Shervani Indl Sy - Shervani Indl Sy

📊 BSE: 526117 🏢 Residential, Commercial Projects 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The primary revenue driver is the Real Estate segment. The subsidiary Farco Foods Private Limited reported a turnover of INR 4.49 Cr (449.32 Lakhs) for FY25. The company also generates income from leasing vacant land following the discontinuation of its goat farming project.

Geographic Revenue Split

100% of the company's real estate operations and projects, including the ongoing Victory Tower, are concentrated in the Prayagraj (Uttar Pradesh) micro-market.

Profitability Margins

The company reported an average net profit of INR 10.59 Cr (1059.05 Lakhs) as per Section 135(5) for FY25. The subsidiary Farco Foods Private Limited reported a net loss of INR 0.1565 Cr (15.65 Lakhs).

Credit Rating & Borrowing

The company's long-term bank facilities of INR 77.00 Cr were reaffirmed at IVR BBB-/Stable (Triple B minus with Stable Outlook) in September 2025. Total debt as of March 31, 2025, was INR 51.38 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials for real estate development include steel, cement, bricks, and construction labor. Specific percentage of total cost for each is not disclosed.

Capacity Expansion

The company has developed ~7 lakh square feet (lsf) in the past. Current expansion is focused on the 'Victory Tower' project, which has a total saleable area of ~6.95 lsf.

Manufacturing Efficiency

The company demonstrated strong marketability by selling ~6 lsf or 86% of its past developed saleable area of 7 lsf.

📈 Strategic Growth

Growth Strategy

Growth is driven by the execution of the 'Victory Tower' project (~6.95 lsf) and the strategic decision to lease out vacant land from the discontinued goat farming project to ensure effective property utilization and security.

Products & Services

Residential and commercial real estate units, and land leasing services.

Brand Portfolio

Shervani Industrial Syndicate Limited, Shervani Group, Victory Tower.

New Products/Services

The ongoing 'Victory Tower' project is the primary new product offering, contributing to future saleable area.

Market Expansion

The company is focused on deepening its presence in the Prayagraj real estate micro-market.

Strategic Alliances

The company holds a 46.33% stake in Youngtronics India Private Limited. It ceased to have an associate relationship with Star Hotels w.e.f. February 20, 2025.

🌍 External Factors

Industry Trends

The real estate industry in Prayagraj is evolving with a focus on high-rise residential/commercial developments like Victory Tower, supported by experienced local promoters.

Competitive Landscape

The company competes in the Prayagraj real estate micro-market against other local developers.

Competitive Moat

The company's moat is built on the Shervani Group's decade-long track record and established brand presence in the Prayagraj real estate market, which supports project marketability.

Consumer Behavior

Demand is driven by the marketability of projects in specific real estate micro-markets where the promoters have a proven track record.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, Securities Contracts (Regulation) Act 1956, SEBI (LODR) Regulations 2015, and the Maternity Benefit Act 1961.

Environmental Compliance

The company reports compliance with applicable environmental laws as part of its secretarial audit.

Legal Contingencies

The Statutory Auditors' Report for the year ended March 31, 2025, contained no qualifications, reservations, or adverse remarks.

⚠️ Risk Analysis

Key Uncertainties

Key risks include construction delays leading to cost overruns, weaker sales performance, and any debt-driven capex that could deteriorate the gearing ratio (currently 0.44x).