KRITI INDUSTRIES (INDIA) LTD (NSE: KRITIIND) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Shiv Singh Mehta — Chairman and Managing Director
Rajesh Sisodia — Chief Financial Officer
Analysts:
Unidentified Participant
Ronak Ostwal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Kriti Industries Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rhonda Cotswold from Arihan Capital Markets. Thank you. And over to you, sir.
Ronak Ostwal — Analyst
Hello and good afternoon to everyone. On behalf of ariane Capital Market Limited I thank you all for joining into the quarter one FY26 earning conference call of Leiti Industries India Limited. Today. From the management we have Mr. Shiv Singh Mehra sir, Chairman and Managing Director of the company. Mr. Rajesh Pisodia sir, CFO of the company. So without any further delay, I will now hand over call to Mr. Shiv Singh Mesa sir for his opening remarks. Over to you.
Shiv Singh Mehta — Chairman and Managing Director
Good afternoon everyone and welcome to the earning conference call of kriti Industries India Limited. For the first quarter of the financial year 2026, early onset of monsoon and unprecedented rains as early as the beginning of month of May impacted business prospects. This impacted sales of both agri and building products segments. In quarter one financial year 2026, total sales volume were 23,714 metric tons as against 24,468 metric tons in the quarter first of financial year 25. On segmental front, in agri segment we barely achieved last year quantities while in building products segment company registered a degrowth of 29% in volume as compared to quarter one of financial year 25.
With these details I’ll hand over the call to our CFO Mr. Rajesh Sisodia to give you the financial highlights.
Rajesh Sisodia — Chief Financial Officer
Thank you very much sir. Good afternoon everyone. Let me take you through the financial performance of your company on consolidated basis for the quarter ended the 31st 30th June 2025. The Q1FY26 revenue is around INR 224 crores which segmentally reflects rupees 187 crores in agri, R22 crores in building products and rupees 15 crores in institutional business. The disproportionate low turnover is due to low prices by 13% as compared to last year. EBITDA of the company reported during this quarter is about INR 15 crores which is being 6.7%. Thank you. And I would like to Open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Anita Raj from Money Matters. Please go ahead.
Unidentified Participant
Yeah, hello, thank you for the opportunity. I just have some questions like you mentioned. Plan for regional manufacturing facilities to serve distance agriculture market. Can you say the timeline, investment requirement and target location for this facilities?
Shiv Singh Mehta
Can you repeat the question? I could not hear.
Unidentified Participant
You mentioned Plan for regional manufacturing facility to serve the same agriculture market. So can you share the timeline and investment requests and target locations with the facilities that regional facility you have mentioned?
Shiv Singh Mehta
We are incurring capital expenditure for the expansion of capacities and adding new lines for manufacturing which we are doing already. We have invested during our last year and the quarter one and we’ll continue to do so going forward in the times to come we are quite careful about analysis and seeing the what kind of market scenario emerges as current scenario in the world market and has many headwinds and we would like that we are able to be on right side of the curve so we are careful in our expenditure we are clear about the quantum and where we have to invest the all details are in the work in process.
Unidentified Participant
Okay, okay so I’m like with the anti dumping duty on PVC steel and the judicial review and your current mix is of 72% in domestic and 28 in import how are you managing procurement rate?
Shiv Singh Mehta
Can you repeat again the voice is not clear. Can you repeat please?
Unidentified Participant
Yes, this is regarding raw material resourcing like you have this anti dumping duty on PVC still under judicial review and your current mix of 72% domestic and 28% of imports how are you managing procurement risk? What’s your optimal sourcing mode?
Shiv Singh Mehta
You see presently the international scenario is quite unpredictable so any forecasting will have to be on a closed period basis. How things evolve like ADD is hanging in balance for over a year and still it has not been implemented by government of India and similarly the restrictions imposed by international community on various countries is quite uncertain. We would not like to predict any long term situation as of today but yes, hopefully in next couple of months things should streamline and clarity should emerge.
Unidentified Participant
And on the capex side like you have less 55 crores can you deploy all the can you wipe all the capex?
Shiv Singh Mehta
We have already incurring capex as per plan and we are on course of our plan. We have already invested even in first quarter money and going forward the investments will continue.
Unidentified Participant
Okay. Okay. So thank you so much.
operator
Thank you. Before we take the next question, we would like to remind the participants to press star and one to ask a question. The next question is from the line of Praneet, an individual investor. Please go ahead.
Unidentified Participant
Hi. Yeah. Thank you for the opportunity. So in terms of ag, I understand the weakness is there. But last time we mentioned that we’re expanding into other segments. Has there been any mitigation as a result of our expansion geographically beyond our three primary states of Maharashtra, RSNP and like how is that particular venture progressing at this point of time? Or is that venture not has been as successful as we thought because of the slowdown in the market?
