Jyoti Resins and Adhesives Ltd (BSE: 514448) Q3 2026 Earnings Call dated Feb. 10, 2026
Corporate Participants:
Unidentified Speaker
Utkarsh Patel — Managing Director
Samit Shah — Chief Marketing Officer
Analysts:
Unidentified Participant
Presentation:
operator
This meeting is being recorded.
operator
Ladies and gentlemen, on behalf of Captify Consulting Investor relations team, I welcome you all to the Q3 and 9 months FY26 post earnings conference call of Jyoti Resident Limited today on the call from the management team we have with us Mr. Utkash Patel, Managing Director, Mr. Samit Shah, Chief Operating Officer and Mr. Meghal Shah, Finance. 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 their opening remarks to detail us about the business performance highlights for the period ended December 2025.
The growth perspective and vision for the coming years. Post which we will open the floor for Q and A. Over to the management team.
Utkarsh Patel — Managing Director
Ladies and gentlemen, I welcome you all to the quarter three FY26 con call. As you would have seen, this quarter was soft in terms of flattish revenue and volume growth. Why? After 20% volume growth in quarter two, this quarter witnessed a very soft October. While cells recovered strongly in November and December, our exit rate in December was very strong matching our quarter 3 growth in quarter 4. We aim to cover up significant loss ground on the balance sheet front.
We continue to have a strong cash and bank balance and continue to generate incremental cash flows every year which we are investing back into the business with focus ATL and BTL spans. We Euro team wish to assure you that we are working hard and setting up the right building blocks for the next level of growth. To achieve our first targeted 500 crores revenue target. We are continuously aiming to increase our market share in existing states as well as increase our footprint in new states. Now we are opening the floor for the question and answers.
Questions and Answers:
operator
Thank you sir for the opening remark. All those who wish to ask questions may use the option of reason. In case you are unable to do that, just drop a question. Just drop a message in the chat window. We’ll invite you to ask the question. Take the first question from Keshavar Keshav, you can go ahead.
Unidentified Participant
Mr. Patel, I’m your long standing investor and I’m very disappointed with the numbers. I mean operating performance is one thing and our revenue and EBITDA is flat since FY24 and whatever extra advertisement spend we are doing it is not reflecting in the numbers. So. But be that as it may, I I can take at face value whatever you are saying that I mean the demand conditions were soft and you are making efforts. I appreciate that sir, but our share price is about to go into triple digits now and the stock is trading at a really.
I mean nobody believes your numbers. That is the bottom line anybody I discuss your stock. Nobody believes your numbers. So sir and you are not open to getting some reputed auditor also. So now that we are cash rich at least do a share buyback so that there can be confidence in your stock that the numbers are real. And since anyway our EPS is stagnant because profits are stagnant if you do a share buyback the number of shares will reduce and the earning per share will increase. So and that will basically restore the confidence of the investor community in the stock.
So what is your opinion on this?
Utkarsh Patel
So Keshav, you are very right. Since last 3 4/4 you are saying that the the unit economics is very good. If you talk about the EBITDA or PAT but revenue growth we are not generated that much growth level. But see as we go with the history of Europe. As you are saying that buyback Kijo proposal But we are assuming that we need that fund to deploy into the business actually because we have just started we are the first this is brand. And also we have make the strong ground for the trade marketing also recently last year 33 around Dealer Meets Kiata mega meets carpenter meets or ongoing process.
So I suggest to to take it at that level B2C business it will take the time to reflect into the numbers what efforts we are making. It will take the time for that and as you can see 70 years say. Dominant. And we are very much confident. But this is the matter of the time and that was a really surprise for us into the quarter three beginning October demand all over building constructor so that is the reason for that.
