capacity level.

Suresh Kalra, page 11 of the filed PDF · View the filing

Management said current capacities are understood to be fully utilized but expects to find incremental capacity through process improvements, similar to what happened at Indo Borax.

Answered by Suresh Kalra

Asked by Suraj Nawandhar: Are Kronox's existing capacities fully utilized ahead of the Dahej capex?

p. 14
As of now, we understand the capacities are fully utilized.

Suresh Kalra, page 14 of the filed PDF · View the filing

Management detailed funding through internal accruals, sale of non-core assets, a term loan, and a promoter group contingency contribution.

Answered by Harsh Malhotra

Asked by Mehul Savla: How will the Kronox acquisition and potential open offer be funded?

p. 16
So, overall, we have funding available of Rs. 432 crores as compared to a funding required of just about Rs. 400 crores.

Harsh Malhotra, page 16 of the filed PDF · View the filing

Management confirmed the Edelweiss ownership is a purely equity transaction unrelated to any Zenrock debt or funding arrangement.

Answered by Harsh Malhotra

Asked by Saloni Arya: Is the Edelweiss stake in Indo Borax a pure equity holding or tied to financing?

p. 20
The Edelweiss' ownership in Indo Borax & Chemicals Limited is purely an equity transaction that is not related to any debt transaction or any funding that Zenrock Chemicals has done.

Harsh Malhotra, page 20 of the filed PDF · View the filing

Management said dividend declarations will be based on what is best for the company and all shareholders, and other mechanisms exist to service the promoter group's loan.

Answered by Harsh Malhotra

Asked by Saloni Arya: Will Indo Borax dividends be used to service Zenrock's acquisition debt?

p. 20
There are adequate funds available for servicing the the coupon and interest payments with the promoter and the promoter group.

Harsh Malhotra, page 20 of the filed PDF · View the filing

Management confirmed they are following the expedited process to take control without waiting for the full open offer to complete.

Answered by Harsh Malhotra

Asked by Mehul Savla: Will the company fast-track control of Kronox via the escrow provision rather than waiting for the open offer?

p. 21
So, we are not going to wait for the full open offer to complete because that is a significantly long process.

Harsh Malhotra, page 21 of the filed PDF · View the filing

Risks flagged

Rising raw material costs during the ongoing war period limiting ability to fully pass on costs

p. 8
Now, during the war period, which is still continuing, a lot of raw materials have gone extremely expensive, and there is a limit of passing on them to the market.

Suresh Kalra, page 8 of the filed PDF · View the filing

Seasonally weak monsoon quarter reducing volumes

p. 8
coupled with the fact that Q2 usually is a low-volume monsoon quarter for the industry in general.

Suresh Kalra, page 8 of the filed PDF · View the filing

Historical unplanned maintenance shutdowns due to equipment breakdown or raw material unavailability

p. 12
I think, historically, we have some issues in the company in a couple of years where the shutdowns happened without a plan, either because of the equipment breakdown or because of the unavailability of the raw material.

Suresh Kalra, page 12 of the filed PDF · View the filing

Low likelihood of significant open offer acceptance given current Kronox stock price levels

p. 16
which seems difficult at this stage right now with where the current Kronox stock prices, but we have contingency set aside for it.

Harsh Malhotra, page 16 of the filed PDF · View the filing

Import dependence on raw materials not yet sourceable in India

p. 22
Unfortunately, today in Indo Borax, we still have to import a lot of raw materials, which we are doing.

Suresh Kalra, page 22 of the filed PDF · View the filing

Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.