Jyoti Resins and Adhesives Ltd (BSE: 514448) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Utkarsh Patel — Managing Director
Analysts:
Unidentified Participant
Smith Gala — Analyst
Mahek Sanghvi — Analyst
Presentation:
operator
Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team, I welcome you all to the Q1FY26 post earnings conference call of Jyoti Resident Adhesives Limited today on the call from the management team we have with us Mr. Utkarsh Patel, Promoter and Managing Director and Mr. Samish Shah, Chief Marketing Officer. As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded. I would now request the management to give us the opening remarks detailing us about the business and performance highlights for the quarter ended June 2025 and their plans for the coming year.
Post which we will open the floor for Q and A Over to you.
Utkarsh Patel — Managing Director
Good morning to all investors and analysts. I welcome you all to the quarter one FY26 post running call of Jyoti Resins and other limited quarter one has been an eventful quarter for us signified by kick starting of our advertising, marketing and branding campaign with not noted actor and celebrity and our brand ambassador Mr. Pankatri Pathi. We have released multiple advertisements across several TV channels like Ashtak India TV, CNBC, Z Business etc also on Instagram, Facebook and other digital mediums. To provide the necessary push to our Pan India growth plans, we have established our presence in 14 states with Delhi and UP being our newest states.
Our aim is to widen our offerings in existing and new states and increase our penetration in existing states. Our top five states contribute to 75 to 80% of our overall sales volumes. However, other states have witnessed good initial traction to our ground level efforts. Quarter one witnessed early monsoons which lead to softness in the demand for good adhesives and I’m sure has also impacted several other related industries. However, while other competitors witnessed sharp drop in sales, we were able to keep our volume drop within 3% lower threshold of what we achieved last year. This was further supported by our continued efforts in the trade with more than 30 dealer mates and mega mates of our end users carpenters conducted in April and May month across territories.
Our latest investor presentation uploaded to Access Exchanges has highlighted our latest ad campaigns with links to the ads as well as pictures of some of the dealer meets conducted. We continue to operate at 60 70% capacity utilization rates. We are looking to increase our Brownfield capacity by 1500 tons per month over a period of next 6 to 12 months which will take our total capacity to 3500 tons per month Thereby enhancing our ability to produce and sell more get operating leverage on higher volumes as well as be competitive in the market. The total capex expected in this brownfield expansion will totally not be more than 10 crore rupees.
Further to this we are trying to scout the land of our next greenfield expansion on the outskirts of the city. As and when we move forward on this we will keep you updated. Overall we continue to be focused on reaching 500 crore turnover mark over the next three years lead by volume growth. We also continue to guide for a long term 22 to 25% EBITDA margin range as we have always done in the past. We are working hard on the ground level as well using all available opportunities for branding, marketing, advertising and trend marketing to scale up and maintain our number two positions in the synthetic wood adhesive space.
Now I’m opening the floor for questions.
Questions and Answers:
operator
Thank you sir. We’ll take the first question on the line from Mr. Smith. Gala Smith, you can go ahead please.
Smith Gala
Yeah sir, there are. I have two or three questions. The EBITDA margins as guided. As guided have come down because the increase in marketing spends but at the same time the revenues have not catched up to that. That was question one and uh. With with the guided revenue catching up in the year to follow there was guidance that the operating leverage will help the EBITDA margins to not go down. So what’s your take on that?
Utkarsh Patel
So as I mentioned that Quatern 1 was soft due to the demand and because of the early monsoon was there and that affect the business all the building construction material and we have. We have done the trade marketing in April and May month so that leverage will be give us the for the long years so it is not the immediate jump we can get increase into the revenue and but we are trying our best and we are on onto the ground level efforts with our trades and with our end users also so we are very confident about the next 23 years of journey what we are taking and lifting this organization from that year.
Smith Gala
Okay so the full year guidance for revenue growth is now is it adjusted?
Utkarsh Patel
So that is the. That is not the. It’s a buy by 3% of drop in the volume as a quarter one but we have three more quarters to cover that and. And we are optimistic for the after Diwali the market will be open a t that level that we can cover our volume growth.
Smith Gala
Okay and EBITDA margins will stay for 2225 there will be no operating leverage with other volume growth guidance.
Utkarsh Patel
See we, we, we have always guided that 20 to 25% EBITDA for the longer term. But right now as you can see that is 27.5% VLAN. And because of the trade marketing aggressively we done into the April and May month, we done the more than 30 dealer meets and several mega meats for our end users also so that expenses come into this quarter. But I think 70, 80% territories is already covered with this trade marketing. So within this next nine months trade marketing will be less as compared to the quarter one. But we will continue about the brand communications what we have guided for that.
So we are, we are, I think, I think we are optimistic for the 27 to 28 EBITDA for this year throughout the four quarters.
Smith Gala
Okay, so for this year it will be 27 to 28 and going forward it will shrink with volumes.
Utkarsh Patel
Right.
Smith Gala
So but going forward after this year the volumes increasing will not help the operating leverage to keep the margins at 27 or 28.
Utkarsh Patel
That, that, that can help. Of course if, if we can grow by the volume then that will get that of course. But, but we want to be give the conservative guidance to the investors. So that’s why I’m kicking, keeping the 27, 28 figure.
Smith Gala
Okay, thank you. That was helpful.
Utkarsh Patel
Thank you.
operator
Thank you. We’ll take the next question from Aditi. Aditi.
Unidentified Participant
Hello. Am I audible?
Utkarsh Patel
Yeah. Yeah.
Unidentified Participant
Okay. So are you stepping up sales promotion expenses in your top five matured markets?
Utkarsh Patel
See, it’s, it’s, it’s about the, the customizations. Right now we, we monitor the territories and where we found the more competitive market and we don’t want to lose the customer. So we modified our sales promotions offers within the territory so that customizations programs and that CRM we are into that and to build the more deep to, to the deep penetration within this end users criteria and everything. So yeah, so we, we, we do the customizations in a way that we can not lose the market shares.
Unidentified Participant
Okay. Customer customization in the sense that of different from matured markets. Different for matured markets and newer markets.
Utkarsh Patel
Yes.
Unidentified Participant
Okay, so what can you just list down few of the methods which are, which differentiates both of them like in the ways you do the sales promotion expenses there.