Unidentified Participant
So basically Mr. Patel 170 corona cash net cash September May Abhijobi up Advertisement. Any case even the maximum buyback the company can do is 56 crores 1/4 of the net worth and we have 170 crores lying with us and then we have internal accurals also and stock is trading at basically 11 times EV EBITDA B2C stock Commodity stock valuation but it is not looking attractive enough. Crisis of confidence and that gives credence to the market doubt company cash but buyback management so sir that is what the doubt is.
Utkarsh Patel
And internally discuss K will look positive around that what we can do.
Unidentified Participant
Thank you.
Unidentified Participant
Thank you.
Utkarsh Patel
Thank you.
operator
We’ll take the next question from Smith Gala Smith you can go ahead please.
Unidentified Participant
Yeah thank you for the opportunity. So you mentioned that October was a Very soft quarter. And the run rate for December was back on track what you’re targeting for. Which means that 20 to 25% volume growth was achieved in December. And November was also a good month. So was October so flat that there was no sales that the company is reporting flat volumes for the quarter. And we have also been deploying the strategy of heavy marketing expenditure getting a brand ambassador. And now it is not showing results from the past eight months where we have seen other advertising policies or theories or things which can be done and where we show a very short turnaround time in 1, 2 once the advertising results start showing.
This is cutting our margins from 28, 29% to 25%. And still we are wanting to continue the strategy which is clearly not delivering. So why is management so adamant on continuing this sort of strategy which is giving us such a big hit on the pnl?
Utkarsh Patel
So Smith it is not about the anything we are adamant on. We are working different working on a different strategies also. But see something sometimes we believe in ourselves and what we have experienced in 17 years that confidence we have. So it’s. It’s about the replica and the executions. If we have see as a central and western regionally euro has deliver a strong number. So. As a regionally Euro strong 25, 30% market share. So. 20, 25 years old legacy. Margins deliver last three years. Strong reserve strong fundamental. I request you to see at that level.
But I don’t want to go for that strategy strong fundamental ground. So we are correcting that level. Existing Hamara Jobi structures, CRM improvements, HR teams. Regarding a new talent acquisitions, branding strategies, trade marketing strategies. So many things. So we are on that path. But it will reflect on after few quarters not in a 1/4.
Unidentified Participant
We are not able to deliver a quarter name.
Utkarsh Patel
So it was also a good number. July, August, September is always a long monsoons and festival seasons. So quarter took building construction companies. So as comparatively 20% achieve confidence. But quarter three really market make genuinely tertiary demand or market issue. You know all the numbers all the other companies also. So that is not in our hand. But we are trying best to cover up into the quarter four for that.
Unidentified Participant
170180 crore we are towing. We have the resources to deploy. But there are a big heavyweight competition. They are coming in with big pockets. So whatever we deploy may not be actually enough. Rather than we should always look for what we are best at.
Unidentified Participant
I think
Utkarsh Patel
see Smith competitions though from the first data or both stronger. You know, you all know that, right? Or we competition may bhar Nikolai. Dominant and strong brand name you you all know that regionally strong brand 35% market shares so if you get any chance to check the channels I really appreciate actual trade carpenters, dealers. Internal accruals marketing stage Brownfield expansion Brownfield expansion Almost Katamone capacity 3500 ton per month so efforts are on the 360 degree efforts we are making for that.
Unidentified Participant
Capacity increase. Ready if the capacities and volume growth orders depression costs load which Joe numbers may or problem.
Utkarsh Patel
1500 ton per month 5 to 6 crore rupees investment or capacity requirement as a B2C model. Generate example Last March about 2000 ton per month capacity. Opportunity so we don’t want to go for that in a very small capex amount so unit economics fundamentally strong it’s a matter of few quarters that what we want to go for that and see consumer right so as a building constructor material visibility otherwise we want to invest into the more into the trade rather than the brand communications or strategy or. So we are going very strategically to into into the spending it’s not like a conservative thinking but it is a very strategic what we are going
Unidentified Participant
okay, thank you thank you
Utkarsh Patel
thank you.
operator
We’Ll.
operator
Take the next question from Achal Pal Achal, you can go ahead please yeah.
