Shankara Buildpro Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Shankara Buildpro Ltd filed with BSE on 11 Aug 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
Shankara Buildpro reported Q1 FY27 revenue of Rs 1,890 crore, up 21% year-on-year, driven by 10% volume growth in steel and a 15% recovery in non-steel revenue. EBITDA stood at Rs 62 crore with a 3.26% margin, while PAT rose 12% year-on-year to Rs 35.8-35.9 crore. Management attributed the quarter's margin compression to an inventory loss of about Rs 10 crore linked to steel price volatility in April-May, and reiterated full-year targets of 20% steel volume growth and 25% non-steel growth.
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Numbers mentioned
Revenue from operations: Rs. 1,890 crore (Q1 FY27)
p. 3
“Total revenue from operations stood at Rs. 1,890 crore, up 21% year-on-year, led by continued volume growth in our steel marketplace and complemented by a healthy recovery in the non-steel marketplace.”
Dhananjay Mirlay Srinivas, page 3 of the filed PDF · View the filing
PAT: Rs. 35.8 crore (Q1 FY27)
p. 3
“PAT for the quarter stood at Rs. 35.8 crore, up 12% year-on-year.”
Dhananjay Mirlay Srinivas, page 3 of the filed PDF · View the filing
Steel volume: 2.5 lakh tons (Q1 FY27)
p. 3
“Our steel marketplace delivers 2.5 lakh tons of volume in Q1 FY27, a growth of 10% year-on-year, marking a good start to the year.”
Dhananjay Mirlay Srinivas, page 3 of the filed PDF · View the filing
Steel revenue: Rs 1725 crore (Q1 FY27)
p. 3
“Steel revenue grew 21% year-on-year to Rs. 1725 crore compared to Q1 FY26.”
Dhananjay Mirlay Srinivas, page 3 of the filed PDF · View the filing
Non-steel revenue: Rs. 165 crores (Q1 FY27)
p. 3
“Non-steel revenues stood at Rs. 165 crores in Q1 FY27, up 15% year-on-year and 2% sequentially.”
Dhananjay Mirlay Srinivas, page 3 of the filed PDF · View the filing
EBITDA: Rs. 62 crores (Q1 FY27)
p. 4
“On profitability, EBITDA for the quarter stood at Rs. 62 crores, up 17% year-on-year, with EBITDA margin at 3.26%.”
Dhananjay Mirlay Srinivas, page 4 of the filed PDF · View the filing
ROCE: 35% (Q1 FY27)
p. 4
“ROCE for Q1 FY27 stood at 35%.”
Dhananjay Mirlay Srinivas, page 4 of the filed PDF · View the filing
Working capital days: 27 days (Q1 FY27)
p. 4
“Working capital was held at 27 days, comfortably under the 30-day mark.”
Dhananjay Mirlay Srinivas, page 4 of the filed PDF · View the filing
Finance costs: 0.55% of revenue (Q1 FY27)
p. 4
“Finance costs declined to 0.55% of revenue, lower both year-on-year and sequentially, even as steel prices and scale of operations rose.”
Dhananjay Mirlay Srinivas, page 4 of the filed PDF · View the filing
Same-store sales growth: 21% (Q1 FY27)
p. 4
“Same-store sales growth stood at 21% for the quarter, continuing the momentum of 23% of FY26 and validating our strategic approach to store expansion.”
Dhananjay Mirlay Srinivas, page 4 of the filed PDF · View the filing
Debt: around 75 Crores (as on end of June)
p. 8
“Yes, around 75 Crores of the debt as on end of June.”
Alex Varghese, page 8 of the filed PDF · View the filing
Total borrowing including acceptance: around 575 crores (Q1 FY27)
p. 8
“Some of the accptenace where we are bearing the interest cost. So, that will come around 500 crores. Altogether, around 575 crores is the total borrowing, including acceptance.”
Alex Varghese, page 8 of the filed PDF · View the filing
Inventory loss impact: around 10 crores (Q1 FY27)
p. 6
“I think that resulted in erosion of around 10 odd crores, which I think if I factored that in, we would have obviously been at a much another 0.5% bps would have probably gone up in the EBITDA, EBITDA, which means we would have been around 3.8 or so.”
Sukumar Srinivas, page 6 of the filed PDF · View the filing
Fittings and sanitary ware growth: 32% (Q1 FY27)
p. 4
“Our performance for the quarter was driven by a 32% growth in fittings and sanitary ware, our largest product category.”
