Cosmo Ferrites - Cosmo Ferrites

📊 BSE: 523100 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Net revenue for Q2 FY26 grew 19.3% YoY to INR 25.30 Cr compared to INR 21.20 Cr in Q2 FY25, primarily driven by a significant increase in domestic volume. FY24 revenue saw a 9% decline to INR 98.26 Cr due to a 15% drop in realization prices.

Geographic Revenue Split

The company derives 54% of its revenue from the domestic Indian market and 46% from export markets including Germany, UK, Italy, USA, and China.

Profitability Margins

Profitability has been under pressure with a net loss of INR 2.01 Cr in FY24. Q2 FY26 reported a net loss of INR 0.57 Cr, showing improvement from a loss of INR 1.97 Cr in Q2 FY25. CARE expects PBILDT margins to stabilize between 10%-13% in the medium term.

EBITDA Margin

EBITDA margin for Q2 FY26 improved to 8% (INR 2.12 Cr) from 5% (INR 1.06 Cr) in Q2 FY25, representing a 100% increase in absolute EBITDA value YoY.

Capital Expenditure

The company is investing in a Top Hat Kiln to add 25 Ton per month (300 TPA) of capacity for high permeability ferrite cores. While major capex is not planned for the near term, significant investments are being made in automation and efficiency enhancement.

Credit Rating & Borrowing

CARE reaffirmed ratings at CARE BBB-; Stable for long-term facilities (INR 47.46 Cr) and CARE A3 for short-term facilities (INR 7.00 Cr). Borrowing is supported by INR 22.00 Cr in unsecured loans from promoters.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include Iron Oxide, Manganese Oxide, and Zinc Oxide used for Manganese-Zinc-based Soft Ferrite Cores, and Nickel for Ni-Zn ferrites.

Import Sources

Not specifically disclosed, though the company is moving towards indigenized products under the 'Vocal for Local' initiative.

Capacity Expansion

Current annual capacity stands at 3,600 MT for Ferrite Powder and 3,900 MT for Ferrite Components. Planned expansion includes 25 MT per month via the new Top Hat Kiln.

Raw Material Costs

Raw material costs are a significant sensitivity; FY24 saw a 15% decline in realization prices due to dumping of low-priced materials from China, which squeezed margins.

Manufacturing Efficiency

Focusing on automation and manpower optimization to enhance robust manufacturing and efficiency.

Logistics & Distribution

The company maintains global stocking availability to support its 46% export revenue share.

📈 Strategic Growth

Expected Growth Rate

19.3%

Growth Strategy

Growth will be driven by the 35% anti-dumping duty on Chinese imports effective March 2025, expansion into the Ni-Zn ferrite portfolio (10 new customers added), and targeting high-end applications with the new Top Hat Kiln capacity.

Products & Services

Soft Ferrite Cores (Mn-Zn and Ni-Zn based), Ferrite Powder, and wire-wound magnetic components used in power electronics.

Brand Portfolio

Cosmo Ferrites

New Products/Services

Ni-Zn ferrites and high permeability ferrite cores for high-end applications; 10 customers were added for Ni-Zn products last year.

Market Expansion

Targeting domestic growth through indigenized products and expanding the global reach which currently spans over 50 countries.

Market Share & Ranking

Striving to become the market and product leader in soft ferrites; specific market share percentage not disclosed.

Strategic Alliances

Management support agreement with Cosmo First Limited for strategy, marketing, and investor relations.

🌍 External Factors

Industry Trends

The industry is shifting toward high-end applications and automation. The imposition of a 35% anti-dumping duty in March 2025 is a major regulatory shift favoring domestic manufacturers.

Competitive Landscape

Faces intense competition from low-priced Chinese imports, though this is mitigated by the new 35% import duty.

Competitive Moat

Moat is built on 3+ decades of soft ferrite excellence, the widest product portfolio in the segment, and regulatory protection via anti-dumping duties.