Utkarsh Patel
See basically in a newer markets it, it is initial stage. We want to push our product, we want to do placements of our products into the shops, into the retail counters. So that is, that is the program that how can we give Them that comfort to associate with us with a new brand example in UP and Delhi. So right now we have do the placement of 550 counters in UP. So it is, it is a different strategy as compared to the Gujarat. Because Gujarat is already accepted market for the. For our brand and UP is a newer market.
So we do small small programs. Small small placements like 50kg 100kgs placements into that sales promotion offers. So and and in in Gujarat it is volume based loyalty based offers. So like this.
Unidentified Participant
So since you mentioned that Gujarat is already a well established market. So why do you think there lies a need of doing promotion expenses there?
Utkarsh Patel
Sorry, why.
Unidentified Participant
Why do you think the need lies to do the sales promotion in the markets of Gujarat?
Utkarsh Patel
So it is, it is the customer satisfactions and the loyalty about that. So we don’t want to lose the marketers. We are keeping our margin at that level into the Gujarat. But, but, but few things is requires. Is requires. So we believe that we should focus about the long term association with the. The carpenters or the dealers. So it is not like that. We keep our margin and we just shut down all the promotions and discounts and not pass to them. I, I, I don’t think so that is the right strategy for that.
Unidentified Participant
Okay. And so how much do you expect to spend on TV ads on a quarterly basis?
Utkarsh Patel
So we are targeting for 7 to 8% of total revenue for the entire year. So half will be into the trade marketing and half will be into the brand communication. So so you can consider 4% around of the revenue.
Unidentified Participant
4% of brand on brand communication comprises of TV ads and the one which we spend on brand ambassador, right?
Utkarsh Patel
No, it is about the, the brand communication. So it is about the TVC if we go about the prints or media or any kind of outdoor hoodings or etc. So that considers the brand communications.
Unidentified Participant
Okay sir. Thank you.
Utkarsh Patel
Thank you.
operator
Thank you. We’ll take the next question from Mahek Sanghvi.
Mahek Sanghvi
My question is why the other expenses have shot up this quarter in comparison to the last quarter. Even the last year’s quarter.
Utkarsh Patel
So so mostly the expenses is into the sales promotion offers this time and other expenses you are considering it is about the transportation cost and other branding and advertising. So how you can you can you elaborate how you compare with the quarter. Quarter three of last year or what?
Mahek Sanghvi
Yeah, quarter four also and even shorter one of last year.
Utkarsh Patel
Yeah because because we we do the more expenses into the April and May month. So that is the reason. And March and February month was the, the revenue month. So we we cut down that expense.
Mahek Sanghvi
Okay.
Unidentified Speaker
This will also include expenses towards Brand Ambassador and the events and all that we’ve conducted.
Mahek Sanghvi
Okay. Okay, thank you. And another question I wanted to ask. Is the raw material cost is very less compared to other competitors like PV Light or HP Adhesives. So do we have any cost optimization in place here?
Utkarsh Patel
So the difference is the. The product portfolio. They have the so many products within the the basket. So we cannot consider the same raw material as that. So. So there is a different paints, epoxy, other seals, constructor chemicals are there into their portfolio and we are into the wide glue. So that’s why there is a no comparison for that.
Mahek Sanghvi
Okay, and what is the capacity utilization in this quarter?
Utkarsh Patel
For this quarter one you are saying?
Mahek Sanghvi
Yeah, for quarter one.
Utkarsh Patel
So it was around 65 to 70% of classics capacity.
Utkarsh Patel
Okay. Okay, thank you.
Utkarsh Patel
Thank you.
operator
We take the next question from Shanti Saravi.
Unidentified Speaker
Not audible. Can you please repeat this?
Unidentified Participant
So my question was in regard for sales function expenses. Second last, it’s almost 50% only this.
Utkarsh Patel
Other very muffled. Okay, Cannot hear you proper.
operator
Your voice is breaking. You can send us the question on the chat.
Unidentified Participant
Yeah, maybe I’ll join. I’ll just have check my line and then ask for.
operator
You’re clear now you can continue.
Unidentified Participant
Okay. Actually my question was in regards with the sales promotion expenses. So last year from. From last year, the current. In current quarter last year the expenses Almost increased by 50%. Close to 50%. So like this year we have. We have hired like concert party. So the increase is mainly because of that or any other reason also.
Utkarsh Patel
No. So because the productions and the cost of the celebrities comes into this quarter. So because of that. But that is going to divide into the entire three years of range. So it will. It will not be higher for that level for all the quarters. And also we. We have started to spend into the brand communication. So this is first time what we came into the media. So that’s why this is the first time expense into our balance sheet.
Unidentified Participant
Like the cost we have paid to suppose the brand ambassador. So it has been accounted for in this quarter for the entire three years per period. Or it’s like divided into every quarter every year.
Utkarsh Patel
No, it is about the all expenses not come into that. That is a partly payments and that about the divide into the all the quarters. But depends upon that how we pay. And that is the methodology guided by our auditor. So it is not the full payment done yet and it is partly divided into the quarters.
Unidentified Participant
So like you said that from current year we’ll be spending close to 8% on this promotion. Everything. But last year what was the percentage we’re spending on this same kind of things?
Utkarsh Patel
No, that was a zero. Because we have started the brand communications from this quarter only. So before years we were. We were into the 2% of trade marketing of the revenue. 2% for the trade marketing. The dealer meets, carpenter meets gathering etc. And now we are moving to the this TVC digital campaigns, etc. So this is the first time these e xpenses there.
Unidentified Participant
C urrent year we’ll be adding up almost 8% cost to our expenses side from current year only for this particular.
Utkarsh Patel
Yeah. We can consider 7 to 8%. Yeah. Of the revenue.
Unidentified Participant
Just a request if possible. If you can make a special heading like differentiated heading for this particular expenses that we’re having from current year. So for investors we could have better idea like what exact cost that we have incurred extra from this year.
Utkarsh Patel
That is the auditor guidance. Actually we cannot change anything. And we’ll try. We’ll try our best to. If we can go with more transparency. We’ll try for that. Sure.
