Axtel Industries - Axtel Industries

📊 BSE: 523850 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment of manufacturing food processing instruments and equipment. Revenue from operations for FY25 was INR 178.56 Cr, representing a decrease of 20.05% compared to INR 223.33 Cr in FY24.

Geographic Revenue Split

Not explicitly disclosed by percentage, though the company notes exposure to global economic environments affecting export demand for food processing plants.

Profitability Margins

Net profit after tax for FY25 was INR 18.03 Cr, a 43.9% decrease from INR 32.13 Cr in FY24. PAT margin for FY25 was approximately 10.1% compared to 14.4% in FY24.

EBITDA Margin

PBILDT margin was 20.07% in FY24, an increase of 693 bps YoY due to the execution of high-value technical orders. Margins typically range between 13% and 20% depending on the technical complexity of the orders.

Capital Expenditure

Capital expenditure for the purchase of property, plant, and equipment (including CWIP) was INR 6.98 Cr in FY25, down from INR 10.91 Cr in FY24.

Credit Rating & Borrowing

Credit ratings were upgraded in February 2025 to CARE A-; Stable / CARE A2+ from CARE BBB+; Stable / CARE A2. The company maintains a strong debt coverage profile with a PBILDT interest coverage ratio of 27.86x in FY24 and 56.50x in 9MFY25.

⚙️ Operational Drivers

Raw Materials

Steel and various components are the primary raw materials. Cost of materials consumed represented 43.2% of revenue in FY25 (INR 77.09 Cr) compared to 50.8% in FY24 (INR 113.51 Cr).

Capacity Expansion

Not disclosed in specific MT/units; however, the company operates a state-of-the-art manufacturing facility in Halol, Gujarat.

Raw Material Costs

Raw material costs decreased by 32.1% YoY in FY25 to INR 77.09 Cr, following the decline in overall turnover. The company faces commodity price risk on steel which can squeeze margins on fixed-price contracts.

Manufacturing Efficiency

Profitability varies based on the nature of orders, with high-margin technical/customized orders yielding better efficiency than regular orders.

📈 Strategic Growth

Expected Growth Rate

24%

Growth Strategy

Growth is driven by the expansion of the Indian food processing sector. Strategy includes focusing on custom-designed plants, turnkey systems, and high-value technical products to maintain healthy margins.

Products & Services

Custom-designed food processing plants, machinery, process engineering equipment, and turnkey systems.

Brand Portfolio

Axtel

New Products/Services

The company implemented the 'Axtel Industries Ltd Employee Stock Option Plan 2024' to attract and retain talent for future growth.

🌍 External Factors

Industry Trends

The food processing sector is expanding steadily; however, it is currently experiencing slow capex progress which led to a moderation in Axtel's scale in FY25.

Competitive Landscape

Key competition arises from European manufacturers, which creates pressure on margins and market share.

Competitive Moat

Moat is built on an established 30-year track record, niche positioning in technical food processing equipment, and long-standing relationships with a reputed clientele.

Macro Economic Sensitivity

Highly sensitive to the capex cycle in end-user food processing industries and global economic growth rates.

Geopolitical Risks

Uncertain global economic environments and competition from European countries pose risks to market share and margins.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and Indian Accounting Standards (Ind AS). The company maintains adequate internal financial controls as certified by auditors.