CONCALLS

GODREJ CONSUMER PRODUCTS LTD – CONCALL HIGHLIGHTS #Q1FY27 Q1FY27 Performance - Organic volume growth stood at 4% in India and consolidated; UHC was 7%/6% and EBITDA growth 6%. - Management acknowledged performance was below aspirations, with core-category revenue largely flattish and profitability under pressure. - Key gaps identified: core-category growth, profitability, digital capabilities and execution rigor. Strategy & Outperformance - Broad strategy remains unchanged, but execution plans are becoming more detailed and balanced. - Long-term ambition remains double-digit volume growth and double-digit EBITDA/profit growth. - Management believes sustained profit growth in FMCG must be driven by volume growth. - Core business and new portfolio will receive resources simultaneously under the new “AND culture” approach. Core Category Development - First 6 core categories contribute nearly 90% of revenue and must return to industry-level growth. - Management plans to bring back the innovation spark into core categories. - New state-of-the-art R&D centre will double R&D capacity, with investment of around ₹150 Cr. - Better product-price-market fit and stronger execution will be key to regaining market share. Home Insecticides - HI penetration has increased from ~65% to 80%, while category volumes grew at ~15% CAGR in recent years. - Around 2/3 of the category remains in low-cost burning formats, creating a large premiumization opportunity. - Focus will be on share gains in burning formats and upgrading consumers to premium formats. - Roach and rat-repellent segments offer significant long-term growth opportunities. Hair Care & Skin Cleansing - Hair care remains a large, underpenetrated opportunity with strong long-term potential. - Skin cleansing strategy is shifting beyond soaps into hand wash, face wash and body wash. - Company aims to regain sustained soap market-share gains through better product, pricing and hyperlocal execution. - Skin-cleansing market is expected to grow at high single digit over the long term. Hair Color & Hair Passion - Around 2/3 of consumers still use traditional hair-colour formats, offering a large upgrade opportunity. - Creme business is undergoing renovation/relaunch; company plans entry into premium hair colours. - Professional hair-colour business has stabilized and is expected to deliver strong growth. - Hair Passion has undergone portfolio, media, GTM and operational restructuring; management expects profitable broad-based growth. Fragrances - Fragrances is viewed as a major 2040 opportunity. - Management remains positive on the potential of acquired brands. - Execution and integration issues following the PAKS acquisition are expected to be addressed over the next few quarters. Portfolio Transformation - India strategy focuses on new-category entry, G-Labs, and white spaces beyond HPC. - Home-care liquids is a major opportunity; market could potentially reach $3–4 Bn over the next 15 years. - Godrej brand strength and R&D capabilities provide a competitive moat. - New launches include Godrej Riz in Maharashtra at ₹79 MRP and Godrej Zap, a digital-only stain remover. - New categories will require investment and may pressure near-term margins, but management targets healthy unit economics over time. G-Labs - G-Labs will operate like a company within the company, with agile teams and faster product development. - Focus is on spotting consumer opportunities, science-led innovation and reducing time-to-market. - First product is a patented premium hair-colour formulation with single-step application and no mixing/gloves. - G-Labs is expected to become a future innovation funnel for the core business. White Spaces / Pet Care - Pet-care business has reached around ₹10 Cr ARR. - Product-market and price-market fit are now considered validated. - Business is expanding from dog to cat and from South India toward national scale. - Management targets nearly ₹50 Cr ARR by FY27-end and remains committed to a ₹500 Cr business by FY30. International Business - Fundamentals have been fixed across Africa, Middle East and Americas. - Global network has expanded to nearly 85 countries. - Company plans to scale haircare, HI, hair colour and other winning products internationally. - International GTM investment will increase significantly, with stronger sales teams across multiple countries. Investment & Digital - Total investment across R&D, global GTM and digital marketing expected to reach around ₹200 Cr annually within ~12 months. - Digital marketing resources are expected to scale by nearly 10x. - Media transition to WPP globally should improve TV/connected-TV reach and reduce costs, with benefits expected over the next 12 months. - Investments are expected to take around 2–3 years to fully pay back. Inventory Correction - India GT inventory is around 20 days; company believes it can operate at 10 days. - Plans to correct approximately ₹125–150 Cr inventory over the next 3 quarters. - Correction is only in India GT, across all categories; international inventory remains at appropriate