Sealmatic India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Sealmatic India Ltd filed with BSE on 12 Jun 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
Sealmatic reported FY26 revenue growth of about 2% year-on-year to Rs 103 crore, while EBITDA margin declined to 17.36% from 24% in the prior year, which management attributed to costs from international exhibitions and subsidized API seal supplies. Management said 916 critical API mechanical seals have been secured for Middle East projects, of which 686 have been supplied and 230 are under execution, with commissioning delayed by geopolitical disruption in the region. For FY27, management guided to revenue growth of 15% and an improvement in EBITDA margin as exhibition and subsidized-seal costs taper off.
Numbers mentioned
Revenue: INR103 crores (FY25-'26)
p. 6
“Our sales turnover for FY25-'26 stood at INR103 crores compared to the previous year of INR101 crores, reflecting a growth of 2% year-on-year.”
Ratan Kandare, page 6 of the filed PDF · View the filing
Profit before tax: INR14 crores (FY25-'26)
p. 6
“We achieved a profit before tax of INR14 crores during FY25-'26.”
Ratan Kandare, page 6 of the filed PDF · View the filing
EBITDA: INR18.38 crores (FY25-'26)
p. 6
“Further, our EBITDA for the year stood at INR18.38 crores translating into the EBITDA margin of 17.36% of total revenue.”
Ratan Kandare, page 6 of the filed PDF · View the filing
EBITDA margin: 17% (FY25-'26)
p. 3
“Sealmatic succeeded in increasing its turnover by around 2% on a yearly basis, though the margins have come under pressure and has resulted in EBITDA of around 17% for this year as compared to the previous year of 24%.”
Umar Balwa, page 3 of the filed PDF · View the filing
Export revenue share: 54.36% (FY25-'26)
p. 4
“During financial year '25-'26, 54.36% of our revenue was generated through exports, while 45.64% were contributed by the domestic market”
Firoz Chaudhary, page 4 of the filed PDF · View the filing
Export distributor sales: INR40.29 crores (FY25-'26)
p. 5
“Within the export business, distributors remained our largest channel, contributing INR40.29 crores”
Firoz Chaudhary, page 5 of the filed PDF · View the filing
Export OEM sales: INR14.5 crores (FY25-'26)
p. 5
“followed by OEM sales of INR14.5 crores, of which INR8.3 crores was for API seals project, in which 45 were single seals and 76 were double seals and INR6.2 crores was from our regular OEM business.”
Firoz Chaudhary, page 5 of the filed PDF · View the filing
Domestic OEM sales: INR36.25 crores (FY25-'26)
p. 5
“In the domestic market, OEM sales contributed INR36.25 crores.”
Firoz Chaudhary, page 5 of the filed PDF · View the filing
Exhibition costs: INR5 crores (FY25-'26)
p. 5
“Total 14 exhibition in the last financial year and thus has costed the company INR5 crores.”
Firoz Chaudhary, page 5 of the filed PDF · View the filing
Cost of subsidized Middle East API seals: INR8 crores (FY25-'26)
p. 5
“This has costed the company INR8 crores.”
Firoz Chaudhary, page 5 of the filed PDF · View the filing
Critical API seals secured for Middle East: approximately 916 (as of call date)
p. 5
“we have successfully secured and are executing approximately 916 critical API seals for projects in UAE, Saudi, Oman, Kuwait, Iraq.”
Firoz Chaudhary, page 5 of the filed PDF · View the filing
Mongol project seals supplied: 118 seals supplied, 53 under execution (as of call date)
p. 9
“So Parth, so in Mongol, we have supplied around 118 seals and 53 are under execution.”
Firoz Chaudhary, page 9 of the filed PDF · View the filing
Inventory: about INR62 crores (FY25-'26)
p. 12
“Inventory rose to about INR62 crores and the operating cash flow stayed negative again this year, sir.”
P. Srinivasa Reddy, 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.
Revenue growth — 15% · FY27
stated firmly by Umar Balwa
p. 10
“We expect to grow by 15% this year.”
Umar Balwa, page 10 of the filed PDF · View the filing
EBITDA margin — 23% or 24% · FY27
stated conditionally by Umar Balwa
p. 11
“And I'm very confident that we will be achieving 23% or 24% of EBITDA, FY27.”
Umar Balwa, page 11 of the filed PDF · View the filing
Number of exhibitions — 5 exhibitions · FY27
stated firmly by Umar Balwa
p. 11
“So this year, in FY27, we would be only participating in 5 exhibitions.”
Umar Balwa, page 11 of the filed PDF · View the filing
Additional API seals to be added — about 300 seals · FY27
stated conditionally by Umar Balwa
p. 14
“For next year, say 900, we expect to add for FY27, say about 300 seals more on the API.”
Umar Balwa, page 14 of the filed PDF · View the filing
Operating cash flow — FY27 to FY28
stated as an aspiration by Umar Balwa
p. 12
“FY27, it would start sprouting, but I would be happy to say FY28 would be a better period for us to judge the cash flow.”
