Steamhouse India Ltd — Q2 FY27 earnings call
Summary generated by AI from the official transcript Steamhouse India Ltd filed with BSE on 10 Oct 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
Steamhouse India reported Q1 FY27 steam sales of 3,05,816 tons, up 16.7% year-on-year, with revenue from operations rising 13.35% to INR128.62 crores. EBITDA grew 60.08% to INR30.93 crores with margins expanding to 24.05%, while PAT increased 80.25% to INR18.34 crores. Management attributed the improvement to higher volumes, better capacity utilization, operating leverage, and exit from the low-margin coal trading business.
Numbers mentioned
Steam sales volume: 3,05,816 tons (Q1 FY27)
p. 6
“we recorded steam sales of 3,05,816 tons, representing year-on-year growth of 16.7%”
Vishal S. Budhia, page 6 of the filed PDF · View the filing
Revenue from operations: INR1,286.21 million (Q1 FY27)
p. 6
“The revenue from operations increased by 13.35% to INR1,286.21 million.”
Vishal S. Budhia, page 6 of the filed PDF · View the filing
EBITDA: INR309.32 million (Q1 FY27)
p. 6
“EBITDA grew by 60.08% to INR309.32 million, with EBITDA margins expanding to 24.05%.”
Vishal S. Budhia, page 6 of the filed PDF · View the filing
Profit after tax: INR183.42 million (Q1 FY27)
p. 6
“Profit after tax increased by 80.25% to INR183.42 million.”
Vishal S. Budhia, page 6 of the filed PDF · View the filing
EBITDA margin: 24.05% (Q1 FY27)
p. 7
“EBITDA margin expanded substantially to 24.05% compared with 17.03% in Quarter 1 FY26, an improvement of 702 basis points.”
Vaibhav Gattani, page 7 of the filed PDF · View the filing
EBITDA per ton: INR1,011 (Q1 FY27)
p. 7
“EBITDA per ton increased by 37.17% to INR1,011 in Quarter 1 FY27 from INR737 per ton in Q1 FY26.”
Vaibhav Gattani, page 7 of the filed PDF · View the filing
PAT margin: 14.26% (Q1 FY27)
p. 7
“PAT margin also expanded to 14.26% from 8.97%, an improvement of 529 basis points.”
Vaibhav Gattani, page 7 of the filed PDF · View the filing
Capacity utilization: 41.40% (Q1 FY27)
p. 7
“Utilization increased to 41.40% in Q1FY2027 from 36.06% in Q1-FY2026 and 38.32% in Q4-FY2026.”
Vaibhav Gattani, page 7 of the filed PDF · View the filing
Gross debt: INR359.48 crores (Q1 FY27)
p. 8
“As of Q1 FY2027, gross debt stood at INR359.48 crores compared with INR281.62 crores at the end of FY2026.”
Vaibhav Gattani, page 8 of the filed PDF · View the filing
Revenue from operations: INR491.51 crores (FY2026)
p. 8
“For FY2026, revenue from operations increased 24.4% year-on-year to INR491.51 crores from INR395.11 crores.”
Vaibhav Gattani, page 8 of the filed PDF · View the filing
ROE and ROCE: 22.36% and 16.06% (FY2026)
p. 8
“Our ROE and ROCE for FY2026 stood at 22.36% and 16.06% respectively, reflecting the underlying capital efficiency of the business.”
Vaibhav Gattani, page 8 of the filed PDF · View the filing
Repeat customer revenue share: 99.38% (Q1 FY27)
p. 8
“In quarter one FY2027, the proportion increased further to approximately 99.38%.”
Vaibhav Gattani, page 8 of the filed PDF · View the filing
Steam generated vs traded share: 73.7% own generated, 22.2% traded (Q1 FY27)
p. 22
“in quarter one, 73.7% was the steam that was generated from own boilers. 22.2% was the trade traded steam, we purchased and we sold.”
Vaibhav Gattani, page 22 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.
Steam distribution capacity — approximately 705 tons per hour
stated firmly by Vishal S. Budhia
p. 5
“These initiatives expected to increase our steam distribution capacity from 345 tons per hour currently to approximately 705 tons per hour capacity, providing a strong foundation for long-term growth.”
Vishal S. Budhia, page 5 of the filed PDF · View the filing
Finance costs — FY27
stated conditionally by Vaibhav Gattani
p. 8
“We expect finance costs to moderate during FY27 as we utilize the IPO proceeds to repay high-cost borrowings and optimize the overall debt profile.”