Shiv Singh Mehta
You see our major focus other than agri is building material. Where we are continuously making our efforts to expand our markets and our product range. So as far as product range is concerned, we have really augmented reasonably to the requirements of the market in last two or three quarters. And going forward, our now major focus is to extend and expand our market reach. So the works are in process and some markets are maturing and some market take time to mature. So we will be focusing on building material as we have been stated. As we have stated earlier,
Unidentified Participant
understood in terms of cpvc, that particular segment has remained relatively strong in the market despite the headwinds in the agri space because of pricing have been able to gain more volumes in CPVC or has it remained stable for the last in this Quarter
Rajesh Sisodia
our volumes in CPVC are growing. But for a month where there is a major impact due to rains, where we are markets were impacted because some of our dealers still are from agri background and when their attention shifted due to the change in market conditions, we could see a challenge in a month. But otherwise overall month to month we are growing and we are in the right direction.
Unidentified Participant
So right now what is the gross margin like in different segments? I understand the lowest will be AGB side of it and the highest will be tpvc. But can you give a perspective on how each segment is contributing to the overall gross margin and how it is going to go into future contribute to the EBITDA Also because we expect going on a building segment, right. But I understand the margin might expand. But if you can give a perspective on with what type of contribution the margin will have a change.
Rajesh Sisodia
You see, in our case our Margins will improve once our volumes grow to a larger numbers. Because you know, the initial fixed cost towards developing a market is consistently at certain levels which have to be distributed in larger base. So going forward we certainly see margins to improve in building material and we should average it around industry.
Unidentified Participant
So at what volumes will we be able to mature in the existing markets we are at? Like what percentage do we need to grow in this new markets where we can get to a point where much expansion happens?
Rajesh Sisodia
You see, there’s a critical volume. It’s not a question of percentage as alone. So there are certain volumes which are critical numbers. Once achieved, you can say once we grow our business for building material beyond 200 crores, 220 crores per year, that’s about 20, 20 crores per month, our fixed cost will come down considerably.
Unidentified Participant
Understood. So got it. So in terms of procurement, I understand that you see price has been falling. Have we been procuring mostly from the domestic side or have we been importing? Because I think domestic prices are slightly premium to the imported ones. So how have we been doing sourcing in terms of the resin at this point of time?
Rajesh Sisodia
We are importing as well as domestic sourcing, but our imports in terms of overall percentages have come down in a falling market because the logistics supply chain time in import is much longer than the domestic supply chain timings.
Unidentified Participant
So basically, despite the price premium at the point of sale, the logistic cost will be enough to not make it viable to choose imports. Right. Is that what you, what you said.
Rajesh Sisodia
Mitigate certain risks as well as you have to see the benefits. So risk reward ratio has to be observed and the judicious judgment has to be taken.
Unidentified Participant
Understood. Suppose it’s mostly input at some point of time. Please. Mostly domestic at this point of time. Right, Understood. That’s it. From my side. Thank you.
operator
Thank you. The next question is from the line of path Patel, an individual investor. Please go ahead. Part. Are you there?
Unidentified Participant
Good afternoon, sir. Am I audible?
operator
Yes, you are.
Unidentified Participant
Yeah. So my first question is that you mentioned targeting 10% EBITDA margins going forward. But Q1 FY26 margin is at 6.74% are still below the FY24 levels of 6.87. Can you provide a quarterly timeline for achieving the 10% target and specific initiatives beyond raw materials price stabilization?
Shiv Singh Mehta
First quarter was certainly challenging. As I even said in my opening remarks, because of unprecedented rains right at the beginning of May, which is generally a peak time for sales. But going forward we feel from quarter three things should improve this Time is the time when the harvest is over. Rain period. I mean monsoon is over and the market should be fairly comfortable as there is a overall growth which is anticipated both agri and building material.
Unidentified Participant
Secondly, with capacity utilization of this 49, what is your strategy to optimize resource absorption? Are you considering any temporary capacity rationalization or asset monetization to improve return ratios?
Shiv Singh Mehta
Can you repeat the question? Sir?
Unidentified Participant
Like the capacity utilization is at 49%. And what is the strategy to optimize the fixed cost absorption? Are you considering any temporary capacity rationalization or asset monetization to improve the return ratios?
Shiv Singh Mehta
No. Our sales will grow. We are quite sure and they will. We will need these capacities for sure. It is by increasing the top line that we will be able to rationalize our cost optimization per unit.
Unidentified Participant
Okay, sir. And sir, lastly in Q1FY26 agriculture volumes declined 1.7%. So while building the products fell 28% QoQ. So like how are you balancing market share retention with premium realization? Especially in the competitive market like this?
Shiv Singh Mehta
No, our downward is 0.2% reduction in the volume in agri segment 0.2. And that is in spite of the market had shrunk because of the month of May rains. Consistently rains. It rained throughout the month of beginning right from beginning of month of May towards the end of May. So we must have improved our market share rather than any challenge on that side.
Unidentified Participant
Okay sir, that’s from my take.
operator
Thank you. Participants who wish to ask a question may press star and one. Now the next question is from the line of Praneet, an individual investor. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Again. So as management just stated to the previous participant, you said the market has shrunk but as volumes haven’t substantially. Could you give some perspective on how much the market has shrunk in overall ADRI space? Like is it mostly state wise? Has it shrunk by a lot or like or the overall market? In terms of the state, there are a few states which much more fluctuating than normal.
