Yasho raises FY27 capex to Rs 250 cr as shares jump 20%
Q1 operating margin was 4.36 percentage points above the reported commodities-peer median, while management raised its FY28 revenue target to more than Rs 1,600 cr.
Filed 31 Jul 2026, 12:25 IST · Yasho Industries Ltd (YASHO)
Key takeaways
- Yasho Industries reported consolidated Q1FY27 operating profit of Rs 73.10 cr at a 23.75% margin, 4.36 percentage points above the 19.39% median for 41 reported commodities peers.
- Management said FY27 capex has been raised from Rs 125 cr to Rs 250 cr, with the Pakhajan expansion linked to firm international enquiries.
- The stock rose +20.00% on the results, with trading volume at 14.19 times the reference level.
Price around the results
Operating profit led the quarter
Yasho Industries generated consolidated revenue of Rs 307.74 cr and operating profit of Rs 73.10 cr in Q1FY27, with the operating result converting into net profit of Rs 36.05 cr. Interest of Rs 11.28 cr and depreciation of Rs 14.16 cr were the main charges between operating profit and profit before tax of Rs 48.97 cr. Other income was Rs 1.31 cr against pre-tax profit, so reported earnings were not materially reliant on non-operating income.
Margin was ahead of the commodities peer set
The 23.75% operating margin was 4.36 percentage points above the 19.39% median among 41 commodities companies that had reported the same quarter. The tax rate was 26.39%, leaving net profit at Rs 36.05 cr from pre-tax profit of Rs 48.97 cr. The quarter's margin and profit quality are therefore better assessed through operating performance than through other income.
Pakhajan expansion is the central business update
Management said it has doubled the FY27 capex outlay to Rs 250 cr from Rs 125 cr, including two new Pakhajan buildings for products developed through its R&D. The company said the site can support 20%-25% growth without additional infrastructure capex and has potential peak revenue capacity of Rs 800-850 cr at optimal utilisation. Management also said equipment for an MNC contract is expected in Q3FY27, with trial production in Q4FY27 and commercialisation targeted for Q1FY28.
Shares posted a sharp initial reaction
The stock gained +20.00% on the results, including a +1.35% opening gap, while its relative move was +19.73%. Volume was 14.19 times the reference level, indicating that the response was accompanied by unusually active trading.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹308 cr |
| Other income | ₹1 cr |
| Expenses | ₹235 cr |
| Operating profit | ₹73 cr |
| Operating margin (%) | 23.75% |
| Interest | ₹11 cr |
| Depreciation | ₹14 cr |
| Profit before tax | ₹49 cr |
| Tax | ₹13 cr |
| Net profit | ₹36 cr |
| EPS (₹) | ₹29.90 |
Operating margin of 23.75% compares with a Commodities sector median of 19.39% across 41 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +20.00% | +19.73% |
Volume on the results session was 14.19× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company revised its FY28 revenue target to more than ₹1,600 crore.
- The company expects annual growth of 30% to 40% over the next two to three years.
- The company plans to borrow approximately Rs. 100 crore in FY27 while maintaining Debt-EBITDA below 2.5x.
Expansion
- The company increased its FY27 capex outlay from Rs. 125 crore to Rs. 250 crore.
- The company plans to construct two new buildings at Pakhajan to add capacity for R&D-developed products.
- Equipment deliveries for the MNC contract are expected in Q3 FY27, with trial production in Q4 FY27 and commercialization in Q1FY28.
- The Pakhajan plant can support 20-25% growth without additional infrastructure capex.
- The Pakhajan site has potential peak revenue capacity of ₹800–850 crore at optimal utilization.
New orders
- The company has firm enquiries from international customers supporting the planned Pakhajan capacity additions.
- The company has received several long-term commitments from various customers.
New initiatives
- The company is developing products through its R&D for capacity additions at new Pakhajan buildings.
What to watch
- Whether operating margin holds above 23.75% as the higher capex programme progresses.
- Progress on equipment deliveries in Q3FY27 and trial production scheduled for Q4FY27, as reported by management.
- Whether the Pakhajan expansion advances within the Rs 250 cr FY27 capex plan.