Vaibhav Gattani, page 8 of the filed PDF · View the filing
Capacity utilization — 60% to 65%
stated as an aspiration by Vishal S. Budhia
p. 16
“60% to 65% is the optimum utilization that we wish to take it to.”
Vishal S. Budhia, page 16 of the filed PDF · View the filing
Steam volume growth at company level — 20%, 25%
stated as an aspiration by Vaibhav Gattani
p. 18
“Yes, very comfortably.”
Vaibhav Gattani, page 18 of the filed PDF · View the filing
Under-construction projects commissioning — current financial year
stated firmly by Vaibhav Gattani
p. 12
“four under-construction facilities should go live in current financial year, this is what we are targeting.”
Vaibhav Gattani, page 12 of the filed PDF · View the filing
Tarapur project commissioning — 60 tons per hour capacity · Q4-FY2028
stated firmly by Vaibhav Gattani
p. 12
“The 60 tons per hour capacity, which is in Tarapur, should get live in Q4-FY2028.”
Vaibhav Gattani, page 12 of the filed PDF · View the filing
IPO end-use facilities commissioning — Q1-FY2029
stated firmly by Vaibhav Gattani
p. 12
“the IPO end-use facilities, -- which are in Dahej GIDC, Ankleshwar, and Panoli, should go live in Q1-FY2029.”
Vaibhav Gattani, page 12 of the filed PDF · View the filing
EBITDA per ton — INR1,000 or better · next few quarters
stated conditionally by Vaibhav Gattani
p. 18
“EBITDA per ton of INR1,000 can be safely assumed that it will be maintained in our steam generation and distribution sites for next few quarters, as the new facilities that are coming up are on waste and will definitely help in keeping EBITDA per ton at INR1,000 or better.”
Vaibhav Gattani, page 18 of the filed PDF · View the filing
Working capital cycle — 35 to 40 days positive
stated firmly by Vaibhav Gattani
p. 21
“working capital days going forward between 35 to 40 days positive working capital cycle should be going forward.”
Vaibhav Gattani, page 21 of the filed PDF · View the filing
Una project EBITDA margin — 8% to 10%
stated conditionally by Vaibhav Gattani
p. 17
“We should be getting around 8% to 10% clear-cut margin.”
Vaibhav Gattani, page 17 of the filed PDF · View the filing
EBITDA CAGR — 30% to 35%
stated as an aspiration by Vishal S. Budhia
p. 22
“We will try. Yes. We hope so.”
Vishal S. Budhia, page 22 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 coal trading was low margin and expects steam margins to be maintained or improved now that it has stopped.
Answered by Vishal S. Budhia
Asked by Sagar Tanna: Will exiting the coal trading business help stabilize EBITDA margins going forward?
p. 9
“we feel that the margin levels can be maintained and can be even better going forward.”
Vishal S. Budhia, page 9 of the filed PDF · View the filing
Management said about 70% of capacity is tied up and agreements include non-exit clauses preventing early termination.
Answered by Vaibhav Gattani
Asked by Sujal Jhanwar: Is the 345 ton per hour capacity backed by 100% contracts, and can customers terminate contracts early?
p. 10
“Out of the 345 tons per hour capacity installed, we have -- around 70% capacity tied up for the for the customers.”
Vaibhav Gattani, page 10 of the filed PDF · View the filing
Management explained a 9% revenue share with the Himachal Pradesh authority, recovered from end customers rather than from Steamhouse.
Answered by Vaibhav Gattani
Asked by Sujal Jhanwar: What is the revenue sharing structure for the Una project?
p. 11
“we would be sharing 9% revenue, but that cost would be recovered from the end consumer only.”
Vaibhav Gattani, page 11 of the filed PDF · View the filing
Management detailed remaining capex of about INR60 crores for current projects and INR170 crores for further expansion over the next 15-18 months.
Answered by Vaibhav Gattani
Asked by Ajit Sethi: What capex is required to reach 705 tons per hour capacity and when will it be operational?
p. 11
“We'll have to do around another, INR60-odd crores of capex to take all these four projects live.”
Vaibhav Gattani, page 11 of the filed PDF · View the filing
Management said the intent is to raise utilization to 60-65%.
