💰 Financial Performance

Revenue Growth by Segment

Total sales turnover grew 4% YoY to INR 233.11 Cr in FY25. The Metal Cans and components segment achieved sales of INR 220.28 Cr, representing a 5% growth compared to INR 210.71 Cr in the previous year. Export orders contributed INR 5.26 Cr to the total revenue.

Geographic Revenue Split

Domestic sales account for approximately 97.8% of total revenue, primarily driven by operations in Gujarat. Export sales of metal cans and components contributed INR 5.26 Cr, or roughly 2.2% of total turnover.

Profitability Margins

Net Profit After Tax (PAT) margin stood at 1.66% in FY25, a slight decline from 1.68% in FY24. Profit After Tax was INR 3.84 Cr in FY25 compared to INR 3.77 Cr in FY24, representing a modest 1.8% increase.

EBITDA Margin

Operating EBITDA margin was 3.20% in FY25, down from approximately 3.5% in previous periods. Q1 FY26 results showed a slight recovery in EBITDA to 3.45%, though margins remain low due to the price-sensitive nature of the tin container industry.

Capital Expenditure

The company has planned capital expenditure of INR 18 Cr to INR 20 Cr, which is expected to be funded entirely through internal accruals and available cash balances of INR 15 Cr.

Credit Rating & Borrowing

The company's long-term credit rating was downgraded to CRISIL BBB/Stable from CRISIL BBB+/Stable in September 2025. Short-term ratings were downgraded to CRISIL A3+ from CRISIL A2. Despite the downgrade, the company maintains a strong financial risk profile with an interest coverage ratio of 31.16 times in FY25.

⚙️ Operational Drivers

Raw Materials

Tinplate is the primary raw material for the can division. The company also procures materials for sugar cone manufacturing. Raw material costs are highly volatile and significantly impact the low operating margins of ~3%.

Import Sources

The company historically imported tinplate; however, imports have been restricted since July 2021 due to the implementation of BIS certification norms by the Government of India.

Key Suppliers

Not specifically disclosed in available documents, though the company relies on tinplate suppliers compliant with BIS certification standards.

Capacity Expansion

Current manufacturing units are located at Kanjari (Cans) and Vitthal Udyog Nagar (Sugar Cones) in Gujarat. Planned capex of INR 18-20 Cr is aimed at technology upgrading and improving operating parameters rather than specific volume capacity increases.

Raw Material Costs

Raw material costs are a major component of the cost structure. Profitability is susceptible to volatility in input prices, particularly tinplate, which has faced procurement challenges due to regulatory certification requirements.

Manufacturing Efficiency

The company is focusing on technology upgrading and reducing costs to improve operating parameters. It currently meets 95-97% of GCMMF's total 'can' requirements, indicating high operational integration.

Logistics & Distribution

The company benefits from the proximity of its manufacturing operations to its primary customer, GCMMF, which reduces distribution complexities for its metal can segment.

📈 Strategic Growth

Expected Growth Rate

4-5%

Growth Strategy

Growth will be achieved by consolidating the company's position as a preferred supplier to GCMMF (Amul), upgrading manufacturing technology to improve efficiency, and executing export orders which reached INR 5.26 Cr in FY25. The company aims to mitigate low margins through cost reduction and improved operating parameters.

Products & Services

Metal tin cans and components for dairy and food products, and sugar cones for the ice cream industry.

Brand Portfolio

Kaira Can Company Limited (KCCL).

New Products/Services

The company continues to focus on its core metal cans and components, with a focus on specialized components for the dairy segment.

Market Expansion

The company is targeting growth in its export segment, which currently stands at INR 5.26 Cr, and is looking to consolidate its domestic position in the metal container industry.

Market Share & Ranking

The company meets nearly the entire (95-97%) can requirement for GCMMF, the largest food products marketing organization in India.

Strategic Alliances

The company maintains a long-standing association with GCMMF (Amul), supplying 95-97% of their can requirements since inception.

🌍 External Factors

Industry Trends

The tin container industry is characterized by low margins and high volumes. While it faces competition from alternative packaging, it holds ground due to unique attributes. The sugar cone segment is facing increased competition from unorganized players.

Competitive Landscape

Key competition comes from the unorganized sector, particularly in the sugar cone and metal container segments, which often operates with lower overheads.

Competitive Moat

The company's moat is built on its 60-year relationship with GCMMF and the geographical proximity of its plants to the client's facilities. This creates high switching costs and a stable, albeit concentrated, revenue stream.

Macro Economic Sensitivity

The company is sensitive to food processing and dairy industry trends, as these sectors drive the demand for metal cans and sugar cones.

Consumer Behavior

Increased demand for packaged dairy and food products supports the metal can segment, while the ice cream industry's growth drives the sugar cone division.

Geopolitical Risks

Trade barriers such as the BIS certification norms implemented in 2021 have restricted the company's ability to import raw materials, impacting procurement flexibility.

⚖️ Regulatory & Governance

Industry Regulations

Operations are significantly impacted by BIS certification norms for tinplate imports and compliance with SEBI Listing Obligations and Disclosure Requirements (LODR) 2015.

Environmental Compliance

The company has initiated a 'green initiative' to reduce paper consumption by exclusively using electronic modes for annual reports and notices.

Taxation Policy Impact

The company has pending disputes regarding Income Tax, Sales Tax, and GST, which are being monitored as key audit matters.

Legal Contingencies

The company faces pending litigations and claims related to taxation. Auditors highlighted the assessment of contingent liabilities as a key audit matter due to the level of management judgment required.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainties include the volatility of tinplate prices and the high dependency on a single customer (GCMMF), which poses a significant risk to revenue stability if the relationship changes.

Geographic Concentration Risk

Manufacturing is concentrated in Gujarat (Kanjari and Vitthal Udyog Nagar), making the company sensitive to regional industrial policies and labor dynamics.

Third Party Dependencies

85-90% of revenue is dependent on GCMMF, creating a high level of third-party counterparty risk.

Technology Obsolescence Risk

The company is addressing technology risks through a planned INR 18-20 Cr capex for technology upgrading to remain competitive against the unorganized sector.

Credit & Counterparty Risk

Receivables quality is considered high due to the long-standing relationship with a reputable player like GCMMF.