Analysis: Jyoti Resins

BSE:514448 Market cap: ₹756 cr

What does Jyoti Resins do?

  • Jyoti Resins and Adhesives Limited is a leading Indian manufacturer of synthetic wood adhesives, established in 2006.
  • Operates a 40,000 TPA manufacturing unit in Gujarat, serving 14 Indian states.
  • Euro Adhesives, its flagship brand, is the second-largest retail wood adhesive brand in India.
  • Specializes in white glue (wood adhesives) for retail and OEM segments.
  • Expanding into new markets like Odisha and Chhattisgarh in FY26.
  • Focus on B2C distribution through 54 branches and 12,000+ retailers.

Growth thesis

Jyoti Resins produces wood adhesives (white glue) for furniture manufacturing, operating through B2C loyalty programs and B2B OEM segments. Key growth drivers include 3,500 tons/month capacity expansion by mid-2026, 15-20% annual volume growth, and 15% OEM revenue contribution by 2028. The company targets INR 500-650 crore revenue in 2-3 years via geographic expansion into 16 states, 6-7% marketing spend, and 23-25% EBITDA margins. Execution risks center on reducing debtor days from 150-160 to 120 days within 2 quarters and managing 60-70% raw material cost pass-through starting May 2026.

Why is Jyoti Resins stock rising?

  • Targeting INR500 crore plus revenue over next 2-3 years
  • Commencing operations in Odisha and Chhattisgarh from May 2026
  • Expanding OEM distribution to additional major metro markets, aiming for OEM to reach 15% of revenue in 2-3 years
  • Aiming for 15-20% volume growth in FY27
  • Brownfield expansion to increase capacity from 2,000 to 3,500 tons per month, enabling INR600-650 crore revenue capability

Research report

companyname: Jyoti Resins and Adhesives Limited ticker: 514448 sector: Wood Adhesives Jyoti Resins and Adhesives Limited makes polyvinyl acetate (PVA) wood adhesives, sold as white glue under the Euro brand. It is the second-largest wood adhesive brand in India in the retail segment, positioned behind a single dominant player (annual report FY25). The company was incorporated in 1993, launched Euro in 2006, and has stayed focused on one product category ever since. Production happens at a sing...

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Catalysts

capex, geographic expansion

Growth guidance

FY27 volume growth guided at 15-20% driven by capacity expansion and market expansion; targeting INR 500 crore revenue in 2-3 years

Guidance upgraded
RS rating: 74 Stage: Stage 2

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