Unidentified Participant
Hi so so firstly I wanted to ask where are we seeing in which market we are seeing the chall.
Unidentified Participant
Or. Are we facing any pricing pressure because if I see the peers like Pedalite astral Jubilant almost all have reported double mid double digit revenue growth so just wanted to have a look like in which markets we are facing the challenges.
Utkarsh Patel
See first of all it is a very multi businesses they have so I cannot comment on regarding you you I.
Unidentified Participant
Am so the this double digit growth that I have seen that is an only adhesive business I’m talking about I have not considered other businesses right
Utkarsh Patel
But.
Utkarsh Patel
I just want to share you some details about the adhesives industry so they are the. They are more into the epoxies also the sinoadases also construction chemicals okay Waterproof so it’s a different addresses and we are into the wide glue only but you are very right this is not any excuse that they have delivered and we are because of so and so reason yes of course we have not delivered that much of number in quarter three but as I explained that quarter two confidence. Tough monsoon months maybe so that we are on on that and Kafi Sari strategy some improvements we are into the execution journey but executions direction it is taking some times for that that is the Only reasons.
Unidentified Participant
Okay, so is there is no pricing pressure we are facing. Right.
Utkarsh Patel
Sorry.
Unidentified Participant
There is no pricing pressure that we are facing right now.
Utkarsh Patel
It’s not about the pricing pressure. Yes, it’s. It’s about just the competitions. But competition though from the first day and but we learn from that different experience what we have measure into the last 17 years and her company and that niche market where what we have created into the carpenter and dealer segments so always positive maybe. And we are improving day to day basis.
Unidentified Participant
Okay. And how much the advertisement spend we have done this quarter and how much we are targeting for the year for.
Utkarsh Patel
The nine months we have done almost 4. 4.5% of ATL BTL. So that we also want to take to the 7 to 8% around of revenue. Of revenue.
Unidentified Participant
Okay, okay. Okay. And so just wanted to understand like how much margin are we giving to our retailers in the new markets versus our old markets.
Utkarsh Patel
For the Euro we are giving 8 to 13% for the dealers also and 8 to 13% for the carpenters also. So that is depends upon the older and new market. So if it is a new market then we go higher to penetrate more. And for the where the brand is very much established then it is 8 to 9% around.
Unidentified Participant
Okay so last question is on margin. So so I have seen the peers also. So we are at a very good EBITDA margin like 25 plus. Whereas if I see Pedalite, Astral and Jubilene they are like around jubilant is around 7 to 8%. Astral is 16 to 17%. So what are the right things we are doing? We are able to maintain this kind of margin. And also is this margin is is sustainable going forward when we are scaling the business.
Utkarsh Patel
See, see. First, first always I, I, I am saying that this is the reason that we we have been very focused for the white glue and we want to build our brand into the white segment only. So that is the one reason. Then second is we have put always our employee and customer into the core. So what strategies and what whatever policies we design we always focus about their benefits and for the long term relationship with them. And also we have controlled our expenses. We, we spend each and every money very. We don’t flood our money in any kind of losses and what impact give to the future plans so that we are very much controlling to that.
So scalable. Or team ordinary talent acquisitions and or trainings and inductions so that’s can give us to the 500 crore of revenue.
Unidentified Participant
Okay. Okay.
Unidentified Participant
Okay. Thank you.
Utkarsh Patel
Thank you.
operator
We’ll take the next question from you can go it please.
Unidentified Participant
Thank you for the opportunity. So there are two specific questions which I would like to ask. So if we see as Utkashi, you had mentioned that last three years had.
Unidentified Participant
Been. Pretty good in terms of how the business has scaled. So if I Talk of last three years in particular last 12 to 14 quarters, one question has been the decreasing EBITDA margins which had been has been consistently decreasing from the range of 32 to 34% to almost 25, 26% now. So is it just because of geographic expansion and sales promotion strategy that our margins have been decreasing or is it because of competition also? So could you just give some more clarity on that. And second question. Could you provide specific sales growth numbers for your top three states which is Rajasthan, Gujarat and Maharashtra.