levels. - This may create short-term pressure on India profitability, but management intends to compensate at the overall level. - Management maintained FY27 guidance despite the correction. Capital Allocation & CapEx - Dividend payout commitment remains minimum 50% of PAT; payout could remain near 100% unless a large M&A opportunity arises. - M&A focus is primarily India and only on high-conviction, strategic opportunities with significant value-creation potential. - Major CapEx cycles are nearing completion; from FY28, CapEx should move toward maintenance levels, broadly around depreciation. Execution & Outlook - Organization is being streamlined to improve operational excellence. - Strategy is being translated into detailed country/category/sales-level micro plans over the coming months. - Simplification is around 70–80% complete, with completion targeted over the next 1.5–2 years. - AI adoption will focus on demand forecasting, planning, media and pricing. - Management remains confident of achieving sustained outperformance; the question is when, not if. KEY TAKEAWAY - Core reset + ₹200 Cr investment aimed at restoring sustainable double-digit growth. Stock Fundamental in detail @Fundamental3

INDO BORAX & CHEMICALS LTD – CONCALL HIGHLIGHTS #Q1FY27 Q1FY27 Performance - Operating revenue grew 31.3% YoY to ₹70.36 Cr vs ₹53.57 Cr. - EBITDA increased 62.2% YoY to ₹19.8 Cr, with 28.1% EBITDA margin. - PAT grew 59.3% YoY to ₹16.25 Cr; PAT margin improved 430 bps to 22.3%. - EPS stood at ₹5.07. - Growth driven by better capacity utilisation, operational efficiency and higher realizations. FY27 Guidance - Management maintained FY27 revenue guidance of ₹250–260 Cr vs ₹215 Cr last year. - Target EBITDA margin ~20%; absolute EBITDA expected to grow ~11–12%. - Q2 expected to be softer due to monsoon; Q3 expected to recover. - Management does not expect Q1's 28% EBITDA margin to sustain through Q2 due to higher raw-material costs and seasonality. Boric Acid - Indo Borax commands ~50% market share in its operating markets. - Nameplate boric acid capacity: 20,000 TPA. - FY26 production was 15,917 tons; FY27 target is ~18,000 tons. - Practically achievable capacity utilisation expected at 96–98% after planned maintenance. - Boric acid prices moved from ~₹127 to ₹155–160, though Q2 pricing may remain softer. - Pricing is based on raw-material costs + market acceptance, with the company positioned as a premium supplier. IP-Grade Boric Acid - IP-grade currently contributes only ~3–5% of boric acid volumes, but carries better margins. - Management is expanding relationships with pharma, personal-care and other end users. - IP-grade business is growing rapidly from a small base and is expected to become an important margin/growth lever. DOT Expansion - DOT production was ~750 tons earlier, increased to ~900 tons last year. - FY27 target: 1,500 tons. - Current nameplate capacity is 6,000 TPA, leaving significant room for growth. - DOT is a forward-integrated product and generates additional value from internally produced boric acid. - DOT expected to contribute roughly 8–9% of total business this year vs ~6% last year. CapEx & New Products - Company plans around ₹50 Cr CapEx over the next 2–3 years. - Around ₹20 Cr+ planned for boron oxide. - Around ₹20–25 Cr planned for additional boric acid capacity; zinc borate also planned. - New capacities are expected to support higher growth and margins from FY28 onward. Cronox Acquisition - Board approved acquisition of 64.26% of Cronox Lab Sciences. - Cronox has 185 products across excipients, reagents, pharma, API, nutraceuticals and laboratory chemicals. - Acquisition provides access to global markets, distributors and complementary customers. - Indo Borax brings stronger operations, procurement, supply chain and leadership capabilities. - Management sees major synergies through cross-selling + geographical expansion, rather than direct chemistry adjacency. Cronox CapEx - Cronox has a planned ₹110 Cr CapEx, to be executed in phases. - Cronox currently has around ₹80 Cr cash on its balance sheet. - First phase requires around ₹55–60 Cr, which can be funded through internal accruals. - Full CapEx execution expected to take 18–24 months. - Benefits expected to start in FY29, with full impact in FY30–31. - Post-expansion, Cronox revenue potential could reach 3–4x current levels, depending on product mix. Acquisition Funding - Consideration for 64.26% Cronox stake: ~₹250 Cr. - About ₹134–135 Cr from Indo Borax internal accruals/cash. - Sale of two non-core Mumbai properties expected to generate ~₹48 Cr. - Balance to be funded through a term loan; promoter group has committed an additional ₹25 Cr contingency. - Total funding available: ~₹432 Cr vs requirement of ~₹400 Cr. - Company plans to complete the acquisition without waiting for the full open-offer process; open offer will run in parallel. Cronox Integration Strategy - Both companies will currently remain separate listed legal entities; no merger decision has been taken. - Indo Borax leadership will initially provide common leadership to both