Dhananjay Mirlay Srinivas, page 4 of the filed PDF · View the filing
Accessories and electricals growth: about 40% (Q1 FY27)
p. 4
“Accessories and electricals grew by about 40%, albeit on a smaller base.”
Dhananjay Mirlay Srinivas, page 4 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.
Steel volume — 1.2 million tons · FY27
stated firmly by Dhananjay Mirlay Srinivas
p. 3
“We remain on course for our 1.2-million-ton steel volume target for FY27.”
Dhananjay Mirlay Srinivas, page 3 of the filed PDF · View the filing
Steel volume growth — 20% · FY27
stated firmly by Dhananjay Mirlay Srinivas
p. 5
“Going forward, we are confident of meeting our projections given in the last quarter, 20% growth in steel volumes and 25% in non-steel.”
Dhananjay Mirlay Srinivas, page 5 of the filed PDF · View the filing
Fulfillment centers added — around five more · coming quarters
stated firmly by Dhananjay Mirlay Srinivas
p. 5
“We have added three fulfillment centers in Q1 and we have plans to add around five more in the coming quarters.”
Dhananjay Mirlay Srinivas, page 5 of the filed PDF · View the filing
EBITDA margin — 3.5%
stated firmly by Sukumar Srinivas
p. 7
“And steady state, we are looking at 3.5% kind of EBITDA margin as we go forward.”
Sukumar Srinivas, page 7 of the filed PDF · View the filing
Non-steel revenue growth — 25% · FY27
stated firmly by Sukumar Srinivas
p. 7
“Yes. That is our guidance and our target for the year.”
Sukumar Srinivas, page 7 of the filed PDF · View the filing
EBITDA margin — around 4% · medium term
stated as an aspiration by Dhananjay Mirlay Srinivas
p. 9
“Yes, I think our target would be in the medium term to go to around 4% EBITDA and maintain our 20% volume growth for steel and 25% for non-steel.”
Dhananjay Mirlay Srinivas, page 9 of the filed PDF · View the filing
Steel volume target of 2 MT — 2 MT · around 4 years
stated as an aspiration by Dhananjay Mirlay Srinivas
p. 9
“And our target would be around 4 years to achieve the 2 MT target.”
Dhananjay Mirlay Srinivas, page 9 of the filed PDF · View the filing
Non-steel share of total volume — about 15% · next three to four years
stated as an aspiration by Sukumar Srinivas
p. 12
“So, we would definitely look at about 15% on the total share of the volume at that time for the non-steel, which is, of course, a very challenging task because the gallop in the non-steel has to also be very, very dramatic.”
Sukumar Srinivas, page 12 of the filed PDF · View the filing
Stock split / subdivision of shares — one share of Rs.10 into five shares of Rs.2
stated conditionally by Sukumar Srinivas
p. 5
“The management has proposed a subdivision or stock split of existing one equity share of the company having a face value of Rs.10 only, to fully paid up, into five equity shares having a face value of Rs.2, fully paid up.”
Sukumar Srinivas, page 5 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 volume growth was already accelerating in June and July and expressed confidence the target would be met barring unforeseen headwinds.
Answered by Sukumar Srinivas
Asked by Viraj Mehta: Is the 1.2 million ton volume guidance achievable given the Q1 run rate?
p. 6
“I think we are already seeing very positive volume growth in the month of June. And I think that trend is continuing in this quarter also having gone through July.”
Sukumar Srinivas, page 6 of the filed PDF · View the filing
Management explained the impact came from inventory losses due to steel price swings and reiterated a steady-state EBITDA margin target of 3.5%.
Answered by Sukumar Srinivas
Asked by Viraj Mehta: What caused the EBITDA margin moderation and what is the steady-state margin?
p. 6
“So, I think, yes, in a steady state, if we do not have the fluctuations of, you know, inventory, I think definitely 3.5 plus is very much our target.”
Sukumar Srinivas, page 6 of the filed PDF · View the filing
Management pointed to strong CP sanitary growth and a rebound in tile demand after the Morbi energy crisis eased.
Answered by Sukumar Srinivas
Asked by Viraj Mehta: Where is the optimism on non-steel growth coming from given weak OEM commentary?
p. 6
“See, in the 1st Quarter, if I just look at the sanitary and the CP sanitary itself, we have grown by about 32%.”
Sukumar Srinivas, page 6 of the filed PDF · View the filing
CFO explained the company opens LCs and discounts them, bearing the interest cost, with acceptances around Rs 500 crore.