If I. If I’m incorrect, mistaken, Please correct. But your top three states growth numbers over the last yoy year on year. So could you just help gain clarity on the two questions please?
Utkarsh Patel
Sure.
Unidentified Participant
Thank you.
Utkarsh Patel
So see see in margin fund I always guided with the 22 25% of EBITDA in a longer term. So this is the exceptional EBITDA what we have delivered in last three years. So long term the reason is that 7 to 8% is the different situations what we need to face. And we need to put that for the growth front. So trade marketing spines a competition. You are saying that maybe sales promotion discount we will need to pass into the channels. So ATL branding, brand communication. So that was always the plan to remain with the 2022 25% of EBITDA.
So that is the reason. And properly future expansion. So that is needed. And for the the number for the state wise I cannot give you on the this call but you can separately contact our IR for that.
Unidentified Participant
Just you know, because we have been writing to the IR team and them a lot. But you know the correspondence and communication has been very poor. So I think the IR should take a note that the communication to existing shareholders should be a little more proactive.
Utkarsh Patel
Sure. So we’ll correct that way and we’ll pass this message to the team for that.
Unidentified Participant
Yeah. And last question, Utkash Bhai, as you know the first investor did mention in the call, why do not we have a reputed auditor? Because that will give a lot of confidence in large investors and also DIIs and FIIs. So we are lacking a decent reputed auditor and it has nothing to do with the company’s existing strategy or the previous strategy. But now if we have a vision of scaling this company over the next three to five years. I would seriously recommend that at the board level you should discuss on having a reputed auditor.
Utkarsh Patel
Sure. Sure. So you are very right. And we are on to that also. So improvements in each and every part. So. So we respect the advice and suggestions of yours. So EBM K. But right now if we talk about the current auditor. So it is our cabra. And that is a solo partner of the Ecovis firm. That is from the Germany. So the Ecovis is also very reputed from into the Germany. So that. That is our auditor. But definitely I understand what you are saying that in a big four or big five around. So we’ll have that future plans for that.
Unidentified Participant
Thank you. Thank you.
Utkarsh Patel
Thank you.
operator
Sir, we’ll take the question from check. This question is asked by Kevin Gala. Sir, since you said we are consolidating since last two years. And you know such period do come in our journey. Why are you still giving guidance of 20 growth since last four quarters.
Utkarsh Patel
You are very right that. But see we. We. We want that growth actually. And actually as a euro consolidate. If we see the number buys 260 number 285 number 9 10% growth. But after that. But you are very right. 20% growth plan. But anyhow because of so many circumstances we were not able to deliver. But. Study. Transparency. So that this is the reason that though the quarter three is flattish. And there is no know much more to any announcement in this quarter. But though we are facing to to you all. And we want to understand and your suggestions to grow more from here.
operator
Okay sir. We have another question from Fortune Limited on chat. This question is if you want FY26 revenue of around 320 odd crore as you mentioned in last quarter. So are you estimating 100 crore revenue in quarter four.
Utkarsh Patel
The exact number I cannot say into this call. But the quarter four is always a very good quarter to cover up the cells. Because every. If we go about the history then every. Every quarter four is always a very volumetric for us. So we are trying. To. So. So we are trying our best for that.
operator
Okay. And sir there is one more question on chat by Chitaksh Gupta. This question is. Can you please repeat the volume growth of Q3. I joined late so I missed also what was the price hit we had in Q3.
Utkarsh Patel
Volume growth for Q3 is almost via is a flattish around. And nine months is 4%. Around 4 to 4.5% for the nine months.
operator
And we have one more question from Kishan Gupta on chat. What is the single most important thing you people are focusing currently.
