💰 Financial Performance

Revenue Growth by Segment

Real Estate segment revenue fell 99.6% YoY from INR 99.26 Cr in FY24 to INR 0.40 Cr in FY25, reflecting the highly cyclical and transaction-dependent nature of the company's lease plot land sales.

Geographic Revenue Split

India (Ghaziabad region): 100% contribution, as the company's primary assets and operations are localized in Uttar Pradesh.

Profitability Margins

Net Profit Margin decreased from 77.7% in FY24 to 30.3% in FY25. This sharp decline is primarily due to the 99.6% drop in operational revenue while fixed costs and development expenses remained relatively stable.

EBITDA Margin

EBITDA Margin was 48.0% in FY25, a significant decrease from 93.6% in FY24 (a drop of 45.6 percentage points). Core profitability is driven by land sales, and the lack of major transactions in FY25 led to this margin compression.

Capital Expenditure

Property, Plant and Equipment (PPE) stood at INR 0.0581 Cr as of March 31, 2025, reflecting minimal historical and planned capital expenditure due to the cessation of production activities.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company funds its requirements largely through internal cash generation and maintains a conservative financial profile.

⚙️ Operational Drivers

Raw Materials

Land and Site Development Expenses (INR 2.99 Cr, representing 7.3% of total expenses before inventory adjustments).

Import Sources

Not disclosed in available documents; land assets are domestic (India).

Capacity Expansion

Current installed capacity is zero as production activities have ceased. The company has transitioned entirely to real estate land leasing and development.

Raw Material Costs

Land and Site Development Costs were INR 2.99 Cr in FY25, a 398% increase from INR 0.60 Cr in FY24, as the company invested in preparing lease plot land for future sales despite lower current revenue.

Manufacturing Efficiency

Not applicable as the company has ceased production activities.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company aims to achieve growth by focusing on its core real estate segment, specifically through the development and sale of its strategically located lease plot land, supported by internal cash generation and a debt-free balance sheet.

Products & Services

Sale of lease plot land.

Brand Portfolio

Swadeshi Polytex Limited.

🌍 External Factors

Industry Trends

The Indian real estate sector is growing in office and residential segments. A shift toward return-to-office policies is improving occupancy in the office segment, supporting the valuation of the company's commercial-oriented land holdings.

Competitive Moat

The company's moat is its debt-free status and robust balance sheet with INR 111.02 Cr in equity. This allows it to hold strategically located land assets through market cycles without interest cost pressure.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and RBI interest rate policies; higher rates increase borrowing costs for potential buyers of lease plot land, thereby reducing demand.

Consumer Behavior

Increased consumer spending and higher footfalls in the retail segment are driving demand for commercial real estate, positively impacting the valuation of commercial land plots.

Geopolitical Risks

General global uncertainties are noted as potential risks to the Indian economy, which could indirectly affect domestic real estate demand.

⚖️ Regulatory & Governance

Industry Regulations

Subject to real estate development norms and initiatives by Central and State Governments; also faces regulatory matters under the Customs Act and Central Excise Act related to past operations.

Taxation Policy Impact

The company's effective tax rate was 34.3% in FY25, with current tax amounting to INR 1.02 Cr. Changes in fiscal policy affecting real estate taxation would directly impact net profitability.

Legal Contingencies

Pending disputes include a Custom Duty dispute of INR 17.11 Lacs and a Central Excise Duty refund claim of INR 138.31 Lacs pending at CESAT.

⚠️ Risk Analysis

Key Uncertainties

Key business risks include demand-supply fluctuations in the real estate market and changes in government statutes, which could impact the realization of land assets as seen in the 99.6% revenue decline in FY25.

Geographic Concentration Risk

100% of revenue and assets are concentrated in the Ghaziabad, Uttar Pradesh region, making the company vulnerable to local economic and regulatory shifts.

Technology Obsolescence Risk

Not applicable as the company has ceased production activities and transitioned to real estate land leasing.