Tarsons Products Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Tarsons Products Ltd filed with BSE on 01 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
Tarsons reported its highest-ever quarterly revenue in Q4 FY26 at INR121 crores on a consolidated basis, up 7.4% year-on-year, while FY26 consolidated revenue was INR426 crores, up 7.7%. Domestic standalone revenue grew strongly while exports declined due to Middle East geopolitical disruption and elevated raw material and freight costs, which also compressed gross and EBITDA margins in the quarter. Management said the large capex program is nearing completion, with full commissioning expected in the first half of FY27, and that depreciation and interest costs weighed on PAT during the year.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated revenue: INR121 crores (Q4 FY26)
p. 3
“Our revenue stood at INR121 crores, reflecting a year-on-year growth of 7.4%, while the revenue for FY'26 stood at INR426 crores, registering a growth of 7.7% year-on-year.”
Aryan Sehgal, page 3 of the filed PDF · View the filing
Standalone revenue: INR97 crores (Q4 FY26)
p. 3
“On a stand-alone basis, our revenue for Q4 FY'26 stood at INR97 crores as compared to INR93 crores in Q4 FY'25, representing a 4.4% growth year-on-year.”
Aryan Sehgal, page 3 of the filed PDF · View the filing
Export revenue decline: 13.4% (Q4 FY26)
p. 4
“Overall revenue growth, however, was impacted by a decline of 13.4% in the export business during Q4 FY'26, which was largely due to the ongoing geopolitical tensions and warlike situation in the Middle East.”
Aryan Sehgal, page 4 of the filed PDF · View the filing
Standalone revenue FY26: INR332.9 crores (FY26)
p. 6
“Revenues for FY '26 stood at INR332.9 crores, reflecting a growth of 6% year-on-year.”
Santosh Agarwal, page 6 of the filed PDF · View the filing
Gross margin: 58.5% (Q4 FY26)
p. 6
“Gross margin for the standalone business in Q4 FY'26 stood at 58.5% impacted mainly by high raw material costs arising from volatility in commodity prices.”
Santosh Agarwal, page 6 of the filed PDF · View the filing
EBITDA (standalone): INR32.6 crores (Q4), INR110.1 crores (FY26) (Q4 FY26 / FY26)
p. 6
“EBITDA for Q4 FY'26 and FY'26 stood at INR32.6 crores and INR110.1 crores, respectively.”
Santosh Agarwal, page 6 of the filed PDF · View the filing
PAT (standalone): INR5.5 crores (Q4), INR22.7 crores (FY26) (Q4 FY26 / FY26)
p. 6
“PAT for Q4 FY'26 stood at INR5.5 crores while FY'26 PAT stood at INR22.7 crores, profitability was impacted by higher depreciation and interest expenses associated with the new capex.”
Santosh Agarwal, page 6 of the filed PDF · View the filing
Adjusted cash PAT (standalone FY26): INR111.1 crores (FY26)
p. 6
“Adjusted cash PAT for Q4 FY'26 stood at INR31.9 crores while FY'26 adjusted cash PAT stood at INR111.1 crores, reflecting a growth of 15% year-on-year.”
Santosh Agarwal, page 6 of the filed PDF · View the filing
Consolidated revenue FY26: INR422.5 crores (FY26)
p. 6
“while FY'26 consol revenue stood at INR422.5 crores, reflecting a growth of 7.7% year-over-year.”
Santosh Agarwal, page 6 of the filed PDF · View the filing
Consolidated EBITDA margin: 28.3% (Q4 FY26)
p. 6
“EBITDA for Q4 FY'26 stood at approximately INR34.3 crores while an EBITDA margin of 28.3%.”
Santosh Agarwal, page 6 of the filed PDF · View the filing
Consolidated PAT FY26: INR14.3 crores (FY26)
p. 6
“PAT for FY'26 stood at INR14.3 crores.”
Santosh Agarwal, page 6 of the filed PDF · View the filing
Consolidated adjusted cash PAT: INR112 crores (FY26)
p. 6
“Adjusted cash PAT for Q4 FY'26 stood at INR33 crores, reflecting a growth of 9.3% year-on-year while FY'26 adjusted cash PAT stood at INR112 crores, representing a strong growth of 21.4% year-on-year.”
Santosh Agarwal, page 6 of the filed PDF · View the filing
Cash flow from operations (consol): INR118 crores (FY26)
p. 6
“At a consol level, we have marginally improved our cash flow from operations to INR118 crores compared to INR114 crores despite lower profitability in FY'26.”
Santosh Agarwal, page 6 of the filed PDF · View the filing
CWIP: INR158 crores
p. 8
“And still in our balance sheet, INR158 crores of CWIP is there, that will get moved to main asset segment in FY'27 and additional depreciation will come from that as well.”