businesses. - Existing Cronox promoters will continue for a period and retain ~9.95% stake. - A dedicated Cronox leadership team is expected to be developed over the next 1–2 years. - Further acquisitions are not the immediate priority; focus is on successfully integrating Cronox. Cross-Selling & Global Opportunity - Indo Borax currently sells boric acid 100% in India. - Exploring expansion into Southeast Asia and South America. - Cronox has strong distributor networks in Europe and North America. - Opportunity to cross-sell products to common pharma/personal-care customers. - Management sees cross-selling opportunities on both customer and geographical basis. Balance Sheet / Promoter - Edelweiss' stake in Indo Borax is confirmed as a pure equity investment, independent of promoter financing. - No specific timeline yet for unpledging promoter shares; financing arrangement remains a work in progress. - Management's stated objective is to unlock value, grow EBITDA and improve shareholder value through professional management and complementary acquisitions. KEY TAKEAWAY - Strong Q1 + 96–98% utilisation + Cronox acquisition create multiple growth levers beyond boric acid. Stock Fundamental in detail @Fundamental3

UJJIVAN SMALL FINANCE BANK LTD – CONCALL HIGHLIGHTS #Q1FY27 MD & CEO Change - Sanjeev Nautiyal took early retirement due to health concerns; Board accepted the request. - Carole Furtado to take charge as Interim MD & CEO, subject to RBI approval. - Carole has 30+ years of banking experience and has been part of Ujjivan's leadership journey. - NRC has expedited the search for a permanent successor and expects to submit names to RBI within 3–4 months. - Internal candidates will be considered; Carole has expressed interest in the permanent MD role. - Board confirmed the exit was solely due to health/personal reasons, with no issue regarding business strategy or bank operations. - Board acknowledged the need for more robust succession planning going forward. Business Performance - Q1 loan book grew approximately 29% YoY. - GNPA stood at 2.2%, with asset-quality trends remaining stable. - Secured book share has crossed 50%, supporting continued diversification. - Management said secured and unsecured asset-quality trends are better or in line with Q1 performance. - Bank remains confident about maintaining business momentum in FY27. Deposits & Funding - CASA grew a healthy 38% YoY despite industry-wide pressure on deposits. - Q1 cost of funds stood at 6.9%. - Management highlighted disciplined funding of loan-book growth at relatively low cost. - Bank remains well capitalized to support FY27 growth plans. FY27 Guidance - Management reiterated FY27 guidance with no change in strategy. - Growth plans remain intact despite the sudden leadership transition. - Management explicitly stated that even if the planned capital raise is delayed, it will not impact FY27 performance/growth plans. - Existing capital is considered sufficient to support FY27 growth. - Strategic diversification of the loan book remains well on track. MSME Strategy - Vikas Agarwal has joined as Business Head – MSME. - He is a CA with 25+ years of banking experience across MSME, business banking, retail banking, credit, products and distribution. - MSME expansion will proceed as originally planned for FY27. - Management indicated that further details on the MSME strategy can be expected with the Q2 earnings call. Universal Banking Journey - Management confirmed the bank continues progressing toward its stated strategic objectives. - The increasing share of secured assets and diversification remain key components of the transition journey. - However, management did not provide any fresh timeline for approaching RBI regarding the universal-bank transition. - Focus remains on executing the already-established FY27 objectives. Asset Quality & El Niño - Management continues to monitor potential El Niño-related risks. - Current trends across both secured and unsecured businesses are better or in line with Q1. - Management currently sees no material deviation or major impact on asset quality/business trends. - West Asia-related concerns have also not caused any significant change in the current outlook. Leadership & Governance - Board emphasized strong governance, robust internal controls and an experienced management team. - Management believes business priorities and execution capabilities remain unaffected by the leadership change. - Board and senior management depth has continued to strengthen. - Succession search has been accelerated following Nautiyal's early retirement. Outlook - Festive-season demand outlook is considered promising, supported by robust domestic economic conditions. - Capacity additions are expected to support growth during the upcoming festive period. - A new brand campaign is planned for the festive season. - Management remains confident of delivering strong performance in FY27 and beyond. Stock Fundamental in detail @Fundamental3 KEY TAKEAWAY - Leadership changed, but FY27 growth, capital strength & asset quality remain on track.