💰 Financial Performance

Revenue Growth by Segment

The edible oil segment revenue grew 25.09% YoY, increasing from INR 337.06 Cr in FY24 to INR 421.62 Cr in FY25, primarily driven by improved sales realization of cottonseed oil.

Geographic Revenue Split

Revenue is primarily concentrated in Gujarat and Western India, leveraging the established 'Ankur' brand recall in these regions; specific percentage split by state is not disclosed.

Profitability Margins

PBILDT margin improved to 3.45% in FY25 from 2.14% in FY24. PAT margin increased to 2.29% in FY25 from 1.03% in FY24, reflecting improved operational efficiency and scale.

EBITDA Margin

PBILDT margin stood at 3.45% in FY25, a YoY increase of 131 basis points from 2.14% in FY24, driven by the company's ability to pass on raw material price fluctuations.

Capital Expenditure

Historical capex is not explicitly detailed, but the company reduced its long-term bank facilities from INR 13.54 Cr to INR 12.27 Cr during FY25, indicating a focus on debt reduction over aggressive expansion.

Credit Rating & Borrowing

Credit ratings were upgraded in July 2025 to CARE BBB-; Stable (Long Term) and CARE A3 (Short Term) from CARE BB+; Stable / CARE A4+. Interest coverage ratio improved significantly to 6.95x in FY25 from 2.94x in FY24.

⚙️ Operational Drivers

Raw Materials

Crude cotton oil is the primary raw material, which is highly volatile and market-driven, representing the bulk of the cost of goods sold.

Import Sources

Raw materials are sourced domestically, primarily from the state of Gujarat, which is a leading processor of cotton in India.

Key Suppliers

The company procures crude cotton oil from various crushing oil mills on a back-to-back order basis to mitigate price risk.

Capacity Expansion

Current capacity utilization remained moderate at 40% in FY25 (compared to 41% in FY24 and 30% in FY23), suggesting available headroom for growth without immediate capacity expansion.

Raw Material Costs

Raw material costs are highly susceptible to agro-climatic conditions and government export quotas; the company uses a hedging framework to minimize the impact of price fluctuations on profitability.

Manufacturing Efficiency

Manufacturing efficiency is marked by a moderate capacity utilization of 40%, with the company focusing on refining cottonseed oil where value addition is limited.

Logistics & Distribution

The company utilizes a trademark license agreement for the 'Ankur' brand to facilitate wider customer reach and distribution efficiency in Western India.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

The company aims to achieve volume-based growth by targeting a Total Operating Income (TOI) above INR 800 Cr. Strategy includes leveraging the royalty-free 'Ankur' brand license, improving sales realization, and maintaining PBILDT margins above 2.5% while reducing overall gearing below 0.5x.

Products & Services

Refined edible oils, specifically refined cottonseed oil sold under the 'Ankur' brand.

Brand Portfolio

Ankur (used under a royalty-free trademark license agreement signed April 01, 2006).

Market Expansion

Focus on deepening penetration in the branded edible oil market in Gujarat and Western India, capitalizing on the shift from unorganized to organized retail.

Market Share & Ranking

Not disclosed, though the company is noted for its presence in a highly fragmented and competitive industry.

Strategic Alliances

Maintains a critical strategic linkage with group partnership firm 'Ankur Oil Industries', which shares common promoters and brand identity.

🌍 External Factors

Industry Trends

The branded edible oil industry is expected to grow due to increased health consciousness and organized retail penetration; however, the industry remains highly fragmented with low value-addition.

Competitive Landscape

Operates in a highly competitive environment with numerous organized and unorganized players in the edible oil refining sector.

Competitive Moat

The moat is built on the long-standing experience of promoters and the 'Ankur' brand name, which provides a wider customer reach and brand recall in Gujarat.

Macro Economic Sensitivity

Highly sensitive to agro-climatic conditions affecting cotton yield and GDP-driven consumer spending on branded food products.

Consumer Behavior

Shift toward branded and refined oils due to health consciousness and better availability through organized retail channels.

Geopolitical Risks

Subject to global commodity price risks and domestic regulatory changes in tax laws and government statutes.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, Ind AS accounting standards, and specific edible oil industry regulations including GST (GSTIN: 24AABCM0541N1ZM).

Taxation Policy Impact

The company's effective tax rate is approximately 25.9%, based on a PBT of INR 13.03 Cr and PAT of INR 9.65 Cr for FY25.

Legal Contingencies

No proceedings were pending as of March 31, 2025, for holding Benami property; the auditor reported that proper books of accounts are maintained and in agreement with financial statements.

⚠️ Risk Analysis

Key Uncertainties

Primary uncertainties include raw material price volatility (cottonseed) and the ability to maintain margins in a low-value-additive business.

Geographic Concentration Risk

High geographic concentration in Gujarat, making the company vulnerable to regional economic or climatic shifts.

Third Party Dependencies

Significant dependency on related party 'Ankur Oil Industries' for 77% of total revenue.

Technology Obsolescence Risk

Low risk of technology obsolescence in oil refining, though the company is upgrading to more robust risk management and internal control systems.

Credit & Counterparty Risk

Liquidity is considered stretched with 96% utilization of fund-based limits, though the financial risk profile improved in FY25 due to augmented net worth.