Umar Balwa, page 12 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 reiterated the total of 916 secured seals, with 686 supplied and 230 under execution, without giving a precise commissioning count.
Answered by Firoz Chaudhary
Asked by P. Srinivasa Reddy: How many of the 490-plus supplied API seals are actually commissioned and running at end-user sites today?
p. 7
“we have executed around 916 critical API seals in projects in UAE, Saudi, Oman, Kuwait and Iraq. And out of this, 686 mechanical seals have been supplied while around 230 seals are under execution.”
Firoz Chaudhary, page 7 of the filed PDF · View the filing
Management said gross margins on the spare-part replacement business are around 80%.
Answered by Umar Balwa
Asked by P. Srinivasa Reddy: What is the gross margin on replacement/spare part seal business versus subsidized project sales?
p. 7
“our gross margins for this post-fit seal, which we call them as spare part business would be around 80%.”
Umar Balwa, page 7 of the filed PDF · View the filing
Management estimated about 20% are now in the commissioning stage, with the remaining 70% expected to commission once the regional situation settles.
Answered by Umar Balwa
Asked by Parth: Out of the 686 seals supplied, how many have been commissioned in the Middle East?
p. 8
“I would say 20% would be now in the stage of commissioning, though at a very slow pace, but the balance 70% out of the 686 seals would start get commissioning once this situation settles down”
Umar Balwa, page 8 of the filed PDF · View the filing
Management guided to 15% growth for FY27.
Answered by Umar Balwa
Asked by Deepak Poddar: What is the revenue growth outlook for FY27?
p. 10
“We expect to grow by 15% this year.”
Umar Balwa, page 10 of the filed PDF · View the filing
Management said reduced exhibition spend and lower subsidized API seal supply costs would help margins recover.
Answered by Umar Balwa
Asked by Deepak Poddar: Why should EBITDA margins improve in FY27 versus FY26?
p. 11
“So 10 exhibitions, if you remove them, that itself will save us approximately INR3.5 crores or INR4 crores.”
Umar Balwa, page 11 of the filed PDF · View the filing
Management cited execution delays from geopolitical disruption and stockpiling due to rare earth material export restrictions from China.
Answered by Umar Balwa
Asked by P. Srinivasa Reddy: Why did inventory rise and operating cash flow stay negative?
p. 12
“there was a delay in execution because of this geopolitical situation, the items which had to be supplied got delayed. And secondly, because of this uncertain situation where rare earth material injunctions were applied by China”
Umar Balwa, page 12 of the filed PDF · View the filing
Management quantified the delay as 7 months, mainly concentrated in the Middle East.
Answered by Umar Balwa
Asked by Tejas Shirodkar: How much delay is being seen from customers due to Middle East tensions?
p. 12
“If you ask me as of today, we are delayed by 7 months.”
Umar Balwa, page 12 of the filed PDF · View the filing
Management said Western competitors have exited Russia, creating space for Sealmatic, and described the market as good.
Answered by Umar Balwa
Asked by Lokesh: Is there a business opportunity for Sealmatic in Russia given Western sanctions?
p. 17
“Russia has been a good market for us with the sanctions coming in from U.S.A. on Russia, all the Western companies which were established in the Russian market have all left the Russian market, and it has created a space for companies like us.”
Umar Balwa, page 17 of the filed PDF · View the filing
Management said capital infusion via debt or other means may be needed if the company takes on more subsidized API seal orders.
Answered by Umar Balwa
Asked by Rajesh Iyer: Will the company need additional capital infusion to support growth?
p. 18
“if we are going for more API infusion -- API seal infusion, and if we're going to subsidize and take many orders, at that time, we may need capital infusion either by creating debt or by some other means.”
Umar Balwa, page 18 of the filed PDF · View the filing
Risks flagged
Geopolitical instability in the Middle East delaying project execution and commissioning
p. 8
“Unfortunately, due to the geopolitical situation in the Middle East, the commissioning has got deferred by, say, about 6 or 9 months.”
Umar Balwa, page 8 of the filed PDF · View the filing
Rare earth material export restrictions from China affecting inventory and execution
p. 12
“because of this uncertain situation where rare earth material injunctions were applied by China, and we had to stop certain items so that we wouldn't face challenges in executing the orders that we already have in our hands.”
Umar Balwa, page 12 of the filed PDF · View the filing
Margin erosion from taking on too many subsidized API seal orders
p. 15
“if you take too many of these API seals, you are going to erode your margins.”
Umar Balwa, page 15 of the filed PDF · View the filing
Slow-moving, bureaucratic nature of defense and nuclear project approvals delaying results
p. 17
“there are a host of other activities, but it is bureaucratic. It takes its own time.”
Umar Balwa, page 17 of the filed PDF · View the filing
Uncertainty in accurately forecasting spare-part/replacement revenue timing due to Middle East situation
p. 8
“For this year, I don't know. I'm not able to give you an accurate picture because of the situation that exists in the Middle East.”
Umar Balwa, page 8 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.