Earning Call Transcript-07082026

CIN: L45200GJ1988 P LC011049 R EGD.OFF.: 5 04, TRIVI D H C HAMBER, 5TH FLOOR, OPP. FIRE BRIGADE STATI O N, R ING ROAD, SURAT-395002, INDIA Phone (91-261) 2328902 ∙ E-Mail: corporate@sumeetindustries.com ∙ Visit us at: www.sumeetindustries.com Date : 11.08.2026 To, To, Department of Corporate Services National Stock Exchange of India Ltd BSE Limited Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, FORT, Bandra (E), Mumbai - 400 001 Mumbai - 400 051 Scrip Code – 514211 Symbol - SUMEETINDS Dear Sir/Madam, Subject: Submission of Transcript of the Earnings Conference call held on Friday , August 07, 2026 at 04.00 P.M. In continuation of our earlier letter dated August 8, 2026 informing about the audio link of the Earnings Conference Call and Pursuant to Regulation 30 of Securities Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015, the Company is hereby submitting transcripts of Earnings Conference call of the analyst/investor conference call which was held on Friday, August 07, 2026 at 4.00 PM to discussed the Un-Audited Standalone and Consolidated Financial Results of the Company for the Quarter ended on 30th June, 2026. Copy of Earning Conference call is enclosed herewith and same is also available on Website Link : https://www.sumeetindustries.com/wp-content/uploads/Sumeet-Industries-Q1FY27-Concall- Transcript-_-07082026.pdf. Kindly acknowledge and take the same on records. Thanking you. For Sumeet Industries Limited Anil Kumar Jain Company Secretary “Sumeet Industries Limited Q1 FY ‘27 Results Conference Call” August 07, 2026 MANAGEMENT: MR. ROHAN MODH – EXECUTIVE DIRECTOR – SUMEET INDUSTRIES LIMITED MR. PRATIK JAJU – MANAGING DIRECTOR – SUMEET INDUSTRIES LIMITED MODERATORS: MR. PARTH ACHARYA – KIRIN ADVISORS PRIVATE LIMITED Sumeet Industries Limited August 07, 2026 Moderator: Ladies and gentlemen, good day and welcome to Sumeet Industries Limited Q1 FY '27 Results 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Parth Acharya from Kirin Advisors Private Limited. Thank you and over to you, sir. Parth Acharya: Thank you. Good afternoon, everyone. On behalf of Kirin Advisors, I welcome you all to the conference call of Sumeet Industries Limited. From the management team, we have Mr. Pratik Jaju, Managing Director; Mr. Rohan Modh, Executive Director. With that, I now hand over the call to Mr. Pratik Jaju for the opening remarks. Over to you, sir. Thank you. Pratik Jaju: Good afternoon, everyone, and a very warm welcome to all our investors, analysts, and stakeholders joining us today for the quarter one FY '27 earnings conference call of Sumeet Industries Limited. It is a pleasure to have you with us today, and I sincerely thank all of you for your continued trust and support. For the benefit of those joining us for the first time, let me briefly introduce Sumeet Industries. Established in 1988, Sumeet Industries has built a strong presence as integrated polyester manufacturing unit with a diversified product portfolio comprising of PET chips, partially oriented yarn, fully drawn yarn, and polyester texturised yarn. Our products cater to a wide range of end-user industries including apparel, home textiles, and industrial applications. Operating from Surat, one of India's largest synthetic textile manufacturing hubs, we provide a strategic advantage in sourcing, manufacturing, logistics, and customer servicing. Now, a new phase of the company's journey began in 2024 under the leadership of Eagle Group, a textile-focused industrial group with over four decades of experience across the polyester value chain. Since then, our focus has always been on strengthening operational excellence, improving manufacturing efficiencies, and building a scalable platform that can support sustained long- term growth. Coming to our financial performance, we delivered a resilient quarter despite an exceptionally challenging operating environment for the polyester industry. During our quarter one FY '27, our income increased by over 9% year-on-year to INR272.74 crores. Our EBITDA stood at INR8.85 crores with an EBITDA margin of 3.24%, with PAT for the quarter was INR1.14 crore. Although revenue growth remained healthy, profitability during the quarter was impacted. Now, this impact was due to temporary industry-wide headwinds. Due to the geopolitical tensions in the Middle East and US, there was a sharp increase in the crude oil prices, which resulted in significant volatility in our raw material, such as PTA and MEG, along with elevated freight and logistics costs. These factors created margin pressure across the polyester value chain and affected manufacturing across the industry. Importantly, the underlying demand environment has remained encouraging. Demand across apparel, home textile, industrial application continued to be healthy, and the challenges witnessed during the quarter were largely driven by input cost inflation rather than Page 2 of 14 Sumeet Industries Limited August 07, 2026 any weakness in end-market demand. Encouragingly, the operating environment has already started improving. The crude oil prices have largely stabilized, the raw material availability has improved, and the supply chains have normalized, and the price volatility has moderated. We believe these were temporary disruptions, and with industry conditions steadily returning to normal. Alongside navigating these near-term challenges, we also achieved one of the most important milestones in the company's recent history through the successful completion of our rights issue. I would like to sincerely thank all our shareholders for the confidence they have shown in the company and for their strong participation in the capital raise. The board has approved the allotment of 16.84 crores equity shares at an issue price of INR11.86 per share, raising INR199.75 crores with net proceeds of approximately INR194.90 crores available for deployment towards our strategic growth initiatives. These net proceeds from the issue have been earmarked for clearly defined priorities. Approximately INR100 crores will be utilized towards strengthening working capital to support higher production levels and efficient procurement of raw materials. Around INR50 crores will be invested towards the operationalization and integration of the new acquired CP plant. Approximately INR23 crores will be utilized for the repayment of borrowings, which is expected to lower our finance costs and strengthen our balance sheet. In addition, INR22 crores will be invested in solar captive power plant, which will help to reduce our power costs. Among these strategic initiatives, the operationalization of the CP plant represents one of the most significant growth drivers for the company. Earlier in March, Sumeet Industries was declared the successful bidder for the acquisition of Narkoda Limited CP plant under the CIRP for a consideration of INR23.47 crores. This plant has an installed manufacturing capacity of 1,40,000 tons per annum of PET chips, a key raw material for our downstream POY and FDY operations. Once recommissioned, it is expected to approximately double our existing total capacity, while significantly strengthening backward integration, improving operating efficiencies, and enhancing our overall cost competitiveness. We believe this project will serve as a key growth engine for the company over the coming years. Looking ahead, we are optimistic about the opportunities before us. With industry conditions stabilizing, a significantly stronger balance sheet, lower expected finance costs, and the execution of [Showing first 8,000 characters — download PDF for full document]