Shiv Singh Mehta
You see, our main market is in western and northern India. This entire market was impacted because of rains.
Unidentified Participant
But like what? By what percentage do you think the agri market has shrunk? Do you think during this quarter and. Like last
Shiv Singh Mehta
this must have shrunk by at least 15 to 20%.
Unidentified Participant
And you expect all this 15 to 20% volume degrowth that might have happened? You mentioned the 15 to 20%. Would it be just based on the price or would it be the volume?
Shiv Singh Mehta
I’m talking metric ton Basis. Metric tons.
Unidentified Participant
I’m sorry, could you repeat it on a weight basis? Okay, Matric. So volumes have reduced by that. Understood. So do you expect once the prices start stabilizing and going up, do you expect this volumes to pick up beyond a point? And where do you see the volumes growing in the next few years? Because if the price is still.
Shiv Singh Mehta
Yeah, in agri space we certainly see about 5 to 6% around that growth. Because there is a overhang which will be reflected in quarter three and four. Similarly, in building material we clearly see a growth about 10%.
Unidentified Participant
And this is metric tonnage basis, not the overall value realization basis, metric turn basis.
Shiv Singh Mehta
Because you know, prices are fluctuating so it’s difficult to assess exact numbers in rupees.
Unidentified Participant
Understood. So one question regarding the margin. Basically, do we sell sell the final product based on a percentage margin or. Or an absolute value? Like when we are going to think about let’s say metric ton basis, will we see let’s say X to be the value will be realized and whatever the prices you just add that value and sell it or will it be a margin basis?
Shiv Singh Mehta
You see, this is a competitive open market where all the products compete. So there is certainly a costing plus EBITDA margin is one criteria plus market reality in terms of what kind of prices and competitive intensity is prevalent. So all these factors put together a rational decision is arrived at.
Unidentified Participant
So if you mentioned a competence that means it mostly likely to be a margin rate instead of an absolute value. Because costing might change across players.
Shiv Singh Mehta
But the costing wise there will be a marginal difference or. But everyone has to look at the business in terms of a profitable business. So there is a rationality overall in decision making by the industry.
Unidentified Participant
Understood. So got it. So, and one more thing. When we are going to these distributors to in a put more like a building products material. And we are also last time you mentioned that we’re using both channels. We are using existing channels to stock up the building products and also approaching new channels. When you’re approaching the new channels, how does the company displace market or add onto itself to the new market? Like what is the strategy it has been using with the distributors to stock company’s product?
Shiv Singh Mehta
You see, you do appoint exclusive distributors and you do also compete in market. So your brand, your customer appeal, your product and services all put together makes a bouquet of offering. And that is what decides where you are able to convince a distributor about the value proposition you offer. And he sees a long term benefit in terms of relationship and emerging business model that makes the Whole difference.
Unidentified Participant
Understood. A combination of factors and the exclusive distribution also marketing can also help in terms of onboarding more retail or wholesale distributor side. Okay, that’s.
operator
Before we take the next question we would like to remind the participants to press star and one to ask a question. The next question is from the line of Riya Sharma, an individual investor. Please go ahead.
Unidentified Participant
Good afternoon sir. Thank you for giving me this opportunity. My first question is on the product mix evaluation. Your presentation shows focus on value added products like C PVC pipeline column 5. So what percentage of revenue do this higher margin credit constitute and what’s the Target NEXT by FY26.
Shiv Singh Mehta
You see I have a figure of whole agree as a segment. Individual product by segment is not sales is not available here with me. Any such details you can ask our company and we will provide the details to you.
Unidentified Participant
Oh, okay. Thank you sir. My second question is on distribution network expansion. You have currently 490 dealers and so what’s your expansion plan for dealer network? And are you seeing any channel conflict between agriculture and building products distributors?
Shiv Singh Mehta
You see, as I said earlier, we are not looking at expanding distributor base. We want to consolidate in the areas we are operating and also looking at distributor development. So obviously we do find that some of the distributor are doing very well and some may not be doing that well. So. So we have to do a continuous screening and development work for the areas and territories where we first want to strengthen our presence.
Unidentified Participant
Okay, thank you sir. And my last question is that in the fragmented PVC pipe market, how are you differentiating beyond the brand premium? Are you investing in digital marketing or direct to consumer channels?
Shiv Singh Mehta
You see there are stages and there is nothing like this what happens and that all the efforts have to be synchronized as per the business strategy and marketing strategy. So all these efforts go on which is adl, BTL and various development initiatives.
Unidentified Participant
Okay, sir. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one at this time to ask a question please press Star and one now. I repeat, participants who wish to ask a question may press star and one at this time to ask a question please press star and one now. Participants who wish to ask a question may press star and one now. In order to ask a question please press star, and one now. Participants who wish to ask a question may press star and One now. To ask a question please press star and One now.
Ladies and gentlemen, as there are no further questions from the participants I now hand the conference over to the management for closing comments.
Shiv Singh Mehta
Thank you for participating and giving your precious time. We look forward to your patronage and continued support to develop our future. With support of all of you. Thank you so much.
Ronak Ostwal
Thank you. On behalf of Aryan Capital Markets, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.