Utkarsh Patel
Right now we are focusing on the multi function. What we needed for the growth. Like I mentioned that talent acquisitions, induction training and brand communications trade marketing. So all 360 degree efforts what we needed to grow from here.
operator
And Kishan Gupta is following up. How was the growth in white glue industry in October?
Utkarsh Patel
There is not a particular data we have for the October. But October is all over. Very very down into the demand. Maybe the the longer monsoon and the festivals also. But we don’t have the exit data for the October.
operator
Okay. And there is one more question from Dia Jain on chat. Volume in tons and ASP for this quarter.
Utkarsh Patel
For this quarter means quarter four.
operator
Quarter three.
Utkarsh Patel
We don’t give the number quarterly on this call. But if they have the questions they can ask they can do the mail to the IR team.
operator
Okay sir we’ll take the next question from Amit Agicha. Amit you can go ahead please.
Unidentified Participant
Thank you for the opportunity. Capacity and market share like the current capacity is 24000 tpa. Like what capacity utilization is current and Agaram 24000 tpa. So what will be the peak revenue potential? And as far as the market share is concerned you said Gujarat market share 35%. So all India level market share. What are the time size.
Utkarsh Patel
See first of all present 14 states and 5 states 9 states memory journey penetration Ski B on high. So Pura India. But we are planning next 2 years or 5 to 6 states may present hojai about the capacity. Right now 2000 ton per month capacity. Averagely we are doing 121250 tons per month. That is average. But as I mentioned that few months goes to wind up to the 15001800 capacity advancement. And after that we are moving for the 3,500 ton per month. Almost 70 80% finish. So after one or two quarters end of this quarter maybe we are we like the capacity of 3500 ton 600 to 700 crore revenue generate.
Unidentified Participant
The market share of India.
Utkarsh Patel
So it is not the right number to explain that all over India market.
Utkarsh Patel
Share
Unidentified Participant
okay
Utkarsh Patel
present in here. So that’s fine.
Unidentified Participant
All the best for the future.
Utkarsh Patel
Yeah.
Utkarsh Patel
Thank you.
operator
We’ll take the next question from Faisal Hawa. Faisal, you can go ahead please. Sir. We’ll move on to Smith. Gala Smith you can go ahead please
Unidentified Participant
sir. So again strategy level question. So NAC listing processing. More than more volumes etc.
Unidentified Participant
Joe bse.
Utkarsh Patel
Sure. So exit dates I don’t have available right now. But NSC process is on. So we’ll Communicate with our CSN compliance team and we’ll definitely get back to you regarding that.
Unidentified Participant
Okay.
Unidentified Participant
Or qualitatively numbers, many qualitative. Almost 40 days. Quarter 4K.
Utkarsh Patel
Quarter four January demand, December demand and December January. We are focusing on two more into the pool side. So we have done more carpenter maids into December and January. So ABHI comparatively quarter three say demand all over market. So market is now coming back to the rhythm.
Unidentified Participant
Okay. Okay, thank you.
operator
The next question from you can go ahead please.
Unidentified Participant
Thanks for the opportunity. Growth, maybe not in numbers but at least qualitatively. If you can write existing states I want to understand or how far are you from getting the growth and brand presence like the other five states?
Utkarsh Patel
Sure. So I want to suggest Mr. Samit Shah, our CEO to answer this question.
Samit Shah
Hi.
Samit Shah
Hello.
Samit Shah
Am I audible?
Utkarsh Patel
Yes, you’re audible.
Samit Shah
Hello. Yeah.
Unidentified Participant
Yes, you’re audible sir.
Samit Shah
Good question. So basically right now we are in a buildup stage across all the new states and we are going for a right talent onboarding and increasing our footprints, our penetration in the market in terms of acquiring new dealers, onboarding new carpenters across to drive demand also on one hand, on other hand to our placement across. So that’s a process which is going on and we are, we have got a few new states and we are also in the process of adding another four to five states which are lucrative states in terms of growth prospects for the coming quarters.
