💰 Financial Performance

Revenue Growth by Segment

Total revenue grew by 29.78% YoY, increasing from INR 1,031.31 Cr in FY 2023-24 to INR 1,338.49 Cr in FY 2024-25. Growth was driven by higher throughput and increased revenue from operations across its edible oil and vanaspati segments.

Geographic Revenue Split

Not specifically disclosed by region, though the company operates primarily in the Indian domestic market with a focus on regional demand to minimize distribution costs. Approximately 50% of revenue is generated from sales under its own brands.

Profitability Margins

Net Profit Margin improved significantly from 0.39% in FY24 to 2.03% in FY25. Operating Profit Margin rose from 0.29% to 2.57% (with some reports indicating recovery to 2.8-3.0% for the full fiscal year) due to stabilized raw material prices and higher revenue.

EBITDA Margin

Operating margins recovered to approximately 2.8-3.0% in FY25 from a low of 0.75% in FY24. This recovery is attributed to the stabilization of global edible oil prices and improved capacity utilization.

Capital Expenditure

The company has recently completed a successful expansion in its refining capacity. While specific INR figures for future projects are not disclosed, the management is currently focusing on increasing capacity utilization rather than major new capital expenditure in the immediate term.

Credit Rating & Borrowing

Long-term rating is Crisil BBB-/Positive (upgraded from Stable) and short-term rating is Crisil A3. The company maintains a healthy financial risk profile with negligible gearing (below 0.1 time) and an interest coverage ratio that improved from 2.45 to 14.31 in FY25.

⚙️ Operational Drivers

Raw Materials

Crude edible oils including Palm oil, Palmolein oil, Soyabean oil, Cottonseed oil, Groundnut oil, and Mustard oil. These represent the bulk of the manufacturing cost.

Import Sources

Majorly imported from Indonesia and Malaysia (for palm-based oils), making the company susceptible to export taxes and trade policies in these countries.

Key Suppliers

Not specifically named, but the company maintains long-term relationships with global suppliers in Indonesia and Malaysia and domestic oilseed producers.

Capacity Expansion

Current refining capacity has been recently expanded to cater to varied customer needs; however, the specific MTPA (Metric Tonnes Per Annum) is not disclosed. The strategic focus is now on increasing the utilization of this expanded capacity.

Raw Material Costs

Raw material costs are highly volatile; operating margins dropped to 0.50%-0.75% in previous years due to price spikes but recovered to ~3% as raw material prices stabilized. The company uses back-to-back procurement to mitigate price risk.

Manufacturing Efficiency

Efficiency is driven by multi-processing capabilities and state-of-the-art manufacturing plants. The company is focusing on increasing throughput to improve the absorption of fixed costs.

Logistics & Distribution

The company focuses on regional demand to avoid high marketing and distribution costs, which is critical given the price-sensitive nature of the edible oil industry.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be achieved by increasing capacity utilization of existing refining units, expanding the market for different product variants, and leveraging its strong B2B relationships. The company also aims to increase the share of its own branded sales, which currently stands at 50% of revenue.

Products & Services

Vanaspati, Refined Palm Oil, Refined Soyabean Oil, Mustard Oil, and specialized bakery shortening products used in biscuits, puffs, and pastries.

Brand Portfolio

Ajanta (primary brand for Vanaspati and Edible Oils).

New Products/Services

Focusing on variants for bakery applications and shortening products to cater to evolving consumer preferences in the post-pandemic, health-conscious market.

Market Expansion

Targeting increased market penetration for branded products and expanding the B2B client base in the food processing industry.

Market Share & Ranking

Described as a leading manufacturer and marketer of Vanaspati and Edible Oils in India for over two decades, though specific percentage market share is not disclosed.

Strategic Alliances

Maintains strong supply relationships with major FMCG players, though no specific new JVs were disclosed in the current period.

🌍 External Factors

Industry Trends

The industry is shifting toward increased health awareness and digital marketing. While the sector is growing due to strong consumer demand, it remains fragmented with intense competition from new brands adopting aggressive pricing.

Competitive Landscape

Intense competition from both large national players and aggressive new digital-first brands, leading to constant price pressure.

Competitive Moat

Moat is built on three decades of promoter experience, established relationships with top-tier FMCG clients (Britannia, ITC), and a diversified product portfolio. This is sustainable due to the high entry barriers in establishing large-scale B2B supply chains.

Macro Economic Sensitivity

Highly sensitive to Indian government reforms in agriculture and infrastructure, as well as inflation and currency fluctuations which affect consumer purchasing power.

Consumer Behavior

Rapidly evolving post-pandemic behavior with a shift toward branded, quality-assured edible oils and increased health awareness.

Geopolitical Risks

Significant risk from trade policies in Indonesia and Malaysia, such as changes in duty differentials between crude and refined oil and export quantitative caps.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by FSSAI standards, pollution control board norms, and SEBI listing regulations. Import/export duties imposed by the Government of India are the most critical regulatory factor affecting the bottom line.

Environmental Compliance

Investing in energy-saving technologies and pollution reduction measures to comply with industrial standards.

Taxation Policy Impact

Subject to Indian corporate tax rates; profitability is also heavily influenced by government import duty structures on crude vs. refined oils.

Legal Contingencies

No instances of industrial disputes or labor-related concerns were reported for the year ended March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Volatility in international commodity prices and currency fluctuations could impact profitability by 1-2% in a single quarter, as seen in the margin dip in Q4FY25.

Geographic Concentration Risk

Revenue is primarily domestic-focused, with a high concentration of raw material sourcing from Southeast Asia (Indonesia/Malaysia).

Third Party Dependencies

High dependency on global suppliers for crude oil and a few large B2B clients like Britannia and Parle for a significant portion of institutional sales.

Technology Obsolescence Risk

Low risk in core processing, but the company is proactively upgrading to a 'robust risk management system' and adopting energy-efficient manufacturing technologies.

Credit & Counterparty Risk

Receivables quality is high, evidenced by an improved Debtor Turnover Ratio of 56.86 in FY25 compared to 42.00 in FY24.