Unidentified Participant
At least in the presentation if you can give the details of the amount that will be helpful.
Utkarsh Patel
Sure, sure. We’ll. We’ll take these suggestions of your sign. We’ll definitely look about this if we can do for that.
Utkarsh Patel
Thank you.
operator
Thank you. We’ll take the next question from Yash.
Unidentified Participant
Hi. Am I audible?
Utkarsh Patel
Yes.
Unidentified Participant
Yeah. Sir, actually my question is regarding your cash flow statement. I think there’s actually a mistake by your auditor. What is happening is on screener and wherever you look your cash flows are actually looking negative. Because the FD amount, the money that is going into FDs is getting characterized under the wrong classification. Can you please get that fixed and checked?
Unidentified Speaker
No, no. That is not incorrect. Basically we give it in our. Whenever there is a quarter where the balance sheet is disclosed. Right?
Unidentified Participant
Right.
Unidentified Speaker
We always give a clarification in the presentation that as per the India’s accounting standard. Right. What is it? That is the adjustment in the cash flow because of the changes in the nature of the fixed deposit. Right. That adjustment we provide that if we adjust that back then what would be the correct operating cash flow? Right. So for example if you see Q4FY25 as per the cash flow statement it is 14.7 crores. But then there is adjustment in the non current financial assets to the tune of 2.8 crores. And then there is adjustment in the other bank balance to the tune of 30.8 crores.
So when you re add that back the correct or the reconciled Cash flow from operation is 48 crores.
Unidentified Participant
Exactly.
Unidentified Speaker
These changes that happen is primarily on account of fixed deposits nature changing with moving to maturity beyond 12 months and to maturity between 3 to 12 months. And this is again as per accounting standards, right?
Unidentified Participant
No, because when I saw your. When I was looking at your balance sheet and cash flow statements initially it kind of looked like your cash flows are negative. Which was very, very surprising for a business like yours.
Unidentified Speaker
So that is why maybe you’re right. But on this clarification in the presentation also, right. And the fact that our cash flows are not negative is clear that we have almost 140 crores deposit sitting with us.
Unidentified Participant
You know, 100%.
Utkarsh Patel
Yeah. But we make this clarification in the presentation with every half year because it’s an accounting treatment which we cannot handle. Right?
Unidentified Participant
Understood. No, makes sense. My. Your capacity utilization like sir said, I think is 65%. This. Could you just throw some light on the brownfield and the greenfield expansion? Because if your Capacity utilization is 65% basically even if you. I’m assuming. I’m assuming you can push it to 1, 110, 115. Right. Could you. What capacity utilization can you go to? And the capex that you’re doing the brownfield and the green field, is it for the same products or different products or are we looking to get into different product categories?
Utkarsh Patel
No, for the brown field and green field. For both. For the this product only. And right now the. The utilizations is the almost 85, 90%.
Unidentified Participant
Okay. I thought you said 65%. Hence I asked.
Utkarsh Patel
No, no. So right now it is utilizations is there but the maximum capacity is the 85 we can consider for the tota capacity.
Unidentified Participant
Okay. Okay. So basically at 85% you max out is what you’re saying.
Utkarsh Patel
So 85 to 90% max out we can say because sometimes the plant breakdown and there are so many factors that we consider into that. So that is 90% we can say of the total capacity.
Unidentified Participant
Right. And the. The brownfield expansion also is for the same product. Same thing. Right. No difference there.
Utkarsh Patel
Hello. Same. Same products.
Unidentified Participant
Yeah. And is this brownfield expansion close to your greenfield expansion?
Utkarsh Patel
Not exactly close to. But we have not started for that. But we’ll give. We’ll keep continue to guide our investors and I think we will move for that. For the next year’s planning we can consider into 27. We’ll start planning for that.
Unidentified Participant
But are you planning to do it in the same state? That was my main.
Utkarsh Patel
The thing that same state nearby in Ahmedabad. Same state.
Unidentified Participant
Okay. And you Said you want to enter new states, right? Could you just kind of guide us on which state you’re. You’re planning to be more aggressive to grab market share? Which state do you see the most amount of sort of potential in and which state you know you want to be very aggressive with in terms of sales growth and sales promotions.
Utkarsh Patel
See all the, all the tier one cities are always where the. But the real estate and infrastructure are more, more developing and the more population is there. So we consider up is a very good state that the, the new developments are next coming years. We are optimistic for the West Bengal also. We are planning for the, the Bihar Jark and Odisha states also is doing well also. So we want to do more penetration in Telangana also.
Unidentified Participant
So when you enter a new state sir, do you. Do you basically just hire a particular distributor for that area or for that particular state or how do you exactly enter a new state? What do you do when you’re entering a new state?
Utkarsh Patel
So it’s about the network establishment. So obviously we find out the more experienced people into this network who has the good network with the dealers, these hardware, plywood laminate shops. So of course we find out that type of channel partners and we also hire the well experienced team in our fields for that.
Unidentified Participant
Is it safe to assume you kind of target like Pedalite distributors or Pedalite sort of, you know people who are. Already working a dance class.
Utkarsh Patel
So it’s not, it’s not about that particular, particular product, particular brand distributor. We see about the, the network, what he has, how he’s motivated and how he can help us to grow our business. So it is not kind fixed formula we can say. But yes, of course very well experienced and well network people who can, who can push our product for from the first day. So we always find out about that channel partners.
Unidentified Participant
Yeah, I’ll come back in queue. I have a couple more questions. I’ll come back in queue in case somebody else wants to ask.
operator
Thank you. We take the next question from Vijay.
Unidentified Participant
Yeah, hi, this is Vijay. Thanks for the opportunity.
operator
Your voice is echoing. You’ll have to come closer to the phone.
Unidentified Participant
I am closer to the phone.
Utkarsh Patel
Okay, good.
Unidentified Participant
So my question is, see you have seen a 3% decline in volume and there is a 9% growth in revenue. So that would imply around 2012 kind of growth in your realization. So what does explain the 12% growth in realization? Is it the price X the industry has taken your reduced discount or there is some change in product mix.
Utkarsh Patel
So, so can you, can you repeat this? 12% off, sir.