So in, in the portfolio we are adding those also so that our current volume which is being driven majorly from Western Central gets divided amongst further growing states also. So that’s that process is going on at this moment. So probably in a couple of quarter or two to three quarters I think we’ll be able to I think have on, you know, finish the onboarding process and start our placements across the new new territories. That’s the plan.
Unidentified Participant
Thank you for my second question is above the line marketing expenses. Hello? Yeah, am I audible?
Utkarsh Patel
Yeah.
Unidentified Participant
Hello.
operator
Yes.
Samit Shah
Yes. Are you able to hear us?
Samit Shah
Yes, yes.
Unidentified Participant
So I want to ask is above the line marketing may be good for long term brand presence and equity but yeah, be up below the line or trade channel pay. And have you ever piloted below the line marketing say or above the line marketing, say return on marketing spends and then we can double down.
Samit Shah
Right.
Samit Shah
So so again a good question actually. So very important question for our trade and industry. So as you see that our major, you know, our scale, our major marketing spend is skewed towards trade marketing because that’s our key trade people.
Samit Shah
Right.
Samit Shah
So that will always be there. However, brand marketing also we are very conscious about and we have started investing in that after onboarding also as our brand ambassador. And we are selectively investing in the right avenues where our TG is there. Right? So rather than flourishing or spending money extravagantly on the brand marketing front, we are going very conscious on that investment and spending wherever TG is. Along with that, trade marketing will always remain our priority. One key priority to engage in wherever new territories we go. So to engage with those, our trade people, be dealers or be carpenters, to onboard them and to retain them for a longer period.
It would be our focus area. So obviously BTL will remain a key focus along with ATL as well. However, we’ll again, I mean I’ll again reiterate the fact that our investment will be more skewed towards trade marketing.
Unidentified Participant
Thanks.
operator
We’ll take the next question from Harisha. Harish, you can go ahead please. Sir. We’ll move on to Amita. Amit, you can go ahead please.
Unidentified Participant
Over the years, can you tell us of at least three to four special insights that you have in this business which will enable you to succeed even against Pity light.
Utkarsh Patel
So the main thing is that focused as a single product, single industry. This is the key success, I believe. Second is always putting the customer and the employee into the core. That is always a strategy, good strategy and the community, the end users are the key persons who trust the brand and who recommend our brand. So to focus onto the carpenters, it is the best strategy to take this business next level.
Unidentified Participant
I understand that as a platitude because that applies to almost all the businesses in the world. But can you give like three or four steps that you take to, you know, really have a greater understanding of the customer and to engage with him? Well, because you are now facing a competitor whose distribution strategy is. And even the advertising and branding strategy is like iconic.
Utkarsh Patel
See, See, you are very right and that’s why they are there. And we appreciate for that and we always benchmark and we learn from that. So but the, the main thing to addition of your thought is the distributions and the network to build is the, the. The main criteria into that and as, as we work onto the community actually that for that we need to.
Utkarsh Patel
Do.
Utkarsh Patel
The transaction of our promises, what we have made that we need to deliver regularly, consistently. So as a, as a Euro, as central and western states, strong delivery. Year. So that is the key. What I want to share with you what your question is so that I believe,
Unidentified Participant
okay.
Unidentified Participant
Spending the time in the business and keeping on delivering itself is a. Is a strategy.
Utkarsh Patel
Right? Right.
Unidentified Participant
And secondly sir, many companies Havels is an example where the owners have taken sometimes on the distribution. At least they have left it more to professional management. Because finally you do as owners get tired with so many other things and yet the owner also sits and is almost on first name terms with most distributors. So are we kind of thinking of that kind of strategy also? Because over many years the owners may tire out with so many things and once you have a more professional team in place for distribution, advertising and marketing like how PD Lite has done.
Unidentified Participant
It.
Unidentified Participant
Could yield more longer lasting returns.
