💰 Financial Performance

Revenue Growth by Segment

The Real Estate segment is the primary revenue driver, with Total Operating Income growing 29.6% YoY from INR 76.83 Cr in FY24 to INR 99.60 Cr in FY25. This growth is driven by the monetization of the company's land bank through projects like Shree Laxminarayan Industrial Park and Surat Textile Bourse.

Geographic Revenue Split

100% of revenue is currently generated from Surat, Gujarat, specifically from the Udhna region where the company's historical land bank is located.

Profitability Margins

Net Profit Margin remained stable but high at 39.28% in FY25 compared to 39.90% in FY24. Operating Profit Margin improved significantly by 38.97%, rising from 21.19% to 29.45% due to higher sales volume and better absorption of fixed costs.

EBITDA Margin

EBITDA margin improved from 12.10% in FY24 to 27.15% in FY25, representing a YoY increase of 124%. Core profitability is bolstered by the low cost-basis of land converted from capital assets to stock-in-trade.

Capital Expenditure

The company is executing a massive Capex program totaling approximately INR 530.18 Cr for real estate. This includes INR 344.83 Cr for Surat Textile Bourse Phase-I (Part-A) and INR 185.35 Cr for Phase-I (Part-B). Additionally, a greenfield textile project in Dahej is planned with a 15,000 MTPA capacity.

Credit Rating & Borrowing

The company holds a credit rating of IVR BB-/ Stable (reaffirmed in September 2025) for its INR 175 Cr bank facilities. Borrowing costs are impacted by the modest credit profile, though liquidity is supported by a current ratio of 3.54x.

⚙️ Operational Drivers

Raw Materials

The primary 'raw material' is the converted land bank, which represents 100% of the project base. Construction materials like steel and cement constitute the bulk of development costs, though specific percentage splits for these materials are not disclosed.

Import Sources

Land is sourced internally from the company's existing holdings in Udhna, Surat, Gujarat. Construction materials are sourced locally within India.

Key Suppliers

Not specifically disclosed in the documents; however, construction is managed through local contractors in the Gujarat region.

Capacity Expansion

Current real estate capacity includes 503 units in Shree Laxminarayan Industrial Park and 367 units across Surat Textile Bourse Phase-I. Planned expansion includes a 15,000 MTPA viscose filament yarn plant and a 12 MW captive power plant in Dahej.

Raw Material Costs

Land stock-in-trade was valued at approximately INR 604 Cr. Construction costs for ongoing projects have reached INR 249.30 Cr for Part-A (72.3% of project cost) and INR 53.78 Cr for Part-B (29.02% of project cost).

Manufacturing Efficiency

Inventory turnover ratio improved by 25.93% from 0.13 to 0.17, reflecting faster conversion of real estate inventory into sales.

Logistics & Distribution

Not a significant factor for real estate; however, the prime location of the projects in Udhna, Surat, serves as a key distribution advantage for the textile-based clients purchasing the units.

📈 Strategic Growth

Expected Growth Rate

29.6%

Growth Strategy

Growth is being achieved through the phased monetization of a 604 Cr land bank. The strategy involves developing specialized industrial infrastructure (Surat Textile Bourse) to capture demand from the Surat textile cluster and diversifying back into manufacturing with a 15,000 MTPA greenfield plant in Dahej.

Products & Services

Industrial houses, commercial units in the Surat Textile Bourse, open industrial plots, and planned viscose filament yarn (rayon yarn).

Brand Portfolio

Shree Laxminarayan Industrial Park, Surat Textile Bourse.

New Products/Services

Launch of Surat Textile Bourse Phase-I (Part-B) and the upcoming 15,000 MTPA viscose filament yarn production facility.

Market Expansion

Expansion from the Surat (Udhna) real estate market into the Dahej (Bharuch) industrial manufacturing zone.

Market Share & Ranking

Not disclosed; however, the company is a significant local player in the Surat industrial real estate niche due to its massive land holdings.

Strategic Alliances

The company reached settlements with previous strategic investors and has resolved disputes regarding unsecured loans to clear the path for new development.

🌍 External Factors

Industry Trends

The real estate sector is seeing a larger share of India's GDP. The industry is evolving from unorganized workshops to organized industrial parks and bourses, positioning TBRCL's 'Surat Textile Bourse' as a modern solution for the cluster.

Competitive Landscape

Faces intense competition from other industrial park developers in the Gujarat region and alternative textile hubs.

Competitive Moat

The company's moat is its 'prime location' land bank in Udhna, Surat, which was acquired historically at low costs. This provides a durable cost advantage over competitors who must purchase land at current market rates of several crores per acre.

Macro Economic Sensitivity

Highly sensitive to India's transition to a middle-income economy; rising household incomes drive demand for textiles, which in turn fuels demand for the company's industrial real estate.

Consumer Behavior

Shift toward organized commercial spaces and 'plug-and-play' industrial units among textile entrepreneurs.

Geopolitical Risks

Trade barriers on textile imports could benefit the company's domestic clients, increasing demand for industrial space in Surat.

⚖️ Regulatory & Governance

Industry Regulations

Strict adherence to The Real Estate (Regulation and Development) Act, 2016 (RERA) is required for all projects. The company also faces regulatory oversight regarding the settlement of legacy employee dues and statutory government authorities.

Environmental Compliance

The planned Dahej plant will require stringent environmental clearances for chemical processing and the 12 MW power plant.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates; however, it benefits from the conversion of capital assets to stock-in-trade for tax planning.

Legal Contingencies

The company has pending settlements for employee dues and statutory authorities. It recently forfeited INR 8.56 Cr from strategic investors due to non-compliance with a BIFR rehabilitation scheme.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'timely completion' of Phase-I (Part-B), which is only 29.02% complete. Any delay could lead to cost overruns and a mismatch in the INR 175 Cr debt repayment schedule starting April 2025.

Geographic Concentration Risk

100% of current projects are located in Surat, making the company highly vulnerable to regional economic shifts or local regulatory changes in Gujarat.

Third Party Dependencies

High dependency on bank lenders for the INR 175 Cr facility and on customer advances for project completion.

Technology Obsolescence Risk

The company's pivot from 1960s-era textile manufacturing to modern real estate development mitigates the risk of its previous obsolete industrial setup.

Credit & Counterparty Risk

Receivables quality is healthy, with Debtors Turnover increasing to 4.73, though the company remains exposed to the credit risk of small-scale textile traders.