Unidentified Speaker
I’ll answer that. I’ll answer that question. So the revenue that you see is on account of the adjustment for redemptions and new pro revisions, right? If you were to reverse that back then the revenue will be around 5% negative in which 3% negative is because of 3 and a half percent negative is because of volume drop.
Unidentified Participant
So no, sorry, I did not understand this because
Unidentified Speaker
Every quarter we have new points created and points redeemed. Right. Which get adjusted in the revenue. If you adjust that back then the revenue comes to minus 5% in which what we have said is minus 3% is because of volume drop.
Unidentified Participant
Just. Just want to understand. So more redemption took place during the quarter, that’s what you mean?
Unidentified Speaker
Yes.
Unidentified Participant
Okay. So more reduction took place. And when you are talking about 3% volume growth, you are not talking about the growth or volume which you have given to given to carpenters on redemption of the points, you are talking about the volume which you sold along with the point, right?
Unidentified Speaker
No, we are just talking about net sales. We don’t talk about any free goods, Nothing. We just talking about net sales. Our net sales is down in terms of volume.
Unidentified Participant
Yeah, but on the revenue it is gross. And in the volume what you’re talking is net. That is the difference.
Unidentified Speaker
The revenue is also net, only adjusted. When you have redemptions, you don’t give any free goods to carpenters. There are different, different schemes in which they take different products. Right. So you don’t give free goods to them. Okay. So when that redemption happens, it gets added back to the revenue and when they create new point, it gets deducted from the revenue. So if you adjust the net effect of that, the revenue is minus 5% of which minus 3% is because of volume drop.
Unidentified Participant
Got it. So let’s say minus 5% is your revenue and what is reported is plus 9%.
Unidentified Speaker
Correct.
Unidentified Participant
So are you saying that you gave out a kind of 13 kind of goods to different goods to them and that is coming in your revenue? I’m actually the right way to word.
Unidentified Speaker
It would be that there was incremental redemption versus provision creation of almost five cross.
Unidentified Participant
Okay, but when you in provision incremental redemption. So when.
Unidentified Speaker
So the difference between redemption and provision creation is approximately fico.
Unidentified Participant
So you actually there is more redemption than the provision creation, right?
Unidentified Speaker
Correct.
Unidentified Participant
And that redemption is happening. So incremental FICRO of whatever redemption happened. You have not sold that much of. That much of adhesive. You’ve given them other. Other things. Whatever. It could be a bike or it could be a.
Unidentified Speaker
No, no. So. So when the point get created is what defines that whether we have sold more or not, when the points get redeemed does not define whether we have sold more or not. It is a redemption process which a carpenter can exercise at any given point of time, right. Because of the points that are accumulated with him. Or we sometimes also have our team pushing them to redeem the points. But that does not define whether we have sold more or not. So when I tell you that our volume growth was down 3%, that will define how much have we created this time or how much carpenters have bought and therefore created their points.
Unidentified Participant
Honestly, I don’t think that I really understand this part. And see.
Unidentified Speaker
Okay, I’ll explain it to you when.
Unidentified Participant
We sell goods, explain with like what was the volume number? Then it will be helpful and I, I think this is a very central question with respect to you. The liabilities which is sitting in their cash, which is sitting in there and this reconciliation. So if you can patiently explain, I think it will be for the benefit of entire shareholder community. Ah, so we have done this before. We’ll do it again with 1q number of this year. I mean if you can just reconcile this number, actual numbers rather than talking in percentage that what happened. So whatever number you reported of around 70 crore or 75 cr, how that number has come, if you can reconcile that number, it is helpful if you are telling me that it is 8%, 3% and all these numbers, I really don’t understand.
Unidentified Speaker
No, so I already gave you that. Only thing is we cannot give you some very specifics due to competitive reasons. So the 75cr that you see, which is the reported revenue in that if you reduce the net of provision versus redemption the effect is approximately 5 crores. So your effective sales which we capture on account of actual sales without any adjustment of redemption is approximately 70 crores. Right. Which is 5% lower versus last year. Q1. By last year Q1 the adjusted revenue was 74 crores. Last year it was a reverse, there was more creation versus redemption.
So last year there was a reduction of four and a half crores in the revenue which we add back was 74 crores. This time if there is incremental redemption of approximately 5 crores which if we reduce it comes to 70 crores so there is a drop of approximately 4 crores which is approximately 5%.
Unidentified Participant
Yeah, okay, I’ll take it offline. And so we are Talking about around 20 kind of volume growth for the full year. Can you give us this will actually through the year translate into 20 kind of revenue growth. The one which you. I mean reported revenue growth or it could be any number after that.
Unidentified Speaker
You want to answer that?
Utkarsh Patel
Yeah. See See we are. We are trying our best and we are working on the ground level. As as we see every year we are putting more efforts and and and putting putting more creativity into our current current management. So as. As I mentioned that first time celebrity has onboarded and we have started brand communications. And in a quarter when we do the trade marketing more than 30 dealer meets. So this is the first time that you know because it is in the 45 days we have done the 30 minutes. So if we consider into the 1st of April to the 15th of May.
So every day or every alternate there is a meet into some territory. So an example we done in Jaipur, in Mumbai, in Bangalore, in Ajmer or Kota or Indore. So every territory most of the territories be covered. So these are the efforts we have done the aggressions. But that that effects cannot generate the immediate revenue into within this quarter one. So that is a. That is a. This investment will lead us to the more revenue growth into the coming quarters. So we are optimistic for that. And as the quarter one was the all over soft.
The demand was all over soft. We can see all over the building construction material industries are not into that growth. So we are optimistic for the next three quarters. And after Diwali I think the market will be with more demand and we can cover that. This gap from that.
Unidentified Participant
After Diwali means. I mean to Q also will be on the similar line. It is more about second half. Then you would look to recoup entire volume guidance.
Utkarsh Patel
See See. Actually what what happens to us is if if as I mentioned that 75 to 80% revenue is generated from the five states. So remaining states are into the development. So in a up we have started the 550 counters so new 550 people of retailers now know our product and they are keeping our product. So I think that is a good start. And and that is the initial stage initial placement state. So that is not a big volume generated from up. So the the registration program also into the pipeline. So we. We are onboarding the so many carpenters into this newer states.