Utkarsh Patel
So it is about the right strategy, I think and it is not about the tireless. But I. I believe that it should be about the delegation of the work and that should be handled. We already started for that two professionals professionals and the strategies to build for that.
Samit Shah
So Amit, I think just to answer this. I think you rightly pointed out. So we have realized this fact and as you rightly mentioned that as a leadership team we would want to focus on the further growth prospects and all across and we’ll try to scheme as much as possible the market potential. Hence we already started onboarding professionals from outside organizations from the various multinationals also in our company and find it quite attractive, you know, company to enter into and they have started. So. So I, I will not name those people but I think we all started onboarding it on northeast, way south across wherever we are expanding new geographies and new territories.
So completely right from zero level we are hiring the professionals to drive the business further.
Samit Shah
Right.
Samit Shah
So to. To ensure that we a management team can keep focusing on the core things and the business is being driven by the professionals because that’s the. That’s. That’s how you grow.
Samit Shah
Right.
Samit Shah
So I think that’s what we have already implemented.
Unidentified Participant
So can you give an. Which kind of companies are we hiring these people from?
Samit Shah
I mentioned I can’t tell the name.
Samit Shah
Of those companies at this moment as the process is going on. But there are multinationals. You can understand the, the multinationals where they come from and the kind of professional approach, the kind of sops and processes they follow, the kind of tech they operate on, the kind of sales techniques they follow. So what all. All these new practices are bringing in and coming into Jyoti reasons also now and right from so as. As we really, I mean clearly mentioned in the beginning that we are in the transformation phase at this moment. So we are on the.
On the hiring spree at the, at the. At the Leadership level at the ground level with the right talented, you know guys on board to drive the business for them.
Unidentified Participant
Thank you very much for answering my question so well.
operator
Thank you sir. We’ll take the question from Harisha. Harish, you can go ahead please.
Unidentified Participant
Yeah. Am I audible question or suggestion? Sir, I am going through the balance sheet. Though sales numbers are quite better comparing to 9 month ended 24 and 25. But sir sales promotion, commission and other expenses expenses part may jada increase about say 25% compared to 9 months reverse marketing strategy. Rather spending on promotional expenses. Shall we spend on creating demand like distributing free samples or this customers commission part key your expenses of automatic.
Utkarsh Patel
You. You are very right, Harish. Actually we are into that also. And we believe also with this thought process. So process. From the carpenters, architect, interiors or the consumers also. So the reason is that only is that we know we don’t want to be only discounted brand. But we want to go right.
Unidentified Participant
Because it also sometimes decreases brand value expenses. Your promotion or commissioner mindset.
Utkarsh Patel
Right? Arishi, you are sometimes it happens.
Samit Shah
That’s a very valid question. Actually so in the same direction we are working. I think you pointed out very correctly.
Unidentified Participant
Right.
Samit Shah
Is the one if there is a demand, there is a pool of the product. Then I think we have to spend less on the creating awareness for the brand. And I think we’ll be generating.
Unidentified Participant
Generating demand is more important. Because I’m being a marketing person since last 40 years. I know. Okay. There is very less commission or percentage. We need to pass mediators
Samit Shah
market bull.
Samit Shah
Is there you can save a lot of money on the on the trade push.
Unidentified Participant
Yeah. Right. Right. Correct. Correct. Okay sir. Okay. Okay. Thank you.
operator
Take the next question from Aditi.
Unidentified Participant
Am I audible?
Unidentified Speaker
Yes.
Unidentified Speaker
Yes. Yes.
Unidentified Participant
So as you mentioned that out of 14 states in which we are present five are matured markets. So for you like what are the indicators of a matured market for the rest of the nine states like and is it state specific or is it same for all like the parameters which we have to achieve to consider a state to be a matured market. Thank you.
