Orient Bell Ltd-$ — Q4 FY26 earnings call
Summary generated by AI from the official transcript Orient Bell Ltd-$ filed with BSE on 26 May 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
Orient Bell reported Q4 FY26 volume growth of 7% and revenue growth of 7.5% year-on-year, with consolidated EBITDA up 66% to Rs16.4 crores and EBITDA margin expanding by 270 basis points. For the full year, EBITDA grew 38% to Rs42.5 crores and PBT improved to Rs16.4 crores from Rs3.8 crores in FY25, after absorbing a one-time labour code cost. Management described cumulative price increases of about 20% taken across March and April in response to rising gas prices linked to the Iran war situation and disruptions in the Morbi cluster.
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Numbers mentioned
Volume growth: 7% (Q4 FY26)
p. 3
“Q4 volumes grew by 7%, while revenues increased by 7.5% year-on-year.”
Aditya Gupta, page 3 of the filed PDF · View the filing
Revenue growth: 7.5% (Q4 FY26)
p. 3
“Q4 volumes grew by 7%, while revenues increased by 7.5% year-on-year.”
Aditya Gupta, page 3 of the filed PDF · View the filing
Volume growth: 4.4% (FY26)
p. 3
“For FY '26, volumes grew by 4.4% and revenues increased by 3.1% over FY '25.”
Aditya Gupta, page 3 of the filed PDF · View the filing
Revenue growth: 3.1% (FY26)
p. 3
“For FY '26, volumes grew by 4.4% and revenues increased by 3.1% over FY '25.”
Aditya Gupta, page 3 of the filed PDF · View the filing
EBITDA: INR16.4 crores (Q4 FY26)
p. 4
“On a consolidated basis, Q4 FY '26 EBITDA increased by a robust 66% year-on-year to INR16.4 crores with EBITDA margin expansion of 270 basis points.”
Anuj Arora, page 4 of the filed PDF · View the filing
PBT: INR8.4 crores (Q4 FY26)
p. 4
“While PBT rose meaningfully to INR8.4 crores compared to INR3.6 crores in the corresponding quarter last year.”
Anuj Arora, page 4 of the filed PDF · View the filing
EBITDA: INR42.5 crores (FY26)
p. 4
“For the full year, EBITDA stood at INR42.5 crores, reflecting a 38% year-on-year increase with EBITDA expansion of 160 basis points.”
Anuj Arora, page 4 of the filed PDF · View the filing
PBT: INR16.4 crores (FY26)
p. 4
“PBT also improved significantly to INR16.4 crores from INR3.8 crores in FY '25.”
Anuj Arora, page 4 of the filed PDF · View the filing
One-time labour code cost: INR1.3 crores (FY26)
p. 4
“This is after absorbing one-time cost of INR1.3 crores towards complying with the new labor code.”
Anuj Arora, page 4 of the filed PDF · View the filing
DSO reduction: 48 days (FY26)
p. 4
“Cycle controls over receivables helped us reduce DSO by nine days to 48 days.”
Anuj Arora, page 4 of the filed PDF · View the filing
Cash conversion cycle: 20 days (FY26)
p. 4
“Overall, cash conversion cycle improved to 20 days from 26 days last year.”
Anuj Arora, page 4 of the filed PDF · View the filing
Cumulative price increase: 20% (March-April 2026)
p. 5
“Cumulatively in the March and April put together, we have taken almost 20% price increase, which was placed, I would say, about 15%, 16% was taken in the month of March and 5%,to 6% was taken in the month of April.”
Aditya Gupta, page 5 of the filed PDF · View the filing
Gas price increase: approximately 30%
p. 5
“But in general, approximately 30% increase is what we have seen on the overall basis in the gas prices.”
Anuj Arora, page 5 of the filed PDF · View the filing
Gas price (blended): INR45 average (Q4 FY26)
p. 6
“Q4 INR will be somewhere around INR45 average.”