We are hiring the people. So it is on the development stage. We are improving our CRMs we are improving your customized programs. So we are on that stage to lead this journey. And this is a B2C this is a network business. So it is not immediate effect. We can’t. We can get about. But if we. If we go about the Longer term then if we have achieved this 300 crore of top line. So we are very confident about that. From that this level we can take our organizations to the 500 crore of top line.
Unidentified Participant
Sir, only one comment. I mean if one and a half years back also it was the same thing that we are getting into new state. And that time also the story was about UP and Delhi. Now one and a half years later also the story is about UP and Delhi and the growth. I mean in F24 it was a negative, slight negative revenue growth and F25 it is 10% growth. Those are. I mean we, we have spent enough and more time in UP and Delhi. So if there is any milestone where we can be much more certain that okay, those markets are like now turning around for us.
Otherwise I mean it will be always that okay, we are investing. Of course you would be investing in new states. But finally the revenue growth has to be. I mean if I look at your revenue versus your top competitors, it’s a very small proportion, small fraction of them. So taking away market share, should it be that difficult? And what kind of revenue growth we should be looking at? I mean I guess probably much faster revenue growth. Especially F24 and F25 the growth was subdued. So probably we should be looking at much much faster revenue growth in 26, 27.
That is. That is how probably investors would look at the company. So thought I’ll just share with you.
Utkarsh Patel
See you are. You are very right on your view. You are as an investor you are what what were seeing and what you are explaining it is very right. But see we need to see about the strong and steady growth. Also as Jyoti Raisins as a Euroadases we have al always look about the concrete and the strong steady growth. So you are seeing our balance sheets that we are delivering the 30% of EBITDA. So no other any other industry in a wide blue has delivered that. So that is the first thing what I want to mention.
So that is always. It’s. It’s a parallel things. If I. If I just go away for the. Just burning the money this hardcore earned money and just go for that. So it is not like that what, what strategies we want to believe about that. We always want to focus into the core of the. The. The actual customers and what is the problem with that and how can they retain retainers and how can be their loyal to us as a brand level. And I believe when you go in some level faster and you just spread a network like anything and you appoint so Many channel partners, you open so many people then the quality will be compromised.
So we don’t want to go about that as the Jyoti resin. We have always believes about the profitability should be there. And we have maintained that from so many years. We are debt free, we are not hiring, we are not taking the diets or any start like startup business. What, what they are burning like money like anything. So we are not into that path. So maybe you are right in that level. But. But we are trying our best that how can we leverage this network and how can we go more faster about that. But I’m very confident about the effort. If the market will support, we will definitely reach our destination us for that.
Utkarsh Patel
Thank you for your suggestion very much.
operator
Thank you. We’ll take the next question from Amit. Aisha.
Unidentified Participant
Hello. Good morning sir. Am I audible?
Utkarsh Patel
Yes, you’re audible. Yeah.
Unidentified Participant
Thank you for the opportunity sir. So like how much is the current confirmed orders and dealer stocking levels post Q1 marketing push?
Utkarsh Patel
Sorry, can you repeat the questions?
Unidentified Participant
So the confirmed orders or dealer stocking levels post the Q1 marketing spends
Utkarsh Patel
confirmed orders.
Unidentified Participant
Yes. Or the dealer stockings. Like the inventory level with the dealers.
Utkarsh Patel
See we are working with the 13,000 dealers so it is not possible to. It’s not like a B2B kind of business. So it is a current situation that we are getting the orders daily basis into this model. And we have keep kept our inventory into 52 depots over our pan 14 states.
So that dispatch goes from that depot. So it is a daily base. Daily at least twice the the delivery is there for that. So it’s a different stock maintained by the different stockist for that.
Unidentified Participant
Okay so and sir, one more thing like about the market leader. Can you just throw some light on like what is the difference in like ours and them. Like they are a big company but like what is their size and what is our size as far as the. The adessive is concerned.
Utkarsh Patel
So it’s a. I can. I cannot guide you about the particular company or brand in this call but I can give you the all over market.
Unidentified Participant
Yeah, the TAM, no?
Utkarsh Patel
So. So see it’s a 7,500 crore of market per annum and we are into 300 crore of top line. So we are planning to grab at least 500 crore is the first benchmark we want to achieve. And then after that thousand crore we want to reach about that. So it is a. It is a. It is. It is a thought process that as a brand, as a Euro we want to be present ourselves at least 25% of market share in each state. So this is the journey what we want to go for next years.
Unidentified Participant
And sir, this 7,500 time is for India or for the global level.
Utkarsh Patel
7,500 crores.
Unidentified Participant
Yeah. This is for India or for the global.
Utkarsh Patel
For the India.
Unidentified Participant
Okay sir. Thank you sir, all the best. Thank you.
Utkarsh Patel
Thank you.
operator
Thank you. We’ll take the next request from the chat box. I request yes to unmute and answer the question.
Unidentified Participant
Yeah. Hi. Am I audible?
Utkarsh Patel
Yeah.
Unidentified Participant
Yeah. So have you ever explored the export markets? Why. Why don’t we look at exporting our products?
Utkarsh Patel
So. So the reason is always the. It is about the vision and the. Our vision is to make our Euro Asus at a retail segment brand. So it is already a huge market share lying into India in our current states. So we don’t want to lose our focus even 1% focus into that. So we are more focusing into the develop these remaining nine states that we can penetrate more and we can go for the at least 25% of market share. So if.
Unidentified Participant
No, sorry, continue. Sorry sir, continue.
Utkarsh Patel
So if. If once zero other series is a brand and now people the carpenters are accepting us A as a. As a as a wide group brand then that is a continuous sales what we are getting for that and that is a B2C network’s beauty about that. And we want to continue our journey into that only.
Unidentified Participant
Yeah. But sir, I’ve also noticed that brands like yours in general in categories like yours which are highly competitive have done very well in markets like for example Bangladesh, Sri Lanka, Nepal. Because there your competition is very low and the markets are also kind of developing as we go forward. I just wanted to know if you’ve explored these markets. Have you explored these opportunities yet or you still haven’t got there, you’re still just focusing on local.