Samit Shah
Yeah. I think good question. So yes we have benchmark. How do we name market as a mature market. And how is this growth market for us? So any market wherein we have got a decent market share in the range of around 20 and above is is we have termed as a mature market. Though the benchmark is 25%. So. But once the market comes around 20 range we start considering that is a mature market. So this five states which we are mentioning we are around having 20% of market share and in rest nine states we are in the process of acquiring that market share and the seeding work is going on.
Complete 2.0 transmission process is going on in those states. And along with that to answer Aditi, we are also adding few more lucrative states as I mentioned earlier in my earlier other answer also to have a higher penetration, larger you know economies of scale. Whatever investment we do on our Atlantic front it gets divided amongst various markets and we create a awareness and market pool. As Harishji also rightly mentioned earlier that it’s a reserve like market pool always helps. So we are in that process also. So overall on trade and you know brand perspective both way, both places we are investing very consciously to build a strong pool.
Unidentified Participant
Okay so sir, can we just tell your market share in the states of UP and territory of Delhi?
Samit Shah
So it’s I, I think we have just up we have just opened a year back or so. So it’s at the buildup stage. The, the. The good number. You would want to say that I think we, we are present across more than thousand outlets in in UP territory at this moment as we speak and we’ve started getting repeat orders from most of these outlets. So that’s a very good positive sign that our brand is being accepted very well in those markets. And we are also building up our UP business in a robust manner going forward because it’s one of the biggest states of the country and in this speaking built also.
So probably most of our you know trade comes from this region. So that’s very focused I think key and focus market for us. So obviously we are very conscious about it to build and gain more market share from there.
Unidentified Participant
Okay answer. What about the performance in Delhi we.
Unidentified Speaker
Consider, I mean so Delhi again as I mentioned the Delhi UP we started together simultaneously. So we are building it up. So Delhi NCR and UP is under you know build up stage only at this moment as we speak. It’s been just a year. So we are penetrating there across key outlets, key markets, hiring right talent across. We are you know expanding our dealer base. We are onboarding carpenters by you know, you know having a lot of carpenter meets also tertiary demand also from that. So it’s a build up stage probably it may take around another three to four quarters for us to have a decent presence in daily ncr.
Unidentified Participant
Okay sir, thank you.
Unidentified Speaker
Yeah, most well thanks.
operator
We’ll take the question from chat. This question is for asked by Ayush Sharma by when we are planning to achieve find it crore in revenue and what would be the product proportion of volume and price growth in the same.
Unidentified Speaker
So as I mentioned that we are now very much conscious about the numbers. So I think we’ll do the proper planning and then we can present the numbers. So that’s why it is not right now the time that we can give the exact number of exact year of the 500 crore of revenue. So we’ll, we’ll come back with the better planning for that.
operator
Okay. And here’s another question is also when do we planning to planning on doing more capex? If yes, how much we justify the 500 crore revenue mark.
Utkarsh Patel
So right now we are on to the brownfield expansions and that is already 70, 80% work is done. So within next one or two quarters it will be finished. And I think after 27 we can we will assume that we’ll start for the the new greenfield and that will be around 40 to 45 crore rupees of greenfield new expansion.
operator
We’ll take the last question from the chat which is from Vishal Pandya. His question is how was VAM prices in quarter gone by and what are the prices now and how does it affect our profitability?
Utkarsh Patel
It is definitely affect our profitability but right now it is flat around so not much rise into the vamp prices.
operator
Okay. Since sir there are no further question would you like to give any closing comments?
Unidentified Speaker
So I request you all and thank you very much for that and request you all to trust Euro team. We are trying our best to deliver the good numbers and as we mentioned that we want to be very transparent to the all the investors and we’ll do better planning and deliver the better numbers in nearer future. Thank you very much for trusting us.
operator
Thank you sir. Thank you to the management team for your valuable time and thank you to all the participants for joining on the call. This brings us to the end of today’s conference call. You all, you all may disconnect now. Thank you.
Unidentified Speaker
Thank you.
operator
The recording has stopped.