Anuj Arora, page 6 of the filed PDF · View the filing
Capacity utilization: 60-65% (Q4 FY26)
p. 4
“Importantly, as we operate at 60%, 65% of the capacity utilization, we continue to have adequate available capacity to support future growth without any significant incremental capex.”
Anuj Arora, page 4 of the filed PDF · View the filing
Retail revenue contribution: 78% (FY26)
p. 8
“So retail is somewhere around 78% in this year and balance is institutional.”
Anuj Arora, page 8 of the filed PDF · View the filing
Net debt: negative INR29 crores
p. 17
“That's the reason there is a negative debt of INR29 crores in our books.”
Anuj Arora, page 17 of the filed PDF · View the filing
Maintenance capex: INR6-7 crores (FY26)
p. 12
“So basically, I think this year, we have done some INR6 crores, INR7 crores of capex.”
Anuj Arora, page 12 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.
Maintenance capex — INR10 crores plus/minus INR4-5 crores · FY27
stated firmly by Anuj Arora
p. 12
“Next year also, it should be in the range of INR10 crores plus/minus INR4, INR5 crores.”
Anuj Arora, page 12 of the filed PDF · View the filing
Additional capex for capacity — none · FY27
stated firmly by Anuj Arora
p. 6
“But as of now, during the current year, we don't need any additional capex in FY '27 for capacities.”
Anuj Arora, page 6 of the filed PDF · View the filing
Marketing spend as percentage of revenue — closer to 4%
stated as an aspiration by Aditya Gupta
p. 6
“And I think 3.6% will kind of creep upwards maybe closer to 4%.”
Aditya Gupta, page 6 of the filed PDF · View the filing
Margin trajectory
stated conditionally by Anuj Arora
p. 5
“So on the margins front, Ashvath, you must be basically from quarter-on-quarter you will be witnessing increase in margins.”
Anuj Arora, page 5 of the filed PDF · View the filing
Price increases
stated conditionally by Anuj Arora
p. 9
“Yes. If the gas prices stays where they are, if they move up, then yes, we'll have to take another increase...”
Anuj Arora, page 9 of the filed PDF · View the filing
Full year margin — FY27
stated as an aspiration by Aditya Gupta
p. 16
“This financial year, we are optimistic compared to last financial year, we expect to do better.”
Aditya Gupta, page 16 of the filed PDF · View the filing
Adhesives volumes — FY27
stated as an aspiration by Aditya Gupta
p. 12
“So, this is something which we are quite gung-ho about, and we expect to get some decent volumes from there in FY '27.”
Aditya Gupta, page 12 of the filed PDF · View the filing
Price readjustment timeline — 3 to 4 months
stated conditionally by Aditya Gupta
p. 13
“No, not that long. I think they will start readjusting in a period of, say, 3 months, 4 months, they will readjust.”
Aditya Gupta, page 13 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 margin trajectory should continue quarter-on-quarter and detailed cumulative price hikes of about 20% taken in March-April, with further hikes dependent on gas prices.
Answered by Anuj Arora
Asked by Ashvath: Will margins sustain at Q4 levels given gas price issues, and what price hikes have been taken or expected?
p. 5
“So the trajectory is likely to continue is what we feel. Quarteron-quarter basis, I think last quarter was somewhere around 6%. This is 7.7%.”
Anuj Arora, page 5 of the filed PDF · View the filing
Management said only maintenance capex is planned, with no additional capex needed for capacity in FY27.
Answered by Anuj Arora
Asked by Ashvath: Are there plans for capex given the debt-free, cash-rich position?
p. 6
“So there will be capex, basically for maintenance. But as of now, during the current year, we don't need any additional capex in FY '27 for capacities.”
Anuj Arora, page 6 of the filed PDF · View the filing
Management declined to give future guidance, citing uncertainty from gas pricing and availability, but noted Q4 utilization improved over Q3.
Answered by Aditya Gupta
Asked by Apurva Sharma: When will capacity utilization reach 80% given premiumization and product launches?
p. 6
“Mr. Apurva, we have consistently stayed away from giving future guidance’s and all.”