Santosh Agarwal, page 8 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.
Capex commissioning — full commissioning of capex program · H1 FY27
stated firmly by Aryan Sehgal
p. 5
“We expect the entire capex program to be fully commissioned during the first half of the current financial year.”
Aryan Sehgal, page 5 of the filed PDF · View the filing
Standalone depreciation — INR105 crores to INR110 crores · FY27
stated firmly by Santosh Agarwal
p. 8
“Only thing is that the depreciation amount will be in the range of INR105 crores to INR110 crores. That will be the peak for us.”
Santosh Agarwal, page 8 of the filed PDF · View the filing
Capex plan — no major capex, approx INR20 crore maintenance · FY27
stated firmly by Santosh Agarwal
p. 8
“There is no additional capex plan. Whatever capex is pending and whatever CWIP is there, we are just completing that.”
Santosh Agarwal, page 8 of the filed PDF · View the filing
Maintenance capex — Approx INR20 crore · FY27
stated firmly by Santosh Agarwal
p. 8
“Approx INR20 crore.”
Santosh Agarwal, page 8 of the filed PDF · View the filing
PAT — single-digit PAT margin · FY27
stated as an aspiration by Aryan Sehgal
p. 5
“For FY'27 PAT is likely to remain at a relatively moderate level.”
Aryan Sehgal, page 5 of the filed PDF · View the filing
Cell culture ramp-up — significant momentum · end of FY27 / beginning of FY28
stated conditionally by Aryan Sehgal
p. 8
“It should be towards the end of fiscal '27 -- fiscal -- beginning of fiscal '28, we should start seeing a lot of momentum because we've launched this product.”
Aryan Sehgal, page 8 of the filed PDF · View the filing
Debt to EBITDA — not more than 2x EBITDA
stated as an aspiration by Aryan Sehgal
p. 14
“I would ideally in a situation -- in an ideal situation, not want debt to increase more than 2x our EBITDA.”
Aryan Sehgal, page 14 of the filed PDF · View the filing
Gross margin — not below 65% · Q1 FY27
stated conditionally by Santosh Agarwal
p. 18
“It is difficult to give you the exact guidance, but we believe that the margin should not go below 65%.”
Santosh Agarwal, page 18 of the filed PDF · View the filing
Q1 margins — similar to Q4 levels · Q1 FY27
stated conditionally by Aryan Sehgal
p. 18
“It shouldn't be worse, but should be in similar regions.”
Aryan Sehgal, page 18 of the filed PDF · View the filing
Domestic business growth — strong stable growth · next 2-3 years
stated as an aspiration by Aryan Sehgal
p. 15
“So, what we expect is we expect good growth from the domestic market, strong stable growth from the domestic market over the next 2 to 3 years, primarily because of our position and our base in the domestic market.”
Aryan Sehgal, page 15 of the filed PDF · View the filing
International growth — significantly higher than domestic growth percentages · next 3-4 years
stated conditionally by Aryan Sehgal
p. 15
“And so we could -- depending on geopolitical situations, economic tariff situations and everything being in order being in place, the speed at which we could convert contracts, the growth may not be very homogeneous over the next 3, 4 years, but there could be some strong years of growth when we win contracts and win ODM businesses.”
Aryan Sehgal, 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 depends on customer segment and that Tarsons faces price competition from domestic and Chinese players but wins some contracts based on value delivered.
Answered by Aryan Sehgal
Asked by Rushabh Shah: How does Tarsons compete against lower-cost, better-reputed contract manufacturers in export markets?
p. 7
“There is a lot of price competition from domestic players in India exporting as well as from Chinese players.”
Aryan Sehgal, page 7 of the filed PDF · View the filing
CFO said depreciation method remains written down value with FY27 standalone depreciation expected to peak at INR105-110 crores, with no major additional capex planned beyond ~INR20 crore maintenance.
Answered by Santosh Agarwal
Asked by Avnish Tiwari: What is the expected depreciation rate and capex for FY27 and FY28?
p. 8
“We are following written value method and the depreciation on machine and mold is 18% and building is 10%.”
Santosh Agarwal, page 8 of the filed PDF · View the filing
Management expects a slow initial launch phase with significant scale-up starting from year 2 as customers validate and onboard the products.
Answered by Aryan Sehgal
Asked by Avnish Tiwari: How will the cell culture business ramp up over the coming years?
p. 8
“We would expect slower ramp-ups as we've commercially launched certain cell culture lines in the market over the last 2 to 3 months.”
Aryan Sehgal, page 8 of the filed PDF · View the filing
Management said it could not confirm strong export growth due to a sharp ongoing raw material price spike affecting competitiveness.