Utkarsh Patel
No, we have thought about that obviously and we have discussed internally also. But all the vision is about this domestic market and there is a market share that. That what you are thinking about that that should be into the thought process. When the market share is limited and you have covered entire the market then definitely we should go about that growth also. But right now if the nearest market shares are pending at doing the so much and we can. We can grab this opportunity in this way. So we don’t want to lose our focus into that.
And right now Euro is at that level because of the. The. The first strength is the focus. We have remained into the white glue and we have direct connection with our users, our retailers and that’s why we are getting this type of habitat. So we don’t want to do for the going for the over aids and after one or two or three years of of continuous journey and then we came to this positions can. No no no. We now we want to focus into the more domestic. So we are. We. We have that vision that we want to go for the domestic only.
Unidentified Participant
Right. And sir, as a percentage of cost what is our logistics cost? Let’s say from to move material from our factory to our distributors in other states.
Utkarsh Patel
It is very to vary state wise but it is generally 2% to 2.5% of the revenue.
Unidentified Participant
Yeah. So one of my. The reason I asked you this this particular question is why are we expanding the brownfield in the same state? Why are we not doing that in a different state? So we have some sort of cost.
Utkarsh Patel
Optimization into the central and western part. So that is the first reason Karnataka is the. The western and central part. Right. If we grow in the east part after coming years maybe more generate the volume then we will require to see set up the plant into the nearest area. Right now it is not the requirement for that because it is a generally 2 to 3% of the transportation cost for that. Right.
Unidentified Participant
And do you give statewise breakup sales?
Utkarsh Patel
Not cannot give you into the this call because it’s a competitive information. So it’s not possible for me to give the breakups at least if you.
Unidentified Participant
Can tell me your top three states make up for what percentage of your sales whatever those states may be.
Utkarsh Patel
Five states. What I already mentioned Gujarat, Rajasthan, MP, Maharashtra and Karnataka. It is a 75 to 80% of our revenue.
Unidentified Participant
Great. And sir, as far as our balance sheet is concerned we have 150 crore of cash in our balance sheet. And like you said the Capex is not more than 1520 crore. Right. The cost of Capex
Utkarsh Patel
brownfield will be below 10 crore rupees. What we are going to plan for the next six to 12 months
Unidentified Participant
and the green field.
Utkarsh Patel
Green field around 45 crores. 45 crores. But that will be coming for the the not on an immediate basis. That that will be done into part to part for that. So within two years that 45 crore will be investment.
Unidentified Participant
And my last question. What kind of raw material do you stock up for how many months do you stock up your raw material in in general like when does raw material volatility sort of start impacting us and where do you source your raw material from?
Utkarsh Patel
Yeah sure. We do the contract with our our existing vendors and that is a three months contract. So if the raw material is ProCure for the three months. Actually not, not in our inventory obviously.
Unidentified Participant
Exactly, exactly. Hello.
Utkarsh Patel
Yes. Three months of the contract w e do.
Unidentified Participant
so every three months. You, you basically fix a rate every three months. Right, is what I’m understanding.
Utkarsh Patel
Hello. Yes. Yes.
Unidentified Participant
Yeah. And so, so let’s say raw material because I think in the last two years raw material price prices have fallen a lot, right?
Utkarsh Patel
It is, it is almost 80 for that, not much fallen. It is about the 1 or 2% max variations, not more than that.
Unidentified Participant
So in the last four years, what kind of volatility have you seen in the raw material costs? Have they varied too much? Has it been a volatile sort of commodity, your raw material?
Utkarsh Patel
See our main raw material is the VAM vinyl acetate monomer. And the volatility was there into Covid period and within this 21 to 23. And after 23 it is go back down to the routine rates. And it is not volatile if we go about the history of past 10, 15 years. So it is about 265 to 75 rupees per kg around. Okay.
Unidentified Participant
Okay. Thank you so much for taking all my questions and congratulations on a great set of numbers.
Utkarsh Patel
Thank you so much. Thank you. The next question from Prashant Shah. Next question from Reisha Mehta. You can unmute and ask.
Unidentified Participant
Yeah, I have just one question. So currently our adhesives, you know, can cater to wood, PVC and acrylic surfaces. So do we have any plans to kind of, you know, increase the usage of our product maybe you know, by launching more products just so that we can, you know, increase the addressable market within the adhesive space?
Utkarsh Patel
So no, because currently what I explained that the, there is a huge market still lying into the wide glue. So we want to cover that first and that is a journey what we want to take this brand at that level. So we don’t want to diversify any products. And, and that is the range is the epoxy adhesives, the rubber adhesives. So there are the very small, small volumes in the particular the end users level. So we don’t want to stuck into that categories. And we are the, the white glue category is what we, we have selected and it is a still a 7,500 crore of market.
So we want to cover that first.
Unidentified Participant
Can you just talk about like how big is the market for you know, these rubber adhesives or epoxy adhesives that you spoke about?
Utkarsh Patel
I don’t have the exact figure about that but at the usage wise when we do the survey about the sites. It’s a very small part of that that the. The chota Chota tube. You know the. That is the stone stone or the. The Any. Any other material sticking about that. That is the epoxy of this use range and different is the tiles are the cues are there then about the construction. Chemicals are there, the paints are there. These are the different products categories nearby this white glue category. But we want to continue our journey into the white glue only for that.
So we don’t want to stuck into the other products for right now at least.
Unidentified Participant
Would it be fair to say that you know all these other category of non white glue you know products would be. The market size would be maybe less than 7,500 crores.
Utkarsh Patel
Yes. Yes. Because. Because the higher volume in as compared to that is indeed into the white glue. If we compare about that the paint industry is a different. And. And the first thing is the users and end users are the different. Actually if we talk about the tiles adhesives then it is the plumbers not the carpenters. So we. We are targeting to the carpeters only right now.
Unidentified Participant
All right. Thank you so much and all the best.
operator
Thank you. Thank you. Take the next question from Jinesh Bhari.
Unidentified Participant
Hello. Yeah, am I audible?
Utkarsh Patel
Hi sir. Yes, you’re audible.
Unidentified Participant
So sir, I had two questions. So basically first one is on the guidance that you give for sales and promotion. That is 7 to 8% of the revenues for the full year. So sir, if I look at the first quarter that has gone by. So your advertisement spend that you specifically shown in the P L is around 80 not percent of the revenues. So sir, can this trajectory. So you said you have not fully capitalized those expenses in the P and L and it will continue in coming quarters. Just just to know how this can be at 7,8% for the full year.
