When chemistry meets customs duty, sparks fly — and not in a good way. Yasho Industries’ Q2FY26 call had all the drama of a lab experiment gone slightly wrong: tariffs dampened exports, utilization dipped, but management insisted it was all “under control.” A 15-year deal, a fancy new R&D lab, and cautious optimism made the mix volatile yet fascinating. The numbers may look benign, but the undertone was clear — Yasho’s reacting, not combusting.Stick around, because as chemistry gets political, things are about to bubble.
At a Glance
- Revenue up 9.6% YoY:CFO swears it’s resilience, not random reactions.
- EBITDA margin 18.2%:Stable, like an inert gas — for now.
- PAT margin 2.65%:Barely visible under a microscope.
- Volume up 30%:Growth molecule’s still intact despite tariff contamination.
- Stock guidance revised to ₹800–850 cr:Management diluting expectations responsibly.
- Debt rising:Balance sheet flexed — maybe too much caffeine in the solvent.
Management’s Key Commentary
“Revenue for half year stood at ₹382.6 crore, up 11.8% YoY with 30% volume growth.”(Translation: We sold more stuff, but at bargain-bin prices. Thanks, tariffs.)
“Profitability improved sequentially, reflecting operating discipline.”(Or maybe everyone’s just too scared to spend money.)
“Pakhajan facility ran below optimal utilization due to trade restrictions.”(The plant’s basically doing yoga — lots of balance, minimal movement.)
“15-year supply deal with a global MNC to add ₹150 crore annual revenue by FY27-end.”(When your customer funds your capex, it’s either trust or desperation — take your pick 😏)
“We commissioned a new ₹23 crore R&D lab.”(Translation: Fancy lab, praying for fancy margins.)
“Tariffs have impacted 40% of our U.S. business.”(That’s not a tariff — that’s a sledgehammer.)
“We’re targeting ₹800–850 crore revenue instead of ₹900–1,000 crore.”(Welcome to guidance moderation therapy — one cautious statement at a time.)
Numbers Decoded
| Metric | Q2FY26 | YoY Growth | Comment |
|---|---|---|---|
| Revenue | ₹183.6 cr | +9.6% | Volume up, prices down – economics 101 |
| EBITDA Margin | 18.2% | Flat | The margin held like duct tape |
| PAT Margin | 2.65% | Slightly down | Profit got tariffed |
| Half-year Revenue | ₹382.6 cr | +11.8% | Strong volumes save the day |
| Utilization (Pakhajan Plant) | <50% | ↓ | Tariffs hit harder than monsoon rains |
| Expected FY26 Revenue | ₹800–850 cr | ↓ from ₹1,000 cr | Guidance, meet reality check |
Comment:Yasho’s chemistry with numbers looks stable on paper, but tariffs have corroded its export pipeline.
Analyst Questions
Q:“Is the MNC funding your project?”A:“Yes, but ask them why.”(Translation: Free money, no questions, please.)
Q:“Why such low utilization?”A:“Trade restrictions. And cosmic alignment issues.”
Q:“Can you drop prices to sell more?”A:“Nope. We’d rather stare at idle reactors than cut prices.”
Q:“Debt looks high — any reduction plan?”A:“No. But we’ll look richer relative to EBITDA.”
Q:“Tariffs gone tomorrow?”A:“We’d hit ₹900 crore in revenue instantly.”(Maybe we should all pray for policy reform, not profits.)
Guidance & Outlook
Management now expects₹800–₹850 crorerevenue for FY26, down from earlier ₹1,000 crore. EBITDA margin expected to stay17–19%, proving