Aditya Gupta, page 6 of the filed PDF · View the filing
Management said retail grew much better than the enterprise/institutional business in FY26.
Answered by Aditya Gupta
Asked by Deepak Pruthi: How did the tile industry and segments (retail vs institutional) perform, and which grew more?
p. 8
“So for us retail has, I don't have the numbers off hands but retail has grown much better for us. The enterprise business actually has not done too well for us in FY '26.”
Aditya Gupta, page 8 of the filed PDF · View the filing
Management clarified the cost increase was tied to production growth and stated price increases had already been taken to cover input cost rises, with more contingent on gas prices.
Answered by Anuj Arora
Asked by Tanmay Roy: Is the power and fuel cost increase linked to production growth or the Iran war/gas crisis, and will further price hikes be needed?
p. 9
“So on an overall basis, like I mentioned initially that in quarter four, power and fuel cost, the fuel cost, which was somewhere around 43, 44, in the quarter three, it was at 44, 45, 45.5 in quarter four.”
Anuj Arora, page 9 of the filed PDF · View the filing
Management stated all cost increases had been passed on so far and expected this to continue given rising diesel and gas prices.
Answered by Aditya Gupta
Asked by Ashvath: What percentage of cost increases can be passed on to consumers, and will this continue into Q2?
p. 11
“So as of now, we have passed on all the cost increase to the consumer.”
Aditya Gupta, page 11 of the filed PDF · View the filing
Management said tile pricing tracks fuel cost movements and reiterated they do not provide forward guidance on volumes or Morbi's recovery.
Answered by Anuj Arora
Asked by Rakesh Kumar: How sustainable are the recent price hikes and how will demand and Morbi's recovery play out?
p. 14
“So like we mentioned earlier that we don't give future guidance. So we would like to stick to FY '26 only.”
Anuj Arora, page 14 of the filed PDF · View the filing
Management said Q1 is typically a leaner quarter than Q4 due to lower operating leverage, expects year-on-year margin improvement to continue, but declined to give sales growth guidance.
Answered by Aditya Gupta
Asked by Saket: Will current quarter margins be maintained or improve further, and is there any sales growth guidance?
p. 16
“No, we don't -- as mentioned earlier also, we don't give any future guidance, on numbers.”
Aditya Gupta, page 16 of the filed PDF · View the filing
Management attributed the exceptional item to new labour code retirement provisioning and the drop in other expenses to reduced travel and design costs.
Answered by Anuj Arora
Asked by Shubham: What caused the exceptional item and the drop in other expenses this quarter?
p. 16
“So that is on account of the new labour code which has come up. So you have to basically provide for the retirement at the rate of 50% of the total salary.”
Anuj Arora, page 16 of the filed PDF · View the filing
Risks flagged
Volatility in gas pricing affecting margins and costs
p. 4
“While the immediate future is filled with uncertainty and volatility, especially around gas pricing and the long-term impact it would have on demand, we feel that in India, long-term industry tailwinds are favorable”
Aditya Gupta, page 4 of the filed PDF · View the filing
Dealers reducing inventory due to working capital squeeze from price increases
p. 10
“So there's a bit of a working capital squeeze there. And he also wants to wait and watch in terms of our projects”
Aditya Gupta, page 10 of the filed PDF · View the filing
Rising diesel and gas prices likely to keep cost pressures elevated
p. 11
“So a downward movement of prices and all doesn't look very probable in the next few months, definitely not in quarter 1.”
Aditya Gupta, page 11 of the filed PDF · View the filing
Uncertainty from potential rising interest rates and austerity measures affecting consumption
p. 8
“For example, bond rates are going up internally, interest rates in India could also go up. The Prime Minister has already spoken about the need for austerity and how it plays out on the consumption side, we will know over the next one month or so.”
Aditya Gupta, page 8 of the filed PDF · View the filing
Labour availability challenges affecting Morbi production despite reopening
p. 10
“Most of the units are struggling not because of gas availability, but they're struggling because of labour availability, and labour has been a big challenge.”
Aditya Gupta, page 10 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.