So if you can bring. So throw some light on that part.
Utkarsh Patel
So can you. Can you. Can you tell me what figure you are looking about?
Unidentified Participant
Sir, I’m just looking at 1382 lakhs that you have shown under S P.
Utkarsh Patel
That is actually different. That is about this point. Redemptions and sales promotion offers redemptions. That is the expense for that. So for that other expenses is the there what the advertisement and brand activities are lying into that. So you need to think about that.
Unidentified Participant
So then sir, sales and commission would also constitute of the same thing that you are highlighting.
Utkarsh Patel
No, that is the. That is the commissions what we are passing to our stockist and general partners.
Unidentified Participant
So the advertisement expense have not Been.
Utkarsh Patel
Shown separately to the other expenses. And that is the guided guidance by the auditor. So that is into the other expenses. All right.
Unidentified Participant
All right sir. And the second question was on the thing that you just highlighted about the redemption. The provision that the adjustment you are doing in the revenue. Revenue part. So. So just wanted some clarity on that. So if I understand once we are selling the goods to the dealer or dealer so we will be booking some revenues on. We’ll be booking the revenues and the proportionate the provision or the scheme that we are offering to them we will be creating a liability for the same. So sir, how the redemption then we impacting the revenue part. So sir that. That I couldn’t get your point on that. So if you can please explain those.
Utkarsh Patel
Thank you. So. So. So VIN has already explained into the detail into this call. But I suggest if you go offline with the VIN he can guided us into the more detail I suggest into that.
Unidentified Participant
Sure, sure. Sure.
Utkarsh Patel
Into this call. So that’s why. Yeah, sure sir.
Unidentified Participant
Sure sir, that would be helpful. And sir, last thing on your capacity expansion plan. So post this brown field you will be having around 35 liters per day of capacity. So 3,500 tons per day of capacity. So oppose that capacity.
Utkarsh Patel
For per month. We are one month.
Unidentified Participant
Sorry. Yeah, sorry. My mistakes are per month of capacity. So suppose that the your capacity expansion you’re talking about. So how does you look at the utilization level ramping up post you commission that in the. In the. In FY26. And. And what is the incremental capacity that you are looking to put up? So some some guidance on that part. So the utilization of the existing capacity would also help.
Utkarsh Patel
Yeah. So see. See right now it is a 2000 ton current capacity and we are considered as a 90% efficiency. Right. So we are increasing this to 3500. So. So it will be the almost if we consider the revenue wise. Right now we are generating 300 crore of revenue with existing plant. Then after investing this 8 to 10 crore rupees into the brownfield after this 3500 capacity we can go over our revenue to the 650 crores from here. So almost double from here. Understood?
Unidentified Participant
Understood sir. So that is. That is at around 80 90% utilization levels that you are aiming on the full capacity.
Utkarsh Patel
Right?
Unidentified Participant
Understood. That was helpful. Thank you so much sir.
operator
Thank you. Thank you. We’ll take the next question from Vijay Shah. Vijay, take the next question from Smith. Dada Smith. You can unmute.
Smith Gala
Yeah, thanks for the follow up. As you sir mentioned that the quarter one demands were affected because of the onset of early monsoons. So generally the setting onset early monsoon set onset will also mean an offset of monsoon early. So can we not target the volumes improving in Q2 itself?
Utkarsh Patel
Definitely we should target. See our efforts are at the best level in the ground level. But in building construction material in real estate that is always up to down. You can see over the last years, so many years there is always up down. Sometimes the market is like is that if you. If you see the result of the quarter one with this segment. All the. All the companies has not much generated good revenue into the existing current quarter one. So the reason is all over the demand. But that is not the reason or that is not the excuses I want to give that.
So because of this it is open. We are into that into the growth journey. We are trying trying our best. But our our strategies is always look about the. The strong fundamentals growth only not about the primary cell. We are focusing more into the secondary and tertiary cells. So it always takes a time to set up this network. If we. If we see about originally that is 18 years of journey. What journey? What we have invested into to set up this network. Because it is a B2C model, right. So. So I. I suggest to look about the. The longer term generally not quarter to quarter. And we are on to that path. And we’ll definitely reach our destination within two, three years for that.
Smith Gala
Okay.And second question. If I break up the other expenses which were around 25 crore for the quarter. I assume that I break up them into 5 crore for marketing and 20 crore depending on the top line. So is the 5 crore run rate to continue for the coming quarters and 20 crore will depend on the top line.
Utkarsh Patel
Can you. Can you see the number again the other expenses in the. It is the 7.45 crores of quarter one.
Smith Gala
I am considering all other expenses excluding employee. I’m including them in the other expenses. Okay. So the total comes to 25 crores. Okay. And I am considering if I crores will be the run rate for marketing and advertisement spend for the coming quarters as well. It was for this quarter 5 crore was a run rate and 20 crores will depend on the top line.
Utkarsh Patel
So it’s. It’s depend upon the. The. The situations also. But but we. You can consider it’s a 8% of the all over marketing speaker spend. That. That includes 4% of the trade marketing and 4% of the brand communications. So maybe what are the expense.
Smith Gala
The run rate of the expenses shall continue going forward. Right. There should not be an increase or a decrease for marketing spends.
Utkarsh Patel
It is not increase or decrease. But that is very. A little bit very candid. See as an example this is August month is a. A very festive season month. So we. We are not able to do that type of trade marketing into this current situation as Fridays 15th August or Janmas me or like. So that festival affects into the India market. People not people are not into the towns and like that. So. So after that we need to cover into the September months. So it is quarter to quarter. We can consider about. These will be the same almost what we have done.
But for the trade marketing I think most of we have investment done into the quarter one. So it will not that much investment into the quarter two for trade marketing particularly.
Smith Gala
Okay. And you can. Can you just again give the volume guidance for the year. So we are. We see. We are targeting ourselves as a 15 to 20% growth at least for the volume every year. And as I mentioned that we are on to that journey. Yes, definitely we have not achieved that 1/4 1 is minus 3% but. But still 9 months is there and we are trying our best to cover that.
operator
Thank you sir. We’ll take the next question from Harisha.
