Birla Precision - Birla Precision

📊 BSE: 522105 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated total income for FY25 was INR 216.02 Cr, a decline of 5.07% from INR 227.56 Cr in FY24. Standalone revenue fell 8.02% to INR 209.51 Cr. Historical segment mix (FY22) was Cutting Tools (82%), Tool Holders (10%), and Machining/Precision Components (8%).

Geographic Revenue Split

Domestic sales contribute 92% of revenue, while international exports to 30+ countries (including USA, Germany, China, Brazil, and Mexico) account for 8%.

Profitability Margins

Consolidated Net Profit Margin declined from 4.14% in FY24 to 2.71% in FY25. Return on Net Worth (consolidated) fell from 6% to 4% YoY due to operational disruptions and higher input costs.

EBITDA Margin

Consolidated EBITDA margin compressed from 11.77% in FY24 to 9.61% in FY25. Standalone EBITDA margin fell from 12.28% to 10.04% YoY, primarily due to a 5% increase in Cost of Goods Sold (COGS) as a percentage of revenue.

Capital Expenditure

The company availed a term loan of INR 6.15 Cr from JSB in FY25 to meet capital expenditure requirements for upgrading manufacturing facilities.

Credit Rating & Borrowing

Infomerics assigned a long-term rating of IVR BBB/Stable and a short-term rating of IVR A3+ for total bank facilities of INR 70.00 Cr. Finance costs increased 63.25% YoY to INR 5.72 Cr in FY25.

⚙️ Operational Drivers

Raw Materials

Key raw materials include castings, forgings, and Ammonium Paratungstate (APT) for the carbide tools portfolio.

Import Sources

Sourcing is primarily domestic from casting and forging sectors, though competitive pressure suggests exposure to low-cost Chinese raw material markets.

Capacity Expansion

Current total capacity is approximately 22.87 lakh pieces per month across five plants: Nashik (14 lakh/month), Aurangabad (4.87 lakh/month), and Chalisgaon (4 lakh/month).

Raw Material Costs

COGS as a percentage of revenue increased by 5% in FY25 due to changes in inventory consumption patterns and rising APT prices.

Manufacturing Efficiency

Operational efficiency was temporarily hampered in FY25 by the SAP migration, leading to an 8% decline in sales during the transition period.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through penetration into the US consumable market, diversifying the customer base into Railways, EV bus body building, and the DIY segment, and the demerger of the Foundry division into Birla Accucast Private Limited to unlock value.

Products & Services

Cutting tools (drills, reamers, cutters), tool holders (collets, work holdings), and precision machined components (camshafts, cylinder blocks, braking systems).

Brand Portfolio

Dagger, Carbomach, and Hathyar.

New Products/Services

Expansion of the Carbide Tools portfolio and specialized components for the EV bus body building and DIY segments.

Market Expansion

Targeting global market penetration with a focus on the US and Germany, leveraging the global shift away from Chinese manufacturing dependency.

Market Share & Ranking

Pioneer and leading tool manufacturing company in India with an 8-decade legacy; ITM subsidiary holds a significant market share in cutting tools.

Strategic Alliances

Historical technical collaborations include Kennametal Inc (USA) for tool holders and Perucchini spa (Italy) for precision components.

🌍 External Factors

Industry Trends

Rapid integration of advanced materials, electrification (EVs), and automation in the automotive ecosystem are driving demand for high-precision components.

Competitive Landscape

Intense rivalry from domestic casting/forging players entering tool manufacturing and traders branding low-cost Chinese imports locally.

Competitive Moat

Durable moat derived from an 80-year legacy (since 1937), the Birla brand name, and a massive product basket of 60,000+ SKUs.

Macro Economic Sensitivity

Highly sensitive to the automotive sector, which accounts for a significant portion of demand; Asia-Pacific leads the global market with a 42.7% revenue share in 2025.