Shetron - Shetron

📊 BSE: 526137 🏢 Packaging 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue was INR 230.1 Cr in FY2025, a decline of 4.3% from INR 240.4 Cr in FY2024. Growth in the battery jackets segment remains range-bound due to limited demand, while the food packaging division is the primary growth driver through incremental sales of value-added products. H1 FY2026 revenue stood at INR 129.2 Cr, indicating a recovery trend.

Geographic Revenue Split

Exports accounted for 20-22% of total revenues over the last three years, with the remaining 78-80% derived from the domestic Indian market.

Profitability Margins

Operating Profit Margin (OPM) moderated to 8.2% in FY2025 from 9.8% in FY2024 (a 173 bps decline). Net Profit Margin (NPM) fell to 1.34% in FY2025 from 2.71% in FY2024. H1 FY2026 OPM further declined to 7.0% due to lower margins on food cans compared to battery jackets.

EBITDA Margin

EBITDA margin (OPM) was 8.2% in FY2025. Core profitability is impacted by the shift in product mix toward food cans, which carry lower margins than the legacy battery jacket business, and fluctuations in raw material prices.

Capital Expenditure

The company has no major debt-funded capital expenditure plans in the near-to-medium term, having recently completed capacity additions in the food can division. Repayment obligations are INR 4.5 Cr for FY2025 and INR 3.8 Cr for FY2026.

Credit Rating & Borrowing

Long-term rating is [ICRA]BB+ (Positive), reaffirmed in November 2025. Short-term rating is [ICRA]A4+. Interest coverage improved to 3.0x in H1 FY2026 from 2.3x in H1 FY2025 due to better bill discounting terms.

⚙️ Operational Drivers

Raw Materials

Tin plates are the primary raw material, representing the largest component of the cost structure for manufacturing battery jackets and food cans.

Import Sources

Raw materials are sourced from domestic markets and imported from Taiwan, China, Japan, South Korea, and Germany. Imports account for 12-15% of total requirements.

Key Suppliers

Not specifically named, but the company faces high supplier concentration with a single supplier meeting 46% of requirements in FY2025 and 54% in the first five months of FY2026.

Capacity Expansion

Current manufacturing plants are located in Bangalore (Karnataka) and Asangaon (Maharashtra). Recent capacity expansions were focused on the food can division to capture growing demand in the F&B sector.

Raw Material Costs

Profitability is highly vulnerable to tin plate price fluctuations. The company uses a natural hedge for 12-15% of its requirements through imports to mitigate some forex and price risk.

Manufacturing Efficiency

The company focuses on process improvements and skill building to maintain competitiveness and achieve customer satisfaction through stringent quality norms.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

Growth will be driven by the food packaging division's value-added products and a venture into general packaging, which offers less seasonality. The company aims to leverage its 30+ years of promoter experience and established relationships with FMCG and battery majors to increase market share.

Products & Services

Metal cans for food, dry cell battery jackets and components, printed metal sheets, and general packaging solutions.

Brand Portfolio

Shetron Limited (The Name Behind The Names).

New Products/Services

The company has recently ventured into the general packaging business and value-added food packaging lines to diversify revenue streams.

Market Expansion

Focusing on international markets (currently 20-22% of revenue) and expanding the domestic customer base in the pharmaceutical and fruit processing sectors.

🌍 External Factors

Industry Trends

The industry is shifting from plastic to recyclable metal packaging due to environmental regulations and a ban on single-use plastics. Canned F&B demand is growing due to changing consumer lifestyles.

Competitive Landscape

Competes with other metal packaging firms and alternative packaging material providers; however, metal's infinite recyclability provides a regulatory advantage.

Competitive Moat

The moat is built on 30+ years of industry experience, long-standing relationships with global suppliers, and high switching costs for battery manufacturers requiring specific jacket components.

Macro Economic Sensitivity

Highly sensitive to global metal prices (tin) and domestic F&B consumption trends. Changes in plastic ban regulations significantly favor the company's metal packaging products.

Consumer Behavior

Increasing preference for canned, ready-to-eat food and beverages is driving demand for the company's food can division.

Geopolitical Risks

Trade barriers or supply chain disruptions in Taiwan, China, or South Korea could impact raw material availability given the 54% supplier concentration.

⚖️ Regulatory & Governance

Industry Regulations

Subject to labor laws, pollution norms, and SEBI (LODR) regulations. The company maintains ISO 9001:2015 certification for quality management.

Environmental Compliance

Complies with tightening emission standards and waste disposal regulations. Promotes metal as a sustainable alternative to plastic due to its infinite recyclability.

Legal Contingencies

As of May 2025, no directors have been debarred or disqualified by SEBI or the Ministry of Corporate Affairs. No specific pending litigation values were disclosed.