Unidentified Participant
Yeah. Am I audible?
Unidentified Participant
Yes.
Smith Gala
Hello. Yeah, good afternoon sir.
operator
I would request. No so we’ll have translation issues and there are a lot of other people.
Utkarsh Patel
Who won’t understand the language.
operator
Yes.
Utkarsh Patel
Yeah. Simple question. Brand ambassador because presentation already mentioned TVC and digital platform. So Z Business CNBC and last month so YouTube Digital Insta, Facebook platform Start outdoor marketing is now into that journey. So quarter two, quarter three they can get shop boards. Yes. Right. And my tutors are. Second question. Mumbai or surrounding states may redevelopment processes since last one year and product mainly used interiors. You can say interior consumption since last two quarters. It is this. This product is always about the finishing part. Just a real estate development. But we are into the retail. So obviously not directly dealing with the developers but carpenters tertiary and retail network definitely could be building construction product.
Unidentified Participant
Thank you.
operator
Thank you. We’ll take the next question from Prashant.
Unidentified Participant
Am I audible?
Utkarsh Patel
Yes. Yeah.
Unidentified Participant
So thanks for the opportunity. I have basically two questions. You have already informed that this quarter the revenue I mean the volume has degrown by 3%. So I guess that is primary sales. In terms of secondary sales what has been the trend? What has been the degrowth?
Utkarsh Patel
No, that is the secondary sales only tertiary is the end user cell Secondary is that to the retailers and primary is the. To the distributor.
Unidentified Participant
Yeah, so I mean the. What I understand, what I understood was that same. I mean the previous year first quarter we had 69 crores and this, this quarter we had 75 crores. And the difference is basically because there has been a volume degrowth of 3% price increase of some amount and then there has been an excess redemption. So I thought this 75 crores or the 3% volume degrowth is primary sales or is it secondary sales? Because secondary sales will not be captured in our p L. Am I. Is my understanding correct?
Utkarsh Patel
No, no, no. So so. So the invoice is generated to the retailers. It is obviously goes to the sales. So we, we don’t need to confuse about this primary or secondary. That is the main difference is because of that redemptions came aggressive into the quarter one. So that is the difference that 75 and 70 crore is 5 crore is a difference into that. So all over we have mentioned that we are less by 3% for that. So we want to be transparent to the investor. So we are guiding at that level. So you can understand more easily for that.
Unidentified Participant
So so basically 3% volume degrowth is in the secondary sales.
Utkarsh Patel
A secondary sales we can. Yeah.
Unidentified Participant
So by that logic I mean what would be the inventory levels at the secondary level? Because I mean we would have added new distributors. So some would. There would have been some inventory added there and there would be increased primary sales. But otherwise at the channel level how are we seeing the inventory? Is there a stress or are we comfortable with the inventory level at the dealer level and distributor level?
Utkarsh Patel
So see most of our sale is by the stockist, consignee and sales agents. As an example, what I’m Talking about this 52 stockist that is the inventory in our books, in company books. So that is a stock transfer from. From factory to that 52 branches and then that 52 branches dispatch the stocks to the retailers. Then it is go to the, to the revenue. Okay, so so yes, please please continue. Yeah, so so that goes to the revenue. So that is a different different stocks into the different branches. It depends upon the volume of that particular branch.
So if we go to the newer state newer branches then it is not much higher inventory into that because of the. The volume is still low for that branch particular. So this is doesn’t effect in our existing transactions for that.
Unidentified Participant
So I mean what I was understanding is that the inventory at the branch level is reported in our books. The inventory in at the retailer level is reported or that the inventory at the stockist level is reported in his books. Is that correct?
Utkarsh Patel
No. Invented into the stockist level reputed to inventory our books. And when stockist deliver the material to the retailers then it goes to the sales. Okay.
Unidentified Participant
Okay, Fair enough. Understood. And at the 31st of March our receivables was around 125128 crores. What would be the number at this quarter end?
Utkarsh Patel
I have not the exact number for that. But I think that is reduced because the reason is that at that time actually see in B2C segment, March month is always the month where we push the material to the retailers. Because that is a loyalty program of the entire year. And the volume growth that take. So we have delivered that 80 crores of top line into that quarter phone. That was the highest till till our date. So that was the reason that we increased that data into that particular the 31st of March. But right now it is reduced to.
I think it is about the 1105 to 110 crores. Okay.
Unidentified Participant
And I have some questions regarding the points redemption. But I’ll reach out separately to Vin. Thanks for the opportunity and wish you all the best for the coming quarters.
operator
Thank you. Thank you. Thank you. We’ll take the last follow up question from Hex and we.
Mahek Sanghvi
I wanted to ask dealer network, do we have any branded or non branded lamb and plywood companies? Like do we have dealers that deal in lamb and fly and also in our addresses.
Utkarsh Patel
Can you repeat these questions? Actually you are not correctly audible for that.
Mahek Sanghvi
Do we have any dealers or stockists that are dealing in lamb and plywood also?
Utkarsh Patel
So what, what all of the stockists are there? Who. Who has the network? So I think almost all the stockist has the net has the distributorship of any plywood or laminate company.
So they are all into. Who are into this business. We hire them as a stockist because we can utilize their network.
Mahek Sanghvi
Okay, so instead of dealing with the stockist, have we tried to, you know directly contact the plywood companies branded or even non branded for that matter?
Utkarsh Patel
No, we. We have not directly go with the plywood or company or like that because they have all already there are different networks into the different states, different cities. So we go with the. The. The city base and the state base only. So we are dealing with the distributor of the plywood and laminate dealers, distributors.
Mahek Sanghvi
Okay. Okay, thank you.
operator
Thank you. That was the last question for the day. Do you have any closing comments?
Utkarsh Patel
Thank you very much. All the investors and analysts to keeping trust with our brand. We will keep continue our best efforts at the ground level. And we’ll try our best to take this strong and steady growth for the coming quarters. Thank you very much.
operator
Thank you, sir. Thank you to the management for your valuable time. And thank you to all the participants for joining this call. You may all disconnect. The recording has stopped.