What’s new

• FY26 consolidated EBITDA margin was 11%, missing the 16% guided target.
• Adjusted core margin, excluding Omera losses and one-time costs, was 13.5%.
• New margin guidance is 14-15% by FY28, a clear step down from the original target.

Why it matters

A margin miss this large on a year of strong top-line growth points to a profitability problem, not just teething troubles. The adjusted core margin of 13.5%, stripping out Omera losses and one-time costs, confirms the pressure is broad. Management's new guidance for 14-15% by FY28 now looks like a recovery to a new, lower baseline.

What we’re watching

• Whether the India glass-lined segment can sustain its improved 75% utilisation rate.
• The pace of Thaletec Germany's order-book driven revenue recovery in FY27.
• Progress on the Rs 2,000 crore two-year revenue target, now framed as a floor.

The full read

HLE Glascoat grew revenue 31.7% in FY26 to Rs 1,353 crore. It did not translate into the profit management promised. Consolidated EBITDA margin landed at 11%, missing the 16% target. The adjusted core margin, excluding losses from the new Omera unit and one-time costs, was 13.5%. Management now frames a 14-15% margin by FY28 as the goal, a clear step down from the original target. The India glass-lined business improved utilisation to 75% and Thaletec Germany's order book points to a recovery, but the consolidated picture is of a business growing faster than it can profitably integrate. The Rs 2,000 crore two-year revenue target was reaffirmed, but the margin story is now the focal point.

Primary source: BSE · NSE