Earnings Call Transcript- Q1FY27

Date: August 11, 2026 To To Department of Corporate services Listing Department BSE Limited National Stock Exchange of India Limited 1st Floor, New Trading Ring, Exchange Plaza, Plot No. C-1, Rotunda Building, Phiroze Jeejeebhoy Block G, Towers, Dalal Street Bandra Kurla Complex, Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Symbol: 544517 Scrip Code: BUILDPRO Dear Sir/Madam, Subject: Transcripts- Q1 & FY27 Earnings Conference Call Please find enclosed the transcripts of the Q1 & FY27 Earnings Conference Call held on August 7, 2026. Kindly take the above information on record and acknowledge. For Shankara Buildpro Limited Ereena Vikram Company Secretary and Compliance Officer M.No. A33459 Corporate Office: Registered Office: G2, Farah Winsford, 133 Infantry Road, No.21/1 & 35-A-1, Hosur Main Road, Bengaluru-560001. Karnataka Electronic City, Veerasandra, Bengaluru-560100 Ph.: +91-080-40117777 Ph.: +91-080-29910702 I 080-29910709 Email :- info@shankarabuildpro.com I CIN: L24311KA2023PLC179791 I Website : www.shankarabuildpro.com Shankara Buildpro Limited Q1 FY27 Earnings Conference Call August 07. 2026 Moderator: Ladies and gentlemen, good day and welcome to the Shankara Buildpro Ltd Q1 FY 2027 Earnings Conference Call hosted by TIL Advisors. 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 the conference call, please signal an operator by pressing “*” then “0” on your touchtone phone. Please note, this conference is being recorded. I now hand the conference over to Mr. Sayam Pokharna from TIL Advisors. Thank you and over to you, sir. Sayam Pokharna: Thank you, Steve. Good afternoon, ladies and gentlemen. And thank you for taking out the time to join us today in the Q1 FY 2027 Earnings Conference Call of Shankara Buildpro Ltd. The latest Earnings Presentation and Press Release for Q1 Results have been published on the Stock Exchange Website and on the Company Website. If you wish to be added to our mailing list, please feel free to write to us. To take us through today's results, we have with us from the Management Team, Mr. Sukumar Srinivas – Managing Director, Mr. Dhananjay Mirlai Srinivas – Executive Director, and Mr. Alex Varghese – Chief Financial Officer. We will begin with a brief overview of the quarter from Mr. Dhananjay Mirlay Srinivas, followed by a Q&A session. Please note that this conference may contain certain forward-looking statements about the performance of the company, which are based on certain beliefs, opinions, and expectations of the company as on date of these calls. These statements are not guarantees of future performance and involve certain risks and uncertainties. With that said, I would now like to hand over the call to Mr. Srinivas. Dhananjay Mirlay Srinivas: Thank you, Sayam. Good afternoon, everyone and thank you for joining us today as we discuss Shankara Buildpro's performance for the 1st Quarter of FY27. Page 1 of 14 I am pleased to share that Buildpro has started the new financial year on a strong footing. Total revenue from operations stood at Rs. 1,890 crore, up 21% year-on-year, led by continued volume growth in our steel marketplace and complemented by a healthy recovery in the non- steel marketplace. PAT for the quarter stood at Rs. 35.8 crore, up 12% year-on-year. What makes this performance particularly satisfying is the operating background against which it has been delivered, and I will spend some time on that. Steel remains the core of our growth engine. Our steel marketplace delivers 2.5 lakh tons of volume in Q1 FY27, a growth of 10% year-on-year, marking a good start to the year. Steel revenue grew 21% year-on-year to Rs. 1725 crore compared to Q1 FY26. Core categories of pipes, tubes, flats, and roofing all recorded good volume growth and we saw a healthy traction across both retail and non-retail channels. This growth needs to be seen in the context of the quarter the steel industry has had. Q1 FY27 was a soft quarter for structural and tubular steel demand across the country. Geopolitical tensions arising from the West Asia conflict, the resulting energy inflation, and a challenging macro environment weighed on market sentiment and on construction activities through April and May. There was a softening of prices by end April and May which resulted in cautious purchase behavior of customers. Things have improved through June and July. It is in that context that Buildpro has delivered 10% volume growth in a quarter where the industry has broadly either remained flattish or struggled, which speaks to the strength of our marketplace model. Our multi-brand sourcing, deep last mile fulfillment network, and a wide customer spectrum allow us to keep serving demand across customer categories even when the broader environment turns cautious. Sequentially, volumes moderated 13% from a seasonally strong Q4 in line with the usual 1st Quarter pattern. Importantly, industry activity in the past month points to a recovery in steel demand from Q2 and with prices now stabilizing, the operating backdrop for the remainder of FY27 looks distinctly better. We remain on course for our 1.2-million-ton steel volume target for FY27. The non-steel marketplace has seen a healthy improvement in Q1 FY27 as compared to FY26. We have been witnessing macro headwinds for the past two years which kept the building material environment tepid. Non-steel revenues stood at Rs. 165 crores in Q1 FY27, up 15% year-on-year and 2% sequentially. In our last call, we have spoken of an expected resurgence in non-steel through FY27 and the 1st Quarter is an early validation of that recovery. Page 2 of 14 Our performance for the quarter was driven by a 32% growth in fittings and sanitary ware, our largest product category. Accessories and electricals grew by about 40%, albeit on a smaller base. The West Asia crisis and subsequent energy deficit hit the tile industry the most. However, things have stabilized over the last month and we expect renewed growth in this vertical as well. We expect stability in most of our verticals in the non-steel, keeping us on track with the non-steel roadmap we outlined last quarter. On profitability, EBITDA for the quarter stood at Rs. 62 crores, up 17% year-on-year, with EBITDA margin at 3.26%. PAT stood at Rs. 35.9 crore, up 12% year-on-year. The balance sheet continues to reflect the asset-light character of the business. ROCE for Q1 FY27 stood at 35%. Working capital was held at 27 days, comfortably under the 30-day mark. Finance costs declined to 0.55% of revenue, lower both year-on-year and sequentially, even as steel prices and scale of operations rose. This reflects disciplined working capital management. Same-store sales growth stood at 21% for the quarter, continuing the momentum of 23% of FY26 and validating our strategic approach to store expansion. This quarter, we have added three stores client fulfilment centers Mangalore, Mumbai Thrissur and 34 customer touchpoints across 45 towns and cities in 10 states. Buildpro is built on an evolving playbook across markets and categories, not a single marketplace model. We have a wide customer spectrum, with ticket sizes ranging from Rs. 500 to Rs. 1.5 crores. The same network of stores and fulfillment centres cater to customers ranging from homeowners, influencers, contractors, dealers, mid-size builders to large institutions. These customers procure materials through various modes like in-person visits, tele calling, online platforms, etc. This makes Shankara a true omnichannel business. We are a multi-vertical, multi-product, multi-brand marketplace, with over Rs. 2 lakh plus SKUs spread across 25 verticals, covering almost 75 categories and working with over 100 leading brands. Shankara Buildpro is able to service customers with a complete range of steel items, building materials and home improvement products, [Showing first 8,000 characters — download PDF for full document]