1. Opening Hook
While most manufacturers pray for stable prices, GSM Foils seems to dance on aluminium’s volatility like it’s their favorite playlist. With pharma booming and foils flying, the company’s CFO sounded more like a Bollywood producer—talking expansion, capacity, and “structural tailwinds.” Ahmedabad’s getting a new 17,000 sq. ft. foil temple, Vasai is running hot, and margins are flexing harder than ever.But wait—there’s a twist. Can a Rs. 5 crore CAPEX plant really mint Rs. 250 crore revenue? Keep reading, it gets shinier (and funnier).
2. At a Glance
- Revenue up 86% YoY:CFO insists it’s execution, not Excel wizardry.
- EBITDA ₹6.64 crore (+107%):The foil didn’t just wrap profits—it doubled them.
- EBITDA Margin 11.4% (↑115 bps):Cost control finally joined the party.
- PAT ₹4.39 crore (+107%):Profits levitated faster than aluminium futures.
- PAT Margin 7.56%:Operating leverage finally showed up in real life.
- CAPEX ₹4.5–5 crore (Ahmedabad):A small cheque for big dreams.
- Capacity Utilization 70–72%:Vasai plant still has 20%+ fuel in the tank.
3. Management’s Key Commentary
“Revenue stood at ₹58 crore, up 86% YoY.”(Translation: Aluminium prices rose, and we didn’t complain.)😏
“EBITDA margin improved 115 bps to 11.43%.”(Translation: We squeezed every last paisa from our foil rolls.)
“Ahmedabad unit will be operational by December.”(Translation: New factory smell incoming—expect chaos before calm.)
“No major CAPEX planned for 6–8 months.”(Translation: We’re broke till this plant starts printing profits.)
“Working capital cycle steady at 60–65 days.”(Translation: Customers love credit; we love praying for payments.)
“Cash flow negative due to inventory build-up.”(Translation: We hedge aluminium like it’s Bitcoin.)
“We aim ₹230–250 crore revenue this year.”(Translation: Optimism > Spreadsheet reality, but sure, let’s manifest it.)😎
4. Numbers Decoded
| Metric (₹ Cr) | Q2 FY26 | Q2 FY25 | Change YoY | Commentary |
|---|---|---|---|---|
| Revenue | 58.0 | 31.2 | +86% | Demand up, prices up, CFO smiling |
| EBITDA | 6.64 | 3.21 | +107% | Operating leverage in action |
| EBITDA Margin (%) | 11.43 | 10.82 | +115 bps | Margins shining like foil |
| PAT | 4.39 | 2.12 | +107% | Profit doubled faster than CAPEX spend |
| PAT Margin (%) | 7.56 | 6.80 | +76 bps | Efficiency and scale magic |
| CAPEX (Ahmedabad Unit) | 4.5–5.0 | NA | New | 17,000 sq.ft leased facility |
| Utilization (Vasai) | 70–72% | 60% | +10 pts | Pushing to 90%+ soon |
Small plant, big dreams. GSM Foils is trying to be Hindalco’s younger, more caffeinated cousin.
5. Analyst Questions
Q:Revenue guidance—₹240 crore doable?A:“Yes, 230–250 crore achievable; Ahmedabad may add more.”(Translation: Manifesting with Excel open.)
Q:CAPEX beyond Ahmedabad?A:“None for 6–8 months.”(Translation: Wallet cooling off period.)
Q:Cash flows negative—concern?A:“No worries, margins compensate.”(Translation: We’ll survive; banks know us well.)
Q:Margins sustainable if aluminium prices fall?A:“Yes, only 1–2% impact.”(Translation: We’ll talk positive till metal melts.)
6. Guidance & Outlook
FY26 revenue guidance of ₹230–250 crore stands tall on aluminium’s shoulders and pharma’s hunger. The company assumes steady demand, no commodity crash, and a divine absence of “logistics gremlins.”EBITDA margins are