Answered by Aryan Sehgal
Asked by Jasdeep Walia: Should exports grow strongly in FY27 now that duties are eased?
p. 10
“I would not be able to answer that clearly because at this point of time, we have a significant spike in raw materials as we speak, right?”
Aryan Sehgal, page 10 of the filed PDF · View the filing
Management said Chinese competition remains fierce and Chinese manufacturers have a long-standing lead in international markets.
Answered by Aryan Sehgal
Asked by Jasdeep Walia: Has Chinese competition in the US and Europe increased?
p. 11
“The Chinese make very high-quality products.”
Aryan Sehgal, page 11 of the filed PDF · View the filing
Management attributed improvement mainly to clearing of excess inventory built up during COVID rather than reduced competition, alongside rising private sector investment.
Answered by Aryan Sehgal
Asked by Aditya: What has changed in domestic market demand conditions over the last 6-7 months?
p. 12
“So, what we are seeing is not so much of a rationalization of competition, but more clearing out of inventory, which would not be reordered again.”
Aryan Sehgal, page 12 of the filed PDF · View the filing
Management said prices are being gradually increased on a product-by-product basis but the entire cost increase cannot be passed on to customers.
Answered by Aryan Sehgal
Asked by Aditya: Are price hikes being taken to offset rising raw material costs?
p. 12
“So, we are looking to gradually increase pricing because at 60% or 70% raw material price hikes, it is a large cost increase, and we would not be able to support such a large cost increase by absorbing it.”
Aryan Sehgal, page 12 of the filed PDF · View the filing
Management said the situation differs from COVID because demand today is not exceptionally elevated, even though supply remains constrained.
Answered by Aryan Sehgal
Asked by Nikhil Upadhyay: Is the current raw material supply constraint benefiting Tarsons versus smaller players, similar to COVID?
p. 14
“There is no comparison between COVID demand and today's demand.”
Aryan Sehgal, page 14 of the filed PDF · View the filing
Management explained pricing must remain sustainable and rational for the long term rather than reactive to short-term material cost swings.
Answered by Aryan Sehgal
Asked by Madhur Rathi: Why does raw material volatility affecting gross margin matter given exports are a high-margin business?
p. 15
“So, while a 60%, 70% increase in material margin might just affect our gross margin by from 70%, it might take it to 58% or 57% and might look healthy, it may not be sustainable in the long term.”
Aryan Sehgal, page 15 of the filed PDF · View the filing
CFO said losses are not expected, citing EBITDA margins of 33-34% and continuing PAT generation despite higher depreciation.
Answered by Santosh Agarwal
Asked by Vibhor Talreja: Are accounting losses expected in coming quarters given rising depreciation?
p. 18
“No, Sir, we don't expect accounting losses will be there.”
Santosh Agarwal, page 18 of the filed PDF · View the filing
Management said large one-time price increases could invite competitors to undercut them given existing low-cost inventory in the market.
Answered by Aryan Sehgal
Asked by Raman KV: What is stopping Tarsons from taking a full price hike to offset raw material costs?
p. 19
“Any price increase, which is not standard, which would translate to 30%, 40% price increase price over price gives a very strong opportunity for other players to enter other players to take advantage of it.”
Aryan Sehgal, page 19 of the filed PDF · View the filing
Risks flagged
Geopolitical conflict in the Middle East disrupting global supply chains and export shipments
p. 4
“This has significantly disrupted global supply chains, leading to shipment delays across our international markets.”
Aryan Sehgal, page 4 of the filed PDF · View the filing
Sharp rise in raw material prices compressing gross margins
p. 4
“While the margins for Q4 and FY'26, both the gross margin and the EBITDA margin witnessed some decline due to a significant increase in the raw material prices during February and March, driven by commodity price movements and global supply chain disruptions.”
Aryan Sehgal, page 4 of the filed PDF · View the filing
Higher depreciation and interest costs from new capex pressuring PAT
p. 4
“PAT for both Q4 and FY'26 was impacted by higher depreciation and interest costs following the commissioning of the new capex.”
Aryan Sehgal, page 4 of the filed PDF · View the filing
Raw material price increases making Tarsons less competitive internationally
p. 10
“So, this makes us slightly non-competitive in international markets.”
Aryan Sehgal, page 10 of the filed PDF · View the filing
Rupee depreciation increasing cost of imported raw materials
p. 12
“So, all these things always play favorably to make in India producers, not only Tarsons, but anybody else who produces in India because for us, the only component which is being imported where we are paying the higher price for the rupee depreciation is the raw material.”
Aryan Sehgal, page 12 of the filed PDF · View the filing
Uncertainty over how long the raw material price spike will persist
p. 18
“See, the thing is we are still not sure about how long this price increase is going to last because the way we work in India is we work on price lists, which are circulated to distributors and printed and sent to customers all across India.”
Aryan Sehgal, page 18 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.