Answered by Vishal S. Budhia
Asked by Bhupesh: What utilization level is management targeting from the current 41%?
p. 16
“Our intent is to take this utilization to 60% to 65% of and with our experience and learning in the last decade”
Vishal S. Budhia, page 16 of the filed PDF · View the filing
Management described a fortnightly billing cycle with 7-15 day realization and a historical cash flow to EBITDA ratio of around 1.2x.
Answered by Vaibhav Gattani
Asked by Pratik Srivastava: What are receivable days and the CFO to EBITDA ratio?
p. 16
“With regards to cash flow from operations, it was around with compared to the EBITDA, last time it was around 1.2 times.”
Vaibhav Gattani, page 16 of the filed PDF · View the filing
Management indicated 5-10% growth from existing locations plus incremental growth from new capacity, and confirmed 20-25% company-level growth is achievable.
Answered by Vishal S. Budhia
Asked by Deepak Poddar: What steady-state volume growth should be expected given current utilization and capacity additions?
p. 17
“Yes we can expect similar growth in at least, say, 5% to 10% for the current locations where we are already there, with the current installed capacity on smaller numbers.”
Vishal S. Budhia, page 17 of the filed PDF · View the filing
Management attributed the gap to better utilization, leverage from waste-to-energy projects, and a changing customer mix.
Answered by Vishal S. Budhia
Asked by Mihir Dhami: Why did steam revenue grow 46% while volume grew only 17%?
p. 21
“one reason for improvement in realization per ton was, one, better utilization and better leverage of the existing assets.”
Vishal S. Budhia, page 21 of the filed PDF · View the filing
Management said working capital days should be 35-40 days positive going forward, aided by the shift from credit to cash coal purchases.
Answered by Vaibhav Gattani
Asked by Aryavardan: What is the outlook on working capital and what is driving the improvement?
p. 21
“we have converted entire credit purchases to cash purchases. So, that is also helping us in improving the margins”
Vaibhav Gattani, page 21 of the filed PDF · View the filing
Management said the comment applies to both metrics broadly, described it as an attempt rather than a commitment, and said it hopes to beat the prior EBITDA CAGR guidance.
Answered by Vishal S. Budhia
Asked by Vedant: Did the full-year growth guidance of maintaining Q1 momentum refer to EBITDA or revenue, and will the company beat the 30-35% EBITDA CAGR guidance?
p. 22
“We are not saying that we will maintain.”
Vishal S. Budhia, page 22 of the filed PDF · View the filing
Management said these were funded through debt and NCDs previously, and part of IPO proceeds were used to reduce that debt.
Answered by Vaibhav Gattani
Asked by Prateek Srivastava: If the green capacity at Nandesari, Vapi and Pirana is not funded by IPO proceeds, how was it funded?
p. 23
“these four under-construction facilities were already funded through debt and non-convertible debentures in past.”
Vaibhav Gattani, page 23 of the filed PDF · View the filing
Risks flagged
Monsoon season creates operational challenges including wet fuel and flooding of industrial clusters
p. 9
“monsoons are generally challenging for us due to various reasons. One being, the fuel that we procure is generally wet because it's a big volume.”
Vishal S. Budhia, page 9 of the filed PDF · View the filing
Steam loss during transmission due to condensation
p. 13
“It can be between 3% to 7% again.”
Vishal S. Budhia, page 13 of the filed PDF · View the filing
Q2 EBITDA typically impacted due to monsoon seasonality
p. 18
“Q2 of every financial year is an exception, considering EBITDA gets impacted on account of monsoon.”
Vaibhav Gattani, page 18 of the filed PDF · View the filing
Prior downturn in chemical and pharma industry demand reduced volume growth
p. 17
“We also went through tough phases when these industries were not consuming steam in '24, '25, '26.”
Vaibhav Gattani, page 17 of the filed PDF · View the filing
Sarigam facility initially missed a large customer resulting in lower utilization
p. 20
“Sarigam was a project where we initially missed a big customer there and could not onboard him, and project was running on a lower capacity.”
Vishal S. Budhia, page 20 of the filed PDF · View the filing
Related party steam purchase arrangement with Sanjoo Dyeing continues for the near term
p. 17
“this the steam purchase from Sanjoo Dyeing can stop. But at least for next few quarters, this will continue.”
Vaibhav Gattani, page 17 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.
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More Q2 FY27 earnings calls, in alphabetical order