Answered by Alex Varghese
Asked by Deepak Poddar: What is the nature of the acceptance-related debt and interest cost?
p. 8
“We will be opening the LC and we will be discounting it and, we are bearing the interest cost.”
Alex Varghese, page 8 of the filed PDF · View the filing
Management confirmed the 20% volume/3.5% EBITDA target and said the medium-term aim is to reach around 4% EBITDA.
Answered by Dhananjay Mirlay Srinivas
Asked by Apoorva: Can 20% revenue growth be expected alongside 3.5% EBITDA margins, and will margins improve in FY28?
p. 9
“Yes, I think our target would be in the medium term to go to around 4% EBITDA and maintain our 20% volume growth for steel and 25% for non-steel.”
Dhananjay Mirlay Srinivas, page 9 of the filed PDF · View the filing
Management estimated around four years given planned territory and store additions.
Answered by Dhananjay Mirlay Srinivas
Asked by Kiran: How long will it take to go from 1.2 MT to 2 MT of steel volume?
p. 9
“And our target would be around 4 years to achieve the 2 MT target.”
Dhananjay Mirlay Srinivas, page 9 of the filed PDF · View the filing
Management cited capacity additions by major steel players, a national target to reach 300 million tons consumption by 2030, and structural shifts in construction methods.
Answered by Sukumar Srinivas
Asked by Anshul Sehgal: What gives management confidence in long-term steel volume growth?
p. 11
“There is a very clear mission from the government as well as from the players, the main steel players, who we are looking at as a country by 2030 to cross the 300 million mark.”
Sukumar Srinivas, page 11 of the filed PDF · View the filing
Management said cash would go toward private label promotion, value-addition investment such as warehousing and cutting capacity, and reducing acceptances.
Answered by Sukumar Srinivas
Asked by Anshul Sehgal: How will cash generated by the business be utilized?
p. 12
“I think one is, as we go forward, we definitely would like to utilize this for our own products, that is, our private labels.”
Sukumar Srinivas, page 12 of the filed PDF · View the filing
Management confirmed acquisitions remain a possibility if suitable targets are found.
Answered by Sukumar Srinivas
Asked by Anshul Sehgal: Are acquisitions being considered?
p. 13
“Definitely on the table. If we find any suitable acquisitions, definitely it will be there.”
Sukumar Srinivas, page 13 of the filed PDF · View the filing
Management said intensity has reduced in recent quarters though pressure remains in select segments like TMT.
Answered by Sukumar Srinivas
Asked by Viraj Mehta: Has competitive intensity from large capital-backed players eased?
p. 13
“But yes, the competitive intensity has come down in the last couple of quarters for sure.”
Sukumar Srinivas, page 13 of the filed PDF · View the filing
Management said it prefers to guide conservatively given inventory volatility is outside its control.
Answered by Sukumar Srinivas
Asked by Rahul Kumar: Adjusting for the inventory loss, margins look higher than guidance of 3.5% — why guide lower?
p. 14
“I think it's always prudent to be cautious. Because if I want to guide more than you will ask me the next time, why was it lower? So, I think it's always safer to be prudent.”
Sukumar Srinivas, page 14 of the filed PDF · View the filing
Management stated the prior quarter had an inventory gain of about Rs 15 crore.
Answered by Sukumar Srinivas
Asked by Rahul Kumar: What was the inventory gain in Q4 of last year?
p. 14
“I think we had a gain of around 15 crores.”
Sukumar Srinivas, page 14 of the filed PDF · View the filing
Risks flagged
Geopolitical tensions and energy inflation from the West Asia conflict weighed on construction activity and market sentiment
p. 3
“Geopolitical tensions arising from the West Asia conflict, the resulting energy inflation, and a challenging macro environment weighed on market sentiment and on construction activities through April and May.”
Dhananjay Mirlay Srinivas, page 3 of the filed PDF · View the filing
Steel price softening in April-May led to cautious purchase behavior by customers
p. 3
“There was a softening of prices by end April and May which resulted in cautious purchase behavior of customers.”
Dhananjay Mirlay Srinivas, page 3 of the filed PDF · View the filing
Energy deficit from the West Asia crisis hit the tile industry particularly hard
p. 4
“The West Asia crisis and subsequent energy deficit hit the tile industry the most.”
Dhananjay Mirlay Srinivas, page 4 of the filed PDF · View the filing
Inventory price fluctuations are outside management's control and can affect margins
p. 14
“Because supposing there's again, I mean, there's inventory in steel is something that, you know, goes up and down, which is not in our control.”
Sukumar Srinivas, page 14 of the filed PDF · View the filing
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