ABans Enterprise - ABans Enterprise

📊 BSE: 512165 🏢 Trading - Metals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated Total Income grew 118.42% YoY to INR 3,878.16 Cr, while Standalone Total Income grew 106% YoY to INR 108.01 Cr. Growth was primarily driven by strong demand for agricultural and metal commodities in both domestic and international markets.

Geographic Revenue Split

The company operates in domestic Indian markets and international bullion markets via its Dubai subsidiary. Specific percentage splits per region are not disclosed, but international operations expose the company to foreign exchange risks.

Profitability Margins

Consolidated Profit After Tax (PAT) increased 93.14% to INR 18.85 Cr. Standalone PAT increased 57% to INR 3.17 Cr. Consolidated PAT margin is approximately 0.48%, reflecting high-volume, low-margin commodity trading dynamics.

EBITDA Margin

Consolidated EBITDA grew 49.06% YoY to INR 51.77 Cr from INR 34.73 Cr, demonstrating effective expense streamlining and business model strengthening.

Credit Rating & Borrowing

Borrowings increased 62.26% to INR 251.56 Cr to support working capital requirements for expanded operations. Finance costs rose 50.62% to INR 18.12 Cr as a result.

⚙️ Operational Drivers

Raw Materials

Primary commodities traded include Gold, Silver, and various Agricultural products. These represent the core cost of goods sold for the bullion and agri segments.

Import Sources

International bullion is sourced and traded through the company's Dubai subsidiary. Domestic agri commodities are sourced within India.

Raw Material Costs

Inventory levels rose 123.33% to INR 221.90 Cr to meet anticipated sales demand. Sharp rises in gold and silver prices led to compressed yields during the period.

Manufacturing Efficiency

Inventory holding days improved to 15 days in FY 2024-25 from 21 days in FY 2023-24, indicating enhanced operational efficiency.

Logistics & Distribution

Creditor payment days (inventory holding period for suppliers) reduced to 5 days from 13 days, optimizing the working capital cycle.

📈 Strategic Growth

Growth Strategy

Growth is targeted through strategic enhancement of borrowings (up 46.05% in debt-equity ratio) to fund working capital, expansion of the premium domestic jewellery segment for HNW clients, and leveraging its scale as a major participant on the NCDEX.

Products & Services

Bullion (Gold/Silver), Agri commodities, Base metals, Derivatives trading, and Bespoke handcrafted jewellery.

Brand Portfolio

Abans Enterprises Limited (AEL), Abans Jewels.

New Products/Services

Introduction of bespoke, handcrafted jewellery designs for high-net-worth clients to navigate export headwinds and deepen presence in the luxury market.

Market Expansion

Focus on the premium domestic jewellery segment in India and stabilizing presence in the derivatives market for FY 2025-26.

Market Share & Ranking

Positioned as one of the largest entities on the NCDEX with over a decade of operational history.

🌍 External Factors

Industry Trends

Silver prices rose 18.97% internationally due to industrial demand in solar and electronics. Gold demand in India fell 15% in Q1 2025 due to high prices.

Competitive Landscape

Characterized by intense competition in commodity trading and jewellery manufacturing with numerous market participants.

Competitive Moat

Moat is built on an integrated trading model, in-house technology team for swift adaptation, and a decade-long track record on the NCDEX.

Macro Economic Sensitivity

Highly sensitive to global commodity price cycles, weather patterns affecting agri supply, and international financial stability.

Consumer Behavior

Resilient demand in the premium domestic jewellery segment, with a shift toward customized, handcrafted designs for luxury clients.

Geopolitical Risks

Geopolitical instability impacts commodity price volatility and supply chain availability, requiring active risk management.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to stringent regulations governing commodity trading, derivatives, bullion trading, and jewellery manufacturing.

Taxation Policy Impact

Consolidated current tax provision increased to INR 13.09 Cr in FY 2024-25 from INR 5.28 Cr in the previous year.

⚠️ Risk Analysis

Key Uncertainties

Commodity price volatility, regulatory/legislative changes, and technological risks such as cybersecurity threats.

Geographic Concentration Risk

Operations are concentrated in India and Dubai, with international bullion trading specifically exposed to Dubai's regulatory and economic environment.